Document:

exv10w1

Exhibit 10.1

AMENDED AND RESTATED FIVE YEAR CREDIT AGREEMENT

Dated as of December 7, 2010

          JABIL CIRCUIT, INC., a Delaware corporation (the “Company”), the banks, financial
institutions and other institutional lenders (the “Initial Lenders”) and issuers of letters
of credit (“Initial Issuing Banks”) listed on Schedule I hereto, JPMORGAN CHASE BANK, N.A.,
as syndication agent, THE ROYAL BANK OF SCOTLAND PLC and BANK OF AMERICA, N.A., as documentation
agents, and CITIBANK, N.A. (“Citibank”), as administrative agent (the “Agent”) for
the Lenders (as hereinafter defined), agree as follows:

          PRELIMINARY STATEMENT.

          The Company, the lenders parties thereto and Citicorp USA, Inc., as agent, were parties to
that certain Five Year Credit Agreement dated as of May 11, 2005, amended and restated as of July
19, 2007, as amended to the date hereof (the “Existing Credit Agreement”). Subject to the
satisfaction of the conditions set forth in Section 3.01, the Company, the parties hereto and
Citibank, as Agent, desire to amend and restate the Existing Credit Agreement as herein set forth
and in connection with such amendment and restatement, to appoint Citibank as successor
administrative agent to Citicorp USA, Inc.

ARTICLE I

DEFINITIONS AND ACCOUNTING TERMS

          SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined):

     “Advance” means a Revolving Credit Advance or a Swing Line Advance.

     “Affiliate” means, as to any Person, any other Person that, directly or
indirectly, controls, is controlled by or is under common control with such Person or is a
director or officer of such Person. For purposes of this definition, the term “control”
(including the terms “controlling”, “controlled by” and “under common control with”) of a
Person means the possession, direct or indirect, of the power to direct or cause the
direction of the management and policies of such Person, whether through the ownership of
Voting Stock, by contract or otherwise.

     “Agent’s Account” means (a) in the case of Advances denominated in Dollars, the
account of the Agent maintained by the Agent at Citibank at its office at 1615 Brett Road,
Building #3, New Castle, Delaware 19720, Account No. 36852248, Attention: Bank Loan
Syndications, (b) in the case of Advances denominated in any Committed Currency, the account
of the Agent or the Sub-Agent designated in writing from time to time by the Agent to the
Company and the Lenders for such purpose and (c) in any such case, such other account of the
Agent as is designated in writing from time to time by the Agent to the Company and the
Lenders for such purpose.

     “Applicable Lending Office” means, with respect to each Lender, such Lender’s
Domestic Lending Office in the case of a Base Rate Advance and such Lender’s Eurocurrency
Lending Office in the case of a Eurocurrency Rate Advance.

     “Applicable Margin” means as of any date, a percentage per annum determined by
reference to the Public Debt Rating in effect on such date as set forth below:

 

 

	 	 	 	 	 	 	 	 	 
	Public Debt Rating	 	Applicable Margin for	 	Applicable Margin for
	S&P/Moody’s	 	Eurocurrency Rate Advances	 	Base Rate Advances
	Level 1

BBB or Baa2 or above
	 	 	1.400	%	 	 	0.400	%
	Level 2

BBB- or Baa3
	 	 	1.625	%	 	 	0.625	%
	Level 3

BB+ or Ba1
	 	 	1.850	%	 	 	0.850	%
	Level 4

BB or Ba2
	 	 	2.050	%	 	 	1.050	%
	Level 5

Lower than Level 4
	 	 	2.500	%	 	 	1.500	%

     “Applicable Percentage” means, as of any date a percentage per annum determined
by reference to the Public Debt Rating in effect on such date as set forth below:

	 	 	 	 	 
	Public Debt Rating	 	Applicable
	S&P/Moody’s	 	Percentage
	Level 1

BBB or Baa2 or above
	 	 	0.350	%
	Level 2

BBB- or Baa3
	 	 	0.375	%
	Level 3

BB+ or Ba1
	 	 	0.400	%
	Level 4

BB or Ba2
	 	 	0.450	%
	Level 5

Lower than Level 4
	 	 	0.500	%

     “Assignment and Acceptance” means an assignment and acceptance entered into by
a Lender and an Eligible Assignee, and accepted by the Agent, in substantially the form of
Exhibit C hereto.

     “Assuming Lender” has the meaning specified in Section 2.18(d).

     “Assumption Agreement” has the meaning specified in Section 2.18(d)(ii).

     “Available Amount” of any Letter of Credit means, at any time, the maximum
amount available to be drawn under such Letter of Credit at such time (assuming compliance
at such time with all conditions to drawing).

     “Bankruptcy Law” means any law or proceeding of the type referred to in Section
6.01(e) or Title 11, U.S. Code, or any similar foreign, federal, state or provincial law for
the relief of debtors.

     “Base Rate” means a fluctuating interest rate per annum in effect from time to
time, which rate per annum shall at all times be equal to the highest of:

     (a) the rate of interest announced publicly by Citibank in New York, New York,
from time to time, as Citibank’s base rate;

     (b) 1/2 of one percent per annum above the Federal Funds Rate; and

     (c) the British Bankers Association Interest Settlement Rate applicable to
Dollars for a period of one month (“One Month LIBOR”) plus 1.00% (for the
avoidance of doubt, the One Month LIBOR for any day shall be based on the rate
appearing on Reuters LIBOR01 Page (or other commercially available source providing
such quotations as designated by the Agent from time to time) at approximately 11:00
a.m. London time on such day).

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     “Base Rate Advance” means an Advance denominated in Dollars that bears interest
as provided in Section 2.07(a)(i).

     “Borrowers” means, collectively, the Company and the Designated Subsidiaries
from time to time.

     “Borrowing” means a Revolving Credit Borrowing or a Swing Line Borrowing.

     “Business Day” means a day of the year on which banks are not required or
authorized by law to close in New York City and, if the applicable Business Day relates to
any Eurocurrency Rate Advances, on which dealings are carried on in the London interbank
market and banks are open for business in London and in the country of issue of the currency
of such Eurocurrency Rate Advance (or, in the case of an Advance denominated in Euro, on
which the Trans-European Automated Real-Time Gross Settlement Express Transfer (TARGET)
System is open).

     “Commitment” means a Revolving Credit Commitment, a Letter of Credit Commitment
or a Swing Line Commitment.

     “Commitment Date” has the meaning specified in Section 2.18(b).

     “Commitment Increase” has the meaning specified in Section 2.18(a).

     “Committed Currencies” means lawful currency of the United Kingdom of Great
Britain and Northern Ireland, lawful currency of Japan, Euros, the lawful currency of Canada
and the lawful currency of Switzerland.

     “Company Information” has the meaning specified in Section 9.08.

     “Consolidated” refers to the consolidation of accounts in accordance with GAAP.

     “Convert”, “Conversion” and “Converted” each refers to a
conversion of Revolving Credit Advances of one Type into Revolving Credit Advances of the
other Type pursuant to Section 2.08 or 2.09.

     “Debt” of any Person means, without duplication, (a) all indebtedness of such
Person for borrowed money, (b) all obligations of such Person for the deferred purchase
price of property or services (other than trade payables incurred in the ordinary course of
such Person’s business and monetary obligations arising under supply or consignment
agreements, in each case not overdue by more than 90 days or are being contested in good
faith by appropriate proceedings and for which reasonable reserves are being maintained),
(c) all obligations of such Person evidenced by notes, bonds, debentures or other similar
instruments (excluding undrawn amounts), (d) all obligations of such Person created or
arising under any conditional sale or other title retention agreement with respect to
property acquired by such Person (even though the rights and remedies of the seller or
lender under such agreement in the event of default are limited to repossession or sale of
such property), (e) all obligations of such Person as lessee under leases that have been or
should be, in accordance with GAAP as in effect on the date hereof, recorded as capital
leases, (f) all obligations, contingent or otherwise, of such Person in respect of
acceptances, letters of credit, bank guarantees, surety bonds or similar extensions of
credit, (g) obligations of such Person in respect of Hedge Agreements, (h) all Invested
Amounts, (i) all liability under any synthetic lease or tax ownership operating lease, (j)
all Debt of others referred to in clauses (a) through (i) above or clause (k) below
(collectively, “Guaranteed Debt”) guaranteed directly or indirectly in any manner by
such Person, or in effect guaranteed directly or indirectly by such Person through an
agreement (1) to pay or purchase such Guaranteed Debt or to advance or supply funds for the
payment or purchase of such Guaranteed Debt, (2) to purchase, sell or lease (as lessee or
lessor) property, or to purchase or sell services, primarily for the purpose of enabling the
debtor to make payment of such Guaranteed Debt or to assure the holder of such Guaranteed
Debt against loss, (3) to supply funds to or in any other manner invest in the debtor
(including any agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or (4) otherwise to assure a creditor
against loss, and (k) all Debt referred to in clauses (a) through (j) above (including
Guaranteed Debt) secured by (or for which the holder of such Debt

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has an existing right, contingent or otherwise, to be secured by) any Lien on property
(including, without limitation, accounts and contract rights) owned by such Person, even
though such Person has not assumed or become liable for the payment of such Debt.

     “Default” means any Event of Default or any event that would constitute an
Event of Default but for the requirement that notice be given or time elapse or both.

     “Defaulting Lender” means, subject to Section 2.19(d), at any time, any Lender
that, at such time (a) has failed to perform any of its funding obligations hereunder,
including in respect of its Advances or participations in respect of Letters of Credit,
within two Business Days of the date required to be funded by it hereunder, (b) has notified
the Company or the Agent that it does not intend to comply with its funding obligations or
has made a public statement to that effect with respect to its funding obligations hereunder
or generally under other agreements in which it commits to extend credit, (c) has failed,
within three Business Days after written request by the Agent (based on its reasonable
belief that such Lender may not fulfill its funding obligations hereunder), to confirm in a
manner reasonably satisfactory to the Agent that it will comply with its funding obligations
hereunder, provided that a Lender shall cease to be a Defaulting Lender upon the Agent’s
receipt of such confirmation, or (d) has, or has a direct or indirect parent company that
has, (i) become the subject of a proceeding under any debtor relief law, (ii) had a
receiver, conservator, trustee, administrator, assignee for the benefit of creditors or
similar Person charged with reorganization or liquidation of its business or a custodian
appointed for it, or (iii) taken any action in furtherance of, or indicated its consent to,
approval of or acquiescence in any such proceeding or appointment; provided that a
Lender shall not be a Defaulting Lender solely by virtue of the control, ownership or
acquisition of any equity interest in that Lender or any direct or indirect parent company
thereof by a governmental authority or the exercise of control over such Lender or any
direct or indirect parent company thereof by a governmental authority.

     “Designated Subsidiary” means any direct or indirect wholly-owned Subsidiary of
the Company designated for borrowing privileges under this Agreement pursuant to Section
9.09.

     “Designation Agreement” means, with respect to any Designated Subsidiary, an
agreement in the form of Exhibit E hereto signed by such Designated Subsidiary and the
Company.

     “Disclosed Litigation” has the meaning specified in Section 3.01(b).

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

     “Domestic Lending Office” means, with respect to any Lender, the office of such
Lender specified as its “Domestic Lending Office” opposite its name on Schedule I hereto or
in the Assumption Agreement or the Assignment and Acceptance pursuant to which it became a
Lender, or such other office of such Lender as such Lender may from time to time specify to
the Company and the Agent.

     “EBITDA” means, for any period, net income (or net loss) plus the sum
(without duplication) of (a) interest expense, (b) income tax expense, (c) depreciation
expense, (d) amortization expense, (e) to the extent included in net income, non-cash,
non-recurring charges, (f) to the extent included in net income, non-cash, recurring charges
related to equity compensation and (g) to the extent included in net income, loss on sale of
accounts receivable pursuant to any receivables securitization program of the Company or any
of its Subsidiaries, in each case determined in accordance with GAAP for such period;
provided, that for purposes of calculating EBITDA for the Company and its
Subsidiaries for any period, the EBITDA of any Person (or assets or division of such Person)
acquired by the Company or any of its Subsidiaries during such period shall be included on a
pro forma basis for such period (assuming the consummation of such acquisition occurred on
the first day of such period).

     “Effective Date” has the meaning specified in Section 3.01.

     “Eligible Assignee” means (i) a Lender; (ii) an Affiliate of a Lender; (iii)
any other financial institution approved by the Agent, each Issuing Bank, each Swing Line
Bank and, unless an Event of

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Default has occurred and is continuing at the time any assignment is effected in
accordance with Section 9.07, the Company, such approvals not to be unreasonably withheld or
delayed; and (iv) any other Person approved by the Agent, each Issuing Bank and the Company,
such approvals not to be unreasonably withheld or delayed; provided,
however, that none of the Company, any Affiliate of the Company or a natural person
shall qualify as an Eligible Assignee.

     “Environmental Action” means (a) any notice of non-compliance or violation,
notice of liability or potential liability, proceeding, consent order or consent agreement
by any governmental or regulatory authority with jurisdiction or (b) any litigation, case,
suit, demand, demand letter or claim by any governmental or regulatory authority or any
third party relating in any way to any Environmental Law, Environmental Permit or Hazardous
Materials, including, without limitation, (x) by any governmental or regulatory authority
for enforcement, cleanup, removal, response, remedial or other actions or damages and (y) by
any governmental or regulatory authority or any such third party for damages, contribution,
indemnification, cost recovery, compensation or injunctive relief.

     “Environmental Law” means any federal, state, local or foreign statute, law,
ordinance, rule, regulation, code, order, judgment, decree or judicial or agency
interpretation, policy or guidance relating to pollution or protection of the environment or
natural resources, including, without limitation, those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of Hazardous Materials,
to the extent applicable to the operations of the Company or any of its Subsidiaries.

     “Environmental Permit” means any permit, approval, identification number,
license or other authorization required under any Environmental Law for the operations of
the Company or any of its Subsidiaries.

     “Equivalent” in Dollars of any Committed Currency on any date means the
equivalent in Dollars of such Committed Currency determined by using the quoted spot rate at
which the Agent’s principal office in London offers to exchange Dollars for such Committed
Currency in London prior to 4:00 P.M. (London time) (unless otherwise indicated by the terms
of this Agreement) on such date as is required pursuant to the terms of this Agreement, and
the “Equivalent” in any Committed Currency of Dollars means the equivalent in such Committed
Currency of Dollars determined by using the quoted spot rate at which the Agent’s principal
office in London offers to exchange such Committed Currency for Dollars in London prior to
4:00 P.M. (London time) (unless otherwise indicated by the terms of this Agreement) on such
date as is required pursuant to the terms of this Agreement.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

     “ERISA Affiliate” means any Person that for purposes of Title IV of ERISA is a
member of the Company’s controlled group, or under common control with the Company, within
the meaning of Section 414 of the Internal Revenue Code.

     “ERISA Event” means (a) (i) the occurrence of a reportable event, within the
meaning of Section 4043 of ERISA, with respect to any Plan unless the 30-day notice
requirement with respect to such event has been waived by the PBGC, or (ii) the requirements
of subsection (1) of Section 4043(b) of ERISA (without regard to subsection (2) of such
Section) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13)
of ERISA, of a Plan, and an event described in paragraph (9), (10), (11), (12) or (13) of
Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within
the following 30 days; (b) the application for a minimum funding waiver with respect to a
Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate
such Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to
a plan amendment referred to in Section 4041(e) of ERISA); (d) the cessation of operations
at a facility of the Company or any ERISA Affiliate in the circumstances described in
Section 4062(e) of ERISA; (e) the withdrawal by the Company or any ERISA Affiliate from a
Multiple Employer Plan during a plan year for which it was a substantial employer, as
defined in Section 4001(a)(2) of ERISA; (f) the conditions for the imposition of a lien
under Section 303(k) of ERISA shall have been met with respect to any Plan; or (g) the
institution by the PBGC

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of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of
any event or condition described in Section 4042 of ERISA that constitutes grounds for the
termination of, or the appointment of a trustee to administer, a Plan.

     “Euro” means the lawful currency of the European Union as constituted by the
Treaty of Rome which established the European Community, as such treaty may be amended from
time to time and as referred to in the EMU legislation.

     “Eurocurrency Lending Office” means, with respect to any Lender, the office of
such Lender specified as its “Eurocurrency Lending Office” opposite its name on Schedule I
hereto or in the Assumption Agreement or the Assignment and Acceptance pursuant to which it
became a Lender (or, if no such office is specified, its Domestic Lending Office), or such
other office of such Lender as such Lender may from time to time specify to the Company and
the Agent.

     “Eurocurrency Liabilities” has the meaning assigned to that term in Regulation
D of the Board of Governors of the Federal Reserve System, as in effect from time to time.

     “Eurocurrency Rate” means, for any Interest Period for each Eurocurrency Rate
Advance comprising part of the same Borrowing, an interest rate per annum equal to the rate
per annum obtained by dividing (a) the rate per annum (rounded upward to the nearest whole
multiple of 1/100 of 1% per annum) appearing on Reuters LIBOR01 Page (or any successor page)
as the London interbank offered rate for deposits in Dollars or the applicable Committed
Currency at approximately 11:00 A.M. (London time) two Business Days prior to the first day
of such Interest Period for a term comparable to such Interest Period or, if for any reason
such rate is not available, the average (rounded upward to the nearest whole multiple of
1/100 of 1% per annum, if such average is not such a multiple) of the rate per annum at
which deposits in Dollars or the applicable Committed Currency is offered by the principal
office of each of the Reference Banks in London, England to prime banks in the London
interbank market at 11:00 A.M. (London time) two Business Days before the first day of such
Interest Period in an amount substantially equal to such Reference Bank’s Eurocurrency Rate
Advance comprising part of such Borrowing to be outstanding during such Interest Period and
for a period equal to such Interest Period by (b) a percentage equal to 100% minus the
Eurocurrency Rate Reserve Percentage for such Interest Period. If the Reuters LIBOR01 Page
(or any successor page) is unavailable, the Eurocurrency Rate for any Interest Period for
each Eurocurrency Rate Advance comprising part of the same Borrowing shall be determined by
the Agent on the basis of applicable rates furnished to and received by the Agent from the
Reference Banks two Business Days before the first day of such Interest Period,
subject, however, to the provisions of Section 2.08.

     “Eurocurrency Rate Advance” means a Revolving Credit Advance denominated in
Dollars or a Committed Currency that bears interest as provided in Section 2.07(a)(ii).

     “Eurocurrency Rate Reserve Percentage” for any Interest Period for all
Eurocurrency Rate Advances comprising part of the same Borrowing means the reserve
percentage applicable two Business Days before the first day of such Interest Period under
regulations issued from time to time by the Board of Governors of the Federal Reserve System
(or any successor) for determining the maximum reserve requirement (including, without
limitation, any emergency, supplemental or other marginal reserve requirement) for a member
bank of the Federal Reserve System in New York City with respect to liabilities or assets
consisting of or including Eurocurrency Liabilities (or with respect to any other category
of liabilities that includes deposits by reference to which the interest rate on
Eurocurrency Rate Advances is determined) having a term equal to such Interest Period.

     “Events of Default” has the meaning specified in Section 6.01.

     “Existing Debt” has the meaning specified in Section 5.02(d)(ii).

     “Facility” means the Revolving Credit Facility, the Letter of Credit Facility
or the Swing Line Facility.

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     “FATCA” means Sections 1471 though 1474 of the Internal Revenue Code, as in
effect on the date hereof.

     “Federal Funds Rate” means, for any period, a fluctuating interest rate per
annum equal for each day during such period to the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published for such day (or, if such day is not a Business Day, for
the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate
is not so published for any day that is a Business Day, the average of the quotations for
such day on such transactions received by the Agent from three Federal funds brokers of
recognized standing selected by it.

     “GAAP” has the meaning specified in Section 1.03.

     “Guaranteed Obligations” has the meaning specified in Section 7.01.

     “Hazardous Materials” means (a) petroleum and petroleum products, byproducts or
breakdown products, radioactive materials, asbestos-containing materials, polychlorinated
biphenyls and radon gas and (b) any other chemicals, materials or substances designated,
classified or regulated as hazardous or toxic under any Environmental Law, located on or
under or emanating from real property owned or operated by the Company or any of its
Subsidiaries.

     “Hedge Agreements” means interest rate swap, cap or collar agreements, interest
rate future or option contracts and other similar agreements (for the avoidance of doubt,
Hedge Agreements do not include currency swap agreements and currency future or option
contracts).

     “Increase Date” has the meaning specified in Section 2.18(a).

     “Increasing Lender” has the meaning specified in Section 2.18(b).

     “Information Memorandum” means the information memorandum dated November 9,
2010 issued by the Agent in connection with the syndication of the Commitments.

     “Initial GAAP” has the meaning specified in Section 1.03.

     “Interest Period” means, for each Eurocurrency Rate Advance comprising part of
the same Borrowing, the period commencing on the date of such Eurocurrency Rate Advance or
the date of the Conversion of any Base Rate Advance into such Eurocurrency Rate Advance and
ending on the last day of the period selected by the Borrower requesting such Borrowing
pursuant to the provisions below and, thereafter, each subsequent period commencing on the
last day of the immediately preceding Interest Period and ending on the last day of the
period selected by such Borrower pursuant to the provisions below. The duration of each
such Interest Period shall be one or two weeks, or one, two, three or six months, and
subject to clause (c) of this definition, nine or twelve months, as the applicable Borrower
may, upon notice received by the Agent not later than 11:00 A.M. (New York City time) on the
third Business Day prior to the first day of such Interest Period, select; provided,
however, that:

     (a) the Borrowers may not select any Interest Period with respect to any
Eurocurrency Rate Borrowing that ends after the Termination Date;

     (b) Interest Periods commencing on the same date for Eurocurrency Rate Advances
comprising part of the same Borrowing shall be of the same duration;

     (c) the Borrowers shall not be entitled to select an Interest Period having a
duration of nine or twelve months unless, by 2:00 P.M. (New York City time) on the
third Business Day prior to the first day of such Interest Period, each Lender
notifies the Agent that such Lender will be providing funding for such Borrowing
with such Interest Period (the failure of any Lender to so respond by such time
being deemed for all purposes of this Agreement as an objection by such

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Lender to the requested duration of such Interest Period); provided
that, if any or all of the Lenders object to the requested duration of such Interest
Period, the duration of the Interest Period for such Borrowing shall be two weeks or
one, two, three or six months, as specified by the Borrower requesting such
Borrowing in the applicable Notice of Revolving Credit Borrowing as the desired
alternative to an Interest Period of nine or twelve months;

     (d) whenever the last day of any Interest Period would otherwise occur on a day
other than a Business Day, the last day of such Interest Period shall be extended to
occur on the next succeeding Business Day, provided, however, that,
if such extension would cause the last day of such Interest Period of one, two,
three, six, nine or twelve months to occur in the next following calendar month, the
last day of such Interest Period shall occur on the next preceding Business Day; and

     (e) whenever the first day of any Interest Period of one, two, three, six, nine
or twelve months occurs on a day of an initial calendar month for which there is no
numerically corresponding day in the calendar month that succeeds such initial
calendar month by the number of months equal to the number of months in such
Interest Period, such Interest Period shall end on the last Business Day of such
succeeding calendar month.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended
from time to time, and the regulations promulgated and rulings issued thereunder.

     “Invested Amounts” means the amounts invested by investors that are not
Affiliates of the Company in connection with any receivables securitization program and paid
to the Company or its Subsidiaries, as reduced by the aggregate amounts received by such
investors from the payment of receivables and applied to reduce such invested amounts.

     “Issuance” with respect to any Letter of Credit means the issuance, amendment,
renewal or extension of such Letter of Credit.

     “Issuing Bank” means an Initial Issuing Bank or any other Lender that expressly
agrees to perform in accordance with their terms all of the obligations that by the terms of
this Agreement are required to be performed by it as an Issuing Bank.

     “L/C Cash Deposit Account” means an interest bearing cash deposit account to be
established and maintained by the Agent, over which the Agent shall have sole dominion and
control, upon terms as may be satisfactory to the Agent and the Issuing Banks.

     “L/C Related Documents” has the meaning specified in Section 2.06(b)(i).

     “Lenders” means each Initial Lender, each Issuing Bank, each Assuming Lender
that shall become a party hereto pursuant to Section 2.18 and each Person that shall become
a party hereto pursuant to Section 9.07, and, as the context may require, each Swing Line
Bank.

     “Letter of Credit” has the meaning specified in Section 2.01(b).

     “Letter of Credit Agreement” has the meaning specified in Section 2.03(a).

     “Letter of Credit Commitment” means as to any Lender (a) the Dollar amount set
forth opposite such Lender’s name on Schedule I hereto as such Lender’s “Letter of Credit
Commitment” or (b) if such Lender has entered into an Assignment and Acceptance, the Dollar
amount set forth for such Lender in the Register maintained by the Agent pursuant to Section
9.07(d) as such Lender’s “Letter of Credit Commitment”, as such amount may be reduced
pursuant to Section 2.05.

     “Letter of Credit Facility” means, at any time, an amount equal to the lesser
of (a) $75,000,000 and (b) the aggregate amount of the Revolving Credit Commitments.

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     “Lien” means any lien, security interest or other charge or encumbrance of any
kind, or any other type of preferential arrangement, including, without limitation, the lien
or retained security title of a conditional vendor and any easement, right of way or other
encumbrance on title to real property.

     “Material Adverse Change” means any material adverse change in the business,
financial condition or operations of the Company and its Subsidiaries taken as a whole.

     “Material Adverse Effect” means (a) a material adverse effect on the business,
financial condition or operations of the Company and its Subsidiaries taken as a whole, (b)
a material impairment of the ability of the Agent or any Lender to enforce or collect any
obligations of any Borrower under this Agreement or any Note or (c) a material impairment of
the ability of any Borrower to perform its obligations under this Agreement or any other
Loan Document.

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

     “Morean Group” means (a) William D. Morean, his spouse, and any of his parents
and lineal descendants, their spouses and the children of any such spouses born of a prior
union, and their lineal descendants, and the estates, executors and administrators of any of
such Persons, (b) any trustee under any inter vivos or testamentary trust for the benefit of
any of the Persons specified in clause (a) or the beneficiaries thereunder, and (c) any
corporation, partnership, limited liability company, trust or other entity in which the
Persons referred to in clauses (a) or (b) in the aggregate have either a direct or indirect
beneficial interest or voting control of greater than 50%.

     “Multiemployer Plan” means a multiemployer plan, as defined in Section
4001(a)(3) of ERISA, to which the Company or any ERISA Affiliate is making or accruing an
obligation to make contributions, or has within any of the preceding five plan years made or
accrued an obligation to make contributions.

     “Multiple Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of the Company or any ERISA
Affiliate and at least one Person other than the Company and the ERISA Affiliates or (b) was
so maintained and in respect of which the Company or any ERISA Affiliate could have
liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be
terminated.

     “Note” means a promissory note of a Borrower payable to the order of a Lender,
delivered pursuant to a request made under Section 2.16 in substantially the form of Exhibit
A hereto, evidencing the aggregate indebtedness of such Borrower to such Lender resulting
from the Advances made by such Lender.

     “Notice of Issuance” has the meaning specified in Section 2.03(a).

     “Notice of Revolving Credit Borrowing” has the meaning specified in Section
2.02(a).

     “Notice of Swing Line Borrowing” has the meaning specified in Section 2.02(b).

     “Patriot Act” means the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56,
signed into law October 26, 2001.

     “Payment Office” means, for any Committed Currency, such office of Citibank as
shall be from time to time selected by the Agent and notified by the Agent to the Company
and the Lenders.

     “PBGC” means the Pension Benefit Guaranty Corporation (or any successor).

     “Permitted Liens” means such of the following as to which no enforcement,
collection, execution, levy or foreclosure proceeding shall have been commenced: (a) Liens
for taxes, assessments and governmental charges or levies to the extent not required to be
paid under Section 5.01(b) hereof; (b) Liens

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imposed by law (and ordinary course of business contractual Liens in respect of such
Liens), such as materialmen’s, mechanics’, carriers’, workmen’s, repairmen’s and landlord’s
Liens and other similar Liens arising in the ordinary course of business securing
obligations that are not overdue for a period of more than 90 days or are being contested in
good faith by appropriate proceedings and for which reasonable reserves are being
maintained; (c) pledges or deposits to directly or indirectly secure obligations under
workers’ compensation laws, unemployment insurance laws or similar legislation or to
directly or indirectly secure public or statutory obligations, including obligations to
governmental entities in respect of value added taxes, duties, customs, excise taxes,
franchises, licenses, rents and the like, or surety, customs or appeal bonds; (d) good faith
deposits (or security for obligations in lieu of good faith deposits) to directly or
indirectly secure bids, tenders, contracts or leases for a purpose other than borrowing
money or obtaining credit, including rent or equipment lease security deposits, (e)
easements, rights of way and other encumbrances on title to real property that do not render
title to the property encumbered thereby unmarketable or materially adversely affect the use
of such property for its present purposes, (f) contractual rights of setoff against (which
may include grants of Liens) or contractual Liens on, accounts or other property in transit
to or in the possession of or maintained by the lienor, in the absence of any agreement to
maintain a balance or deliver property against which such right may be exercised, and
contractual rights of set-off against claims against the lienor and (g) Liens pursuant to
supply or consignment contracts or otherwise for the receipt of goods or services,
encumbering only the goods covered thereby, where the contracts are not overdue by more than
90 days or are being contested in good faith by appropriate proceedings and for which
reasonable reserves are being maintained.

     “Person” means an individual, partnership, corporation (including a business
trust), joint stock company, trust, unincorporated association, joint venture, limited
liability company or other entity, or a government or any political subdivision or agency
thereof.

     “Plan” means a Single Employer Plan or a Multiple Employer Plan.

     “Post-Petition Interest” has the meaning specified in Section 7.05.

     “Public Debt Rating” means, as of any date, the rating that has been most
recently announced by either S&P or Moody’s, as the case may be, for any class of non-credit
enhanced long-term senior unsecured debt issued by the Company or, if no such Debt of the
Company is then outstanding, the corporate credit rating most recently announced by either
S&P or Moody’s, as the case may be, provided, if any such rating agency shall have
issued more than one such rating, the lowest such rating issued by such rating agency. For
purposes of the foregoing, (a) if only one of S&P and Moody’s shall have in effect a Public
Debt Rating, the Applicable Margin and the Applicable Percentage shall be determined by
reference to the available rating; (b) if neither S&P nor Moody’s shall have in effect a
Public Debt Rating, the Applicable Margin and the Applicable Percentage will be set in
accordance with Level 5 under the definition of “Applicable Margin” or
“Applicable Percentage”, as the case may be; (c) if the ratings established by S&P
and Moody’s shall fall within different levels, the Applicable Margin and the Applicable
Percentage shall be based upon the higher rating unless the such ratings differ by two or
more levels, in which case the applicable level will be deemed to be one level above the
lower of such levels; (d) if any rating established by S&P or Moody’s shall be changed, such
change shall be effective as of the date on which such change is first announced publicly by
the rating agency making such change; and (e) if S&P or Moody’s shall change the basis on
which ratings are established, each reference to the Public Debt Rating announced by S&P or
Moody’s, as the case may be, shall refer to the then equivalent rating by S&P or Moody’s, as
the case may be.

     “Ratable Share” of any amount means, with respect to any Lender at any time,
the product of such amount times a fraction the numerator of which is the amount of
such Lender’s Revolving Credit Commitment at such time (or, if the Revolving Credit
Commitments shall have been terminated pursuant to Section 2.05 or 6.01, such Lender’s
Revolving Credit Commitment as in effect immediately prior to such termination) and the
denominator of which is the aggregate amount of all Revolving Credit Commitments at such
time (or, if the Revolving Credit Commitments shall have been terminated pursuant to Section
2.05 or 6.01, the aggregate amount of all Revolving Credit Commitments as in effect
immediately prior to such termination).

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     “Reference Banks” means Citibank, JPMorgan Chase Bank, N.A. and The Royal Bank
of Scotland plc.

     “Register” has the meaning specified in Section 9.07(d).

     “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.

     “Required Lenders” means at any time Lenders owed at least a majority in
interest of the then aggregate unpaid principal amount (based on the Equivalent in Dollars
at such time) of the Revolving Credit Advances, or, if no such principal amount is then
outstanding, Lenders having at least a majority in interest of the Revolving Credit
Commitments, provided that if any Lender shall be a Defaulting Lender at such time,
there shall be excluded from the determination of Required Lenders at such time the
Revolving Credit Commitment of such Lender at such time.

     “Revolving Credit Advance” means an advance by a Lender to any Borrower as part
of a Revolving Credit Borrowing and refers to a Base Rate Advance or a Eurocurrency Rate
Advance (each of which shall be a “Type” of Revolving Credit Advance).

     “Revolving Credit Borrowing” means a borrowing consisting of simultaneous
Revolving Credit Advances of the same Type made by each of the Lenders pursuant to Section
2.01(a).

     “Revolving Credit Borrowing Minimum” means, in respect of Revolving Credit
Advances denominated in Dollars, $10,000,000, in respect of Revolving Credit Advances
denominated in Sterling, £10,000,000, in respect of Revolving Credit Advances denominated in
Yen, ¥1,000,000,000, in respect of Revolving Credit Advances denominated in Euros,
€10,000,000, in respect of Revolving Credit Advances denominated in Canadian
Dollars, CN$10,000,000 and in respect of Revolving Credit Advances denominated in Swiss
Francs, SF10,000,000.

     “Revolving Credit Borrowing Multiple” means, in respect of Revolving Credit
Advances denominated in Dollars, $1,000,000 in respect of Revolving Credit Advances
denominated in Sterling, £1,000,000, in respect of Revolving Credit Advances denominated in
Yen, ¥100,000,000, in respect of Revolving Credit Advances denominated in Euros,
€1,000,000, in respect of Revolving Credit Advances denominated in Canadian
Dollars, CN$1,000,000 and in respect of Revolving Credit Advances denominated in Swiss
Francs, SF1,000,000.

     “Revolving Credit Commitment” means as to any Lender (a) the Dollar amount set
forth opposite such Lender’s name on Schedule I hereto as such Lender’s “Revolving Credit
Commitment”, (b) if such Lender has become a Lender hereunder pursuant to an Assumption
Agreement, the Dollar amount set forth in such Assumption Agreement or (c) if such Lender
has entered into an Assignment and Acceptance, the Dollar amount set forth for such Lender
in the Register maintained by the Agent pursuant to Section 9.07(d) as such Lender’s
“Revolving Credit Commitment”, as such amount may be reduced pursuant to Section 2.05 or
increased pursuant to Section 2.18.

     “Revolving Credit Facility” means, at any time, the aggregate amount of the
Lenders’ Revolving Credit Commitments at such time.

     “S&P” means Standard & Poor’s Financial Services LLC.

     “Single Employer Plan” means a single employer plan, as defined in Section
4001(a)(15) of ERISA, that (a) is maintained for employees of the Company or any ERISA
Affiliate and no Person other than the Company and the ERISA Affiliates or (b) was so
maintained and in respect of which the Company or any ERISA Affiliate could have liability
under Section 4069 of ERISA in the event such plan has been or were to be terminated.

     “Sub-Agent” means Citibank International plc.

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     “Subsidiary” of any Person means any corporation, partnership, joint venture,
limited liability company, trust or estate of which (or in which) more than 50% of (a) the
issued and outstanding capital stock having ordinary voting power to elect a majority of the
Board of Directors of such corporation (irrespective of whether at the time capital stock of
any other class or classes of such corporation shall or might have voting power upon the
occurrence of any contingency), (b) the interest in the capital or profits of such limited
liability company, partnership or joint venture or (c) the beneficial interest in such trust
or estate is at the time directly or indirectly owned or controlled by such Person, by such
Person and one or more of its other Subsidiaries or by one or more of such Person’s other
Subsidiaries.

     “Swing Line Advance” means an advance made by any Swing Line Bank pursuant to
Section 2.01(c) or any Lender pursuant to Section 2.02(b).

     “Swing Line Bank” means each of Citibank, JPMorgan Chase Bank, N.A., The Royal
Bank of Scotland plc and Bank of America, N.A.

     “Swing Line Borrowing” means a borrowing consisting of a Swing Line Advance
made by any Swing Line Bank.

     “Swing Line Commitment” means with respect to any Swing Line Bank at any time
the amount set forth opposite such Swing Line Bank’s name on Schedule I hereto, as such
amount may be reduced pursuant to Section 2.05.

     “Swing Line Facility” means, at any time, an amount equal to the least of (a)
the aggregate amount of the Swing Line Banks’ Swing Line Commitments at such time, (b)
$100,000,000 and (c) the aggregate amount of the Revolving Credit Commitments.

     “Termination Date” means the earlier of December 7, 2015 and the date of
termination in whole of the Revolving Credit Commitments pursuant to Section 2.05 or 6.01.

     “Type” has the meaning specified in the definition of “Revolving Credit
Advance.”

     “Unissued Letter of Credit Commitment” means, with respect to any Issuing Bank,
the obligation of such Issuing Bank to issue Letters of Credit for the account of any
Borrower or its specified Subsidiaries in an amount equal to the excess of (a) the amount of
its Letter of Credit Commitment over (b) the aggregate Available Amount of all Letters of
Credit issued by such Issuing Bank.

     “Unused Revolving Credit Commitment” means, with respect to each Lender at any
time, (a) such Lender’s Revolving Credit Commitment at such time minus (b) the sum
of (i) the aggregate principal amount of all Revolving Credit Advances made by such Lender
(in its capacity as a Lender) and outstanding at such time, plus (ii) such Lender’s
Ratable Share of (A) the aggregate Available Amount of all the Letters of Credit outstanding
at such time, (B) the aggregate principal amount of all Advances outstanding at such time
made by each Issuing Bank pursuant to Section 2.03(c) that have not been funded by such
Lender and (C) the aggregate principal amount of all Swing Line Advances then outstanding.

     “Voting Stock” means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the absence of
contingencies, entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right to so vote has been suspended by the happening
of such a contingency.

          SECTION 1.02. Computation of Time Periods. In this Agreement in the computation of
periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”.

          SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein
shall be construed in accordance with United States generally accepted accounting principles as in
effect in the United States from time to time (“GAAP”), provided that (a) if
there is any change in GAAP from such principles applied in the

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preparation of the audited
financial statements referred to in Section 4.01(e) (“Initial GAAP”), that is material in
respect of the calculation of compliance with the covenants set forth in Section 5.02 or 5.03, the
Company shall give prompt notice of such change to the Agent and the Lenders and (b) if the Company
notifies the Agent that the Company requests an amendment of any provision hereof to eliminate the
effect of any change in GAAP (or the application thereof) from Initial GAAP (or if the Agent or the
Required Lenders request an amendment of any provision hereof for such purpose), regardless of
whether such notice is given before or after such change in GAAP (or the application thereof), then
such provision shall be applied on the basis of such generally accepted accounting principles as in
effect and applied immediately before such change shall have become effective until such notice
shall have been withdrawn or such provision is amended in accordance herewith.

ARTICLE II

AMOUNTS AND TERMS OF THE ADVANCES AND LETTERS OF CREDIT

          SECTION 2.01. The Advances and Letters of Credit. (a) The Revolving Credit
Advances. Each Lender severally agrees, on the terms and conditions hereinafter set forth, to
make Revolving Credit Advances to any Borrower from time to time on any Business Day during the
period from the Effective Date until the Termination Date in an amount (based in respect of any
Revolving Credit Advances to be denominated in a Committed Currency by reference to the Equivalent
thereof in Dollars determined on the date of delivery of the applicable Notice of Revolving Credit
Borrowing) not to exceed such Lender’s Unused Revolving Credit Commitment. Each Revolving Credit
Borrowing shall be in an amount not less than the Revolving Credit Borrowing Minimum or the
Revolving Credit Borrowing Multiple in excess thereof and shall consist of Revolving Credit
Advances of the same Type and in the same currency made on the same day by the Lenders ratably
according to their respective Revolving Credit Commitments. Within the limits of each Lender’s
Revolving Credit Commitment, any Borrower may borrow under this Section 2.01(a), prepay pursuant to
Section 2.10 and reborrow under this Section 2.01(a).

          (b) Letters of Credit. Any Borrower may request any Issuing Bank to issue, and such
Issuing Bank may, if in its reasonable discretion it elects to do so, on the terms and conditions
hereinafter set forth and in reliance upon the agreements of the other Lenders set forth in this
Agreement, to issue standby letters of credit (each, a “Letter of Credit”) denominated in
Dollars for the account of any Borrower or its specified Subsidiaries from time to time on any
Business Day during the period from the Effective Date until 30 days before the Termination Date in
an aggregate Available Amount (i) for all Letters of Credit not to exceed at any time the Letter of
Credit Facility at such time, for all Letters of Credit issued by such Issuing Bank not to exceed
at any time the Letter of Credit Commitment of such Issuing Bank and (iii) for each such Letter of
Credit not to exceed an amount equal to the Unused Revolving Credit Commitments of the Lenders at
such time. No Letter of Credit shall have an expiration date (including all rights of the
applicable Borrower or the beneficiary to require renewal) later than the earlier of one year after
the Issuance thereof (or one year after its renewal or extension) and 10 Business Days before the
Termination Date. Within the limits referred to above, the Borrowers may from time to time request
the Issuance of Letters of Credit under this Section 2.01(b). Each letter of credit listed on
Schedule 2.01(b) shall be deemed to constitute a Letter of Credit issued hereunder, and each Lender
that is an issuer of such a Letter of Credit shall, for purposes of Section 2.03, be deemed to be
an Issuing Bank for each such letter of credit, provided than any renewal or replacement of
any such letter of credit on or after the date hereof shall be re-issued by an Issuing Bank
pursuant to the terms of this Agreement.

          (c) The Swing Line Advances. Each Swing Line Bank severally agrees, on the terms and
conditions hereinafter set forth, to make Swing Line Advances denominated in Dollars to any
Borrower from time to time on any Business Day during the period from the date hereof until the
Termination Date (i) in an aggregate amount not to exceed at any time outstanding the Swing Line
Facility and (ii) in an amount for each such Advance not to exceed the Unused Revolving Credit
Commitments of the Lenders on such Business Day. No Swing Line Advance shall be used for the
purpose of funding the payment of principal of any other Swing Line Advance. Each Swing Line
Borrowing shall be in an amount of $1,000,000 or an integral multiple thereof. Within the limits
of the Swing Line Facility and within the limits referred to in clause (ii) above, the Borrowers
may borrow under this Section 2.01(c), prepay pursuant to Section 2.10 and reborrow under this
Section 2.01(c).

          SECTION 2.02. Making the Advances. (a) Except as otherwise provided in Section
2.02(b) or Section 2.03(c), each Revolving Credit Borrowing shall be made
on notice, given not later than (x) 11:00 A.M. (New York City time) on the third Business Day
prior to the date of the proposed Borrowing in the case of a

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Borrowing consisting of Eurocurrency
Rate Advances denominated in Dollars, (y) 11:00 A.M. (New York City time) on the fourth Business
Day prior to the date of the proposed Borrowing in the case of a Revolving Credit Borrowing
consisting of Eurocurrency Rate Advances denominated in any Committed Currency, or (z) 11:00 A.M.
(New York City time) on the date of the proposed Borrowing in the case of a Borrowing consisting of
Base Rate Advances, by any Borrower to the Agent (and, in the case of Revolving Credit Borrowing
consisting of Eurocurrency Rate Advances to be denominated in a Committed Currency, simultaneously
to the Sub-Agent), which shall give to each Lender prompt notice thereof by telecopier. Each such
notice of a Revolving Credit Borrowing (a “Notice of Revolving Credit Borrowing”) shall be
by telephone, confirmed immediately in writing, or telecopier in substantially the form of Exhibit
B hereto, specifying therein the requested (i) date of such Revolving Credit Borrowing, (ii) Type
of Advances comprising such Revolving Credit Borrowing, (iii) aggregate amount of such Revolving
Credit Borrowing, (iv) in the case of a Revolving Credit Borrowing consisting of Eurocurrency Rate
Advances, initial Interest Period and (v) in the case of a Revolving Credit Borrowing consisting of
Eurocurrency Rate Advances, currency for each such Revolving Credit Advance. Each Lender shall,
before 1:00 P.M. (New York City time) on the date of such Revolving Credit Borrowing, in the case
of a Revolving Credit Borrowing consisting of Advances denominated in Dollars, and before 11:00
A.M. (London time) on the date of such Revolving Credit Borrowing, in the case of a Revolving
Credit Borrowing consisting of Eurocurrency Rate Advances denominated in any Committed Currency,
make available for the account of its Applicable Lending Office to the Agent at the applicable
Agent’s Account, in same day funds, such Lender’s ratable portion of such Revolving Credit
Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the applicable
conditions set forth in Article III, the Agent will make such funds available to the Borrower
requesting the Revolving Credit Borrowing at the account specified in the wiring instructions in
the applicable Notice of Revolving Credit Borrowing or, if no account is so specified, at the
Agent’s address referred to in Section 9.02; provided, however, that, if such
borrowing is a Revolving Credit Borrowing denominated in Dollars, the Agent shall first make a
portion of such funds equal to the aggregate principal amount of any Swing Line Advances made by
the Swing Line Banks and by any other Lender and outstanding on the date of such Revolving Credit
Borrowing, plus interest accrued and unpaid thereon to and as of such date, available to the Swing
Line Banks and such other Lenders for repayment of such Swing Line Advances.

          (b) Each Swing Line Borrowing shall be made on notice, given not later than 2:00 P.M. (New
York City time) on the date of the proposed Swing Line Borrowing by any Borrower to each Swing Line
Bank and the Agent, of which the Agent shall give prompt notice to the Lenders, provided
that if such notice is received by the Agent after 2:00 P.M. (New York City time) but before 3:00
P.M. (New York City time), each Swing Line Bank will use commercially reasonable efforts to fund
its ratable share of the requested Swing Line Borrowing as set forth in this Section. Each such
notice of a Swing Line Borrowing (a “Notice of Swing Line Borrowing”) shall be by
telephone, confirmed at once in writing, or telecopier, specifying therein the requested (i) date
of such Borrowing, (ii) amount of such Borrowing and (iii) maturity of such Borrowing (which
maturity shall be no later than the tenth Business Day after the requested date of such Borrowing).
Each Swing Line Bank shall, before 5:00 P.M. (New York City time) on the date of such Swing Line
Borrowing, unless any Lender gives prior notice to such Swing Line Bank or the Agent that the
applicable conditions of Article III would not be satisfied at the time of such Swing Line
Borrowing, make such Swing Line Bank’s ratable portion of such Swing Line Borrowing available
(based on the respective Swing Line Commitments of the Swing Line Banks) to the Agent at the
Agent’s Account, in same day funds. After the Agent’s receipt of such funds and upon fulfillment
of the applicable conditions set forth in Article III, the Agent will make such funds available to
the Borrower requesting the Swing Line Borrowing at the account specified in the wiring
instructions in the applicable Notice of Swing Line Borrowing or, if no account is so specified, at
the Agent’s address referred to in Section 9.02. Upon written demand by any Swing Line Bank with a
Swing Line Advance, with a copy of such demand to the Agent, such Swing Line Bank shall sell and
assign to each such other Lender and each other Lender will purchase from such Swing Line Bank,
such other Lender’s Pro Rata Share of such outstanding Swing Line Advance, by making available for
the account of its Applicable Lending Office to the Agent for the account of such Swing Line Bank,
by deposit to the Agent’s Account, in same day funds, an amount equal to the portion of the
outstanding principal amount of such Swing Line Advance to be purchased by such Lender. The
Borrower hereby agrees to each such sale and assignment. Each Lender agrees to purchase its Pro
Rata Share of an outstanding Swing Line Advance on (i) the Business Day on which demand therefor is
made by the Swing Line Bank which made such Advance, provided that notice of such demand is given
not later than 11:00 A.M. (New York City time) on such Business Day or (ii) the first Business Day
next succeeding such demand if notice of such demand is given after such time. Upon any such
assignment by Swing Line Bank to any other Lender of a portion of a Swing Line Advance, such Swing
Line Bank represents and warrants to such other Lender that such Swing Line Bank is the legal and
beneficial owner of such interest being assigned by it and there are no adverse claims thereto, but
makes no other representation or warranty
and assumes no responsibility with respect to such Swing Line Advance, this Agreement, the
Notes or any

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Borrower. If and to the extent that any Lender shall not have so made the amount of
such Swing Line Advance available to the Agent, such Lender agrees to pay to the Agent forthwith on
demand such amount together with interest thereon, for each day from the date such Lender is
required to have made such amount available to the Agent until the date such amount is paid to the
Agent, at the Federal Funds Rate. If such Lender shall pay to the Agent such amount for the
account of such Swing Line Bank on any Business Day, such amount so paid in respect of principal
shall constitute a Swing Line Advance made by such Lender on such Business Day for purposes of this
Agreement, and the outstanding principal amount of the Swing Line Advance made by such Swing Line
Bank shall be reduced by such amount on such Business Day.

          (c) Anything in subsection (a) above to the contrary notwithstanding, (i) the Borrowers may
not select Eurocurrency Rate Advances for any Revolving Credit Borrowing if the aggregate amount of
such Revolving Credit Borrowing is less than the Revolving Credit Borrowing Minimum or if the
obligation of the Lenders to make Eurocurrency Rate Advances shall then be suspended pursuant to
Section 2.08 or 2.12 and (ii) the Eurocurrency Rate Advances may not be outstanding as part of more
than 10 separate Borrowings.

          (d) Each Notice of Revolving Credit Borrowing and Notice of Swing Line Borrowing shall be
irrevocable and binding on the Borrower requesting the Borrowing. In the case of any Revolving
Credit Borrowing that the related Notice of Revolving Credit Borrowing specifies is to be comprised
of Eurocurrency Rate Advances, such Borrower shall indemnify each Lender against any loss, cost or
expense incurred by such Lender as a result of any failure to fulfill on or before the date
specified in such Notice of Revolving Credit Borrowing for such Revolving Credit Borrowing the
applicable conditions set forth in Article III, including, without limitation, any loss (including
loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment
of deposits or other funds acquired by such Lender to fund the Advance to be made by such Lender as
part of such Revolving Credit Borrowing when such Advance, as a result of such failure, is not made
on such date.

          (e) Unless the Agent shall have received notice from a Lender or a Swing Line Bank, as the
case may be, prior to the time of any Borrowing that such Lender or Swing Line Bank, as the case
may be, will not make available to the Agent such Lender’s or Swing Line Bank’s ratable portion of
such Borrowing, the Agent may assume that such Lender or Swing Line Bank, as the case may be, has
made such portion available to the Agent on the date of such Borrowing in accordance with
subsection (a) or (b) of this Section 2.02, as applicable, and the Agent may, in reliance upon such
assumption, make available to the Borrower requesting the Borrowing on such date a corresponding
amount. If and to the extent that such Lender or Swing Line Bank, as the case may be, shall not
have so made such ratable portion available to the Agent, such Lender or Swing Line Bank, as the
case may be, and such Borrower severally agree to repay to the Agent forthwith on demand such
corresponding amount together with interest thereon, for each day from the date such amount is made
available to such Borrower until the date such amount is repaid to the Agent, at (i) in the case of
such Borrower, the higher of (A) the interest rate applicable at the time to the Advances
comprising such Borrowing and (B) the cost of funds incurred by the Agent in respect of such amount
and (ii) in the case of such Lender or Swing Line Bank, as the case may be, provided that the Agent
has given notice to the applicable Borrower of such obligation as soon as practicable but in any
event not later than the Business Day following such funding by the Agent, (A) the Federal Funds
Rate in the case of Advances denominated in Dollars or (B) the cost of funds incurred by the Agent
in respect of such amount in the case of Advances denominated in Committed Currencies. If such
Lender or Swing Line Bank, as the case may be, shall repay to the Agent such corresponding amount,
such amount so repaid shall constitute such Lender’s or Swing Line Bank’s Advance as part of such
Borrowing for purposes of this Agreement.

          (f) The failure of any Lender or Swing Line Bank, as the case may be, to make the Advance to
be made by it as part of any Borrowing shall not relieve any other Lender or Swing Line Bank, as
the case may be, of its obligation, if any, hereunder to make its Advance on the date of such
Borrowing, but no Lender or Swing Line Bank shall be responsible for the failure of any other
Lender or Swing Line Bank to make the Advance to be made by such other Lender or Swing Line Bank on
the date of any Borrowing.

          SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit.
(a) Request for Issuance. (i) Each Letter of Credit shall be issued upon notice, given
not later than 11:00 A.M. (New York City time) on the tenth Business Day prior to the date of the
proposed Issuance of such Letter of Credit (or on such shorter notice as the applicable Issuing
Bank may agree), by any Borrower to any Issuing Bank, and such Issuing Bank shall give the Agent,
prompt notice thereof. Each such notice by a Borrower of Issuance of a Letter of Credit
(a “Notice of Issuance”) shall be by telecopier or telephone, confirmed immediately in
writing, specifying therein the requested (A) date of such Issuance (which shall be a Business
Day), (B) Available Amount

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of such Letter of Credit, (C) expiration date of such Letter of Credit
(which shall not be later than the earlier of (1) one year after the Issuance thereof (or one year
after its renewal or extension) and (2) ten Business Days before the Termination Date), (D) name
and address of the beneficiary of such Letter of Credit and (E) form of such Letter of Credit, such
Letter of Credit shall be issued pursuant to such application and agreement for letter of credit as
such Issuing Bank and the applicable Borrower shall agree for use in connection with such requested
Letter of Credit (a “Letter of Credit Agreement”). If the requested form of such Letter of
Credit is acceptable to such Issuing Bank in its reasonable discretion (it being understood that
any such form shall have only explicit documentary conditions to draw and shall not include
discretionary conditions), such Issuing Bank will, if in its reasonable discretion it elects to do
so, and unless any Lender gives prior notice to such Issuing Bank or the Agent that the applicable
conditions of Article III would not be satisfied at the time of such Issuance, upon fulfillment of
the applicable conditions set forth in Section 3.03, make such Letter of Credit available to the
applicable Borrower at its office referred to in Section 9.02 or as otherwise agreed with such
Borrower in connection with such Issuance. In the event and to the extent that the provisions of
any Letter of Credit Agreement shall conflict with this Agreement, the provisions of this Agreement
shall govern.

          (b) Participations. By the Issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing or decreasing the amount thereof) and without any further action on the
part of the applicable Issuing Bank or the Lenders, such Issuing Bank hereby grants to each Lender,
and each Lender hereby acquires from such Issuing Bank, a participation in such Letter of Credit
equal to such Lender’s Ratable Share of the Available Amount of such Letter of Credit. Each
Borrower hereby agrees to each such participation. In consideration and in furtherance of the
foregoing, each Lender hereby absolutely and unconditionally agrees to pay to the Agent, for the
account of such Issuing Bank, in same day funds, such Lender’s Ratable Share of each drawing made
under a Letter of Credit funded by such Issuing Bank and not reimbursed by the applicable Borrower
on the date made, or of any reimbursement payment required to be refunded to such Borrower for any
reason, which amount will be advanced, and deemed to be a Revolving Credit Advance to such Borrower
hereunder, regardless of the satisfaction of the conditions set forth in Section 3.03. Each Lender
acknowledges and agrees that its obligation to acquire participations pursuant to this paragraph in
respect of Letters of Credit is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including any amendment, renewal or extension of any Letter of Credit or
the occurrence and continuance of a Default or reduction or termination of the Revolving Credit
Commitments, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever. Each Lender further acknowledges and agrees that its participation in each
Letter of Credit will be automatically adjusted to reflect such Lender’s Ratable Share of the
Available Amount of such Letter of Credit at each time such Lender’s Revolving Credit Commitment is
amended pursuant to a Commitment Increase pursuant to Section 2.18, an assignment in accordance
with Section 9.07 or otherwise pursuant to this Agreement.

          (c) Drawing and Reimbursement. The payment by an Issuing Bank of a draft drawn under
any Letter of Credit which is not reimbursed by the applicable Borrower on the date made shall
constitute for all purposes of this Agreement the making by any such Issuing Bank of a Revolving
Credit Advance, which shall be a Base Rate Advance, in the amount of such draft, without regard to
whether the making of such an Advance would exceed such Issuing Bank’s Unused Revolving Credit
Commitment. Each Issuing Bank shall give prompt notice of each drawing under any Letter of Credit
issued by it to the applicable Borrower and the Agent. Upon written demand by such Issuing Bank,
with a copy of such demand to the Agent and the applicable Borrower, each Lender shall pay to the
Agent such Lender’s Ratable Share of such outstanding Revolving Credit Advance pursuant to Section
2.03(b). Each Lender acknowledges and agrees that its obligation to make Revolving Credit Advances
pursuant to this paragraph in respect of Letters of Credit is absolute and unconditional and shall
not be affected by any circumstance whatsoever, including any amendment, renewal or extension of
any Letter of Credit or the occurrence and continuance of a Default or reduction or termination of
the Revolving Credit Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Promptly after receipt thereof, the Agent shall
transfer such funds to such Issuing Bank. Each Lender agrees to fund its Ratable Share of an
outstanding Revolving Credit Advance on (i) the Business Day on which demand therefor is made by
such Issuing Bank, provided that notice of such demand is given not later than 11:00 A.M.
(New York City time) on such Business Day, or (ii) the first Business Day next succeeding such
demand if notice of such demand is given after such time. If and to the extent that any Lender
shall not have so made the amount of such Revolving Credit Advance available to the Agent, such
Lender agrees to pay to the Agent forthwith on demand such amount together with interest thereon,
for each day from the date of demand by any such Issuing Bank until the date such amount is paid to
the Agent, at the Federal Funds Rate for its account or the account of such Issuing Bank, as
applicable. If such Lender shall pay to the Agent such amount for the account of any such Issuing
Bank on any
Business Day, such amount so paid in respect of principal shall constitute a Revolving Credit
Advance made by

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such Lender on such Business Day for purposes of this Agreement, and the
outstanding principal amount of the Revolving Credit Advance made by such Issuing Bank shall be
reduced by such amount on such Business Day.

          (d) Letter of Credit Reports. Each Issuing Bank shall furnish (A) to the Agent (with
a copy to the Company) on the first Business Day of each month a written report summarizing
Issuance and expiration dates of Letters of Credit issued by such Issuing Bank during the preceding
month and drawings during such month under all Letters of Credit and (B) to the Agent (with a copy
to the Company) on the first Business Day of each calendar quarter a written report setting forth
the average daily aggregate Available Amount during the preceding calendar quarter of all Letters
of Credit issued by such Issuing Bank.

          (e) Failure to Make Advances. The failure of any Lender to make the Advance to be
made by it on the date specified in Section 2.03(c) shall not relieve any other Lender of its
obligation hereunder to make its Advance on such date, but no Lender shall be responsible for the
failure of any other Lender to make the Advance to be made by such other Lender on such date.

          SECTION 2.04. Fees. (a) Facility Fee. The Company agrees to pay to the
Agent for the account of each Lender a facility fee on the aggregate amount of such Lender’s
Revolving Credit Commitment from the date hereof in the case of each Initial Lender and from the
effective date specified in the Assumption Agreement or in the Assignment and Acceptance pursuant
to which it became a Lender in the case of each other Lender until the Termination Date at a rate
per annum equal to the Applicable Percentage in effect from time to time, payable in arrears
quarterly on the last day of each March, June, September and December, commencing December 31,
2010, and on the later of the Termination Date and the date all Advances are paid in full;
provided that no Defaulting Lender shall be entitled to receive any facility fee in respect
of its Revolving Credit Commitment for any period during which that Lender is a Defaulting Lender
(and the Company shall not be required to pay such fee that otherwise would have been required to
have been paid to that Defaulting Lender), other than a facility fee, as described above, on the
aggregate principal amount of Advances funded by such Defaulting Lender outstanding from time to
time.

          (b) Letter of Credit Fees. (i) Each Borrower shall pay to the Agent for the account
of each Lender a commission on such Lender’s Ratable Share of the average daily aggregate Available
Amount of all Letters of Credit issued for the account of such Borrower and outstanding from time
to time at a rate per annum equal to the Applicable Margin for Eurocurrency Rate Advances in effect
from time to time during such calendar quarter, payable in arrears quarterly on the last day of
each March, June, September and December, commencing with the quarter ended December 31, 2010, and
on the Termination Date; provided, that no Defaulting Lender shall be entitled to receive
any commission in respect of Letters of Credit for any period during which that Lender is a
Defaulting Lender (and the Borrowers shall not be required to pay such commission to that
Defaulting Lender but shall pay such commission as set forth in Section 2.19); provided,
further, that the Applicable Margin shall be 2% above the Applicable Margin in effect upon
the occurrence and during the continuation of an Event of Default if such Borrower is required to
pay default interest pursuant to Section 2.07(b).

     (ii) Each Borrower shall pay to each Issuing Bank, for its own account, a fronting fee
and such other commissions, issuance fees, transfer fees and other fees and charges in
connection with the Issuance or administration of each Letter of Credit as such Borrower and
such Issuing Bank shall agree.

          (c) Agent’s Fees. The Company shall pay to the Agent for its own account such fees as
may from time to time be agreed between the Company and the Agent.

          SECTION 2.05. Termination or Reduction of the Commitments. (a) Optional Ratable
Termination or Reduction. The Company shall have the right, upon at least three Business Days’
notice to the Agent, to terminate in whole or permanently reduce ratably in part the Unused
Revolving Credit Commitments, the unused Swing Line Commitments or the Unissued Letter of Credit
Commitments, provided that each partial reduction of a Facility (i) shall be in the
aggregate amount of $10,000,000 or an integral multiple of $1,000,000 in excess thereof and (ii)
shall be made ratably among the Lenders (or Swing Line Banks, as the case may be) in accordance
with their Commitments.

          (b) Termination of Defaulting Lender. The Company may terminate the Unused Revolving
Credit Commitment of any Lender that is a Defaulting Lender (determined after giving effect to any
reallocation of
participations in Letters of Credit as provided in Section 2.19) upon prior notice of not less
than one Business Day to

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the Agent (which shall promptly notify the Lenders thereof), and in such
event the provisions of Section 2.19(e) shall apply to all amounts thereafter paid by any Borrower
for the account of such Defaulting Lender under this Agreement (whether on account of principal,
interest, facility fees, Letter of Credit commissions or other amounts), provided that (i)
no Default shall have occurred and be continuing and (ii) such termination shall not be deemed to
be a waiver or release of any claim any Borrower, the Agent, any Issuing Bank or any Lender may
have against such Defaulting Lender.

          SECTION 2.06. Repayment of Advances and Letter of Credit Drawings. (a)
Revolving Credit Advances. Each Borrower shall repay to the Agent for the ratable account
of the Lenders on the Termination Date the aggregate principal amount of the Revolving Credit
Advances made to it and then outstanding.

          (b) Letter of Credit Drawings. The obligations of each Borrower under any Letter of
Credit Agreement and any other agreement or instrument relating to any Letter of Credit issued for
the account of such Borrower shall be unconditional and irrevocable, and shall be paid strictly in
accordance with the terms of this Agreement, such Letter of Credit Agreement and such other
agreement or instrument under all circumstances, including, without limitation, the following
circumstances (it being understood that any such payment by such Borrower is without prejudice to,
and does not constitute a waiver of, any rights such Borrower might have or might acquire as a
result of the payment by any Issuing Bank of any draft or the reimbursement by such Borrower
thereof, including as provided in Section 9.15):

     (i) any lack of validity or enforceability of this Agreement, any Note, any Letter of
Credit Agreement, any Letter of Credit or any other agreement or instrument relating thereto
(all of the foregoing being, collectively, the “L/C Related Documents”);

     (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 such Borrower in respect of any L/C Related Document 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, set-off, defense or other right that such Borrower
may have at any time against any beneficiary or any transferee of a Letter of Credit (or any
Persons for which any such beneficiary or any such transferee may be acting), any Issuing
Bank, the Agent, any Lender or any other Person, whether in connection with the transactions
contemplated by the L/C Related Documents or any unrelated transaction;

     (iv) any statement or any other document presented under a 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;

     (v) payment by any Issuing Bank under a Letter of Credit against presentation of a
draft or certificate that does not strictly comply with the terms of such Letter of Credit;

     (vi) any exchange, release or non-perfection of any collateral, or any release or
amendment or waiver of or consent to departure from any guarantee, for all or any of the
obligations of such Borrower in respect of the L/C Related Documents; or

     (vii) any other circumstance or happening whatsoever, whether or not similar to any of
the foregoing, including, without limitation, any other circumstance that might otherwise
constitute a defense available to, or a discharge of, such Borrower or a guarantor.

The parties hereto expressly agree that, in the absence of gross negligence or willful misconduct
on the part of an Issuing Bank, such Issuing Bank shall be deemed to have exercised reasonable care
in each such determination. In furtherance of the foregoing and without limiting the generality
thereof, the parties agree that, with respect to documents presented which appear on their face to
be in substantial compliance with the terms of a Letter of Credit, an Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept
and make payment upon such documents if such documents are not in strict compliance with the terms
of such Letter of Credit.

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          (c) Swing Line Advances. Each Borrower shall repay to the Agent for the ratable
account of the Swing Line Banks and each other Lender which has made a Swing Line Advance the
outstanding principal amount of each Swing Line Advance made to it by each of them on the earlier
of the maturity date specified in the applicable Notice of Swing Line Borrowing (which maturity
shall be no later than ten Business Days after the requested date of such Borrowing) and the
Termination Date.

          SECTION 2.07. Interest on Advances. (a) Scheduled Interest. Each Borrower
shall pay interest on the unpaid principal amount of each Advance made to it and owing to each
Lender from the date of such Advance until such principal amount shall be paid in full, at the
following rates per annum:

     (i) Base Rate Advances. During such periods as such Revolving Credit Advance
is a Base Rate Advance, a rate per annum equal at all times to the sum of (x) the Base Rate
in effect from time to time plus (y) the Applicable Margin in effect from time to
time, payable in arrears quarterly on the last day of each March, June, September and
December during such periods and on the date such Base Rate Advance shall be Converted or
paid in full.

     (ii) Eurocurrency Rate Advances. During such periods as such Revolving Credit
Advance is a Eurocurrency Rate Advance, a rate per annum equal at all times during each
Interest Period for such Eurocurrency Rate Advance to the sum of (x) the Eurocurrency Rate
for such Interest Period for such Eurocurrency Rate Advance plus (y) the Applicable
Margin in effect from time to time, payable in arrears on the last day of such Interest
Period and, if such Interest Period has a duration of more than three months, on each day
that occurs during such Interest Period every three months from the first day of such
Interest Period and on the date such Eurocurrency Rate Advance shall be Converted or paid in
full.

     (iii) Swing Line Advances. A rate per annum equal at all times to the sum of
(w) the Federal Funds Rate in effect from time to time plus (x) 0.50% per annum
plus (y) the Applicable Margin for Eurocurrency Rate Advances in effect from time to
time, payable in arrears the date such Swing Line Advance shall be paid in full.

          (b) Default Interest. Upon the occurrence and during the continuance of an Event of
Default under Section 6.01(a), the Agent may, and upon the request of the Required Lenders shall,
require the Borrowers to pay interest (“Default Interest”) on (i) the unpaid principal
amount of each Advance owing to each Lender, payable in arrears on the dates referred to in clause
(a)(i) or (a)(ii) above, at a rate per annum equal at all times to 2% per annum above the rate per
annum required to be paid on such Advance pursuant to clause (a)(i) or (a)(ii) above and (ii) to
the fullest extent permitted by law, the amount of any interest, fee or other amount payable
hereunder that is not paid when due, from the date such amount shall be due until such amount shall
be paid in full, payable in arrears on the date such amount shall be paid in full and on demand, at
a rate per annum equal at all times to 2% per annum above the rate per annum required to be paid on
Base Rate Advances pursuant to clause (a)(i) above; provided, however, that
following acceleration of the Advances pursuant to Section 6.01, Default Interest shall accrue and
be payable hereunder whether or not previously required by the Agent.

          SECTION 2.08. Interest Rate Determination. (a) Each Reference Bank agrees, if
requested by the Agent, to furnish to the Agent timely information for the purpose of determining
each Eurocurrency Rate. If any one or more of the Reference Banks shall not furnish such timely
information to the Agent for the purpose of determining any such interest rate, the Agent shall
determine such interest rate on the basis of timely information furnished by the remaining
Reference Banks. The Agent shall give prompt notice to the Company and the Lenders of the
applicable interest rate determined by the Agent for purposes of Section 2.07(a)(i) or (ii), and
the rate, if any, furnished by each Reference Bank for the purpose of determining the interest rate
under Section 2.07(a)(ii).

          (b) If, with respect to any Eurocurrency Rate Borrowing, the Lenders owed at least 51% of the
aggregate principal amount thereof notify the Agent that (i) they are unable to obtain matching
deposits in the London inter-bank market at or about 11:00 A.M. (London time) on the second
Business Day before the making of a Borrowing in sufficient amounts to fund their respective
Eurocurrency Rate Advances as a part of such Borrowing
during its Interest Period or (ii) the Eurocurrency Rate for any Interest Period for such
Advances will not adequately reflect the cost to such Lenders of making, funding or maintaining
their respective Eurocurrency Rate Advances for such Interest Period, the Agent shall forthwith so
notify the Company and the Lenders, whereupon (A) the Borrower of such Eurocurrency Rate Advances
will, on the last day of the then existing Interest Period therefor, (1) if such Eurocurrency Rate
Advances are denominated in Dollars, either (x) prepay such Advances or (y) Convert such

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Advances into Base Rate Advances and (2) if such Eurocurrency Rate Advances are denominated in any Committed
Currency, either (x) prepay such Advances or (y) exchange such Advances into an Equivalent amount
of Dollars and Convert such Advances into Base Rate Advances and (B) the obligation of the Lenders
to make, or to Convert Revolving Credit Advances into, Eurocurrency Rate Advances shall be
suspended until the Agent shall notify the Company and the Lenders that the circumstances causing
such suspension no longer exist.

          (c) If any Borrower shall fail to select the duration of any Interest Period for any
Eurocurrency Rate Advances in accordance with the provisions contained in the definition of
“Interest Period” in Section 1.01, the Agent will forthwith so notify such Borrower and the Lenders
and such Advances will automatically, on the last day of the then existing Interest Period
therefor, (i) if such Eurocurrency Rate Advances are denominated in Dollars, Convert into Base Rate
Advances and (ii) if such Eurocurrency Rate Advances are denominated in a Committed Currency, be
exchanged for an Equivalent amount of Dollars and Convert into Base Rate Advances.

          (d) On the date on which the aggregate unpaid principal amount of Eurocurrency Rate Advances
comprising any Revolving Credit Borrowing shall be reduced, by payment or prepayment or otherwise,
to less than the Revolving Credit Borrowing Minimum, such Advances shall automatically (i) if such
Eurocurrency Rate Advances are denominated in Dollars, Convert into Base Rate Advances and (ii) if
such Eurocurrency Rate Advances are denominated in a Committed Currency, be exchanged for an
Equivalent amount of Dollars and Convert into Base Rate Advances.

          (e) Upon the occurrence and during the continuance of any Event of Default, (i) each
Eurocurrency Rate Advance will automatically, on the last day of the then existing Interest Period
therefor, (A) if such Eurocurrency Rate Advances are denominated in Dollars, be Converted into Base
Rate Advances and (B) if such Eurocurrency Rate Advances are denominated in any Committed Currency,
be exchanged for an Equivalent amount of Dollars and be Converted into Base Rate Advances and (ii)
the obligation of the Lenders to make, or to Convert Advances into, Eurocurrency Rate Advances
shall be suspended.

          (f) If Reuters LIBOR01 Page is unavailable and fewer than two Reference Banks furnish timely
information to the Agent for determining the Eurocurrency Rate for any Eurocurrency Rate Advances
after the Agent has requested such information,

     (i) the Agent shall forthwith notify the applicable Borrower and the Lenders that the
interest rate cannot be determined for such Eurocurrency Rate Advances,

     (ii) each such Advance will automatically, on the last day of the then existing
Interest Period therefor, (A) if such Eurocurrency Rate Advance is denominated in Dollars,
Convert into a Base Rate Advance and (B) if such Eurocurrency Rate Advance is denominated in
any Committed Currency, be prepaid by the applicable Borrower or be automatically exchanged
for an Equivalent amount of Dollars and be Converted into a Base Rate Advance (or if such
Advance is then a Base Rate Advance, will continue as a Base Rate Advance), and

     (iii) the obligation of the Lenders to make Eurocurrency Rate Advances or to Convert
Advances comprising a Revolving Credit Borrowing into Eurocurrency Rate Advances shall be
suspended until the Agent shall notify the Company and the Lenders that the circumstances
causing such suspension no longer exist.

          SECTION 2.09. Optional Conversion of Advances. The Borrower of any Advance made as a
part of a Revolving Credit Borrowing may on any Business Day, upon notice given to the Agent not
later than 11:00 A.M. (New York City time) on the third Business Day prior to the date of the
proposed Conversion and subject to the provisions of Sections 2.08 and 2.12, Convert all or any
portion of the Advances made as a part of a Revolving Credit Borrowing denominated in Dollars of
one Type comprising the same Borrowing into Advances denominated in Dollars of the other Type;
provided, however, that any Conversion of Eurocurrency Rate Advances into Base Rate Advances
shall be made only on the last day of an Interest Period for such Eurocurrency Rate Advances, any
Conversion of Base Rate Advances into Eurocurrency Rate Advances shall be in an amount not less
than the minimum amount specified in Section 2.02(c), no Conversion of any Advances shall result in
more separate Borrowings than permitted under Section 2.02(c) and each Conversion of Advances
comprising part of the same

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Borrowing shall be made ratably among the Lenders in accordance with their Commitments. Each
such notice of a Conversion shall, within the restrictions specified above, specify (i) the date of
such Conversion, (ii) the Dollar denominated Advances to be Converted, and (iii) if such Conversion
is into Eurocurrency Rate Advances, the duration of the initial Interest Period for each such
Advance. Each notice of Conversion shall be irrevocable and binding on the Borrower giving such
notice.

          SECTION 2.10. Prepayments of Advances. (a) Optional. Each Borrower may,
upon notice at least two Business Days’ prior to the date of such prepayment, in the case of
Eurocurrency Rate Advances, and not later than 11:00 A.M. (New York City time) on the date of such
prepayment, in the case of Base Rate Advances, to the Agent stating the proposed date and aggregate
principal amount of the prepayment, and if such notice is given such Borrower shall, prepay the
outstanding principal amount of the Advances comprising part of the same Borrowing in whole or
ratably in part, together with accrued interest to the date of such prepayment on the principal
amount prepaid; provided, however, that (i) each partial prepayment of Revolving
Credit Advances shall be in an aggregate principal amount of not less than the Revolving Credit
Borrowing Minimum or a Revolving Credit Borrowing Multiple in excess thereof, (ii) each partial
prepayment of Swing Line Advances shall be in an aggregate principal amount of not less than
$1,000,000 and (iii) in the event of any such prepayment of a Eurocurrency Rate Advance, such
Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section
9.04(c).

          (b) Mandatory. (i) If, on any date, the Agent notifies the Company that, on any
interest payment date, the sum of (A) the aggregate principal amount of all Swing Line Advances
plus all Revolving Credit Advances denominated in Dollars plus the aggregate Available Amount of
all Letters of Credit then outstanding plus (B) the Equivalent in Dollars (determined on the third
Business Day prior to such interest payment date) of the aggregate principal amount of all
Revolving Credit Advances denominated in Committed Currencies then outstanding exceeds 103% of the
aggregate Revolving Credit Commitments on such date, the Borrowers shall, as soon as practicable
and in any event within two Business Days after receipt of such notice, prepay the outstanding
principal amount of any Advances owing by the Borrowers in an aggregate amount sufficient to reduce
such sum to an amount not to exceed 100% of the aggregate Revolving Credit Commitments of the
Lenders on such date.

          (ii) Each prepayment made pursuant to this Section 2.10(b) shall be made together with any
interest accrued to the date of such prepayment on the principal amounts prepaid and, in the case
of any prepayment of a Eurocurrency Rate Advance on a date other than the last day of an Interest
Period or at its maturity, any additional amounts which the applicable Borrower shall be obligated
to reimburse to the Lenders in respect thereof pursuant to Section 9.04(c).

          (iii) The Agent shall calculate on the date of each Notice of Revolving Credit Borrowing,
Notice of Swing Line Borrowing or Notice of Issuance and on each interest payment date the sum of
(A) the aggregate principal amount of all Swing Line Advances plus all Revolving Credit Advances
denominated in Dollars plus the aggregate Available Amount of all Letters of Credit then
outstanding plus (B) the Equivalent in Dollars (determined on the third Business Day prior to such
interest payment date) of the aggregate principal amount of all Revolving Credit Advances
denominated in Committed Currencies and shall give prompt notice (and in any event no later than
thirty days) of any prepayment required under this Section 2.10(b) to the Company and the Lenders.

          SECTION 2.11. Increased Costs. (a) If, due to either (i) the introduction or phase
in of or any change in or in the interpretation of any law, rule, guideline, decision, directive,
treaty or regulation or (ii) the compliance with any guideline or request from any central bank or
other governmental authority including, without limitation, any agency of the European Union or
similar monetary or multinational authority (whether or not having the force of law), there shall
be any increase in the cost to any Lender of agreeing to make or making, funding or maintaining
Eurocurrency Rate Advances or of agreeing to issue or of issuing or maintaining or participating in
Letters of Credit (excluding for purposes of this Section 2.11 any such increased costs resulting
from (i) Taxes or Other Taxes (as to which Section 2.14 shall govern) and (ii) changes in the basis
of taxation of overall net income or overall gross income by the United States or by the foreign
jurisdiction or state under the laws of which such Lender is organized or has its Applicable
Lending Office or any political subdivision thereof), then the Company shall from time to time,
upon demand by such Lender (with a copy of such demand to the Agent), pay to the Agent for the
account of such Lender additional amounts sufficient to compensate such Lender for such increased
cost; provided, however, that before making any such demand, each Lender agrees to
use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions)
to designate a different Applicable Lending Office if the making of such designation would avoid
the need for, or reduce the amount of, such increased cost and would not, in the reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate as to the

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amount of such increased cost, submitted to the Company and the Agent by such Lender, shall be
conclusive and binding for all purposes, absent manifest error.

          (b) If any Lender determines that compliance with any law or regulation or any guideline
or request from any central bank or other governmental authority (whether or not having the force
of law) affects or would affect the amount of capital required or expected to be maintained by such
Lender or any corporation controlling such Lender and that the amount of such capital is increased
by or based upon the existence of such Lender’s commitment to lend or to issue or participate in
Letters of Credit hereunder and other commitments of such type or the Issuance or maintenance of or
participation in the Letters of Credit (or similar contingent obligations), then, upon demand by
such Lender (with a copy of such demand to the Agent), the Company shall pay to the Agent for the
account of such Lender, from time to time as specified by such Lender, additional amounts
sufficient to compensate such Lender or such corporation in the light of such circumstances, to the
extent that such Lender reasonably determines such increase in capital to be allocable to the
existence of such Lender’s commitment to lend or to issue or participate in Letters of Credit
hereunder or to the Issuance or maintenance of or participation in any Letters of Credit. A
certificate as to such amounts submitted to the Company and the Agent by such Lender shall be
conclusive and binding for all purposes, absent manifest error.

          (c) Notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and
Consumer Protection Act, and all requests, rules, guidelines and directives promulgated thereunder,
are deemed to have been introduced or adopted after the date hereof, regardless of the date enacted
or adopted.

          SECTION 2.12. Illegality. Notwithstanding any other provision of this Agreement, if
any Lender shall notify the Agent that the introduction of or any change in or in the
interpretation of any law or regulation makes it unlawful, or any central bank or other
governmental authority asserts that it is unlawful, for any Lender or its Eurocurrency Lending
Office to perform its obligations hereunder to make Eurocurrency Rate Advances in Dollars or any
Committed Currency or to fund or maintain Eurocurrency Rate Advances in Dollars or any Committed
Currency hereunder, (a) each Eurocurrency Rate Advance will automatically, upon such demand (i) if
such Eurocurrency Rate Advance is denominated in Dollars, be Converted into a Base Rate Advance and
(ii) if such Eurocurrency Rate Advance is denominated in any Committed Currency, be exchanged into
an Equivalent amount of Dollars and be Converted into a Base Rate Advance and (b) the obligation of
the Lenders to make Eurocurrency Rate Advances or to Convert Revolving Credit Advances into
Eurocurrency Rate Advances shall be suspended until the Agent shall notify the Company and the
Lenders that the circumstances causing such suspension no longer exist.

          SECTION 2.13. Payments and Computations. (a) Each Borrower shall make each payment
hereunder (except with respect to principal of, interest on, and other amounts relating to,
Advances denominated in a Committed Currency), irrespective of any right of counterclaim or
set-off, not later than 11:00 A.M. (New York City time) on the day when due in Dollars to the Agent
at the applicable Agent’s Account in same day funds. Each Borrower shall make each payment
hereunder with respect to principal of, interest on, and other amounts relating to, Advances
denominated in a Committed Currency, irrespective of any right of counterclaim or set-off, not
later than 11:00 A.M. (at the Payment Office for such Committed Currency) on the day when due in
such Committed Currency to the Agent, by deposit of such funds to the applicable Agent’s Account in
same day funds. The Agent will promptly thereafter cause to be distributed like funds relating to
the payment of principal or interest, fees or commissions ratably (other than amounts payable
pursuant to Section 2.03, 2.04(b), 2.11, 2.14 or 9.04(c)) to the Lenders for the account of their
respective Applicable Lending Offices, and like funds relating to the payment of any other amount
payable to any Lender to such Lender for the account of its Applicable Lending Office, in each case
to be applied in accordance with the terms of this Agreement. Upon any Assuming Lender becoming a
Lender hereunder as a result of a Commitment Increase pursuant to Section 2.18 and upon the Agent’s
receipt of such Lender’s Assumption Agreement and recording of the information contained therein in
the Register, from and after the applicable Increase Date, the Agent shall make all payments
hereunder and under any Notes issued in connection therewith in respect of the interest assumed
thereby to the Assuming Lender. Upon its acceptance of an Assignment and Acceptance and recording
of the information contained therein in the Register pursuant to Section 9.07(c), from and after
the effective date specified in such Assignment and Acceptance, the Agent shall make all payments
hereunder and under the Notes in respect of the interest assigned thereby to the Lender assignee
thereunder, and the parties to such Assignment and Acceptance shall make all appropriate
adjustments in such payments for periods prior to such effective date directly between themselves.

          (b) All computations of interest based on the Base Rate shall be made by the Agent on the
basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on
the Eurocurrency

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Rate or the Federal Funds Rate and of fees and Letter of Credit commissions shall be made by
the Agent on the basis of a year of 360 days (or, in each case of Advances denominated in Committed
Currencies where market practice differs, in accordance with market practice), in each case for the
actual number of days (including the first day but excluding the last day) occurring in the period
for which such interest, fees or commissions are payable. Each determination by the Agent of an
interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error.

          (c) Whenever any payment hereunder or under the Notes shall be stated to be due on a day
other than a Business Day, such payment shall be made on the next succeeding Business Day, and such
extension of time shall in such case be included in the computation of payment of interest, fee or
commission, as the case may be; provided, however, that, if such extension would
cause payment of interest on or principal of Eurocurrency Rate Advances to be made in the next
following calendar month, such payment shall be made on the next preceding Business Day.

          (d) Unless the Agent shall have received notice from any Borrower prior to the date on
which any payment is due to the Lenders hereunder that such Borrower will not make such payment in
full, the Agent may assume that such Borrower has made such payment in full to the Agent on such
date and the Agent may, in reliance upon such assumption, cause to be distributed to each Lender on
such due date an amount equal to the amount then due such Lender. If and to the extent such
Borrower shall not have so made such payment in full to the Agent, each Lender shall repay to the
Agent forthwith on demand such amount distributed to such Lender together with interest thereon,
for each day from the date such amount is distributed to such Lender until the date such Lender
repays such amount to the Agent, at (i) the Federal Funds Rate in the case of Advances denominated
in Dollars or (ii) the cost of funds incurred by the Agent in respect of such amount in the case of
Advances denominated in Committed Currencies.

          (e) To the extent that the Agent receives funds for application to the amounts owing by
any Borrower under or in respect of this Agreement or any Note in currencies other than the
currency or currencies required to enable the Agent to distribute funds to the Lenders in
accordance with the terms of this Section 2.13, the Agent shall be entitled to convert or exchange
such funds into Dollars or into a Committed Currency or from Dollars to a Committed Currency or
from a Committed Currency to Dollars, as the case may be, to the extent necessary to enable the
Agent to distribute such funds in accordance with the terms of this Section 2.13; provided
that each Borrower and each of the Lenders hereby agree that the Agent shall not be liable or
responsible for any loss, cost or expense suffered by such Borrower or such Lender as a result of
any conversion or exchange of currencies affected pursuant to this Section 2.13(e) or as a result
of the failure of the Agent to effect any such conversion or exchange; and provided further that
the Borrowers agree to indemnify the Agent and each Lender, and hold the Agent and each Lender
harmless, for any and all losses, costs and expenses incurred by the Agent or any Lender for any
conversion or exchange of currencies (or the failure to convert or exchange any currencies) in
accordance with this Section 2.13(e), absent gross negligence or willful misconduct on the part of
the Agent or such Lender, respectively.

          SECTION 2.14. Taxes. (a) Any and all payments by each Borrower to or for the
account of any Lender or the Agent hereunder or under the Notes or any other documents to be
delivered hereunder shall be made, in accordance with Section 2.13 or the applicable provisions of
such other documents, free and clear of and without deduction for any and all present or future
taxes, levies, imposts, deductions, charges or withholdings, and all liabilities with respect
thereto, excluding, in the case of each Lender and the Agent, taxes imposed on its overall
net income (including branch profits taxes), and franchise taxes imposed on it in lieu of net
income taxes, by the jurisdiction under the laws of which such Lender or the Agent (as the case may
be) is organized or any political subdivision thereof and, in the case of each Lender, taxes
imposed on its overall net income (including branch profits taxes, and franchise taxes imposed on
it in lieu of net income taxes, by the jurisdiction of such Lender’s Applicable Lending Office or
any political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions,
charges, withholdings and liabilities in respect of payments hereunder or under the Notes being
hereinafter referred to as “Taxes”). If any Borrower shall be required by law to deduct
any Taxes from or in respect of any sum payable hereunder or under any Note or any other documents
to be delivered hereunder to any Lender or the Agent, (i) the sum payable shall be increased as may
be necessary so that after making all required deductions (including deductions applicable to
additional sums payable under this Section 2.14) such Lender or the Agent (as the case may be)
receives an amount equal to the sum it would have received had no such deductions been made, (ii)
such Borrower shall make such deductions and (iii) such Borrower shall pay the full amount deducted
to the relevant taxation authority or other authority in accordance with applicable law.

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          (b) In addition, the Company shall pay any present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies that arise from any payment made
hereunder or under the Notes any other documents to be delivered hereunder or from the execution,
delivery or registration of, performing under, or otherwise with respect to, this Agreement or the
Notes or any other documents to be delivered hereunder (hereinafter referred to as “Other
Taxes”).

          (c) Each Borrower shall indemnify each Lender and the Agent for and hold it harmless
against the full amount of Taxes or Other Taxes (including, without limitation, taxes of any kind
imposed or asserted by any jurisdiction on amounts payable under this Section 2.14) imposed on or
paid by such Lender or the Agent (as the case may be) and any liability (including penalties,
interest and expenses) arising therefrom or with respect thereto other than such liability
(including penalties, interest and expenses) attributable to the acts of or failure to act by such
Lender. This indemnification shall be made within 30 days from the date such Lender or the Agent
(as the case may be) makes written demand therefor. Upon request from a Borrower, the Lender or
Agent (as the case may be) shall provide such Borrower with such information and documentation as
to the calculation of the indemnification payment as such Borrower may reasonably request.

          (d) Within 30 days after the date of any payment of Taxes, each Borrower shall furnish to
the Agent, at its address referred to in Section 9.02, the original or a certified copy of a
receipt evidencing such payment to the extent such a receipt is issued therefor, or other written
proof of payment thereof that is reasonably satisfactory to the Agent. In the case of any payment
hereunder or under the Notes or any other documents to be delivered hereunder by or on behalf of
such Borrower through an account or branch outside the United States or by or on behalf of such
Borrower by a payor that is not a United States person, if such Borrower determines that no Taxes
are payable in respect thereof, such Borrower shall furnish, or shall cause such payor to furnish,
to the Agent, at such address, evidence of substantial authority acceptable to the Agent stating
that such payment is exempt from Taxes. For purposes of this subsection (d) and subsection (e),
the terms “United States” and “United States person” shall have the meanings
specified in Section 7701 of the Internal Revenue Code.

          (e) (i) Each Lender organized under the laws of a jurisdiction outside the United States
(a “non-U.S. Lender”), on or prior to the date of its execution and delivery of this
Agreement in the case of each Initial Lender and on the date of the Assumption Agreement or the
Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender,
and from time to time thereafter as reasonably requested in writing by the Company (but only so
long as such Lender remains lawfully able to do so), shall provide each of the Agent and the
Company with two original Internal Revenue Service Forms W-8BEN or W-8ECI, as appropriate, or any
successor or other form prescribed by the Internal Revenue Service, certifying that such Lender is
exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to
this Agreement or the Notes. If the form provided by a Lender at the time such Lender first
becomes a party to this Agreement indicates a United States interest withholding tax rate in excess
of zero, withholding tax at such rate shall be considered excluded from Taxes unless and until such
Lender provides the appropriate forms certifying that a lesser rate applies, whereupon withholding
tax at such lesser rate only shall be considered excluded from Taxes for periods governed by such
form; provided, however, that, if at the date of the Assignment and Acceptance
pursuant to which a Lender assignee becomes a party to this Agreement, the Lender assignor was
entitled to payments under subsection (a) in respect of United States withholding tax with respect
to interest paid at such date, then, to such extent, the term Taxes shall include (in addition to
withholding taxes that may be imposed in the future or other amounts otherwise includable in Taxes)
United States withholding tax, if any, applicable with respect to the Lender assignee on such date.
If any form or document referred to in this subsection (e) requires the disclosure of information,
other than information necessary to compute the tax payable and information required on the date
hereof by Internal Revenue Service Form W-8BEN or W-8ECI, that the Lender reasonably considers to
be confidential, the Lender shall give notice thereof to the Company and shall not be obligated to
include in such form or document such confidential information.

     (ii) If a payment made to a Lender hereunder would be subject to United States
federal withholding tax imposed by FATCA if such Lender were to fail to comply with the
applicable reporting requirements of FATCA (including those contained in Section 1471(b) or
1472(b) of the Internal Revenue Code, as applicable), such Lender shall deliver to the
Company and the Agent, at the time or times prescribed by law and at such time or times
reasonably requested by the Company or the Agent, such documentation prescribed by
applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal Revenue
Code) and such additional documentation reasonably requested by the Company or the Agent as
may be necessary for the Company or the Agent to comply with its obligations under FATCA, to

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determine that such Lender has complied with such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. A Lender shall not be entitled to
payment or indemnification under Section 2.14(a) or (c) with respect to Taxes imposed by the
United States by reason of FATCA.

          (f) For any period with respect to which a non-U.S. Lender has failed to provide the
Company with the appropriate form, certificate or other document described in Section 2.14(e)
(other than to the extent such failure is due to a change in law, or in the
interpretation or application thereof, occurring subsequent to the date on which a form,
certificate or other document originally was required to be provided), such non-U.S. Lender shall
not be entitled to payment or indemnification under Section 2.14(a) or (c) with respect to Taxes
imposed by the United States by reason of such failure; provided, however, that
should a Lender become subject to Taxes because of its failure to deliver a form, certificate or
other document required hereunder, the Company shall take such steps as the Lender shall reasonably
request to assist the Lender to recover such Taxes.

          (g) In addition, in the case of any Borrower that is organized in a jurisdiction other
that the United States, if a Lender is entitled to an exemption from or reduction of withholding
tax under the law of the jurisdiction in which the Borrower is organized, or any treaty to which
such jurisdiction is a party with respect to payments under this Agreement or under the Notes, such
Lender shall deliver to the Company (with a copy to the Agent) and, if required, to any applicable
governmental authority, such properly completed and executed documentation prescribed by applicable
law or reasonably requested in writing by the Company or the Agent as will permit such payments to
be made without withholding or at a reduced rate of withholding. To the extent that such
Lender is legally entitled to provide such a form and fails to satisfy the requirements of the
preceding sentence, such Lender shall not be entitled to payment or indemnification under Section
2.14(a) or (c) with respect to Taxes imposed by such jurisdiction in which the applicable Borrower
is organized by reason of such failure; provided, however, that should a Lender
become subject to Taxes because of its failure to deliver a form, certificate or other document
required hereunder, the Company and such Borrower shall take such steps as the Lender shall
reasonably request to assist the Lender to recover such Taxes.

          (h) Any Lender claiming any additional amounts payable pursuant to this Section 2.14
agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory
restrictions) to change the jurisdiction of its Eurocurrency Lending Office if the making of such a
change would avoid the need for, or reduce the amount of, any such additional amounts that may
thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise
disadvantageous to such Lender.

          (i) If an additional payment is made under subsection (a) or (c) above for the account of
any Lender and such Lender, in its sole discretion (exercising good faith), determines that it has
finally and irrevocably received or been granted a credit against or release or remission for, or
repayment of, any tax paid or payable by it in respect of or calculated with reference to the
deduction or withholding giving rise to such payment, such Lender shall, to the extent that it
determines that it can do so without prejudice to the retention of the amount of such credit,
relief, remission or repayment, pay to the applicable Borrower such amount as the Lender shall, in
its sole discretion (exercising good faith), have determined to be attributable to such deduction
or withholding and which will leave such Lender (after such payment) in no worse position than it
would have been in if such Borrower had not been required to make such deduction or withholding.
Such Lender shall provide to the applicable Borrower reasonable information regarding any
creditable amounts it expects to receive, and the expected time for receiving such credit or
refund. Nothing herein contained shall interfere with the right of a Lender to arrange its tax
affairs in whatever manner it thinks fit nor oblige any Lender to claim any tax credit or to
disclose any information relating to its tax affairs or any computations in respect thereof or
require any Lender to do anything that would prejudice its ability to benefit from any other
credits, reliefs, remissions or repayments to which it may be entitled.

          SECTION 2.15. Sharing of Payments, Etc. If any Lender shall obtain any payment
(whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on
account of the Advances owing to it (other than (x) as payment of an Advance made by an Issuing
Bank pursuant to the first sentence of Section 2.03(c), (y) as a payment of a Swing Line Advance
made by a Swing Line Bank that has not been participated to the other Lenders pursuant to Section
2.02(b) or (z) pursuant to Section 2.11, 2.14, 2.19 or 9.04(c)) in excess of its pro rata share of
payments on account of the Advances obtained by all the Lenders, such Lender shall forthwith
purchase from the other Lenders such participations in the Advances owing to them as shall be
necessary to cause such purchasing Lender to share the excess payment ratably with each of them;
provided, however, that if all or any portion of such excess payment is thereafter
recovered from such purchasing Lender, such purchase from each

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Lender shall be rescinded and such
Lender shall repay to the purchasing Lender the purchase price to the extent of
such recovery together with an amount equal to such Lender’s ratable share (according to the
proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so
recovered from the purchasing Lender) of any interest or other amount paid or payable by the
purchasing Lender in respect of the total amount so recovered. Each Borrower agrees that any
Lender so purchasing a participation from another Lender pursuant to this Section 2.15 may, to the
fullest extent permitted by law, exercise all its rights of payment (including the right of
set-off) with respect to such participation as fully as if such Lender were the direct creditor of
such Borrower in the amount of such participation.

          SECTION 2.16. Evidence of Debt. (a) Each Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of each Borrower to such
Lender resulting from each Advance owing to such Lender from time to time, including the amounts of
principal and interest payable and paid to such Lender from time to time hereunder in respect of
Advances. Each Borrower agrees that upon notice by any Lender to such Borrower (with a copy of
such notice to the Agent) to the effect that a Note is required or appropriate in order for such
Lender to evidence (whether for purposes of pledge, enforcement or otherwise) the Advances owing
to, or to be made by, such Lender, such Borrower shall promptly execute and deliver to such Lender
a Note in substantially the form of Exhibit A hereto, payable to the order of such Lender in a
principal amount equal to the Revolving Credit Commitment of such Lender.

          (b) The Register maintained by the Agent pursuant to Section 9.07(d) shall include a
control account, and a subsidiary account for each Lender, in which accounts (taken together) shall
be recorded (i) the date and amount of each Borrowing made hereunder, the Type of Advances
comprising such Borrowing and, if appropriate, the Interest Period applicable thereto, (ii) the
terms of each Assumption Agreement and each Assignment and Acceptance delivered to and accepted by
it, (iii) the amount of any principal or interest due and payable or to become due and payable from
each Borrower to each Lender hereunder and (iv) the amount of any sum received by the Agent from
such Borrower hereunder and each Lender’s share thereof.

          (c) Entries made in good faith by the Agent in the Register pursuant to subsection (b)
above, and by each Lender in its account or accounts pursuant to subsection (a) above, shall be
prima facie evidence of the amount of principal and interest due and payable or to
become due and payable from each Borrower to, in the case of the Register, each Lender and, in the
case of such account or accounts, such Lender, under this Agreement, absent manifest error;
provided, however, that the failure of the Agent or such Lender to make an entry,
or any finding that an entry is incorrect, in the Register or such account or accounts shall not
limit or otherwise affect the obligations of any Borrower under this Agreement.

          SECTION 2.17. Use of Proceeds. The proceeds of the Advances shall be available (and
each Borrower agrees that it shall use such proceeds) solely for general corporate purposes
(including acquisitions) of such Borrower and its Subsidiaries.

          SECTION 2.18. Increase in the Aggregate Revolving Credit Commitments. (a) The
Company may, at any time but in any event not more than once in any calendar year prior to the
Termination Date, by notice to the Agent, request that the aggregate amount of the Revolving Credit
Commitments be increased by an amount of $50,000,000 or an integral multiple thereof (each a
“Commitment Increase”) to be effective as of a date that is at least 90 days prior to the
scheduled Termination Date (the “Increase Date”) as specified in the related notice to the
Agent; provided, however that (i) in no event shall the aggregate amount of the
Revolving Credit Commitments at any time exceed $1,300,000,000 and (ii) on the date of any request
by the Company for a Commitment Increase and on the related Increase Date the applicable conditions
set forth in Article III shall be satisfied.

          (b) The Agent shall promptly notify the Lenders of a request by the Company for a
Commitment Increase, which notice shall include (i) the proposed amount of such requested
Commitment Increase, (ii) the proposed Increase Date and (iii) the date by which Lenders wishing to
participate in the Commitment Increase must commit to an increase in the amount of their respective
Revolving Credit Commitments (the “Commitment Date”). Each Lender that is willing to
participate in such requested Commitment Increase (each an “Increasing Lender”) shall, in
its sole discretion, give written notice to the Agent on or prior to the Commitment Date of the
amount by which it is willing to increase its Revolving Credit Commitment. If the Lenders notify
the Agent that they are willing to increase the amount of their respective Revolving Credit
Commitments by an aggregate amount that exceeds the amount of the requested Commitment Increase,
the requested Commitment

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Increase shall be allocated among the Lenders willing to participate
therein in such amounts as are agreed between the Company and the Agent.

          (c) Promptly following each Commitment Date, the Agent shall notify the Company as to the
amount, if any, by which the Lenders are willing to participate in the requested Commitment
Increase. If the aggregate amount by which the Lenders are willing to participate in any requested
Commitment Increase on any such Commitment Date is less than the requested Commitment Increase,
then the Company may extend offers to one or more Eligible Assignees to participate in any portion
of the requested Commitment Increase that has not been committed to by the Lenders as of the
applicable Commitment Date; provided, however, that the Revolving Credit Commitment
of each such Eligible Assignee shall be in an amount of $10,000,000 or more.

          (d) On each Increase Date, each Eligible Assignee that accepts an offer to participate in
a requested Commitment Increase in accordance with Section 2.18(c) (each such Eligible Assignee, an
“Assuming Lender”) shall become a Lender party to this Agreement as of such Increase Date
and the Revolving Credit Commitment of each Increasing Lender for such requested Commitment
Increase shall be so increased by such amount (or by the amount allocated to such Lender pursuant
to the last sentence of Section 2.18(b)) as of such Increase Date; provided,
however, that the Agent shall have received on or before such Increase Date the following,
each dated such date:

     (i) (A) certified copies of resolutions of the Board of Directors of the Company or
the Executive Committee of such Board approving the Commitment Increase and the
corresponding modifications to this Agreement and (B) an opinion of counsel for the Company
(which may be in-house counsel), in substantially the form of Exhibit D hereto;

     (ii) an assumption agreement from each Assuming Lender, if any, in form and
substance satisfactory to the Company and the Agent (each an “Assumption
Agreement”), duly executed by such Eligible Assignee, the Agent and the Company; and

     (iii) confirmation from each Increasing Lender of the increase in the amount of its
Revolving Credit Commitment in a writing satisfactory to the Company and the Agent.

On each Increase Date, upon fulfillment of the conditions set forth in the immediately preceding
sentence of this Section 2.18(d), the Agent shall notify the Lenders (including, without
limitation, each Assuming Lender) and the Company, on or before 1:00 P.M. (New York City time), by
telecopier, of the occurrence of the Commitment Increase to be effected on such Increase Date and
shall record in the Register the relevant information with respect to each Increasing Lender and
each Assuming Lender on such date. Each Increasing Lender and each Assuming Lender shall, before
2:00 P.M. (New York City time) on the Increase Date, make available for the account of its
Applicable Lending Office to the Agent at the Agent’s Account, in same day funds, in the case of
such Assuming Lender, an amount equal to such Assuming Lender’s ratable portion of the Revolving
Credit Borrowings then outstanding (calculated based on its Revolving Credit Commitment as a
percentage of the aggregate Revolving Credit Commitments outstanding after giving effect to the
relevant Commitment Increase) and, in the case of such Increasing Lender, an amount equal to the
excess of (i) such Increasing Lender’s ratable portion of the Revolving Credit Borrowings then
outstanding (calculated based on its Revolving Credit Commitment as a percentage of the aggregate
Revolving Credit Commitments outstanding after giving effect to the relevant Commitment Increase)
over (ii) such Increasing Lender’s ratable portion of the Revolving Credit Borrowings then
outstanding (calculated based on its Revolving Credit Commitment (without giving effect to the
relevant Commitment Increase) as a percentage of the aggregate Revolving Credit Commitments
(without giving effect to the relevant Commitment Increase). After the Agent’s receipt of such
funds from each such Increasing Lender and each such Assuming Lender, the Agent will promptly
thereafter cause to be distributed like funds to the other Lenders for the account of their
respective Applicable Lending Offices in an amount to each other Lender such that the aggregate
amount of the outstanding Revolving Credit Advances owing to each Lender after giving effect to
such distribution equals such Lender’s ratable portion of the Revolving Credit Borrowings then
outstanding (calculated based on its Revolving Credit Commitment as a percentage of the aggregate
Revolving Credit Commitments outstanding after giving effect to the relevant Commitment Increase).

          Section 2.19. Defaulting Lenders. (a) If any Letters of Credit or Swing Line
Advances are outstanding at the time a Lender becomes a Defaulting Lender, and the Commitments have
not been terminated in accordance with Section 6.01, then:

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     (i) so long as no Default has occurred and is continuing, all or any part of the
Available Amount of outstanding Letters of Credit and the principal amount of outstanding
Swing Line Advances
shall be reallocated among the Lenders that are not Defaulting Lenders
(“non-Defaulting Lenders”) in accordance with their respective Ratable Shares
(disregarding any Defaulting Lender’s Revolving Credit Commitment) but only to the extent
that the sum of (A) the aggregate principal amount of all Advances made by such
non-Defaulting Lenders (in their capacity as Lenders) and outstanding at such time, plus (B)
such non-Defaulting Lenders’ Ratable Shares (before giving effect to the reallocation
contemplated herein) of the Available Amount of all outstanding Letters of Credit and of
outstanding Swing Line Advances, plus (C) the aggregate principal amount of all Advances
made by each Issuing Bank pursuant to Section 2.03(c) that have not been ratably funded by
such non-Defaulting Lenders and outstanding at such time, plus (D) such Defaulting Lender’s
Ratable Share of the Available Amount of such Letters of Credit and of outstanding Swing
Line Advances, does not exceed the total of all non-Defaulting Lenders’ Revolving Credit
Commitments.

     (ii) if the reallocation described in clause (i) above cannot, or can only
partially, be effected, the applicable Borrower shall within two Business Days following
notice by any Issuing Bank or Swing Line Bank, cash collateralize such Defaulting Lender’s
Ratable Share of the Available Amount of such Letters of Credit or of the principal amount
of Swing Line Advances, as the case may be (after giving effect to any partial reallocation
pursuant to clause (i) above), by paying cash collateral in such amount to such Issuing Bank
or such Swing Line Bank; provided that, so long as no Default shall be continuing,
such cash collateral shall be released promptly upon the earliest of (A) the reallocation of
the Available Amount of outstanding Letters of Credit or principal amount of Swing Line
Advances, as applicable, among non-Defaulting Lenders in accordance with clause (i) above,
(B) the termination of the Defaulting Lender status of the applicable Lender or (C) such
Issuing Bank’s or Swing Line Bank’s good faith determination that there exists excess cash
collateral (in which case, the amount equal to such excess cash collateral shall be
released);

     (iii) if the Ratable Shares of Letters of Credit of the non-Defaulting Lenders are
reallocated or cash collateralized pursuant to this Section 2.19(a), then the fees payable
to the Lenders pursuant to Section 2.04(b)(i) shall be adjusted in accordance with such
non-Defaulting Lenders’ Ratable Shares of the Letters of Credit that are not cash
collateralized; or

     (iv) if any Defaulting Lender’s Ratable Share of Letters of Credit is neither cash
collateralized nor reallocated pursuant to Section 2.19(a), then, without prejudice to any
rights or remedies of any Issuing Bank or any Lender hereunder, all letter of credit fees
payable under Section 2.04(b)(i) with respect to such Defaulting Lender’s Ratable Share of
Letters of Credit shall be payable to the applicable Issuing Bank until such Defaulting
Lender’s Ratable Share of Letters of Credit is cash collateralized and/or reallocated.

          (b) So long as any Lender is a Defaulting Lender, no Issuing Bank shall be required to
issue, amend or increase any Letter of Credit, and no Swing Line Bank shall be required to make any
Swing Line Advances, unless it is satisfied that the related exposure will be 100% covered by the
Revolving Credit Commitments of the non-Defaulting Lenders and/or cash collateral will be provided
by the Borrowers in accordance with Section 2.19(a), and participating interests in any such newly
issued or increased Letter of Credit or newly made Swing Line Advances shall be allocated among
non-Defaulting Lenders in a manner consistent with Section 2.19(a)(i) (and Defaulting Lenders shall
not participate therein).

          (c) No Commitment of any Lender shall be increased or otherwise affected, and, except as
otherwise expressly provided in this Section 2.19, performance by any Borrower of its obligations
shall not be excused or otherwise modified as a result of the operation of this Section 2.19. The
rights and remedies against a Defaulting Lender under this Section 2.19 are in addition to any
other rights and remedies which any Borrower, the Agent, any Issuing Bank or any Lender may have
against such Defaulting Lender.

          (d) If each Borrower, the Agent, each Issuing Bank and each Swing Line Bank agree in
writing in their reasonable determination that a Defaulting Lender should no longer be deemed to be
a Defaulting Lender, the Agent will so notify the parties hereto, whereupon as of the effective
date specified in such notice and subject to any conditions set forth therein (which may include
arrangements with respect to any cash collateral), that Lender will, to the extent applicable,
purchase that portion of outstanding Advances of the other Lenders or take

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such other actions as
the Agent may determine to be necessary to cause the Advances and funded and unfunded
participations in Letters of Credit to be held on a pro rata basis by the Lenders in accordance
with their Ratable
Share (without giving effect to Section 2.19(a)), whereupon such Lender will cease to be a
Defaulting Lender; provided that no adjustments will be made retroactively with respect to
fees accrued or payments made by or on behalf of the Borrowers while that Lender was a Defaulting
Lender; and provided, further, that except to the extent otherwise expressly agreed
by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a
waiver or release of any claim of any party hereunder arising from such Lender’s having been a
Defaulting Lender.

          (e) Notwithstanding anything to the contrary contained in this Agreement, any payment of
principal, interest, facility fees, Letter of Credit commissions or other amounts received by the
Agent for the account of any Defaulting Lender under this Agreement (whether voluntary or
mandatory, at maturity, pursuant to Article VI or otherwise) shall be applied at such time or times
as may be determined by the Agent as follows: first, to the payment of any amounts owing by such
Defaulting Lender to the Agent hereunder; second, to the payment on a pro rata basis of any amounts
owing by such Defaulting Lender to any Issuing Bank or Swing Line Bank hereunder; third, if so
determined by the Agent or requested by any Issuing Bank or any Swing Line Bank, to be held as cash
collateral for future funding obligations of such Defaulting Lender in respect of any participation
in any Letter of Credit or any Swing Line Advance; fourth, as the Borrowers may request (so long as
no Default exists), to the funding of any Advance in respect of which that Defaulting Lender has
failed to fund its portion thereof as required by this Agreement, as determined by the Agent;
fifth, if so determined by the Agent and the Borrowers, to be held in the L/C Cash Deposit Account
and released in order to satisfy obligations of such Defaulting Lender to fund Advances under this
Agreement; sixth, to the payment of any amounts owing to the Lenders or the Issuing Banks as a
result of any judgment of a court of competent jurisdiction obtained by any Lender or Issuing Bank
against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations
under this Agreement; seventh, so long as no Default exists, to the payment of any amounts owing to
any Borrower as a result of any judgment of a court of competent jurisdiction obtained by such
Borrower against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; and eighth, to such Defaulting Lender or as otherwise directed by
a court of competent jurisdiction; provided that if (x) such payment is a payment of the
principal amount of any Advance in respect of which such Defaulting Lender has not fully funded its
appropriate share, and (y) such Advances were made or the related Letters of Credit were issued at
a time when the applicable conditions set forth in Article III were satisfied or waived, such
payment shall be applied solely to pay the Advances of all Non-Defaulting Lenders on a pro rata
basis prior to being applied to the payment of any Advances of such Defaulting Lender and provided
further that any amounts held as cash collateral for funding obligations of a Defaulting Lender
shall be returned to such Defaulting Lender upon the termination of this Agreement and the
satisfaction of such Defaulting Lender’s obligations hereunder. Any payments, prepayments or other
amounts paid or payable to a Defaulting Lender that are applied (or held) to pay amounts owed by a
Defaulting Lender or to post cash collateral pursuant to this Section 2.19 shall be deemed paid to
and redirected by such Defaulting Lender, and each Lender irrevocably consents hereto.

ARTICLE III

CONDITIONS TO EFFECTIVENESS AND LENDING

          SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01. Section 2.01 of
this Agreement shall become effective on and as of the first date (the “Effective Date”) on
which the following conditions precedent have been satisfied:

     (a) Except as publicly disclosed prior to November 8, 2010, there shall have
occurred no Material Adverse Change since August 31, 2010.

     (b) There shall exist no action, suit, investigation, litigation or proceeding
affecting the Company or any of its Subsidiaries pending or threatened before any court,
governmental agency or arbitrator that (i) could be reasonably likely to have a Material
Adverse Effect other than the matters described on Schedule 3.01(b) hereto (the
“Disclosed Litigation”) or (ii) purports to affect the legality, validity or
enforceability of this Agreement or any Note or the consummation of the transactions
contemplated hereby, and there shall have been no material adverse change in the status, or
financial effect on the Company or any of its Subsidiaries, of the Disclosed Litigation from
that described on Schedule 3.01(b) hereto.

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     (c) Nothing shall have come to the attention of the Lenders during the course of
their due diligence investigation to lead them to believe that the Information Memorandum
was or has become misleading, incorrect or incomplete in any material respect; without
limiting the generality of the foregoing, the Lenders shall have been given such access to
the management, records, books of account, contracts and properties of the Company and its
Subsidiaries as they shall have requested.

     (d) All governmental and third party consents and approvals necessary in connection
with the transactions contemplated hereby shall have been obtained (without the imposition
of any conditions that are not acceptable to the Lenders) and shall remain in effect, and no
law or regulation shall be applicable in the reasonable judgment of the Lenders that
restrains, prevents or imposes materially adverse conditions upon the transactions
contemplated hereby.

     (e) The Company shall have notified each Lender and the Agent in writing as to the
proposed Effective Date.

     (f) The Company shall have paid all accrued fees and expenses of the Agent and the
Lenders associated with this Agreement (including the accrued fees and expenses of counsel
to the Agent).

     (g) On the Effective Date, the following statements shall be true and the Agent
shall have received for the account of each Lender a certificate signed by a duly authorized
officer of the Company, dated the Effective Date, stating that:

     (i) The representations and warranties contained in Section 4.01 are
correct on and as of the Effective Date, and

     (ii) No event has occurred and is continuing that constitutes a Default.

     (h) The Agent shall have received on or before the Effective Date the following,
each dated the Effective Date, in form and substance satisfactory to the Agent and (except
for the Notes) in sufficient copies for each Lender:

     (i) The Notes to the order of the Lenders to the extent requested by any
Lender pursuant to Section 2.16.

     (ii) Certified copies of the resolutions of the Board of Directors of the
Company approving this Agreement and the Notes, and of all documents evidencing
other necessary corporate action and governmental approvals, if any, with respect to
this Agreement and the Notes.

     (iii) A certificate of the Secretary or an Assistant Secretary of the
Company certifying the names and true signatures of the officers of the Company
authorized to sign this Agreement and the Notes and the other documents to be
delivered hereunder.

     (iv) Favorable opinions of Holland & Knight LLP, counsel for the Company,
and the general counsel of the Company, substantially in the form of Exhibits D-1
and D-2 hereto, respectively, and as to such other matters as any Lender through the
Agent may reasonably request.

     (v) A favorable opinion of Shearman & Sterling LLP, counsel for the Agent,
in form and substance satisfactory to the Agent.

          SECTION 3.02. Initial Advance to Each Designated Subsidiary. The obligation of each
Lender to make an initial Advance to each Designated Subsidiary is subject to the receipt by the
Agent on or before the date of that is ten Business Days prior to such initial Advance of each of
the following, in form and substance reasonably satisfactory to the Agent and dated such date, and
(except for the Notes) in sufficient copies for each Lender:

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     (a) The Notes of such Designated Subsidiary to the order of the Lenders to the
extent requested by any Lender pursuant to Section 2.16.

     (b) Certified copies of the resolutions of the Board of Directors of such
Designated Subsidiary (with a certified English translation if the original thereof is not
in English) approving this Agreement and the Notes to be delivered by it, and of all
documents evidencing other necessary corporate action and governmental approvals, if any,
with respect to this Agreement.

     (c) A certificate of a proper officer of such Designated Subsidiary certifying the
names and true signatures of the officers of such Designated Subsidiary authorized to sign
its Designation Agreement and the Notes to be delivered by it and the other documents to be
delivered by it hereunder.

     (d) A certificate signed by a duly authorized officer of the Company, certifying
that such Designated Subsidiary has obtained all governmental and third party
authorizations, consents, approvals (including exchange control approvals) and licenses
required under applicable laws and regulations necessary for such Designated Subsidiary to
execute and deliver its Designation Agreement and the Notes to be delivered by it and to
perform its obligations hereunder and thereunder.

     (e) A Designation Agreement duly executed by such Designated Subsidiary and the
Company.

     (f) Favorable opinions of counsel (which may be in-house counsel) to such
Designated Subsidiary substantially in the form of Exhibit D hereto, and as to such other
matters as any Lender through the Agent may request.

     (g) Such other approvals, opinions or documents as any Lender, through the Agent
may reasonably request including, without limitation, such information as may be required
for the Agent or such Lender to carry out and be satisfied it has complied with the results
of all necessary “know your customer” or other similar checks under all applicable laws and
regulations.

          SECTION 3.03. Conditions Precedent to Each Borrowing, Issuance and Commitment
Increase. The obligation of each Lender and each Swing Line Bank to make an Advance (other
than (x) a Swing Line Advance made by a Lender pursuant to Section 2.02(b) or (y) an Advance made
by any Issuing Bank or any Lender pursuant to Section 2.03(c)) on the occasion of each Borrowing,
the obligation of each Issuing Bank to issue a Letter of Credit and each Commitment Increase shall
be subject to the conditions precedent that the Effective Date shall have occurred and on the date
of such Borrowing, such Issuance or the applicable Increase Date (as the case may be) (a) the
following statements shall be true (and each of the giving of the applicable Notice of Revolving
Credit Borrowing, Notice of Swing Line Borrowing, Notice of Issuance or request for Commitment
Increase and the acceptance by any Borrower of the proceeds of such Borrowing, such Issuance or
such Increase Date shall constitute a representation and warranty by such Borrower that on the date
of such Borrowing, such Issuance or such Increase Date such statements are true):

     (i) the representations and warranties contained in Section 4.01 (except the
representations set forth in the last sentence of subsection (e) thereof and in Section
(f)(i) thereof) are correct on and as of such date, before and after giving effect to such
Borrowing, such Issuance or such Commitment Increase and to the application of the proceeds
therefrom, as though made on and as of such date, and additionally, if such Borrowing or
Issuance shall have been requested by a Designated Subsidiary, the representations and
warranties of such Designated Subsidiary contained in its Designation Agreement are correct
on and as of the date of such Borrowing or such Issuance, before and after giving effect to
such Borrowing, such Issuance or such Commitment Increase and to the application of the
proceeds therefrom, as though made on and as of such date, and

     (ii) no event has occurred and is continuing, or would result from such Borrowing,
such Issuance or such Commitment Increase or from the application of the proceeds therefrom,
that constitutes a Default;

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and (b) the Agent shall have received such other approvals, opinions or documents that relate to
the matters set forth in clause (a) above as the Required Lenders through the Agent may reasonably
request.

          SECTION 3.04. Determinations Under Section 3.01. For purposes of determining
compliance with the conditions specified in Section 3.01, each Lender shall be deemed to have
consented to, approved or accepted or to be satisfied with each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to the Lenders unless an
officer of the Agent responsible for the transactions contemplated by this Agreement shall have
received notice from such Lender prior to the date that the Company, by notice to the Lenders,
designates as the proposed Effective Date or the date of the initial Advance to the applicable
Designated Subsidiary, as the case may be, specifying its objection thereto. The Agent shall
promptly notify the Lenders of the occurrence of the Effective Date and each date of initial
Advance to a Designated Subsidiary, as applicable.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

          SECTION 4.01. Representations and Warranties of the Company. The Company represents
and warrants as follows:

     (a) The Company is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware.

     (b) The execution, delivery and performance by the Company of this Agreement and
the other Loan Documents to be delivered by it, and the consummation of the transactions
contemplated hereby, are within the Company’s corporate powers, have been duly authorized by
all necessary corporate action, and do not contravene (i) the Company’s charter or by-laws
or (ii) any material law or any material contractual restriction binding on or affecting the
Company.

     (c) No authorization or approval or other action by, and no notice to or filing
with, any governmental authority or regulatory body or any other third party is required for
the due execution, delivery and performance by the Company of this Agreement or the other
Loan Documents to be delivered by it.

     (d) This Agreement has been, and each of the other Loan Documents to be delivered
by it when delivered hereunder will have been, duly executed and delivered by the Company.
This Agreement is, and each of the Notes when delivered hereunder will be, the legal, valid
and binding obligation of each Borrower party thereto enforceable against such Borrower in
accordance with their respective terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or law).

     (e) The Consolidated balance sheet of the Company and its Subsidiaries as at August
31, 2010, and the related Consolidated statements of income and cash flows of the Company
and its Subsidiaries for the fiscal year then ended, accompanied by an opinion of KPMG LLP,
independent public accountants, copies of which have been furnished to each Lender, fairly
present the Consolidated financial condition of the Company and its Subsidiaries as at such
date and the Consolidated results of the operations of the Company and its Subsidiaries for
the period ended on such date, all in accordance with GAAP consistently applied. Except as
publicly disclosed prior to November 8, 2010, since August 31, 2010, there has been no
Material Adverse Change.

     (f) There is no pending or, to the Company’s knowledge, overtly threatened action,
suit, investigation, litigation or administrative or judicial proceeding, including, without
limitation, any Environmental Action, affecting the Company or any of its Subsidiaries
before any court, governmental agency or arbitrator that (i) could be reasonably likely to
have a Material Adverse Effect (other than the Disclosed Litigation), and there has been no
material adverse change in the status, or financial effect on the Company or any of its
Subsidiaries, of the Disclosed Litigation from that described on Schedule 3.01(b)

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hereto or (ii) purports to affect the legality, validity or enforceability of this
Agreement or any Note or the consummation of the transactions contemplated hereby.

     (g) No Borrower is engaged in the business of extending credit for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U issued by the Board
of Governors of the Federal Reserve System), and no proceeds of any Advance will be used to
purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock.

     (h) No Borrower is an “investment company”, or a company “controlled” by an
“investment company”, within the meaning of the Investment Company Act of 1940, as amended.

     (i) Neither the Information Memorandum nor any other information, exhibit or report
furnished by or on behalf of the Company or any other Borrower to the Agent or any Lender in
connection with the negotiation and syndication of this Agreement or pursuant to the terms
of this Agreement contained any untrue statement of a material fact or omitted to state a
material fact necessary to make the statements made therein not misleading.

ARTICLE V

COVENANTS OF THE COMPANY

          SECTION 5.01. Affirmative Covenants. So long as any Advance shall remain unpaid, and
Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Company
will:

     (a) Compliance with Laws, Etc. Comply, and cause each of its Subsidiaries
to comply with all applicable laws, rules, regulations and orders, such compliance to
include, without limitation, compliance with ERISA, Environmental Laws and the Patriot Act,
except to the extent such failure to comply could reasonably be expected to have a Material
Adverse Effect.

     (b) Payment of Taxes, Etc. Pay and discharge, and cause each of its
Subsidiaries to pay and discharge, before the same shall become delinquent, (i) all taxes,
assessments and governmental charges or levies imposed upon it or upon its property and (ii)
all lawful claims that, if unpaid, might by law become a Lien upon its property;
provided, however, that neither the Company nor any of its Subsidiaries
shall be required to pay or discharge any such tax, assessment, charge or claim that is
being contested in good faith and by proper proceedings and as to which appropriate reserves
are being maintained, unless and until any Lien resulting therefrom attaches to its property
and becomes enforceable against its other creditors.

     (c) Maintenance of Insurance. Maintain, and cause each of its Subsidiaries
to maintain, insurance with responsible and reputable insurance companies or associations in
such amounts and covering such risks as is usually carried by companies engaged in similar
businesses and owning similar properties in the same general areas in which the Company or
such Subsidiary operates; provided, however, that the Company and its
Subsidiaries may self-insure to the extent consistent with prudent business practice for
companies engaged in similar businesses and owning similar properties in the same general
areas in which the Company or such Subsidiary operates.

     (d) Preservation of Corporate Existence, Etc. Preserve and maintain, and
cause each of its Subsidiaries to preserve and maintain, its corporate existence, rights
(charter and statutory) and franchises; provided, however, that the Company
and its Subsidiaries may (i) consummate any merger or consolidation or other transaction
permitted under Section 5.02(b),(ii) sell, transfer, or otherwise dispose of, any Subsidiary
of the Company if permitted under Section 5.02(e), (iii) dissolve or terminate the existence
of any Subsidiary of the Company possessing immaterial assets or liabilities or no
continuing business purpose, or (iv) dissolve or terminate the existence of any Subsidiary
if in the Company’s determination (w) the preservation thereof is no longer desirable in the
conduct of the business of the Company and (x) the loss thereof is not materially
disadvantageous to the Company or the Lenders, and provided further that
neither the Company nor any of its Subsidiaries shall be required to preserve any right or
franchise if in the

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Company’s determination (y) the preservation thereof is no longer desirable in the
conduct of the business of the Company or such Subsidiary, as the case may be and (z) the
loss thereof is not materially disadvantageous to the Company, such Subsidiary or the
Lenders.

     (e) Visitation Rights. At any reasonable time during normal business hours
and from time to time upon reasonable notice, permit the Agent or any of the Lenders or any
agents or representatives thereof, to examine and make copies of and abstracts from the
records and books of account of, and visit the properties of, the Company and any of its
Subsidiaries, and to discuss the affairs, finances and accounts of the Company and any of
its Subsidiaries with any of their officers or directors and with their independent
certified public accountants, subject to applicable regulations of the Federal government
relating to classified information and reasonable security and safety regulations of the
Company.

     (f) Keeping of Books. Keep, and cause each of its Subsidiaries to keep,
proper books of record and account, in which full and correct entries shall be made of all
financial transactions and the assets and business of the Company and each such Subsidiary
materially in accordance with, and to the extent required by, GAAP.

     (g) Maintenance of Properties, Etc. Maintain and preserve, and cause each
of its Subsidiaries to maintain and preserve, all of its properties that are material to the
conduct of its business in good working order and condition, ordinary wear and tear
excepted, in accordance with customary and prudent business practices for similar
businesses.

     (h) Transactions with Affiliates. Conduct, and cause each of its
Subsidiaries to conduct, all transactions otherwise permitted under this Agreement with any
of their Affiliates (other than the Company and its wholly-owned Subsidiaries) on terms that
are fair and reasonable and no less favorable to the Company or such Subsidiary than it
would obtain in a comparable arm’s-length transaction with a Person not an Affiliate.

     (i) Reporting Requirements. Furnish to the Agent, who shall furnish to the
Lenders:

     (i) as soon as available and in any event within 45 days after the end of
each of the first three quarters of each fiscal year of the Company, the
Consolidated balance sheet of the Company and its Subsidiaries as of the end of such
quarter and Consolidated statements of income and cash flows of the Company and its
Subsidiaries for the period commencing at the end of the previous fiscal year and
ending with the end of such quarter, duly certified (subject to year-end audit
adjustments) by the chief financial officer or other authorized financial officer of
the Company as having been prepared in accordance with GAAP and certificates of the
chief financial officer or other authorized financial officer of the Company as to
compliance with the terms of this Agreement and setting forth in reasonable detail
the calculations necessary to demonstrate compliance with Section 5.03,
provided that in the event of any change in GAAP used in the preparation of
such financial statements, the Company shall also provide, if necessary for the
determination of compliance with Section 5.03, a statement of reconciliation
conforming such financial statements to Initial GAAP;

     (ii) as soon as available and in any event within 90 days after the end of
each fiscal year of the Company, a copy of the annual audit report for such year for
the Company and its Subsidiaries, containing the Consolidated balance sheet of the
Company and its Subsidiaries as of the end of such fiscal year and Consolidated
statements of income and cash flows of the Company and its Subsidiaries for such
fiscal year, in each case accompanied by an opinion acceptable in scope to the
Required Lenders by Ernst & Young LLP or other independent public accountants
acceptable to the Required Lenders and certificates of the chief financial officer
or other authorized financial officer of the Company as to compliance with the terms
of this Agreement and setting forth in reasonable detail the calculations necessary
to demonstrate compliance with Section 5.03, provided that in the event of
any change in GAAP used in the preparation of such financial statements, the Company
shall also provide, if necessary for the determination of

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compliance with Section 5.03, a statement of reconciliation conforming such
financial statements to Initial GAAP;

     (iii) as soon as possible and in any event within seven days after the
occurrence of each Default continuing on the date of such statement, a statement of
the chief financial officer or other authorized financial officer of the Company
setting forth details of such Default and the action that the Company has taken and
proposes to take with respect thereto;

     (iv) promptly after the sending or filing thereof, copies of all reports
that the Company sends to any of its securityholders, and copies of all reports and
registration statements that the Company or any Subsidiary files with the Securities
and Exchange Commission or any national securities exchange;

     (v) promptly after the commencement thereof, notice of all actions and
proceedings before any court, governmental agency or arbitrator affecting the
Company or any of its Subsidiaries of the type described in Section 4.01(f); and

     (vi) such other information respecting the Company or any of its
Subsidiaries as any Lender through the Agent may from time to time reasonably
request.

     Financial reports required to be delivered pursuant to clauses (i), (ii) and (iv) above
shall be deemed to have been delivered on the date on which such report is posted on the
Company’s website at www.jabil.com, and such posting shall be deemed to satisfy the
financial reporting requirements of clauses (i), (ii) and (iv) above, it being understood
that the Company shall provide all other reports and certificates required to be delivered
under this Section 5.01(i) in the manner set forth in Section 9.02.

          SECTION 5.02. Negative Covenants. So long as any Advance shall remain unpaid, and
Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Company will
not:

     (a) Liens, Etc. Create or suffer to exist, or permit any of its
Subsidiaries to create or suffer to exist, any Lien on or with respect to any of its
properties, whether now owned or hereafter acquired, or assign, or permit any of its
Subsidiaries to assign, any right to receive income, other than:

     (i) Permitted Liens,

     (ii) purchase money Liens upon or in any real property or equipment
acquired or held by the Company or any Subsidiary in the ordinary course of business
to secure the purchase price of such property or equipment or to secure Debt
incurred solely for the purpose of financing the acquisition of such property or
equipment, or Liens existing on such property or equipment at the time of its
acquisition (other than any such Liens created in contemplation of such acquisition
that were not incurred to finance the acquisition of such property) or extensions,
renewals or replacements of any of the foregoing for the same or a lesser amount,
provided, however, that no such Lien shall extend to or cover any
properties of any character other than the real property or equipment being acquired
(and any accessions or additions thereto, and proceeds thereof), and no such
extension, renewal or replacement shall extend to or cover any properties not
theretofore subject to the Lien being extended, renewed or replaced,
provided further that the aggregate principal amount of the
indebtedness secured by the Liens referred to in this clause (ii) shall not exceed
the amount specified therefor in Section 5.02(d)(iii) at any time outstanding,

     (iii) the Liens existing on the Effective Date and described on Schedule
5.02(a) hereto,

     (iv) Liens on property of a Person existing at the time such Person is
merged into or consolidated with the Company or any Subsidiary of the Company or
becomes a Subsidiary of the Company; provided that such Liens were not
created in contemplation of such merger, consolidation or acquisition and do not
extend to any assets other than those of the Person so

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merged into or consolidated with the Company or such Subsidiary or acquired by
the Company or such Subsidiary,

     (v) assignments of the right to receive income or Liens that arise in
connection with receivables securitization programs, in an aggregate principal
amount not to exceed the amount specified therefor in Section 5.02(d)(vi) at any
time outstanding (for purposes of this clause (v), the “principal amount” of a
receivables securitization program shall mean the Invested Amount),

     (vi) Liens securing Debt of Subsidiaries of the Company organized under the
laws of any country other than the United States of America or a State thereof,
which Debt is permitted under Section 5.02(d),

     (vii) Liens securing contingent obligations in respect of acceptances,
letters of credit, bank guarantees, surety bonds or similar extensions of credit,

     (viii) other Liens securing Debt in an aggregate principal amount not to
exceed the amount specified therefor in Section 5.02(d)(iv) at any time outstanding,

     (ix) Liens that are within the general parameters customary in the industry
and incurred in the ordinary course of business securing obligations under Hedge
Agreements designed solely to protect the Company or any of its Subsidiaries from
fluctuations in interest rates, currencies or the price of commodities,

     (x) Liens arising in connection with obligations permitted under Section
5.02(d)(ix), provided that such Liens shall not extend beyond the amounts on
deposit in such deposit accounts,

     (xi) Liens, if any, arising in connection with a factoring program
described in Section 5.02(e)(iii),

     (xii) Liens on inventory valued at not more than $125,000,000 at any time
in favor of customers that have paid a deposit on the inventory so encumbered,

     (xiii) assignments of the right to receive income and/or accounts
receivable in connection with the sales of accounts receivable, including pursuant
to factoring programs, whether or not the Company or any of its Subsidiaries remain
as servicer,

     (xiv) Liens on cash as contemplated by Section 2.19 or 6.02

     (xv) Liens, if any, in respect of leases that have been, or should be, in
accordance with GAAP in effect on the date hereof, recorded as capital leases; and

     (xvi) the replacement, extension or renewal of any Lien permitted by clause
(iii) or (iv) above upon or in the property theretofore subject thereto or the
replacement, extension or renewal (without increase in the amount or change in any
direct or contingent obligor) of the Debt secured thereby.

     (b) Mergers, Etc. Merge or consolidate with or into any Person,
or permit any of its Subsidiaries to do so, except (i) that any Subsidiary of the Company
may merge, consolidate, amalgamate, or combine with or into any other Subsidiary
of the Company, (ii) any Subsidiary of the Company may merge, consolidate, amalgamate, or
combine with or into the Company and (iii) any Subsidiary of the Company and the Company may
merge, consolidate, amalgamate, or combine with or into any other Person if, as a result of
one or a series of transactions, the surviving or resulting entity is or becomes a
Subsidiary or, if the Company is a party to such transaction, the surviving entity is the
Company, provided, in each case, that no Default shall have occurred and be
continuing at the time of such proposed transaction or would result therefrom.

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     (c) Accounting Changes. Make or permit, or permit any of its Subsidiaries
to make or permit, any change in accounting policies or reporting practices, except as
required or permitted by GAAP.

     (d) Subsidiary Debt. Permit any of its Subsidiaries to create or suffer to
exist, any Debt other than:

     (i) Debt owed to the Company or to a wholly owned Subsidiary of the Company
or under this Agreement or the Notes,

     (ii) Debt existing on the Effective Date and described on Schedule 5.02(d)
hereto (the “Existing Debt”), and any Debt extending the maturity of, or
refunding or refinancing, in whole or in part, the Existing Debt, provided
that the principal amount of such Existing Debt shall not be increased above the
principal amount thereof outstanding immediately prior to such extension, refunding
or refinancing, and the direct and contingent obligors therefor shall not be
changed, as a result of or in connection with such extension, refunding or
refinancing,

     (iii) Debt secured by Liens permitted by Section 5.02(a)(ii) aggregating
for the Company and all of the Company’s Subsidiaries not more than $25,000,000 at
any one time outstanding,

     (iv) Debt that, in aggregate with (but without duplication of) all Debt
secured by Liens permitted by Section 5.02(a)(viii), does not exceed $100,000,000 at
any one time outstanding,

     (v) Debt incurred or assumed or acquired by Subsidiaries of the Company
organized under the laws of any country other than the United States of America or a
State thereof aggregating for all such Subsidiaries of not more than $350,000,000 at
any one time outstanding,

     (vi) Debt, if any, arising in connection with receivables securitization
programs in an aggregate principal amount not to exceed $750,000,000 at any time
outstanding (for purposes of this clause (v), the “principal amount” of a
receivables securitization program shall mean the Invested Amount),

     (vii) obligations of any Subsidiary of the Company organized under the laws
of any country other than the United States of America or a State thereof under any
Hedge Agreements entered into in the ordinary course of business to protect the
Company and its Subsidiaries against fluctuations in interest or exchange rates,

     (viii) contingent obligations in respect of acceptances, letters of credit,
bank guarantees, surety bonds or similar extensions of credit,

     (ix) obligations which in aggregate do not exceed $100,000,000 arising in
connection with the administration and operation of deposit accounts of the Company
and any of its Subsidiaries organized under the laws of any country other than the
United States of America or a State thereof in connection with cross-border or
intracountry, multiple currency cash pooling arrangements, including overdraft
facilities,

     (x) Debt of a Person at the time such Person is merged into or consolidated
with any Subsidiary of the Company or becomes a Subsidiary of the Company;
provided that such Debt was not created in contemplation of such merger,
consolidation or acquisition, and any Debt extending the maturity of, or refunding
or refinancing, in whole or in part, such Debt, provided further
that the principal amount of such Debt shall not be increased above the principal
amount thereof outstanding immediately prior to such extension, refunding or
refinancing, and the direct and contingent obligors therefor shall not be changed
(other than as a result of merger or consolidation), as a result of or in connection
with such extension, refunding or refinancing,

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     (xi) Debt, if any, arising in connection with the sales of accounts
receivable, including pursuant to factoring programs, whether or not the Company or
any of its Subsidiaries remain as servicer; and

     (xii) endorsement of negotiable instruments for deposit or collection or
similar transactions in the ordinary course of business.

     (e) Sales, Etc. of Assets. Sell, lease, transfer or otherwise dispose of,
or permit any of its Subsidiaries to sell, lease, transfer or otherwise dispose of, any
assets, or grant any option or other right to any other Person to purchase, lease or
otherwise acquire any assets of the Company or any of its Subsidiaries, except (i) sales of
inventory in the ordinary course of its business or sales or other dispositions of scrap,
surplus, outdated, superseded, replaced or obsolete material or equipment, (ii) sales or
dispositions of assets in connection with a receivables securitization program to the extent
authorized by Section 5.02(d)(vi), (iii) assignments of the right to receive income and/or
accounts receivable in connection with the sales of accounts receivable, including pursuant
to factoring programs, whether or not the Company or any of its Subsidiaries remain as
servicer, (iv) in or in connection with a transaction authorized by Section 5.02(b), (v)
sales or dispositions between or among the Company and its wholly-owned Subsidiaries, (vi)
sales of property in connection with a sale and leaseback transaction provided that the net
present value of the aggregate rental obligations under such leases or contracts (discounted
at the implied interest rate of such lease or contract) does not exceed 10% of the
Consolidated total assets of the Company and its Subsidiaries measured as of August 31, 2010
and (vii) sales or other dispositions of assets in an amount not to exceed, after the date
hereof, an amount equal to 15% of Consolidated total assets of the Company and its
Subsidiaries, measured as of August 31, 2010.

     (f) Change in Nature of Business. Make, or permit any of its Subsidiaries
to make, any material change in the nature of its business from the business as carried on
by the Company and its Subsidiaries at the date hereof.

     (g) Payment Restrictions Affecting Subsidiaries. Directly or indirectly,
enter into or suffer to exist, or permit any of its Subsidiaries to enter into or suffer to
exist, any agreement or arrangement limiting the ability of any of its Subsidiaries to
declare or pay dividends or other distributions in respect of its capital stock (whether
through a covenant restricting dividends, a financial covenant or otherwise), except (i)
this Agreement, (ii) any agreement or instrument evidencing Existing Debt and (iii) any
agreement in effect at the time such Subsidiary becomes a Subsidiary of the Company, so long
as such agreement was not entered into solely in contemplation of such Person becoming a
Subsidiary of the Company.

          SECTION 5.03. Financial Covenants. So long as any Advance shall remain unpaid, and
Letter of Credit is outstanding or any Lender shall have any Commitment hereunder, the Company
will:

     (a) Debt to EBITDA Ratio. Maintain, as of the end of each fiscal quarter,
a ratio of (i) Debt, excluding Debt in respect of Hedge Agreements, as of such date to (ii)
Consolidated EBITDA of the Company and its Consolidated Subsidiaries for the period of four
fiscal quarters most recently ended, of not greater than 3.5 to 1.0.

     (b) Interest Coverage Ratio. Maintain, as of the end of each fiscal
quarter, a ratio of (i) Consolidated EBITDA of the Company and its Consolidated Subsidiaries
for the period of four fiscal quarters then ended to (ii) interest payable on, and
amortization of debt discount in respect of, all Debt and loss on sale of accounts
receivable pursuant to any receivables securitization program of the Company or any of its
Subsidiaries (collectively, “Interest Expense”) during such period by the Company
and its Consolidated Subsidiaries, of not less than 3.0 to 1.0; provided, that for
purposes of calculating Interest Expense for the Company and its Subsidiaries for any
period, the Interest Expense of any Person (or assets or division of such Person) acquired
by the Company or any of its Subsidiaries during such period shall be included on a pro
forma basis for such period (assuming the consummation of such acquisition occurred on the
first day of such period).

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ARTICLE VI

EVENTS OF DEFAULT

          SECTION 6.01. Events of Default. If any of the following events (“Events of
Default”) shall occur and be continuing:

     (a) The Company or any other Borrower shall fail to pay any principal of any
Advance when the same becomes due and payable; or the Company or any other Borrower shall
fail to pay any interest on any Advance or make any other payment of fees or other amounts
payable under this Agreement or any Note within three Business Days after the same becomes
due and payable; or

     (b) Any representation or warranty made by any Borrower herein or by any Borrower
(or any of its officers) in connection with this Agreement or by any Designated Subsidiary
in the Designation Agreement pursuant to which such Designated Subsidiary became a Borrower
hereunder shall prove to have been incorrect in any material respect when made; or

     (c) (i) The Company shall fail to perform or observe any term, covenant or
agreement contained in Section 5.01(d), (e), (h) or (i), 5.02 or 5.03, or (ii) the Company
shall fail to perform or observe any other term, covenant or agreement contained in this
Agreement on its part to be performed or observed if such failure shall remain unremedied
for 30 days after written notice thereof shall have been given to the Company by the Agent
or any Lender; or

     (d) The Company or any of its Subsidiaries shall fail to pay any principal of or
premium or interest on any Debt that is outstanding in a principal or, in the case of Hedge
Agreements, net amount of at least $50,000,000 in the aggregate (but excluding Debt
outstanding hereunder) of the Company or such Subsidiary (as the case may be), when the same
becomes due and payable (whether by scheduled maturity, required prepayment, acceleration,
demand or otherwise), and such failure shall continue after the applicable grace period, if
any, specified in the agreement or instrument relating to such Debt; or any other event
shall occur or condition shall exist under any agreement or instrument relating to any such
Debt and shall continue after the applicable grace period, if any, specified in such
agreement or instrument, if the effect of such event or condition is to accelerate, or to
permit the acceleration of, the maturity of such Debt; or any such Debt shall be declared to
be due and payable, or required to be prepaid or redeemed (other than by a regularly
scheduled required prepayment or redemption), required to be purchased or defeased (other
than cash collateralization of letter of credit obligations), or an offer to prepay, redeem,
purchase or defease such Debt shall be required to be made, in each case prior to the stated
maturity thereof; or

     (e) The Company or any of its Subsidiaries shall generally not pay its debts as
such debts become due, or shall admit in writing its inability to pay its debts generally,
or shall make a general assignment for the benefit of creditors; or any proceeding shall be
instituted by or against the Company or any of its Subsidiaries seeking to adjudicate it a
bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement,
adjustment, protection, relief, or composition of it or its debts under any law relating to
bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an
order for relief or the appointment of a receiver, trustee, custodian or other similar
official for it or for any substantial part of its property and, in the case of any such
proceeding instituted against it (but not instituted by it), either such proceeding shall
remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such
proceeding (including, without limitation, the entry of an order for relief against, or the
appointment of a receiver, trustee, custodian or other similar official for, it or for any
substantial part of its property) shall occur; or the Company or any of its Subsidiaries
shall take any corporate action to authorize any of the actions set forth above in this
subsection (e); or

     (f) Judgments or orders for the payment of money in excess of $50,000,000 in the
aggregate shall be rendered against the Company or any of its Subsidiaries and either (i)
enforcement proceedings shall have been commenced by any creditor upon such judgment or
order or (ii) there shall be any period of

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30 consecutive days during which a stay of enforcement of such judgment or order, by
reason of a pending appeal or otherwise, shall not be in effect; or

     (g) (i) Any Person or two or more Persons acting in concert (other than the Morean
Group) shall have acquired beneficial ownership (within the meaning of Rule 13d-3 of the
Securities and Exchange Commission under the Securities Exchange Act of 1934), directly or
indirectly, of Voting Stock of the Company (or other securities convertible into such Voting
Stock) representing 30% or more of the combined voting power of all Voting Stock of the
Company; or (ii) during any period of up to 12 consecutive months, commencing before or
after the date of this Agreement, individuals who at the beginning of such 12-month period
were directors of the Company shall cease for any reason (other than due to death or
disability) to constitute a majority of the board of directors of the Company (except to the
extent that individuals who at the beginning of such 12-month period were replaced by
individuals (x) elected by a majority of the remaining members of the board of directors of
the Company or (y) nominated for election by a majority of the remaining members of the
board of directors of the Company and thereafter elected as directors by the shareholders of
the Company ); or

     (h) The Company or any of its ERISA Affiliates shall incur, or shall be reasonably
likely to incur liability in excess of $50,000,000 in the aggregate as a result of one or
more of the following: (i) the occurrence of any ERISA Event; (ii) the partial or complete
withdrawal of the Company or any of its ERISA Affiliates from a Multiemployer Plan; or (iii)
the reorganization or termination of a Multiemployer Plan;

     (i) so long as any Subsidiary of the Company is a Designated Subsidiary, Section
7.01 shall for any reason cease to be valid and binding on or enforceable against the
Company, or the Company shall so state in writing;

then, and in any such event, the Agent (i) shall at the request, or may with the consent, of the
Required Lenders, by notice to the Borrowers, declare the obligation of each Lender to make
Advances (other than Advances to be made by a Lender pursuant to Section 2.02(b) and Advances by an
Issuing Bank or a Lender pursuant to Section 2.03(c)) and of the Issuing Banks to issue Letters of
Credit to be terminated, whereupon the same shall forthwith terminate, and (ii) shall at the
request, or may with the consent, of the Required Lenders, by notice to the Borrowers, declare the
Advances, all interest thereon and all other amounts payable under this Agreement to be forthwith
due and payable, whereupon the Advances, all such interest and all such amounts shall become and be
forthwith due and payable, without presentment, demand, protest or further notice of any kind, all
of which are hereby expressly waived by each Borrower; provided, however, that in
the event of an actual or deemed entry of an order for relief with respect to the Company or any
other Borrower under the any Bankruptcy Law, (A) the obligation of each Lender to make Advances
(other than Advances to be made by a Lender pursuant to Section 2.02(b) and Advances by an Issuing
Bank or a Lender pursuant to Section 2.03(c)) and of the Issuing Banks to issue Letters of Credit
shall automatically be terminated and (B) the Advances, all such interest and all such amounts
shall automatically become and be due and payable, without presentment, demand, protest or any
notice of any kind, all of which are hereby expressly waived by each Borrower.

          SECTION 6.02. Actions in Respect of the Letters of Credit upon Default. If any
Event of Default shall have occurred and be continuing, the Agent may with the consent, or shall at
the request, of the Required Lenders, irrespective of whether it is taking any of the actions
described in Section 6.01 or otherwise, make demand upon the Borrowers to, and forthwith upon such
demand the Borrowers will, (a) pay to the Agent on behalf of the Lenders in same day funds at the
Agent’s office designated in such demand, for deposit in the L/C Cash Deposit Account, an amount
equal to the aggregate Available Amount of all Letters of Credit then outstanding or (b) make such
other arrangements in respect of the outstanding Letters of Credit as shall be acceptable to the
Required Lenders and not more disadvantageous to the Borrowers than clause (a); provided,
however, that in the event of an actual or deemed entry of an order for relief with respect
to any Borrower under any Bankruptcy Law, an amount equal to the aggregate Available Amount of all
outstanding Letters of Credit shall be immediately due and payable to the Agent for the account of
the Lenders without notice to or demand upon the Borrowers, which
are expressly waived by each Borrower, to be held in the L/C Cash Deposit Account. If at any
time an Event of Default is continuing the Agent determines that any funds held in the L/C Cash
Deposit Account are subject to any right or claim of any Person other than the Agent and the
Lenders or that the total amount of such funds is less than the aggregate Available Amount of all
Letters of Credit, the Borrowers will, forthwith upon demand by the Agent, pay

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to the Agent, as additional funds to be deposited and held in the L/C Cash Deposit Account, an
amount equal to the excess of (a) such aggregate Available Amount over (b) the total amount of
funds, if any, then held in the L/C Cash Deposit Account that the Agent determines to be free and
clear of any such right and claim. Upon the drawing of any Letter of Credit, to the extent funds
are on deposit in the L/C Cash Deposit Account, such funds shall be applied to reimburse the
Issuing Banks to the extent permitted by applicable law. After all such Letters of Credit shall
have expired or been fully drawn upon and all other obligations of the Borrowers hereunder and
under the Notes shall have been paid in full, the balance, if any, in such L/C Cash Deposit Account
shall be returned to the Borrowers.

ARTICLE VII

GUARANTY

          SECTION 7.01. Unconditional Guaranty. The Company hereby absolutely, unconditionally
and irrevocably guarantees the punctual payment when due, whether at scheduled maturity or on any
date of a required prepayment or by acceleration, demand or otherwise, of all obligations of each
other Borrower now or hereafter existing under or in respect of this Agreement and the Notes
(including, without limitation, any extensions, modifications, substitutions, amendments or
renewals of any or all of the foregoing obligations), whether direct or indirect, absolute or
contingent, and whether for principal, interest, premiums, fees, indemnities, contract causes of
action, costs, expenses or otherwise (such obligations being the “Guaranteed Obligations”),
and agrees to pay any and all expenses (including, without limitation, reasonable fees and expenses
of counsel) incurred by the Agent or any Lender in enforcing any rights under this Agreement.
Without limiting the generality of the foregoing, the Company’s liability shall extend to all
amounts that constitute part of the Guaranteed Obligations and would be owed by such Borrower to
the Agent or any Lender under or in respect of this Agreement and the Notes but for the fact that
they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or
similar proceeding involving such Borrower.

          SECTION 7.02. Guaranty Absolute. (a) The Company guarantees that the Guaranteed
Obligations will be paid strictly in accordance with the terms of this Agreement and the Notes,
regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting
any of such terms or the rights of the Agent or any Lender with respect thereto. The obligations
of the Company under or in respect of this Guaranty are independent of the Guaranteed Obligations
or any other obligations of any other Borrower under or in respect of this Agreement and the Notes,
and a separate action or actions may be brought and prosecuted against the Company to enforce this
Guaranty, irrespective of whether any action is brought against any Borrower or whether any
Borrower is joined in any such action or actions. The liability of the Company under this Guaranty
shall be irrevocable, absolute and unconditional irrespective of, and the Company hereby
irrevocably waives any defenses it may now have or hereafter acquire in any way relating to, any or
all of the following:

     (a) any lack of validity or enforceability of this Agreement, any Note or any agreement
or instrument relating thereto;

     (b) any change in the time, manner or place of payment of, or in any other term of, all
or any of the Guaranteed Obligations or any other obligations of any Borrower under or in
respect of this Agreement and the Notes, or any other amendment or waiver of or any consent
to departure from this Agreement or any Note, including, without limitation, any increase in
the Guaranteed Obligations resulting from the extension of additional credit to any Borrower
or any of its Subsidiaries or otherwise;

     (c) any taking, exchange, release or non-perfection of any collateral, or any taking,
release or amendment or waiver of, or consent to departure from, any other guaranty, for all
or any of the Guaranteed Obligations;

     (d) any manner of application of any collateral, or proceeds thereof, to all or any of
the Guaranteed Obligations, or any manner of sale or other disposition of any collateral for
all or any of the Guaranteed Obligations or any other obligations of any Borrower under this
Agreement and the Notes or any other assets of any Borrower or any of its Subsidiaries;

     (e) any change, restructuring or termination of the corporate structure or existence of
any Borrower or any of its Subsidiaries;

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     (f) any failure of the Agent or any Lender to disclose to the Company any information
relating to the business, condition (financial or otherwise), operations, performance,
properties or prospects of any Borrower now or hereafter known to the Agent or such Lender
(the Company waiving any duty on the part of the Agent and the Lenders to disclose such
information);

     (g) the failure of any other Person to execute or deliver this Guaranty or any other
guaranty or agreement or the release or reduction of liability of the Company or other
guarantor or surety with respect to the Guaranteed Obligations; or

     (h) any other circumstance (including, without limitation, any statute of limitations)
or any existence of or reliance on any representation by the Agent or any Lender that might
otherwise constitute a defense available to, or a discharge of, any Borrower or any other
guarantor or surety.

This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time
any payment of any of the Guaranteed Obligations is rescinded or must otherwise be returned by the
Agent or any Lender or any other Person upon the insolvency, bankruptcy or reorganization of any
Borrower or otherwise, all as though such payment had not been made.

          SECTION 7.03. Waivers and Acknowledgments. (a) The Company hereby unconditionally
and irrevocably waives promptness, diligence, notice of acceptance, presentment, demand for
performance, notice of nonperformance, default, acceleration, protest or dishonor and any other
notice with respect to any of the Guaranteed Obligations and this Guaranty and any requirement that
the Agent or any Lender protect, secure, perfect or insure any Lien or any property subject thereto
or exhaust any right or take any action against any Borrower or any other Person or any collateral.

     (b) The Company hereby unconditionally and irrevocably waives any right to revoke this
Guaranty and acknowledges that this Guaranty is continuing in nature and applies to all
Guaranteed Obligations, whether existing now or in the future.

     (c) The Company hereby unconditionally and irrevocably waives (i) any defense arising
by reason of any claim or defense based upon an election of remedies by the Agent or any
Lender that in any manner impairs, reduces, releases or otherwise adversely affects the
subrogation, reimbursement, exoneration, contribution or indemnification rights of the
Company or other rights of the Company to proceed against any Borrower, any other guarantor
or any other Person or any collateral and (ii) any defense based on any right of set-off or
counterclaim against or in respect of the obligations of the Company hereunder.

     (d) The Company hereby unconditionally and irrevocably waives any duty on the part of
the Agent or any Lender to disclose to the Company any matter, fact or thing relating to the
business, condition (financial or otherwise), operations, performance, properties or
prospects of any Borrower or any of its Subsidiaries now or hereafter known by the Agent or
such Lender.

     (e) The Company acknowledges that it will receive substantial direct and indirect
benefits from the financing arrangements contemplated by this Agreement and the Notes and
that the waivers set forth in Section 7.02 and this Section 7.03 are knowingly made in
contemplation of such benefits.

          SECTION 7.04. Subrogation. The Company hereby unconditionally and irrevocably agrees
not to exercise any rights that it may now have or hereafter acquire against any Borrower or any
other insider guarantor that arise from the existence, payment, performance or enforcement of the
Company’s obligations under or in respect of this Guaranty, including, without limitation, any
right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to
participate in any claim or remedy of the Agent or any Lender against any Borrower or any other
insider guarantor or any collateral, whether or not such claim, remedy or right arises in equity or
under contract, statute or common law, including, without limitation, the right to take or receive
from any Borrower or any other insider guarantor, directly or indirectly, in cash or other property
or by set-off or in any other manner, payment or security on account of such claim, remedy or
right, unless and until all of the Guaranteed Obligations and all other amounts payable under this
Guaranty shall have been paid in full in cash, all Letters of Credit shall have expired or been
terminated and the Commitments shall have expired or been terminated. If any amount shall be paid
to the Company in violation of the immediately
preceding sentence at any time prior to

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the latest of (a) the payment in full in cash of the
Guaranteed Obligations and all other amounts payable under this Guaranty, (b) the Termination Date
and (c) the latest date of expiration or termination of all Letters of Credit, such amount shall be
received and held in trust for the benefit of the Agent and the Lenders, shall be segregated from
other property and funds of the Company and shall forthwith be paid or delivered to the Agent in
the same form as so received (with any necessary endorsement or assignment) to be credited and
applied to the Guaranteed Obligations and all other amounts payable under this Guaranty, whether
matured or unmatured, in accordance with the terms of this Agreement and the Notes, or to be held
as collateral for any Guaranteed Obligations or other amounts payable under this Guaranty
thereafter arising. If (i) the Company shall make payment to the Agent or any Lender of all or any
part of the Guaranteed Obligations, (ii) all of the Guaranteed Obligations and all other amounts
payable under this Guaranty shall have been paid in full in cash, (iii) the Termination Date shall
have occurred and (iv) all Letters of Credit shall have expired or been terminated, the Agent and
the Lenders will, at the Company’s request and expense, execute and deliver to the Company
appropriate documents, without recourse and without representation or warranty, necessary to
evidence the transfer by subrogation to the Company of an interest in the Guaranteed Obligations
resulting from such payment made by the Company pursuant to this Guaranty.

          SECTION 7.05. Continuing Guaranty; Assignments. This Guaranty is a continuing
guaranty and shall (a) remain in full force and effect until the latest of (i) the payment in full
in cash of the Guaranteed Obligations and all other amounts payable under this Guaranty, (ii) the
Termination Date and (iii) the latest date of expiration or termination of all Letters of Credit,
(b) be binding upon the Company, its successors and assigns and (c) inure to the benefit of and be
enforceable by the Agent and the Lenders and their successors, transferees and assigns. Without
limiting the generality of clause (c) of the immediately preceding sentence, the Agent or any
Lender may assign or otherwise transfer all or any portion of its rights and obligations under this
Agreement (including, without limitation, all or any portion of its Commitments, the Advances owing
to it and the Note or Notes held by it) to any other Person, and such other Person shall thereupon
become vested with all the benefits in respect thereof granted to the Agent or such Lender herein
or otherwise, in each case as and to the extent provided in Section 9.07.

ARTICLE VIII

THE AGENT

          SECTION 8.01. Authorization and Authority. Each Lender hereby irrevocably appoints
Citibank, N.A. to act on its behalf as the Agent hereunder and authorizes the Agent to take such
actions on its behalf and to exercise such powers as are delegated to the Agent by the terms hereof
or thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Agent and the Lenders, and none of the
Borrowers shall have rights as a third party beneficiary of any of such provisions.

          SECTION 8.02. Agent Individually. (a) The Person serving as the Agent hereunder
shall have the same rights and powers in its capacity as a Lender as any other Lender and may
exercise the same as though it were not the Agent and the term “Lender” or “Lenders” shall, unless
otherwise expressly indicated or unless the context otherwise requires, include the Person serving
as the Agent hereunder in its individual capacity. Such Person and its Affiliates may accept
deposits from, lend money to, act as the financial advisor or in any other advisory capacity for
and generally engage in any kind of business with the Borrowers or any Subsidiary or other
Affiliate thereof as if such Person were not the Agent hereunder and without any duty to account
therefor to the Lenders.

          (b) Each Lender understands that the Person serving as Agent, acting in its individual
capacity, and its Affiliates (collectively, the “Agent’s Group”) are engaged in a wide
range of financial services and businesses (including investment management, financing, securities
trading, corporate and investment banking and research) (such services and businesses are
collectively referred to in this Section 8.02 as “Activities”) and may engage in the
Activities with or on behalf of one or more of the Borrowers or their respective Affiliates.
Furthermore, the Agent’s Group may, in undertaking the Activities, engage in trading in financial
products or undertake other investment businesses for its own account or on behalf of others
(including the Borrowers and their Affiliates and including holding, for its own account or on
behalf of others, equity, debt and similar positions in a Borrower or its Affiliates), including
trading in or holding long, short or derivative positions in securities, loans or other financial
products of one or more of the Borrowers or their Affiliates. Each Lender understands and agrees
that in engaging in the Activities, the Agent’s Group may receive or otherwise obtain
information concerning the Borrowers or their Affiliates (including information concerning the
ability of the Borrowers to perform their

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respective obligations hereunder) which information may
not be available to any of the Lenders that are not members of the Agent’s Group. None of the
Agent nor any member of the Agent’s Group shall have any duty to disclose to any Lender or use on
behalf of the Lenders, and shall not be liable for the failure to so disclose or use, any
information whatsoever about or derived from the Activities or otherwise (including any information
concerning the business, prospects, operations, property, financial and other condition or
creditworthiness of any Borrower or any Affiliate thereof) or to account for any revenue or profits
obtained in connection with the Activities, except that the Agent shall deliver or otherwise make
available to each Lender such documents as are expressly required by this Agreement to be
transmitted by the Agent to the Lenders.

          (c) Each Lender further understands that there may be situations where members of the Agent’s
Group or their respective customers (including the Borrowers and their Affiliates) either now have
or may in the future have interests or take actions that may conflict with the interests of any one
or more of the Lenders (including the interests of the Lenders hereunder). Each Lender agrees that
no member of the Agent’s Group is or shall be required to restrict its activities as a result of
the Person serving as Agent being a member of the Agent’s Group, and that each member of the
Agent’s Group may undertake any Activities without further consultation with or notification to any
Lender. None of (i) this Agreement, (ii) the receipt by the Agent’s Group of information
(including Company Information) concerning the Borrowers or their Affiliates (including information
concerning the ability of the Borrowers to perform their respective obligations hereunder) nor
(iii) any other matter shall give rise to any fiduciary, equitable or contractual duties (including
without limitation any duty of trust or confidence) owing by the Agent or any member of the Agent’s
Group to any Lender including any such duty that would prevent or restrict the Agent’s Group from
acting on behalf of customers (including the Borrowers or their Affiliates) or for its own account.

          SECTION 8.03. Duties of Agent; Exculpatory Provisions. (a) The Agent’s duties
hereunder are solely ministerial and administrative in nature and the Agent shall not have any
duties or obligations except those expressly set forth herein. Without limiting the generality of
the foregoing, the Agent shall not have any duty to take any discretionary action or exercise any
discretionary powers, but shall be required to act or refrain from acting (and shall be fully
protected in so acting or refraining from acting) upon the written direction of the Required
Lenders (or such other number or percentage of the Lenders as shall be expressly provided for
herein), provided that the Agent shall not be required to take any action that, in its
opinion or the opinion of its counsel, may expose the Agent or any of its Affiliates to liability
or that is contrary to this Agreement or applicable law.

          (b) The Agent shall not be liable for any action taken or not taken by it (i) 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 the Agent shall believe in good faith shall be necessary, under the
circumstances as provided in Sections 9.01 or 6.01) or (ii) in the absence of its own gross
negligence or willful misconduct. The Agent shall be deemed not to have knowledge of any Default
or the event or events that give or may give rise to any Default unless and until the Company or
any Lender shall have given notice to the Agent describing such Default and such event or events.

          (c) Neither the Agent nor any member of the Agent’s Group shall be responsible for or have any
duty to ascertain or inquire into (i) any statement, warranty, representation or other information
made or supplied in or in connection with this Agreement or the Information Memorandum, (ii) the
contents of any certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith or the adequacy, accuracy and/or completeness of the information
contained therein, (iii) the performance or observance of any of the covenants, agreements or other
terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the
validity, enforceability, effectiveness or genuineness of this Agreement or any other agreement,
instrument or document or the perfection or priority of any Lien or security interest created or
purported to be created hereby or (v) the satisfaction of any condition set forth in Article III or
elsewhere herein, other than (but subject to the foregoing clause (ii)) to confirm receipt of items
expressly required to be delivered to the Agent.

          (d) Nothing in this Agreement shall require the Agent or any of its Related Parties to carry
out any “know your customer” or other checks in relation to any person on behalf of any Lender and
each Lender confirms to the Agent that it is solely responsible for any such checks it is required
to carry out and that it may not rely on any statement in relation to such checks made by the Agent
or any of its Related Parties.

          SECTION 8.04. Reliance by Agent. The Agent shall be entitled to rely upon, and shall
not incur any liability for relying upon, any notice, request, certificate, consent, statement,
instrument, document or other writing (including any electronic message, Internet or intranet
website posting or other distribution) believed by it to

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be genuine and to have been signed, sent
or otherwise authenticated by the proper Person. The Agent also may rely upon any statement made
to it orally or by telephone and believed by it to have been made by the proper Person, and shall
not incur any liability for relying thereon. In determining compliance with any condition
hereunder to the making of an Advance, or the issuance of a Letter of Credit, that by its terms
must be fulfilled to the satisfaction of a Lender, the Agent may presume that such condition is
satisfactory to such Lender unless an officer of the Agent responsible for the transactions
contemplated hereby shall have received notice to the contrary from such Lender prior to the making
of such Advance or the issuance of such Letter of Credit, and in the case of a Borrowing, such
Lender shall not have made available to the Agent such Lender’s ratable portion of such Borrowing.
The Agent may consult with legal counsel (who may be counsel for the Borrowers), 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.

          SECTION 8.05. Delegation of Duties. The Agent may perform any and all of its duties
and exercise its rights and powers hereunder by or through any one or more sub-agents appointed by
the Agent. The 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. Each such sub-agent and the
Related Parties of the Agent and each such sub-agent shall be entitled to the benefits of all
provisions of this Article VIII and Section 9.04 (as though such sub-agents were the “Agent”
hereunder) as if set forth in full herein with respect thereto.

          SECTION 8.06. Resignation of Agent. (a) The Agent may at any time give notice of its
resignation to the Lenders and the Company. Upon receipt of any such notice of resignation, the
Required Lenders shall have the right, with the consent of the Company (so long as no Event of
Default has occurred and is continuing, and such consent not to be unreasonably withheld or
delayed), to appoint a successor, which shall be a bank having a combined capital and surplus of at
least $500,000,000 and with an office in New York, New York, or an Affiliate of any such bank with
an office in New York, New York (or such other jurisdiction as is acceptable to the Company and the
Required Lenders). If no such successor shall have been so appointed by the Required Lenders and
shall have accepted such appointment within 30 days after the retiring Agent gives notice of its
resignation (such 30-day period, the “Lender Appointment Period”), then the retiring Agent
may on behalf of the Lenders, with the consent of the Company (so long as no Event of Default has
occurred and is continuing, and such consent not to be unreasonably withheld or delayed), appoint a
successor Agent meeting the qualifications set forth above. In addition and without any obligation
on the part of the retiring Agent to appoint, on behalf of the Lenders, a successor Agent, the
retiring Agent may at any time upon or after the end of the Lender Appointment Period notify the
Company and the Lenders that no qualifying Person has accepted appointment as successor Agent and
the effective date of such retiring Agent’s resignation. Upon the resignation effective date
established in such notice and regardless of whether a successor Agent has been appointed and
accepted such appointment, the retiring Agent’s resignation shall nonetheless become effective and
(i) the retiring Agent shall be discharged from its duties and obligations as Agent hereunder and
(ii) all payments, communications and determinations provided to be made by, to or through the
Agent shall instead be made by or to each Lender directly, until such time as the Required Lenders
appoint a successor Agent as provided for above in this paragraph. Upon the acceptance of a
successor’s appointment as Agent hereunder, such successor shall succeed to and become vested with
all of the rights, powers, privileges and duties as Agent of the retiring (or retired) Agent, and
the retiring Agent shall be discharged from all of its duties and obligations as Agent hereunder
(if not already discharged therefrom as provided above in this paragraph). 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. After the retiring Agent’s resignation hereunder,
the provisions of this Article and Section 9.04 shall continue in effect for the benefit of such
retiring Agent, its sub-agents and their respective Related Parties in respect of any actions taken
or omitted to be taken by any of them while the retiring Agent was acting as Agent.

          (b) Any resignation pursuant to this Section by a Person acting as Agent shall, unless such
Person shall notify the Borrowers and the Lenders otherwise, also act to relieve such Person and
its Affiliates of any obligation to advance or issue new, or extend existing, Swing Line Advances
or Letters of Credit where such advance, issuance or extension is to occur on or after the
effective date of such resignation. Upon the acceptance of a successor’s appointment as Agent
hereunder, (i) such successor shall succeed to and become vested with all of the rights, powers,
privileges and duties of the retiring Issuing Bank and Swing Line Bank, (ii) the retiring Issuing
Bank and Swing Line Bank shall be discharged from all of their respective duties and obligations
hereunder, (iii) the
successor Swing Line Bank shall enter into an Assignment and Acceptance and acquire from the
retiring Swing Line Bank each outstanding Swing Line Advance of such retiring Swing Line Bank for a
purchase price equal to par plus accrued interest and (iv) the successor Issuing Bank shall issue
letters of credit in substitution for the Letters of

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Credit, if any, outstanding at the time of
such succession or make other arrangement satisfactory to the retiring Issuing Bank to effectively
assume the obligations of the retiring Issuing Bank with respect to such Letters of Credit.

          SECTION 8.07. Non-Reliance on Agent and Other Lenders. (a) Each Lender confirms to
the Agent, each other Lender and each of their respective Related Parties that it (i) possesses
(individually or through its Related Parties) such knowledge and experience in financial and
business matters that it is capable, without reliance on the Agent, any other Lender or any of
their respective Related Parties, of evaluating the merits and risks (including tax, legal,
regulatory, credit, accounting and other financial matters) of (x) entering into this Agreement,
(y) making Advances and other extensions of credit hereunder and (z) in taking or not taking
actions hereunder, (ii) is financially able to bear such risks and (iii) has determined that
entering into this Agreement and making Advances and other extensions of credit hereunder is
suitable and appropriate for it.

          (b) Each Lender acknowledges that (i) it is solely responsible for making its own independent
appraisal and investigation of all risks arising under or in connection with this Agreement, (ii)
that it has, independently and without reliance upon the Agent, any other Lender or any of their
respective Related Parties, made its own appraisal and investigation of all risks associated with,
and its own credit analysis and decision to enter into, this Agreement based on such documents and
information, as it has deemed appropriate and (iii) it will, independently and without reliance
upon the Agent, any other Lender or any of their respective Related Parties, continue to be solely
responsible for making its own appraisal and investigation of all risks arising under or in
connection with, and its own credit analysis and decision to take or not take action under, this
Agreement based on such documents and information as it shall from time to time deem appropriate,
which may include, in each case:

     (i) the financial condition, status and capitalization of the Company and each other
Borrower;

     (ii) the legality, validity, effectiveness, adequacy or enforceability of this
Agreement and any other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection herewith;

     (iii) determining compliance or non-compliance with any condition hereunder to the
making of an Advance, or the issuance of a Letter of Credit and the form and substance of
all evidence delivered in connection with establishing the satisfaction of each such
condition;

     (iv) the adequacy, accuracy and/or completeness of the Information Memorandum and any
other information delivered by the Agent, any other Lender or by any of their respective
Related Parties under or in connection with this Agreement, the transactions contemplated
hereby or any other agreement, arrangement or document entered into, made or executed in
anticipation of, under or in connection with this Agreement.

          SECTION 8.08. Indemnification. (a) Each Lender severally agrees to indemnify the
Agent (to the extent not reimbursed by the Company) from and against such Lender’s pro rata share
(determined as provided below) of any and all liabilities, obligations, losses, damages, actions,
judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever that may be
imposed on, incurred by, or asserted against the Agent (in its capacity as such) in any way
relating to or arising out of this Agreement or any action taken or omitted by the Agent (in its
capacity as such) under this Agreement (collectively, the “Indemnified Costs”),
provided that no Lender shall be liable for any portion of the Indemnified Costs resulting
from the Agent’s gross negligence or willful misconduct. Without limitation of the foregoing, each
Lender agrees to reimburse the Agent promptly upon demand for its pro rata Share of any
out-of-pocket expenses (including reasonable counsel fees) incurred by the Agent (in its capacity
as such) in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or
legal advice in respect of rights or responsibilities under, this Agreement, to the extent that the
Agent is not reimbursed for such expenses by the Company. In the case of any investigation,
litigation or proceeding giving rise to any Indemnified Costs, this Section 7.05(a) applies whether
any such investigation, litigation or proceeding is brought by the Agent, any Lender or a third
party. For purposes of this
Section 8.08(a), the Lenders’ respective pro rata shares of any amount shall be determined, at
any time, according to the sum of (i) the aggregate principal amount of the Advances outstanding at
such time and owing to the respective Lenders, (ii) their respective pro rata shares of the
aggregate Available Amount of all Letters of Credit outstanding at such time and (iii) their
respective Unused Revolving Credit Commitments at such time.

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          (b) Each Lender severally agrees to indemnify the Issuing Banks (to the extent not promptly
reimbursed by the Company) from and against such Lender’s Ratable Share of any and all liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever that may be imposed on, incurred by, or asserted
against any such Issuing Bank (in its capacity as such) in any way relating to or arising out of
the Loan Documents or any action taken or omitted by such Issuing Bank (in its capacity as such)
hereunder or in connection herewith; provided, however, that no Lender shall be
liable for any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from such Issuing Bank’s gross
negligence or willful misconduct. Without limitation of the foregoing, each Lender agrees to
reimburse any such Issuing Bank promptly upon demand for its Ratable Share of any costs and
expenses (including, without limitation, reasonable fees and expenses of counsel) payable by the
Company under Section 9.04, to the extent that such Issuing Bank is not promptly reimbursed for
such costs and expenses by the Company.

          (c) The failure of any Lender to reimburse the Agent or any Issuing Bank promptly upon demand
for its Ratable Share of any amount required to be paid by the Lenders to the Agent as provided
herein shall not relieve any other Lender of its obligation hereunder to reimburse the Agent or any
Issuing Bank for its Ratable Share of such amount, but no Lender shall be responsible for the
failure of any other Lender to reimburse the Agent or any Issuing Bank for such other Lender’s
applicable share of such amount. Without prejudice to the survival of any other agreement of any
Lender hereunder, the agreement and obligations of each Lender contained in this Section 8.08 shall
survive the payment in full of principal, interest and all other amounts payable hereunder and
under the Notes. Each of the Agent and each Issuing Bank agrees to return to the Lenders their
respective applicable shares of any amounts paid under this Section 8.08 that are subsequently
reimbursed by the Company.

          SECTION 8.09. Other Agents. Each Lender hereby acknowledges that neither the
documentation agent nor any other Lender designated as any “Agent” on the signature pages hereof
has any liability hereunder other than in its capacity as a Lender.

ARTICLE IX

MISCELLANEOUS

          SECTION 9.01. Amendments, Etc. No amendment or waiver of any provision of this
Agreement or the Notes, nor consent to any departure by any Borrower therefrom, shall in any event
be effective unless the same shall be in writing and signed by the Required Lenders, and then such
waiver or consent shall be effective only in the specific instance and for the specific purpose for
which given; provided, however, that (a) no amendment, waiver or consent shall,
unless in writing and signed by all the Lenders, do any of the following: (i) waive any of the
conditions specified in Section 3.01, (ii) change the percentage of the Commitments or of the
aggregate unpaid principal amount of the Advances, or the number of Lenders, that shall be required
for the Lenders or any of them to take any action hereunder or (iii) amend this Section 9.01 and
(b) no amendment, waiver or consent shall, unless in writing and signed by each Lender affected
hereby, do any of the following: (i) increase the Commitments of the Lenders other than in
accordance with Section 2.18, (ii) reduce the principal of, or rate of interest on, the Advances or
any fees or other amounts payable hereunder, (iii) postpone any date fixed for any payment of
principal of, or interest on, the Advances or any fees or other amounts payable hereunder, (iv)
release the Company from any of its obligations under Article VII, or (v) extend the expiration
date of any Letter of Credit to a date later than the final Termination Date; and provided
further that (x) no amendment, waiver or consent shall, unless in writing and signed by the
Agent in addition to the Lenders required above to take such action, affect the rights or duties of
the Agent under this Agreement or any Note; (y) no amendment, waiver or consent shall, unless in
writing and signed by each Swing Line Bank, in addition to the Lenders required above to take such
action, affect the rights or obligations of the Swing Line Banks under this Agreement; and (z) no
amendment, waiver or consent shall, unless in writing and signed by the Issuing Banks in addition
to the Lenders required above to take such action, adversely affect the rights or obligations of
the Issuing Banks in their capacities as such under this Agreement. Notwithstanding anything to
the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any
amendment, waiver or consent hereunder (and
any amendment, waiver or consent which by its terms requires the consent of all Lenders or
each affected Lender may be effected with the consent of the applicable Lenders other than
Defaulting Lenders), except that (x) the Commitment of any Defaulting Lender may not be increased
or extended without the consent of such Lender and (y) any waiver, amendment or modification
requiring the consent of all Lenders or each affected Lender that by its terms affects any
Defaulting Lender more adversely than other affected Lenders shall require the consent of such
Defaulting Lender.

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          SECTION 9.02. Notices, Etc. (a) All notices and other communications provided for
hereunder shall be either (x) in writing (including telecopier communication) and mailed,
telecopied or delivered or (y) as and to the extent set forth in Section 9.02(b) and in the proviso
to this Section 9.02(a), if to the Company or any other Borrower, at the Company’s address at 10560
Dr. Martin Luther King, Jr. Street North, St. Petersburg, Florida 33716, Attention: Treasurer,
with a copy to the same address, Attention: General Counsel; if to any Initial Lender, at its
Domestic Lending Office specified opposite its name on Schedule I hereto; if to any other Lender,
at its Domestic Lending Office specified in the Assumption Agreement or the Assignment and
Acceptance pursuant to which it became a Lender; and if to the Agent, at its address at 1615 Brett
Road, Building #3, New Castle, Delaware 19720, Attention: Bank Loan Syndications Department; or, as
to the Company or the Agent, at such other address as shall be designated by such party in a
written notice to the other parties and, as to each other party, at such other address as shall be
designated by such party in a written notice to the Company and the Agent, provided that
materials required to be delivered pursuant to Section 5.01(i)(i), (ii) or (iv) shall be delivered
to the Agent as specified in Section 9.02(b) or as otherwise specified to any Borrower by the
Agent. All such notices and communications shall, when mailed, telecopied or e-mailed, be
effective when deposited in the mails, telecopied (when confirmation is received) or confirmed by
e-mail, respectively, except that notices and communications to the Agent pursuant to Article II,
III or VIII shall not be effective until received by the Agent, provided that notices of any kind
shall not be deemed received unless delivered during the recipient’s normal business hours.
Delivery by telecopier or e-mail of an executed counterpart of any amendment or waiver of any
provision of this Agreement or the Notes or of any Exhibit hereto to be executed and delivered
hereunder shall be effective as delivery of a manually executed counterpart thereof.

          (b) So long as Citibank or any of its Affiliates is the Agent, materials required to be
delivered pursuant to Section 5.01(i)(i), (ii) and (iv) shall be delivered to the Agent in an
electronic medium in a format acceptable to the Agent and the Lenders by e-mail at
oploanswebadmin@citigroup.com. The Company agrees that the Agent may make such materials, as well
as any other written information, documents, instruments and other material relating to the
Company, any of its Subsidiaries or any other materials or matters relating to this Agreement, the
Notes or any of the transactions contemplated hereby (collectively, the “Communications”)
available to the Lenders by posting such notices on Intralinks or a substantially similar
electronic system (the “Platform”). The Company acknowledges that (i) the distribution of
material through an electronic medium is not necessarily secure and that there are confidentiality
and other risks associated with such distribution, (ii) the Platform is provided “as is” and “as
available” and (iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or
completeness of the Communications or the Platform and each expressly disclaims liability for
errors or omissions in the Communications or the Platform. No warranty of any kind, express,
implied or statutory, including, without limitation, 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 the Agent or any of its Affiliates in connection with the Platform.

          (c) Each Lender agrees that notice to it (as provided in the next sentence) (a
“Notice”) specifying that any Communications have been posted to the Platform shall
constitute effective delivery of such information, documents or other materials to such Lender for
purposes of this Agreement; provided that (i) if requested by any Lender the Agent shall
deliver a copy of the Communications to such Lender by email or telecopier and (ii) if such Notice
is received other than during such Lender’s normal business hours, it shall be deemed delivered on
the next succeeding Business Day. Each Lender agrees (i) to notify the Agent in writing of such
Lender’s e-mail address to which a Notice may be sent by electronic transmission (including by
electronic communication) on or before the date such Lender becomes a party to this Agreement (and
from time to time thereafter to ensure that the Agent has on record an effective e-mail address for
such Lender) and (ii) that any Notice may be sent to such e-mail address.

          SECTION 9.03. No Waiver; Remedies. No failure on the part of any Lender or the Agent
to exercise, and no delay in exercising, any right hereunder or under any Note shall operate as a
waiver thereof; nor shall any single or partial exercise of any such right preclude any
other or further exercise thereof or the exercise of any other right. The remedies herein
provided are cumulative and not exclusive of any remedies provided by law.

          SECTION 9.04. Costs and Expenses. (a) The Company agrees to pay on demand all
reasonable costs and expenses of the Agent in connection with the preparation, execution, delivery,
administration, modification and amendment of this Agreement, the Notes and the other documents to
be delivered hereunder, including, without limitation, (A) all computer, duplication, appraisal,
consultant, and audit expenses and (B) the reasonable fees and expenses of counsel for the Agent
with respect thereto and with respect to advising the Agent as

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to its rights and responsibilities
under this Agreement. The Company further agrees to pay on demand all costs and expenses of the
Agent and the Lenders, if any (including, without limitation, reasonable counsel fees and
expenses), in connection with the enforcement (whether through negotiations, legal proceedings or
otherwise) of this Agreement, the Notes and the other documents to be delivered hereunder,
including, without limitation, reasonable fees and expenses of counsel for the Agent and each
Lender in connection with the enforcement of rights under this Section 9.04(a).

          (b) The Company agrees to indemnify and hold harmless the Agent and each Lender and each of
their Affiliates and their officers, directors, employees, agents and advisors (each, an
“Indemnified Party”) from and against any and all claims, damages, losses, liabilities and
expenses (including, without limitation, reasonable fees and expenses of counsel) incurred by or
asserted or awarded against any Indemnified Party, in each case arising out of or in connection
with or by reason of (including, without limitation, in connection with any investigation,
litigation or proceeding or preparation of a defense in connection therewith) (i) the Notes, this
Agreement, any of the transactions contemplated herein or the actual or proposed use of the
proceeds of the Advances or Letters of Credit or (ii) the actual or alleged presence of Hazardous
Materials on any property of the Company or any of its Subsidiaries or any Environmental Action
relating in any way to the Company or any of its Subsidiaries, except, with respect to any
Indemnified Party, to the extent such claim, damage, loss, liability or expense is determined in a
final and non-appealable judgment by a court of competent jurisdiction to have resulted from such
Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation,
litigation or other proceeding to which the indemnity in this Section 9.04(b) applies, such
indemnity shall be effective whether or not such investigation, litigation or proceeding is brought
by the Company, its directors, equityholders or creditors or an Indemnified Party or any other
Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the
transactions contemplated hereby are consummated. The Company also agrees not to assert any claim
for special, indirect, consequential or punitive damages against the Agent, any Lender, any of
their Affiliates, or any of their respective directors, officers, employees, attorneys and agents,
on any theory of liability, arising out of or otherwise relating to the Notes, this Agreement, any
of the transactions contemplated herein or the actual or proposed use of the proceeds of the
Advances.

          (c) If any payment of principal of, or Conversion of, any Eurocurrency Rate Advance is made by
any Borrower to or for the account of a Lender (i) other than on the last day of the Interest
Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.08, 2.10 or
2.12, acceleration of the maturity of the Notes pursuant to Section 6.01 or for any other reason,
or by an Eligible Assignee to a Lender other than on the last day of the Interest Period for such
Advance upon an assignment of rights and obligations under this Agreement pursuant to Section 9.07
as a result of a demand by the Company pursuant to Section 9.07(a) or (ii) as a result of a payment
or Conversion pursuant to Section 2.08, 2.10 or 2.12, such Borrower shall, upon demand by such
Lender (with a copy of such demand to the Agent), pay to the Agent for the account of such Lender
any amounts required to compensate such Lender for any additional losses, costs or expenses that it
may reasonably incur as a result of such payment or Conversion, including, without limitation, any
loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation
or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance.
If the amount of the Committed Currency purchased by any Lender in the case of a Conversion or
exchange of Advances in the case of Section 2.08 or 2.12 exceeds the sum required to satisfy such
Lender’s liability in respect of such Advances, such Lender agrees to remit to the applicable
Borrower such excess.

          (d) Without prejudice to the survival of any other agreement of the Borrowers hereunder, the
agreements and obligations of the Borrowers contained in Sections 2.11, 2.14 and 9.04 shall survive
the payment in full of principal, interest and all other amounts payable hereunder and under the
Notes.

          SECTION 9.05. Right of Set-off. Upon (i) the occurrence and during the continuance
of any Event of Default and (ii) the making of the request or the granting of
the consent specified by Section 6.01 to authorize the Agent to declare the Advances due and
payable pursuant to the provisions of Section 6.01, each Lender and each of its Affiliates is
hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set
off and apply any and all deposits (general or special, time or demand, provisional or final) at
any time held and other indebtedness at any time owing by such Lender or such Affiliate to or for
the credit or the account of the Company or any Borrower against any and all of the obligations of
the Company or any Borrower now or hereafter existing under this Agreement and the Note held by
such Lender, whether or not such Lender shall have made any demand under this Agreement or such
Note and although such obligations may be unmatured. Each Lender agrees promptly to notify the
Company or the applicable Borrower after any such set-off and application,

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provided that
the failure to give such notice shall not affect the validity of such set-off and application. The
rights of each Lender and its Affiliates under this Section are in addition to other rights and
remedies (including, without limitation, other rights of set-off) that such Lender and its
Affiliates may have.

          SECTION 9.06. Binding Effect. This Agreement shall become effective (other than
Section 2.01, which shall only become effective upon satisfaction of the conditions precedent set
forth in Section 3.01) when it shall have been executed by the Company and the Agent and when the
Agent shall have been notified by each Initial Lender that such Initial Lender has executed it and
thereafter shall be binding upon and inure to the benefit of the Company, the Agent and each Lender
and their respective successors and assigns, except that neither the Company nor any other Borrower
shall have the right to assign its rights hereunder or any interest herein without the prior
written consent of all of the Lenders.

          SECTION 9.07. Assignments and Participations. (a) Each Lender may with the consent
of each Issuing Bank and each Swing Line Bank (which consent shall not be unreasonably withheld or
delayed) assign to one or more Persons all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Revolving Credit Commitment, its
Swing Line Commitment, its Unissued Letter of Credit Commitment, the Advances owing to it, its
participations in Letters of Credit and the Note or Notes held by it); provided,
however, that (i) each such assignment shall be of a constant, and not a varying,
percentage of all rights and obligations under this Agreement, (ii) except in the case of an
assignment to a Person that, immediately prior to such assignment, was a Lender or an assignment of
all of a Lender’s rights and obligations under this Agreement, the amount of (x) the Revolving
Credit Commitment of the assigning Lender being assigned pursuant to each such assignment
(determined as of the date of the Assignment and Acceptance with respect to such assignment) shall
be $10,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) the Swing Line
Commitment or Letter of Credit Commitment of the assigning Lender being assigned pursuant to each
such assignment (determined as of the date of the Assignment and Acceptance with respect to such
assignment) shall be $5,000,000 or an integral multiple of $1,000,000 in excess thereof, in each
case, unless the Company and the Agent otherwise agree, (iii) each such assignment shall be to an
Eligible Assignee; and (iv) the parties to each such assignment shall execute and deliver to the
Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, together
with any Note subject to such assignment and a processing and recordation fee of $3,500 payable by
the parties to each such assignment, provided, however, that in the case of each
assignment made as a result of a demand by the Company, such recordation fee shall be payable by
the Company except that no such recordation fee shall be payable in the case of an assignment made
at the request of the Company to an Eligible Assignee that is an existing Lender and
provided further that no such assignment shall be made to a Defaulting Lender.
Upon such execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto
with respect to the interest assigned and, to the extent that rights and obligations hereunder have
been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of
a Lender hereunder, in addition to any rights and obligations theretofore held by it as a Lender,
and (y) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder
have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other
than its rights under Sections 2.11, 2.14 and 9.04 to the extent any claim thereunder relates to an
event arising prior to such assignment) and be released from its obligations (other than its
obligations under Section 8.08 to the extent any claim thereunder relates to an event arising prior
to such assignment) under this Agreement (and, in the case of an Assignment and Acceptance covering
all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement,
such Lender shall cease to be a party hereto).

          (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder
and the assignee thereunder confirm to and agree with each other and the other parties hereto as
follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes
no representation or warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in
connection with this Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, this Agreement or any
other instrument or document furnished pursuant hereto; (ii) such assigning Lender makes no
representation or warranty and assumes no responsibility with respect to the financial condition of
the Company or any other Borrower or the performance or observance by the Company or any other
Borrower of any of its obligations under this Agreement or any other instrument or document
furnished pursuant hereto; (iii) such assignee confirms that, to the extent it has so requested, it
has received a copy of this Agreement, together with copies of the financial statements referred to
in Section 4.01 and such other documents and information as it has deemed appropriate to make its
own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee
will, independently and without reliance upon the Agent, such assigning Lender or any other

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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 this Agreement; (v) such
assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the
Agent to take such action as agent on its behalf and to exercise such powers and discretion under
this Agreement as are delegated to the Agent by the terms hereof, together with such powers and
discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will
perform in accordance with their terms all of the obligations that by the terms of this Agreement
are required to be performed by it as a Lender.

          (c) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with any Note or Notes subject to
such assignment, the Agent shall, if such Assignment and Acceptance has been completed and is in
substantially the form of Exhibit C hereto, (i) accept such Assignment and Acceptance, (ii) record
the information contained therein in the Register and (iii) give prompt notice thereof to the
Company.

          (d) The Agent shall maintain at its address referred to in Section 9.02 a copy of each
Assumption Agreement and each Assignment and Acceptance delivered to and accepted by it and a
register for the recordation of the names and addresses of the Lenders and the Commitment of, and
principal amount of the Advances owing to, each Lender from time to time (the “Register”).
The entries in the Register shall be conclusive and binding for all purposes, absent manifest
error, and the Company and the other Borrowers, the Agent and the Lenders may treat each Person
whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement.
In addition, the Agent shall maintain on the Register information regarding the designation and
revocation of designation of any Lender as a Defaulting Lender. The Register shall be available
for inspection by the Company or any Lender at any reasonable time and from time to time upon
reasonable prior notice.

          (e) Each Lender may sell participations to one or more banks or other entities (other than the
Company or any of its Affiliates) in or to all or a portion of its rights and obligations under
this Agreement (including, without limitation, all or a portion of its Commitment, the Advances
owing to it and any Note or Notes held by it); provided, however, that (i) such
Lender’s obligations under this Agreement (including, without limitation, its Commitment to the
Borrowers hereunder) shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations, (iii) such Lender shall remain
the holder of any such Note for all purposes of this Agreement, (iv) the Company , the other
Borrowers, the Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender’s rights and obligations under this Agreement and (v) no
participant under any such participation shall have any right to approve any amendment or waiver of
any provision of this Agreement or any Note, or any consent to any departure by the Company or any
other Borrower therefrom, except to the extent that such amendment, waiver or consent would reduce
the principal of, or interest on, the Notes or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation, or postpone any date fixed for any payment of
principal of, or interest on, the Notes or any fees or other amounts payable hereunder, in each
case to the extent subject to such participation.

          (f) Any Lender may, in connection with any assignment or participation or proposed assignment
or participation pursuant to this Section 9.07, disclose to the assignee or participant or proposed
assignee or participant, any information relating to the Company furnished to such Lender by or on
behalf of the Company; provided that, prior to any such disclosure, the assignee or
participant or proposed assignee or participant shall agree to preserve the confidentiality of any
Company Information relating to the Company received by it from such Lender in accordance with
Section 9.08 hereof.

          (g) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender (including, without limitation, any pledge or assignment to secure
obligations to a Federal Reserve Bank in accordance with Regulation A of the Board of Governors of
the Federal Reserve System and this Section shall not apply to any such pledge or assignment of a
security interest; provided that, no such pledge or assignment of a security interest shall
release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee
for such Lender party hereto interest.

          (h) Resignation as Issuing Bank or Swing Line Bank after Assignment. Notwithstanding
anything to the contrary contained herein, if at any time any Issuing Bank or Swing Line Bank
assigns all of its Revolving Credit Commitments and Advances pursuant to Section 9.07(a),
such Person may, (i) upon 30 days’

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notice to the Borrower and the Lenders, resign as Issuing Bank
and/or (ii) upon 30 days’ notice to the Borrower, resign as Swing Line Bank. In the event of any
such resignation as Issuing Bank or Swing Line Bank, the Borrower shall be entitled to appoint from
among the Lenders a successor Issuing Bank or Swing Line Bank hereunder; provided,
however, that no failure by the Borrower to appoint any such successor shall affect the
resignation of such Person as Issuing Bank or Swing Line Bank, as the case may be. If such Person
resigns as Issuing Bank, it shall retain all the rights, powers, privileges and duties of an
Issuing Bank hereunder with respect to all Letters of Credit outstanding as of the effective date
of its resignation as Issuing Bank and all unreimbursed Letter of Credit drawings with respect
thereto. If such Person resigns as a Swing Line Bank, it shall retain all the rights of a Swing
Line Bank provided for hereunder with respect to Swing Line Advances made by it and outstanding as
of the effective date of such resignation. Upon the appointment of a successor Issuing Bank and/or
Swing Line Bank, (a) such successor shall succeed to and become vested with all of the rights,
powers, privileges and duties of the retiring Issuing Bank or Swing Line Bank, as the case may be,
and (b) the successor Issuing Bank 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 such Person to effectively assume the obligations of such Person with respect to such Letters of
Credit.

          SECTION 9.08. Confidentiality. Neither the Agent nor any Lender may disclose to any
Person any Company Information (as defined below), except that each of the Agent and each of the
Lenders may disclose Company Information (a) to its and its Affiliates’ respective managers,
administrators, trustees, partners, employees, officers, directors, agents and advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Company Information and such person shall have agreed to keep such Company
Information confidential on substantially the same terms as provided herein), (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 or
requested by any self-regulatory authority, provided that, to the extent practicable, the
Company is given prompt written notice of such requirement or request prior to such disclosure and
assistance in obtaining an order protecting such information from public disclosure, (d) to any
other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Agreement or the enforcement of rights hereunder, (f)
subject to an agreement containing provisions no less restrictive than those of this Section 9.08,
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, (ii) any actual or prospective party (or its
managers, administrators, trustees, partners, directors, officers, employees, agents, advisors and
other representatives) to any swap, derivative or other transaction under which payments are to be
made by reference to the Company and its obligations, this Agreement or payments hereunder, (iii)
any rating agency, or (iv) the CUSIP Service Bureau or any similar organization, (g) to the extent
such Company Information (A) is or becomes generally available to the public on a non-confidential
basis other than as a result of a breach of this Section 9.08 by the Agent or such Lender, or (B)
is or becomes available to the Agent or such Lender on a nonconfidential basis from a source other
than the Company and not, to the knowledge of the Agent or such Lender, in breach of such third
party’s obligations of confidentiality and (h) with the consent of the Company.

          For purposes of this Section, “Company Information” means all confidential,
proprietary or non-public information received from the Company or any of its Subsidiaries relating
to the Company or any of its Subsidiaries or any of their respective businesses, other than any
such information that is available to the Agent, any Lender or any Issuing Bank on a
nonconfidential basis prior to disclosure by the Company or any of its Subsidiaries. Any Person
required to maintain the confidentiality of Company Information as provided in this Section shall
be considered to have complied with its obligation to do so if such Person has exercised the same
degree of care to
maintain the confidentiality of such Company Information as such Person would accord to its
own confidential information.

          SECTION 9.09. Designated Subsidiaries. (a) Designation. The Company may at
any time, and from time to time, upon not less than 15 Business Days’ notice, notify the Agent that
the Company intends to designate a Subsidiary as a “Designated Subsidiary” for purposes of this
Agreement. On or after the date that is 15 Business Days after such notice, upon delivery to the
Agent and each Lender of a Designation Letter duly executed by the Company and the respective
Subsidiary and substantially in the form of Exhibit D hereto, such Subsidiary shall thereupon
become a “Designated Subsidiary” for purposes of this Agreement and, as such, shall have all of the
rights and obligations of a Borrower hereunder. The Agent shall promptly notify each Lender of the
Company’s notice of such pending designation by the Company and the identity of the respective
Subsidiary. Following the giving of any notice pursuant to this Section 9.09(a), if the
designation of such Designated Subsidiary obligates the Agent or any Lender to comply with “know
your customer” or similar identification procedures in circumstances

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where the necessary information is not already available to it, the Company shall, promptly upon the request of the
Agent or any Lender, supply such documentation and other evidence as is reasonably requested by the
Agent or any Lender in order for the Agent or such Lender to carry out and be satisfied it has
complied with the results of all necessary “know your customer” or other similar checks under all
applicable laws and regulations.

          If the Company shall designate as a Designated Subsidiary hereunder any Subsidiary not
organized under the laws of the United States or any State thereof, any Lender may, with notice to
the Agent and the Company, fulfill its Commitment by causing an Affiliate of such Lender to act as
the Lender in respect of such Designated Subsidiary (and such Lender shall, to the extent of
Advances made to and participations in Letters of Credit issued for the account of such Designated
Subsidiary, be deemed for all purposes hereof to have pro tanto assigned such Advances and
participations to such Affiliate in compliance with the provisions of Section 9.07).

          As soon as practicable after receiving notice from the Company or the Agent of the Company’s
intent to designate a Subsidiary as a Designated Borrower, and in any event no later than five
Business Days after the delivery of such notice, for a Designated Subsidiary that is organized
under the laws of a jurisdiction other than of the United States or a political subdivision
thereof, any Lender that may not legally lend to, establish credit for the account of and/or do any
business whatsoever with such Designated Subsidiary directly or through an Affiliate of such Lender
as provided in the immediately preceding paragraph (a “Protesting Lender”) shall so notify
the Company and the Agent in writing. With respect to each Protesting Lender, the Company shall,
effective on or before the date that such Designated Subsidiary shall have the right to borrow
hereunder, either (A) notify the Agent and such Protesting Lender that the Commitments of such
Protesting Lender shall be terminated; provided that such Protesting Lender shall have
received payment of an amount equal to the outstanding principal of its Revolving Credit Advances
and/or Letter of Credit reimbursement obligations, accrued interest thereon, accrued fees and all
other amounts payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Company or the relevant Designated Subsidiary (in
the case of all other amounts) or (B) cancel its request to designate such Subsidiary as a
“Designated Subsidiary” hereunder.

          (b) Termination. Upon the indefeasible payment and performance in full of all of the
indebtedness, liabilities and obligations under this Agreement of any Designated Subsidiary then,
so long as at the time no Notice of Revolving Credit Borrowing, Notice of Swing Line Borrowing or
Notice of Issuance in respect of such Designated Subsidiary is outstanding, such Subsidiary’s
status as a “Designated Subsidiary” shall terminate upon notice to such effect from the Agent to
the Lenders (which notice the Agent shall give promptly, and only upon its receipt of a request
therefor from the Company). Thereafter, the Lenders shall be under no further obligation to make
any Advance hereunder to such Designated Subsidiary.

          SECTION 9.10. Governing Law. This Agreement and the Notes shall be governed by, and
construed in accordance with, the laws of the State of New York.

          SECTION 9.11. Execution in Counterparts. This Agreement may be executed in any
number of counterparts and by different parties hereto in separate counterparts, each of which when
so executed shall be deemed to be an original and all of which taken together shall constitute one
and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement
by telecopier shall be effective as delivery of a manually executed counterpart of this Agreement.

          SECTION 9.12. Judgment. (a) If for the purposes of obtaining judgment in any court
it is necessary to convert a sum due hereunder in Dollars into another currency, the parties hereto
agree, to the fullest extent that they may effectively do so, that the rate of exchange used shall
be that at which in accordance with normal banking procedures the Agent could purchase Dollars with
such other currency at Citibank’s principal office in London at 11:00 A.M. (London time) on the
Business Day preceding that on which final judgment is given.

          (b) If for the purposes of obtaining judgment in any court it is necessary to convert a sum
due hereunder in a Committed Currency into Dollars, the parties agree to the fullest extent that
they may effectively do so, that the rate of exchange used shall be that at which in accordance
with normal banking procedures the Agent could purchase such Committed Currency with Dollars at
Citibank’s principal office in London at 11:00 A.M. (London time) on the Business Day preceding
that on which final judgment is given.

          (c) The obligation of any Borrower in respect of any sum due from it in any currency (the
“Primary Currency”) to any Lender or the Agent hereunder shall, notwithstanding any
judgment in any other

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currency, be discharged only to the extent that on the Business Day following
receipt by such Lender or the Agent (as the case may be), of any sum adjudged to be so due in such
other currency, such Lender or the Agent (as the case may be) may in accordance with normal banking
procedures purchase the applicable Primary Currency with such other currency; if the amount of the
applicable Primary Currency so purchased is less than such sum due to such Lender or the Agent (as
the case may be) in the applicable Primary Currency, each Borrower agrees, as a separate obligation
and notwithstanding any such judgment, to indemnify such Lender or the Agent (as the case may be)
against such loss, and if the amount of the applicable Primary Currency so purchased exceeds such
sum due to any Lender or the Agent (as the case may be) in the applicable Primary Currency, such
Lender or the Agent (as the case may be) agrees to remit to such Borrower such excess.

          SECTION 9.13. Jurisdiction, Etc. (a) Each of the parties hereto hereby irrevocably
and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New
York State court or federal court of the United States of America sitting in New York City, and any
appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the Notes, or for recognition or enforcement of any judgment, and each of the parties
hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action
or proceeding may be heard and determined in any such New York State court or, to the extent
permitted by law, in such federal court. Each Designated Subsidiary hereby agrees that service of
process in any such action or proceeding brought in any such New York State court or in such
federal court may be made upon the Company and each Designated Subsidiary hereby irrevocably
appoints the Company its authorized agent to accept such service of process, and agrees that the
failure of the Company to give any notice of any such service shall not impair or affect the
validity of such service or of any judgment rendered in any action or proceeding based thereon.
The Company and each Designated Subsidiary hereby further irrevocably consent to the service of
process in any action or proceeding in such courts by the mailing thereof by any parties hereto by
registered or certified mail, postage prepaid, to the Company at its address specified pursuant to
Section 9.02. Each of the parties hereto agrees that a final judgment in any such action or
proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law. Nothing in this Agreement shall affect any right that any
party may otherwise have to bring any action or proceeding relating to the enforcement of any
judgment relating to this Agreement or the Notes in the courts of any jurisdiction. To the extent
that each Designated Subsidiary has or hereafter may acquire any immunity from jurisdiction of any
court or from any legal process (whether through service or notice, attachment prior to judgment,
attachment in aid of execution, execution or otherwise) with respect to itself or its property,
each Designated Subsidiary hereby irrevocably waives such immunity in respect of its obligations
under this Agreement.

          (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent
it may legally and effectively do so, any objection that it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or the
Notes in any New York State or federal court. Each of the parties hereto hereby irrevocably
waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the
maintenance of such action or proceeding in any such court.

          SECTION 9.14. Substitution of Currency. If a change in any Committed Currency occurs
pursuant to any applicable law, rule or regulation of any governmental, monetary or multi-national
authority, this Agreement (including, without limitation, the definition of Eurocurrency Rate) will
be deemed amended to the extent determined by the Agent (acting reasonably and in consultation with
the
Company) to be necessary to reflect the change in currency and to put the Lenders and the
Borrowers in the same position, so far as possible, that they would have been in if no change in
such Committed Currency had occurred.

          SECTION 9.15. No Liability of the Issuing Banks. The Borrowers assume all risks of
the acts or omissions of any beneficiary or transferee of any Letter of Credit with respect to its
use of such Letter of Credit. Neither an Issuing Bank nor any of its officers or directors shall
be liable or responsible for: (a) the use that may be made of any Letter of Credit or any acts or
omissions of any beneficiary or transferee in connection therewith; (b) the validity, sufficiency
or genuineness of documents, or of any endorsement thereon, even if such documents should prove to
be in any or all respects invalid, insufficient, fraudulent or forged; or (c) any other
circumstances whatsoever in making or failing to make payment under any Letter of Credit, except
that the applicable Borrower shall have a claim against such Issuing Bank, and such Issuing Bank
shall be liable to such Borrower, to the extent of any direct, but not consequential, damages
suffered by such Borrower that such Borrower proves were caused by such Issuing Bank’s willful
misconduct or gross negligence when determining whether drafts and other documents presented under
a Letter of Credit comply with the terms thereof. In furtherance and not in limitation of the
foregoing, such Issuing Bank may accept documents that appear on their face to be in order, without
responsibility

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for further investigation, regardless of any notice or information to the contrary;
provided that nothing herein shall be deemed to excuse such Issuing Bank if it acts with
gross negligence or willful misconduct in accepting such documents.

          SECTION 9.16. Patriot Act Notice. Each Lender and the Agent (for itself and not on
behalf of any Lender) hereby notifies each Borrower that pursuant to the requirements of the
Patriot 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 Agent, as applicable, to identify each Borrower in accordance with the
Patriot Act. Each Borrower shall provide such information and take such actions as are reasonably
requested by the Agent or any Lenders in order to assist the Agent and the Lenders in maintaining
compliance with the Patriot Act.

          SECTION 9.17. Power of Attorney. Each Designated Subsidiary of the Company,
pursuant to the terms of its Designation Agreement has authorized and appointed the Company as its
attorney-in-fact to execute and deliver (a) any amendment, waiver or consent in accordance with
Section 9.01 on behalf of and in the name of such Subsidiary and (b) any notice or other
communication hereunder, on behalf of and in the name of such Subsidiary.

          SECTION 9.18. Replacement of Lenders. If (a) any Lender requests compensation under
Section 2.11 or 2.14, (b) any Borrower is required to pay any additional amount to any Lender or
any governmental authority for the account of any Lender pursuant to Section 2.14, (c) any Lender
asserts illegality pursuant to Section 2.12, (d) any Lender is a Defaulting Lender or (e) any
Lender has not agreed to any amendment, waiver or consent for which (x) the consent of all of the
Lenders is required and (y) Lenders owed or holding at least 85% of the sum of all outstanding
Revolving Credit Advances plus the aggregate Unused Revolving Credit Commitments have agreed to
such amendment, waiver or consent, then the Company may, at its sole expense and effort, upon
notice to such Lender and the Agent, require such Lender to assign and delegate, without recourse
(in accordance with and subject to the restrictions contained in, and consents required by, Section
9.07), all of its interests, rights and obligations under this Agreement to an assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that (i) each such assignment shall be arranged by the Company after
consultation with the Agent and shall be either an assignment of all of the rights and obligations
of the assigning Lender under this Agreement or an assignment of a portion of such rights and
obligations made concurrently with another such assignment or other such assignments that together
cover all of the rights and obligations of the assigning Lender under this Agreement, (ii) no
Lender shall be obligated to make any such assignment unless and until such Lender shall have
received one or more payments from either the Borrowers or one or more Eligible Assignees in an
aggregate amount equal to the aggregate outstanding principal amount of the Advances owing to such
Lender, together with accrued interest thereon to the date of payment of such principal amount and
all other amounts payable to such Lender under this Agreement and (iii) no Default shall have
occurred and be continuing. A Lender shall not be required to make any such assignment or
delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the
circumstances entitling the Company to require such assignment and delegation cease to apply.

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          SECTION 9.19. Waiver of Jury Trial. Each of the Company, the other Borrowers,
the Agent and the Lenders hereby irrevocably waives all right to trial by jury in any action,
proceeding or counterclaim (whether based on contract, tort or otherwise) arising out of or
relating to this Agreement or the Notes or the actions of the Agent or any Lender in the
negotiation, administration, performance or enforcement thereof.

          IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	JABIL CIRCUIT, INC.

 	 
	 	By:  	/s/ Sergio A. Cadavid
 	 
	 	 	Name:  	Sergio A. Cadavid 	 
	 	 	Title:  	Treasurer 	 
	 
	 	CITIBANK, N.A., as Agent

 	 
	 	By:  	/s/ Susan Olsen
 	 
	 	 	Name:  	Susan Olsen 	 
	 	 	Title:  	Vice President 	 
	 

Initial Lenders

	 	 	 	 	 
	 	CITIBANK, N.A.

 	 
	 	By:  	/s/ Susan Olsen
 	 
	 	 	Name:  	Susan Olsen 	 
	 	 	Title:  	Vice President 	 
	 
	 	JPMORGAN CHASE BANK, N.A.

 	 
	 	By:  	/s/ John A. Horst
 	 
	 	 	Name:  	John A. Horst 	 
	 	 	Title:  	Credit Executive 	 
	 
	 	THE ROYAL BANK OF SCOTLAND PLC

 	 
	 	By:  	/s/ Matthew Pennachio
 	 
	 	 	Name:  	Matthew Pennachio 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF AMERICA, N.A.

 	 
	 	By:  	/s/ Kevin McMahon
 	 
	 	 	Name:  	Kevin McMahon 	 
	 	 	Title:  	Senior Vice President 	 
	 

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	 	THE BANK OF NOVA SCOTIA

 	 
	 	By:  	/s/ Teresa Wu
 	 
	 	 	Name:  	Teresa Wu 	 
	 	 	Title:  	Director 	 
	 
	 	BNP PARIBAS

 	 
	 	By:  	/s/ Mathew Harvey
 	 
	 	 	Name:  	Mathew Harvey 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	                          /s/ Yudesh Sohan
 	 
	 	 	Name:  	Yudesh Sohan 	 
	 	 	Title:  	Vice President 	 
	 
	 	HSBC BANK USA, NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Lawrence Li
 	 
	 	 	Name:  	Lawrence Li 	 
	 	 	Title:  	Vice President 	 
	 
	 	MIZUHO CORPORATE BANK, LTD.

 	 
	 	By:  	/s/ Bertram H. Tang
 	 
	 	 	Name:  	Bertram H. Tang 	 
	 	 	Title:  	Authorized Signatory 	 
	 
	 	SUMITOMO MITSUI BANKING CORPORATION

 	 
	 	By:  	/s/ Yasuhiko Imai
 	 
	 	 	Name:  	Yasuhiko Imai 	 
	 	 	Title:  	Group Head 	 
	 
	 	AUSTRALIA AND NEW ZEALAND BANKING 
GROUP
LIMITED

 	 
	 	By:  	/s/ Robert Grillo
 	 
	 	 	Name:  	Robert Grillo 	 
	 	 	Title:  	Director 	 
	 
	 	COMPASS BANK

 	 
	 	By:  	/s/ Jeffrey A. Neikirk
 	 
	 	 	Name:  	Jeffrey A. Neikirk 	 
	 	 	Title:  	Managing Director 	 
	 

Jabil Credit Agreement

57

 

	 	 	 	 	 
	 	COMERICA BANK

 	 
	 	By:  	/s/ Gerald R. Finney Jr.
 	 
	 	 	Name:  	Gerald R. Finney Jr. 	 
	 	 	Title:  	Vice President 	 
	 
	 	BANK OF CHINA, NEW YORK BRANCH

 	 
	 	By:  	/s/ Richard Bradspies
 	 
	 	 	Name:  	Richard Bradspies 	 
	 	 	Title:  	Deputy General Manager 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION

 	 
	 	By:  	/s/ Kenneth R. Fieler
 	 
	 	 	Name:  	Kenneth R. Fieler 	 
	 	 	Title:  	Assistant Vice President 	 
	 

Jabil Credit Agreement

58

 

SCHEDULE I

JABIL CIRCUIT, INC.

AMENDED AND RESTATED FIVE YEAR CREDIT AGREEMENT

APPLICABLE LENDING OFFICES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	 	Swing Line	 	 	Letter of Credit	 	 	 	 	 
	Name of Initial Lender	 	Commitment	 	 	Commitment	 	 	Commitment	 	 	Domestic Lending Office	 	Eurocurrency Lending Office
	Australia And New Zealand Banking
	 	$	40,000,000	 	 	 	 	 	 	 	 	 	 	277 Park Avenue, 31st Floor	 	277 Park Avenue, 31st Floor
	 Group
Limited
	 	 	 	 	 	 	 	 	 	 	 	 	 	New York, NY 10172	 	New York, NY 10172
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Tessie Amante	 	Attn: Tessie Amante
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 212-801-9744	 	T: 212-801-9744
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 212-536-9265	 	F: 212-536-9265
	Bank of America, N.A.
	 	$	120,000,000	 	 	$	25,000,000	 	 	$	18,750,000	 	 	2001 Clayton Rd.	 	2001 Clayton Rd.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Building B	 	Building B
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Concord, CA 94519	 	Concord, CA 94519
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Sue Pfohl	 	Attn: Sue Pfohl
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 925-675-8783	 	T: 925-675-8783
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 888-969-9267	 	F: 888-969-9267
	Bank of China, New York Branch
	 	$	25,000,000	 	 	 	 	 	 	 	 	 	 	410 Madison Avenue	 	410 Madison Avenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	New York, NY 10017	 	New York, NY 10017
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Wenzhen Zhang	 	Attn: Wenzhen Zhang
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 212-935-3101 ext. 359	 	T: 212-935-3101 ext. 359
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 212-371-4185	 	F: 212-371-4185
	The Bank of Nova Scotia
	 	$	70,000,000	 	 	 	 	 	 	 	 	 	 	711 Louisiana Street	 	711 Louisiana Street
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Suite 1400	 	Suite 1400
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Houston, TX 77002	 	Houston, TX 77002
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Nazmul Arefin	 	Attn: Nazmul Arefin
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 212-225-5705	 	T: 212-225-5705
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 212-225-5709	 	F: 212-225-5709
	BNP Paribas
	 	$	70,000,000	 	 	 	 	 	 	 	 	 	 	One Front Street, 23rd Flr.	 	One Front Street, 23rd Flr.
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	San Francisco, CA 94111	 	San Francisco, CA 94111
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Dina Wilson /	 	Attn: Dina Wilson /
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Elisabeth de la Chevrotiere	 	Elisabeth de la Chevrotiere
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 201-850-6807 /	 	T: 201-850-6807 /
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 514-285-6100 ext. 5526	 	T: 514-285-6100 ext. 5526
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 201-850-4059	 	F: 201-850-4059

1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	 	Swing Line	 	 	Letter of Credit	 	 	 	 	 
	Name of Initial Lender	 	Commitment	 	 	Commitment	 	 	Commitment	 	 	Domestic Lending Office	 	Eurocurrency Lending Office
	Citibank, N.A.
	 	$	120,000,000	 	 	$	25,000,000	 	 	$	18,750,000	 	 	1615 Brett Road, Building #3	 	1615 Brett Road, Building #3
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	New Castle, DE 19720	 	New Castle, DE 19720
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Bank Loan Syndications	 	Attn: Bank Loan Syndications
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 302-894-6197	 	T: 302-894-6197
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 212-994-0961	 	F: 212-994-0961
	Comerica Bank
	 	$	40,000,000	 	 	 	 	 	 	 	 	 	 	1717 Main Street, 4th Floor	 	1717 Main Street, 4th Floor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Dallas, TX 75201	 	Dallas, TX 75201
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Emily Purvis	 	Attn: Emily Purvis
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 214-462-4358	 	T: 214-462-4358
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 214-462-4240	 	F: 214-462-4240
	Compass Bank
	 	$	40,000,000	 	 	 	 	 	 	 	 	 	 	24 Greenway Plaza #1403	 	24 Greenway Plaza #1403
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Houston, TX 77046	 	Houston, TX 77046
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Keri Seadler	 	Attn: Keri Seadler
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 713-968-8234	 	T: 713-968-8234
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 205-524-0385	 	F: 205-524-0385
	HSBC Bank USA, National
	 	$	70,000,000	 	 	 	 	 	 	 	 	 	 	452 Fifth Avenue	 	452 Fifth Avenue
	 Association
	 	 	 	 	 	 	 	 	 	 	 	 	 	New York, NY 10018	 	New York, NY 10018
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Santosh Pimpdae	 	Attn: Santosh Pimpdae
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 716-841-1673	 	T: 716-841-1673
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 917-229-0975	 	F: 917-229-0975
	JPMorgan Chase Bank, N.A.
	 	$	120,000,000	 	 	$	25,000,000	 	 	$	18,750,000	 	 	10 South Dearborn, 7th Floor	 	10 South Dearborn, 7th Floor
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Chicago, IL 60603	 	Chicago, IL 60603
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Non-Agented Servicing Team	 	Attn: Non-Agented Servicing Team
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 312-385-7072	 	T: 312-385-7072
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 312-256-2608	 	F: 312-256-2608
	Mizuho Corporate Bank, Ltd.
	 	$	70,000,000	 	 	 	 	 	 	 	 	 	 	1251 Avenue of the Americas	 	1251 Avenue of the Americas
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	New York, NY 10020	 	New York, NY 10020
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Mark Heberer	 	Attn: Mark Heberer
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 201-626-9105	 	T: 201-626-9105
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 201-626-9941	 	F: 201-626-9941
	The Royal Bank of Scotland plc
	 	$	120,000,000	 	 	$	25,000,000	 	 	$	18,750,000	 	 	600 Washington Boulevard	 	600 Washington Boulevard
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Stamford, CT 06901	 	Stamford, CT 06901
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Nagarajan Seshadri	 	Attn: Nagarajan Seshadri
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 203-897-4431	 	T: 203-897-4431
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 203-873-5019	 	F: 203-873-5019

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	 	Swing Line	 	 	Letter of Credit	 	 	 	 	 
	Name of Initial Lender	 	Commitment	 	 	Commitment	 	 	Commitment	 	 	Domestic Lending Office	 	Eurocurrency Lending Office
	Sumitomo Mitsui Banking Corporation,
	 	$	70,000,000	 	 	 	 	 	 	 	 	 	 	277 Park Avenue	 	277 Park Avenue
	 New York
	 	 	 	 	 	 	 	 	 	 	 	 	 	New York, NY 10172	 	New York, NY 10172
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Robert Gruss	 	Attn: Robert Gruss
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 212-224-4390	 	T: 212-224-4390
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 212-224-5197	 	F: 212-224-5197
	U.S. Bank National Association
	 	$	25,000,000	 	 	 	 	 	 	 	 	 	 	800 Nicollet Mall	 	800 Nicollet Mall
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Minneapolis, MN 55402	 	Minneapolis, MN 55402
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	Attn: Barbara Campbell	 	Attn: Barbara Campbell
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	T: 920-237-7951	 	T: 920-237-7951
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	F: 920-237-7993	 	F: 920-237-7993
	Total:
	 	$	1,000,000,000	 	 	$	100,000,000	 	 	$	75,000,000	 	 	 	 	 

 

 

Schedule 2.01(b)

Existing Letters of Credit

None

 

 

SCHEDULE 3.01(b)

JABIL CIRCUIT, INC.

AMENDED AND RESTATED FIVE YEAR CREDIT AGREEMENT

DISCLOSED LITIGATION

LITIGATION

The Borrower and its Subsidiaries are parties to various lawsuits and other actions or proceedings
in the ordinary course of business. The Borrower does not believe that an adverse outcome of any
action, suit, investigation, litigation, or proceeding affecting the Borrower or any of its
Subsidiaries, pending or overtly threatened in writing, will have a Material Adverse Effect.

 

 

SCHEDULE 5.02(a)

JABIL CIRCUIT, INC.

AMENDED AND RESTATED FIVE YEAR CREDIT AGREEMENT

EXISTING LIENS

EXISTING LIENS

Liens on equipment in favor of lessors under synthetic leases for aircraft.

Liens to secure a bank guarantee of promissory notes in Ukraine given to Customs of $19,335,000.

Utility deposits for world wide operations less than $1,000,000.

 

 

SCHEDULE 5.02(d)

JABIL CIRCUIT, INC.

AMENDED AND RESTATED FIVE YEAR CREDIT AGREEMENT

EXISTING DEBT

EXISTING INDEBTEDNESS

	 	 	 	 	 

	As of August 31, 2010
	 	 	 	 
	 
	Subsidiary Notes Payable, long-term debt and long-term lease
obligations:
	 	 	 	 
	 
	(in thousands)
	 	 	 	 
	Dutch Overdraft Facility
	 	$	3,067	 
	JGS Incline Capital Lease
	 	$	8	 
	Promissory Notes in favor of Ukraine Customs
	 	$	19,335	 
	Singapore Loan
	 	$	70,000	 
	Vienna Loan
	 	$	2,380	 
	Vietnam Loan
	 	$	3,750	 
	Sub Total
	 	$	98,540	 
	 
	 	 	 	 
	Contingent obligations
	 	$	44,456	 
	 
	 	 	 	 
	Total Subsidiary Indebtedness
	 	$	142,996	 

 

 

EXHIBIT A — FORM OF

NOTE

	 	 	 

	U.S.$_______________

	 	Dated: _______________, 20__

     FOR VALUE RECEIVED, the undersigned, [NAME OF BORROWER], a __________ corporation (the
“Borrower”), HEREBY PROMISES TO PAY to the order of _________________________ (the
“Lender”) for the account of its Applicable Lending Office on the Termination Date (each as
defined in the Credit Agreement referred to below) the principal sum of U.S.$[amount of the
Lender’s Revolving Credit Commitment in figures] or, if less, the aggregate principal amount of the
Revolving Credit Advances made by the Lender to the Borrower pursuant to the Amended and Restated
Five Year Credit Agreement dated as of December 7, 2010 among the Borrower, [Jabil Circuit, Inc.,]
the Lender and certain other lenders parties thereto, and Citibank, N.A. as Agent for the Lender
and such other lenders (as amended or modified from time to time, the “Credit Agreement”;
the terms defined therein being used herein as therein defined) outstanding on the Termination
Date.

     The Borrower promises to pay interest on the unpaid principal amount of each Revolving Credit
Advance from the date of such Revolving Credit Advance until such principal amount is paid in full,
at such interest rates, and payable at such times, as are specified in the Credit Agreement.

     Both principal and interest in respect of each Revolving Credit Advance (i) in Dollars are
payable in lawful money of the United States of America to the Agent at its account maintained at
388 Greenwich Street, New York, New York 10013, in same day funds and (ii) in any Committed
Currency are payable in such currency at the applicable Payment Office in same day funds. Each
Revolving Credit Advance owing to the Lender by the Borrower pursuant to the Credit Agreement, and
all payments made on account of principal thereof, shall be recorded by the Lender and, prior to
any transfer hereof, endorsed on the grid attached hereto which is part of this Promissory Note.

     This Promissory Note is one of the Notes referred to in, and is entitled to the benefits of,
the Credit Agreement. The Credit Agreement, among other things, (i) provides for the making of
Revolving Credit Advances by the Lender to the Borrower from time to time in an aggregate amount
not to exceed at any time outstanding the Dollar amount first above mentioned, the indebtedness of
the Borrower resulting from each such Revolving Credit Advance being evidenced by this Promissory
Note, (ii) contains provisions for determining the Dollar Equivalent of Revolving Credit Advances
denominated in Committed Currencies and (iii) contains provisions for acceleration of the maturity
hereof upon the happening of certain stated events and also for prepayments on account of principal
hereof prior to the maturity hereof upon the terms and conditions therein specified.

	 	 	 	 	 
	 	[NAME OF BORROWER]

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 

 

 

	 	 	 	 	 

ADVANCES AND PAYMENTS OF PRINCIPAL

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Amount of	 	 	 	 
	 	 	Amount of	 	Principal Paid	 	Unpaid Principal	 	Notation
	Date	 	Advance	 	or Prepaid	 	Balance	 	Made By
	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 
	 	 
	 	 
	 	 

 

 

EXHIBIT B — FORM OF NOTICE OF

REVOLVING CREDIT BORROWING

Citibank, N.A., as Agent

for the Lenders parties

to the Credit Agreement

referred to below

1615 Brett Road, Building #3

New Castle, Delaware 19720

[Date]

          Attention: Bank Loan Syndications Department

Ladies and Gentlemen:

          The undersigned, [NAME OF BORROWER], refers to the Amended and Restated Five Year Credit
Agreement, dated as of December 7, 2010 (as amended or modified from time to time, the “Credit
Agreement”, the terms defined therein being used herein as therein defined), among the
undersigned, certain Lenders parties thereto and Citibank, N.A., as Agent for said Lenders, and
hereby gives you notice, irrevocably, pursuant to Section 2.02 of the Credit Agreement that the
undersigned hereby requests a Borrowing under the Credit Agreement, and in that connection sets
forth below the information relating to such Borrowing (the “Proposed Borrowing”) as
required by Section 2.02(a) of the Credit Agreement:

     (i) The Business Day of the Proposed Borrowing is _______________, 20_.

     (ii) The Type of Advances comprising the Proposed Borrowing is [Base Rate Advances]
[Eurocurrency Rate Advances].

     (iii) The aggregate amount of the Proposed Borrowing is $_______________][for a
Revolving Credit Borrowing in a Committed Currency, list currency and amount of Revolving
Credit Borrowing].

     [(iv) The initial Interest Period for each Eurocurrency Rate Advance made as part of
the Proposed Borrowing is _____ month[s].]

          The undersigned hereby certifies that the following statements are true on the date hereof,
and will be true on the date of the Proposed Borrowing:

     (A) the representations and warranties contained in Section 4.01 of the Credit
Agreement (except the representations set forth in the last sentence of subsection (e)
thereof and in Section (f)(i) thereof) and, in the case of any Revolving Credit Borrowing
made to a Designated Subsidiary, in the Designation Agreement for such Designated
Subsidiary, are correct, before and after giving effect to the Proposed Borrowing and to the
application of the proceeds therefrom, as though made on and as of such date; and

 

 

     (B) no event has occurred and is continuing, or would result from such Proposed
Borrowing or from the application of the proceeds therefrom, that constitutes a Default.

	 	 	 	 	 
	 	Very truly yours,

[NAME OF BORROWER]

 	 
	 	By  	 	 
	 	 	Title: 	 

2

 

	 	 	 	 	 

EXHIBIT C — FORM OF

ASSIGNMENT AND ACCEPTANCE

          Reference is made to the Amended and Restated Five Year Credit Agreement dated as of December
7, 2010 (as amended or modified from time to time, the “Credit Agreement”) among Jabil
Circuit, Inc., a Delaware corporation (the “Company”), the Lenders (as defined in the
Credit Agreement) and Citibank, N.A., as agent for the Lenders (the “Agent”). Terms
defined in the Credit Agreement are used herein with the same meaning.

          The “Assignor” and the “Assignee” referred to on Schedule I hereto agree as follows:

          1. The Assignor hereby sells and assigns to the Assignee, and the Assignee hereby purchases
and assumes from the Assignor, an interest in and to the Assignor’s rights and obligations under
the [Credit Agreement as of the date hereof] [the Letter of Credit Facility under the Credit
Agreement] equal to the percentage interest specified on Schedule 1 hereto of [all outstanding
rights and obligations under the Credit Agreement together with Swing Line Advances and
participations in Letters of Credit held by the Assignor on the date hereof] [such Assignor’s Swing
Line Commitment]. After giving effect to such sale and assignment, the Assignee’s [Revolving
Credit Commitment and the amount of the Advances owing to the Assignee] [Swing Line Commitment]
will be as set forth on Schedule 1 hereto.

          2. The Assignor (i) represents and warrants that it is the legal and beneficial owner of the
interest being assigned by it hereunder and that such interest is free and clear of any adverse
claim known to it or created by it; (ii) makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in
connection with the Credit Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, the Credit Agreement or
any other instrument or document furnished pursuant thereto; (iii) makes no representation or
warranty and assumes no responsibility with respect to the financial condition of the Company or
any other Borrower or the performance or observance by the Company or any other Borrower of any of
its obligations under the Credit Agreement or any other instrument or document furnished pursuant
thereto; and (iv) attaches the Note, if any, held by the Assignor [and requests that the Agent
exchange such Note for a new Note payable to the order of [the Assignee in an amount equal to the
Revolving Credit Commitment assumed by the Assignee pursuant hereto or new Notes payable to the
order of the Assignee in an amount equal to the Revolving Credit Commitment assumed by the Assignee
pursuant hereto and] the Assignor in an amount equal to the Revolving Credit Commitment retained by
the Assignor, if any, under the Credit Agreement[, respectively,] as specified on Schedule 1
hereto].

          3. The Assignee (i) confirms that, to the extent it has so requested, it has received a copy
of the Credit Agreement, together with copies of the financial statements referred to in Section
4.01 thereof and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Acceptance; (ii) agrees that it
will, independently and without reliance upon the Agent, the 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 Credit Agreement; (iii) confirms that
it is an Eligible Assignee; (iv) appoints and authorizes the Agent to take such action as agent on
its behalf and to exercise such powers and discretion under the Credit Agreement as are delegated
to the Agent by the terms thereof, together with such powers and discretion as are reasonably
incidental thereto; (v) agrees that it will perform in accordance with their terms all of the
obligations that by the terms of the Credit Agreement are required to be performed by it as a
Lender; and (vi) attaches any U.S. Internal Revenue Service forms required under Section 2.14 of
the Credit Agreement.

          4. Following the execution of this Assignment and Acceptance, it will be delivered to the
Agent for acceptance and recording by the Agent. The effective date for this Assignment and
Acceptance (the “Effective Date”) shall be the date of acceptance hereof by the Agent,
unless otherwise specified on Schedule 1 hereto.

 

 

          5. Upon such acceptance and recording by the Agent, as of the Effective Date, (i) the Assignee
shall be a party to the Credit Agreement and, to the extent provided in this Assignment and
Acceptance, have the rights and obligations of a Lender thereunder and (ii) the Assignor shall, to
the extent provided in this Assignment and Acceptance, relinquish its rights and be released from
its obligations under the Credit Agreement.

          6. Upon such acceptance and recording by the Agent, from and after the Effective Date, the
Agent shall make all payments under the Credit Agreement and the Notes in respect of the interest
assigned hereby (including, without limitation, all payments of principal, interest and facility
fees with respect thereto) to the Assignee. The Assignor and Assignee shall make all appropriate
adjustments in payments under the Credit Agreement and the Notes for periods prior to the Effective
Date directly between themselves.

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

          8. This Assignment and Acceptance may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the same agreement.
Delivery of an executed counterpart of Schedule 1 to this Assignment and Acceptance by telecopier
shall be effective as delivery of a manually executed counterpart of this Assignment and
Acceptance.

          IN WITNESS WHEREOF, the Assignor and the Assignee have caused Schedule 1 to this
Assignment and Acceptance to be executed by their duly authorized representatives as of the date
specified thereon.

2

 

Schedule 1

to

Assignment and Acceptance

	 	 	 	 	 	 	 	 	 

	Revolving Credit Facility
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Percentage interest assigned:
	 	 	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Assignee’s Revolving Credit Commitment:
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Aggregate outstanding principal amount of Revolving Credit Advances assigned:
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Principal amount of Note payable to Assignee:
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Principal amount of Note payable to Assignor:
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Swing Line Facility
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Percentage interest assigned:
	 	 	 	 	 	 	%	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Assignee’s Swing Line Commitment:
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Letter of Credit Facility
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Percentage interest assigned:
	 	 	 	 	 	 	%	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Assignee’s Letter of Credit Commitment:
	 	$	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Effective Date*:                     , 20 __
	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 	[NAME OF ASSIGNOR], as Assignor

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	Dated:                     , 20 __ 	 
	 	 	 
	 	[NAME OF ASSIGNEE], as Assignee

 	 
	 	By  	 	 
	 	 	Title: 	 
	 	 	 	 
	 
	 	Dated:                     , 20 __

 	 

 

			
	*	 	This date should be no earlier than five
Business Days after the delivery of this Assignment and Acceptance to the
Agent.

3

 

	 	 	 

	 

	 	Domestic Lending Office:
	 

	 	[Address]
	 
	 	 
	 

	 	        Eurocurrency Lending Office:
	 

	 	[Address]

4

 

	 	 	 	 	 
	Accepted [and Approved]** this

__________ day of _______________, 20__

CITIBANK, N.A., as Agent

 	 
	By  	 	 
	 	Title: 	 
	 	 	 	 
	 
	[Approved this __________ day

of _______________, 20__

JABIL CIRCUIT, INC.

 	 
	By  	
 	]*
	 	Title: 	 
	 	 	 	 
	 
	[Approved this __________ day

of _______________, 20__

[ISSUING BANK].

 	 
	By  	
 	]*
	 	Title: 	 
	 	 	 	 
	 
	[Approved this __________ day

of _______________, 20__

[SWING LINE BANK].

 	 
	By  	
 	]*
	 	Title: 	 
	 	 	 	 
	 

 

			
	**	 	Required if the Assignee is an Eligible
Assignee solely by reason of clause (iii) or (iv) of the definition of
“Eligible Assignee”.
	 
	*	 	Required if the Assignee is an Eligible
Assignee solely by reason of clause (iii) or (iv) of the definition of
“Eligible Assignee”.
	 
	*	 	Required if the Assignee is an Eligible
Assignee solely by reason of clause (iii) or (iv) of the definition of
“Eligible Assignee”.
	 
	*	 	Required if the Assignee is an Eligible
Assignee solely by reason of clause (iii) or (iv) of the definition of
“Eligible Assignee”.

5

 

EXHIBIT D — FORM OF

OPINION OF COUNSEL

FOR THE BORROWER

 

 

EXHIBIT E — FORM OF

DESIGNATION AGREEMENT

[DATE]

To each of the Lenders

parties to the Credit Agreement

(as defined below) and to Citibank, N.A.,

as Agent for such Lenders

Ladies and Gentlemen:

          Reference is made to the Amended and Restated Five Year Credit Agreement dated as of December
7, 2010 (as amended or modified from time to time, the “Credit Agreement”) among Jabil
Circuit, Inc., a Delaware corporation (the “Company”), the Lenders (as defined in the
Credit Agreement) and Citibank, N.A., as agent for the Lenders (the “Agent”). Terms
defined in the Credit Agreement are used herein with the same meaning.

          Please be advised that the Company hereby designates its undersigned Subsidiary, ____________
(“Designated Subsidiary”), as a “Designated Subsidiary” under and for all purposes of the
Credit Agreement.

          The Designated Subsidiary, in consideration of each Lender’s agreement to extend credit to it
under and on the terms and conditions set forth in the Credit Agreement, does hereby assume each of
the obligations imposed upon a “Designated Subsidiary” and a “Borrower” under the Credit Agreement
and agrees to be bound by the terms and conditions of the Credit Agreement. In furtherance of the
foregoing, the Designated Subsidiary hereby represents and warrants to each Lender as follows:

     (a) The Designated Subsidiary is a corporation duly organized, validly existing and in
good standing under the laws of _________.

     (b) The execution, delivery and performance by the Designated Subsidiary of this
Designation Agreement, the Credit Agreement and the Notes to be delivered by it are within
the Designated Subsidiary’s corporate or other powers, have been duly authorized by all
necessary corporate or other action and do not contravene (i) the Designated Subsidiary’s
charter or by-laws or (ii) law or any contractual restriction binding on or affecting the
Designated Subsidiary. The Designation Agreement and the Notes delivered by it have been
duly executed and delivered on behalf of the Designated Subsidiary.

     (c) No authorization or approval or other action by, and no notice to or filing with,
any governmental authority or regulatory body or any third party is required for the due
execution, delivery and performance by the Designated Subsidiary of this Designation
Agreement, the Credit Agreement or the Notes to be delivered by it.

     (d) This Designation Agreement is, and the Notes to be delivered by the Designated
Subsidiary when delivered will be, legal, valid and binding obligations of the Designated
Subsidiary enforceable against the Designated Subsidiary in accordance with their respective
terms, except as enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of creditors’ rights
generally and by general equitable principles (whether enforcement is sought by proceedings
in equity or law).

     (e) There is no pending or threatened action, suit, investigation or proceeding,
including, without limitation, any Environmental Action, affecting the Designated Subsidiary
or any of its Subsidiaries before any court, governmental agency or arbitrator that purports
to affect the legality, validity

 

 

or enforceability of this Designation Agreement, the Credit Agreement or any Note of
the Designated Subsidiary.

          The Designated Subsidiary hereby authorizes and appoints the Company as its attorney-in-fact
to execute and deliver (a) any amendment, waiver or consent in accordance with Section 9.01 of the
Credit Agreement on behalf of and in the name of such Subsidiary and (b) any notice or other
communication hereunder, on behalf of and in the name of such Subsidiary. If requested by the
Agent, the Designated Subsidiary shall deliver to the Agent a power of attorney enforceable under
applicable law and any additional information to the Agent as necessary to make such power of
attorney the legal, valid and binding obligation of such Subsidiary

          The Designated Subsidiary hereby agrees that service of process in any action or proceeding
brought in any New York State court or in federal court may be made upon the Company at its
offices at ___________, Attention: __________ (the “Process Agent”) and the Designated
Subsidiary hereby irrevocably appoints the Process Agent to give any notice of any such service of
process, and agrees that the failure of the Process Agent to give any notice of any such service
shall not impair or affect the validity of such service or of any judgment rendered in any action
or proceeding based thereon.

          The Company hereby accepts such appointment as Process Agent and agrees with you that (i) the
Company will maintain an office in Florida through the Termination Date and will give the Agent
prompt notice of any change of address of the Company, (ii) the Company will perform its duties as
Process Agent to receive on behalf of the Designated Subsidiary and its property service of copies
of the summons and complaint and any other process which may be served in any action or proceeding
in any New York State or federal court sitting in New York City arising out of or relating to the
Credit Agreement and (iii) the Company will forward forthwith to the Designated Subsidiary at its
address at ___________________ or, if different, its then current address, copies of any summons,
complaint and other process which the Company received in connection with its appointment as
Process Agent.

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

	 	 	 	 	 
	 	Very truly yours,

JABIL CIRCUIT, INC.

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	[THE DESIGNATED SUBSIDIARY]

 	 
	 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

2

 

	 	 	 	 	 

EXECUTION COPY

AMENDED AND RESTATED FIVE YEAR CREDIT AGREEMENT

Dated as of December 7, 2010

Among

JABIL CIRCUIT, INC.

as Borrower

and

THE INITIAL LENDERS NAMED HEREIN

as Initial Lenders

and

CITIBANK, N.A.

as Administrative Agent

and

JPMORGAN CHASE BANK, N.A.

as Syndication Agent

and

THE ROYAL BANK OF SCOTLAND PLC,

and

BANK OF AMERICA, N.A.,

as Documentation Agents

 

CITIGROUP GLOBAL MARKETS INC.

J.P. MORGAN SECURITIES LLC

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

and

RBS SECURITIES INC.

as
Joint Lead Arrangers and Joint
Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.01. Certain Defined Terms
	 	 	1	 
	SECTION 1.02. Computation of Time Periods
	 	 	12	 
	SECTION 1.03. Accounting Terms
	 	 	12	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.01. The Advances and Letters of Credit
	 	 	13	 
	SECTION 2.02. Making the Advances
	 	 	13	 
	SECTION 2.03. Issuance of and Drawings and Reimbursement Under Letters of Credit
	 	 	15	 
	SECTION 2.04. Fees
	 	 	17	 
	SECTION 2.05. Termination or Reduction of the Commitments
	 	 	17	 
	SECTION 2.06. Repayment of Advances and Letter of Credit Drawings
	 	 	18	 
	SECTION 2.07. Interest on Advances
	 	 	19	 
	SECTION 2.08. Interest Rate Determination
	 	 	19	 
	SECTION 2.09. Optional Conversion of Advances
	 	 	20	 
	SECTION 2.10. Prepayments of Advances
	 	 	21	 
	SECTION 2.11. Increased Costs
	 	 	21	 
	SECTION 2.12. Illegality
	 	 	22	 
	SECTION 2.13. Payments and Computations
	 	 	22	 
	SECTION 2.14. Taxes
	 	 	23	 
	SECTION 2.15. Sharing of Payments, Etc.
	 	 	25	 
	SECTION 2.16. Evidence of Debt
	 	 	26	 
	SECTION 2.17. Use of Proceeds
	 	 	26	 
	SECTION 2.18. Increase in the Aggregate Revolving Credit Commitments
	 	 	26	 

 

 

	 	 	 	 	 

	SECTION 2.19. Defaulting Lenders
	 	 	27	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	 
	 	 	 	 
	SECTION 3.01. Conditions Precedent to Effectiveness of Section 2.01
	 	 	29	 
	SECTION 3.02. Initial Advance to Each Designated Subsidiary
	 	 	30	 
	SECTION 3.03. Conditions Precedent to Each Borrowing, Issuance and Commitment
Increase
	 	 	31	 
	SECTION 3.04. Determinations Under Section 3.01
	 	 	32	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.01. Representations and Warranties of the Company
	 	 	32	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.01. Affirmative Covenants
	 	 	33	 
	SECTION 5.02. Negative Covenants
	 	 	35	 
	SECTION 5.03. Financial Covenants
	 	 	38	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	 
	 	 	 	 
	SECTION 6.01. Events of Default
	 	 	39	 
	SECTION 6.02. Actions in Respect of the Letters of Credit upon Default
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	 
	 	 	 	 
	SECTION 7.01. Unconditional Guaranty
	 	 	41	 
	SECTION 7.02. Guaranty Absolute
	 	 	41	 
	SECTION 7.03. Waivers and Acknowledgments
	 	 	42	 
	SECTION 7.04. Subrogation
	 	 	42	 
	SECTION 7.05. Continuing Guaranty; Assignments
	 	 	43	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	 
	 	 	 	 
	SECTION 8.01. Authorization and Authority
	 	 	43	 
	SECTION 8.02. Agent Individually
	 	 	43	 

ii

 

	 	 	 	 	 

	SECTION 8.03. Duties of Agent; Exculpatory Provisions
	 	 	44	 
	SECTION 8.04. Reliance by Agent
	 	 	44	 
	SECTION 8.05. Delegation of Duties
	 	 	45	 
	SECTION 8.06. Resignation of Agent
	 	 	45	 
	SECTION 8.07. Non-Reliance on Agent and Other Lenders
	 	 	46	 
	SECTION 8.08. Indemnification
	 	 	46	 
	SECTION 8.09. Other Agents.
	 	 	47	 
	 
	 	 	 	 
	ARTICLE IX
	 	 	 	 
	 
	 	 	 	 
	SECTION 9.01. Amendments, Etc.
	 	 	47	 
	SECTION 9.02. Notices, Etc.
	 	 	48	 
	SECTION 9.03. No Waiver; Remedies
	 	 	48	 
	SECTION 9.04. Costs and Expenses
	 	 	48	 
	SECTION 9.05. Right of Set-off
	 	 	49	 
	SECTION 9.06. Binding Effect
	 	 	50	 
	SECTION 9.07. Assignments and Participations
	 	 	50	 
	SECTION 9.08. Confidentiality
	 	 	52	 
	SECTION 9.09. Designated Subsidiaries
	 	 	52	 
	SECTION 9.10. Governing Law
	 	 	53	 
	SECTION 9.11. Execution in Counterparts
	 	 	53	 
	SECTION 9.12. Judgment
	 	 	53	 
	SECTION 9.13. Jurisdiction, Etc.
	 	 	54	 
	SECTION 9.14. Substitution of Currency
	 	 	54	 
	SECTION 9.15. No Liability of the Issuing Banks
	 	 	54	 
	SECTION 9.16. Patriot Act Notice
	 	 	55	 
	SECTION 9.17. Power of Attorney
	 	 	55	 

iii

 

	 	 	 	 	 

	SECTION 9.18. Replacement of Lenders
	 	 	55	 
	SECTION 9.19. Waiver of Jury Trial
	 	 	56	 
	 
	 	 	 	 
	Schedules
	 	 	 	 
	 
	Schedule I — List of Applicable Lending Offices
	 	 	 	 
	Schedule 2.01(b) — Existing Letters of Credit
	 	 	 	 
	Schedule 3.01(b) — Disclosed Litigation
	 	 	 	 
	Schedule 5.02(a) — Existing Liens
	 	 	 	 
	Schedule 5.02(d) — Existing Debt
	 	 	 	 
	 
	 	 	 	 
	Exhibits
	 	 	 	 
	 
	Exhibit A        —        Form of Note
	 	 	 	 
	Exhibit B        —        Form of Notice of Revolving Credit Borrowing
	 	 	 	 
	Exhibit C        —        Form of Assignment and Acceptance
	 	 	 	 
	Exhibit D        —        Form of Opinion of Counsel for the Borrower
	 	 	 	 
	Exhibit E        —        Form of Designation Agreement
	 	 	 	 

ivexv10w1

Exhibit 10.1

LOAN AGREEMENT

Dated as of January 5, 2011

between

TERRAPINS OWNER LLC,

as Borrower,

and

UBS REAL ESTATE SECURITIES INC.,

as Lender

 

 

TABLE OF CONTENTS

	 	 	 	 
	 	Page
	ARTICLE I 
	 	 	 
	GENERAL TERMS 
	 	 	 
	 
	 	 	 
	Section 1.1. The Loan

	 	 	25
	Section 1.2. Interest and Principal

	 	 	26
	Section 1.3. Method and Place of Payment

	 	 	27
	Section 1.4. Taxes; Regulatory Change

	 	 	27
	Section 1.5. Release

	 	 	29
	 
	 	 	 
	ARTICLE II 
	 	 	 
	DEFEASANCE AND ASSUMPTION 
	 	 	 
	 
	 	 	 
	Section 2.1. Defeasance

	 	 	29
	Section 2.2. Assumption

	 	 	31
	Section 2.3. Transfers of Equity Interests in Borrower

	 	 	32
	 
	 	 	 
	ARTICLE III 
	 	 	 
	ACCOUNTS 
	 	 	 
	 
	 	 	 
	Section 3.1. Cash Management Account

	 	 	33
	Section 3.2. Distributions from Cash Management Account

	 	 	34
	Section 3.3. Loss Proceeds Account

	 	 	35
	Section 3.4. Basic Carrying Costs Escrow Account

	 	 	36
	Section 3.5. [Intentionally Omitted]

	 	 	37
	Section 3.6. FF&E Reserve Account

	 	 	37
	Section 3.7. Deferred Maintenance and Environmental Escrow Account

	 	 	38
	Section 3.8. Unfunded Obligations Account

	 	 	39
	Section 3.9. Account Collateral

	 	 	40
	Section 3.10. Bankruptcy

	 	 	41
	 
	 	 	 
	ARTICLE IV 
	 	 	 
	REPRESENTATIONS 
	 	 	 
	 
	 	 	 
	Section 4.1. Organization

	 	 	41
	Section 4.2. Authorization

	 	 	42
	Section 4.3. No Conflicts

	 	 	42
	Section 4.4. Consents

	 	 	42
	Section 4.5. Enforceable Obligations

	 	 	42
	Section 4.6. No Default

	 	 	42
	Section 4.7. Payment of Taxes

	 	 	42
	Section 4.8. Compliance with Law

	 	 	42
	Section 4.9. ERISA

	 	 	43
	Section 4.10. Investment Company Act

	 	 	43
	Section 4.11. No Bankruptcy Filing

	 	 	43
	Section 4.12. Other Debt

	 	 	43
	Section 4.13. Litigation

	 	 	43

 

 

	 	 	 	 
	 	Page
	Section 4.14. Leases; Material Agreements

	 	 	44
	Section 4.15. Full and Accurate Disclosure

	 	 	45
	Section 4.16. Financial Condition

	 	 	45
	Section 4.17. Single-Purpose Requirements

	 	 	45
	Section 4.18. Use of Loan Proceeds

	 	 	45
	Section 4.19. Not Foreign Person

	 	 	45
	Section 4.20. Labor Matters

	 	 	45
	Section 4.21. Title

	 	 	46
	Section 4.22. No Encroachments

	 	 	46
	Section 4.23. Physical Condition

	 	 	46
	Section 4.24. Fraudulent Conveyance

	 	 	46
	Section 4.25. Management

	 	 	47
	Section 4.26. Condemnation

	 	 	47
	Section 4.27. Utilities and Public Access

	 	 	47
	Section 4.28. Environmental Matters

	 	 	47
	Section 4.29. Assessments

	 	 	48
	Section 4.30. No Joint Assessment

	 	 	48
	Section 4.31. Separate Lots

	 	 	48
	Section 4.32. Permits; Certificate of Occupancy

	 	 	48
	Section 4.33. Flood Zone

	 	 	48
	Section 4.34. Security Deposits

	 	 	48
	Section 4.35. Acquisition Documents

	 	 	49
	Section 4.36. Insurance

	 	 	49
	Section 4.37. No Dealings

	 	 	49
	Section 4.38. Estoppel Certificates

	 	 	49
	Section 4.39. Compliance with Anti-Terrorism, Embargo,
Sanctions and Anti-Money Laundering Laws

	 	 	49
	Section 4.40. IDA Lease

	 	 	50
	Section 4.41. Survival

	 	 	50
	 
	 	 	 
	ARTICLE V 
	 	 	 
	AFFIRMATIVE COVENANTS 
	 	 	 
	 
	 	 	 
	Section 5.1. Existence

	 	 	51
	Section 5.2. Maintenance of Property

	 	 	51
	Section 5.3. Compliance with Legal Requirements

	 	 	51
	Section 5.4. Impositions and Other Claims

	 	 	52
	Section 5.5. Access to Property

	 	 	52
	Section 5.6. Cooperate in Legal Proceedings

	 	 	52
	Section 5.7. Leases

	 	 	53
	Section 5.8. Plan Assets, etc.

	 	 	54
	Section 5.9. Further Assurances

	 	 	54
	Section 5.10. Management of Collateral

	 	 	55
	Section 5.11. Notice of Material Event

	 	 	56
	Section 5.12. Annual Financial Statements

	 	 	56
	Section 5.13. Quarterly Financial Statements

	 	 	56
	Section 5.14. Monthly Financial Statements; Non-Delivery of Financial Statements

	 	 	57
	Section 5.15. Insurance

	 	 	58

ii

 

	 	 	 	 
	 	Page
	Section 5.16. Casualty and Condemnation

	 	 	63
	Section 5.17. Annual Budget

	 	 	65
	Section 5.18. Nonbinding Consultation

	 	 	66
	Section 5.19. Compliance with Encumbrances and Material Agreements

	 	 	66
	Section 5.20. Prohibited Persons

	 	 	66
	Section 5.21. Operating Lease

	 	 	67
	 
	 	 	 
	ARTICLE VI 
	 	 	 
	NEGATIVE COVENANTS 
	 	 	 
	 
	 	 	 
	Section 6.1. Liens on the Collateral

	 	 	67
	Section 6.2. Ownership

	 	 	67
	Section 6.3. Transfer; Change of Control

	 	 	67
	Section 6.4. Debt

	 	 	67
	Section 6.5. Dissolution; Merger or Consolidation

	 	 	67
	Section 6.6. Change in Business

	 	 	68
	Section 6.7. Debt Cancellation

	 	 	68
	Section 6.8. Affiliate Transactions

	 	 	68
	Section 6.9. Misapplication of Funds

	 	 	68
	Section 6.10. Jurisdiction of Formation; Name

	 	 	68
	Section 6.11. Modifications and Waivers

	 	 	68
	Section 6.12. ERISA

	 	 	69
	Section 6.13. Alterations and Expansions

	 	 	69
	Section 6.14. Advances and Investments

	 	 	69
	Section 6.15. Single-Purpose Entity

	 	 	69
	Section 6.16. Zoning and Uses

	 	 	69
	Section 6.17. Waste

	 	 	70
	 
	 	 	 
	ARTICLE VII 
	 	 	 
	DEFAULTS 
	 	 	 
	 
	 	 	 
	Section 7.1. Event of Default

	 	 	70
	Section 7.2. Remedies

	 	 	73
	Section 7.3. No Waiver

	 	 	74
	Section 7.4. Application of Payments after an Event of Default

	 	 	74
	 
	 	 	 
	ARTICLE VIII 
	 	 	 
	CONDITIONS PRECEDENT 
	 	 	 
	 
	 	 	 
	Section 8.1. Conditions Precedent to Closing

	 	 	74
	 
	 	 	 
	ARTICLE IX 
	 	 	 
	MISCELLANEOUS 
	 	 	 
	 
	 	 	 
	Section 9.1. Successors

	 	 	77
	Section 9.2. GOVERNING LAW

	 	 	77
	Section 9.3. Modification, Waiver in Writing

	 	 	78
	Section 9.4. Notices

	 	 	78
	Section 9.5. TRIAL BY JURY

	 	 	79
	Section 9.6. Headings

	 	 	79
	Section 9.7. Assignment and Participation

	 	 	79

iii

 

	 	 	 	 
	 	Page
	Section 9.8. Severability

	 	 	80
	Section 9.9. Preferences; Waiver of Marshalling of Assets

	 	 	81
	Section 9.10. Remedies of Borrower

	 	 	81
	Section 9.11. Offsets, Counterclaims and Defenses

	 	 	82
	Section 9.12. No Joint Venture

	 	 	82
	Section 9.13. Conflict; Construction of Documents

	 	 	82
	Section 9.14. Brokers and Financial Advisors

	 	 	82
	Section 9.15. Counterparts

	 	 	82
	Section 9.16. Estoppel Certificates

	 	 	82
	Section 9.17. General Indemnity; Payment of Expenses; Mortgage Recording Taxes

	 	 	83
	Section 9.18. No Third-Party Beneficiaries

	 	 	85
	Section 9.19. Recourse

	 	 	85
	Section 9.20. Right of Set-Off

	 	 	88
	Section 9.21. Exculpation of Lender

	 	 	88
	Section 9.22. Servicer

	 	 	88
	Section 9.23. No Fiduciary Duty

	 	 	88
	Section 9.24. Borrower Information

	 	 	90
	Section 9.25. PATRIOT Act Records

	 	 	90
	Section 9.26. Prior Agreements

	 	 	90
	Section 9.27. Publicity

	 	 	91
	Section 9.28. Delay Not a Waiver

	 	 	91
	Section 9.29. Schedules and Exhibits Incorporated

	 	 	91
	Section 9.30. Independence of Covenants

	 	 	91

iv

 

Exhibits

	A 	 	Organizational Chart
	B 	 	Form of Tenant Notice
	C 	 	Form of Uniform System of Accounts

Schedules

	A 	 	Property
	B 	 	Exception Report
	C 	 	Deferred Maintenance Conditions
	D 	 	Post-Closing Matters
	E 	 	Material Agreements
	F 	 	Intentionally omitted
	G 	 	Leases

 

 

LOAN AGREEMENT

     This Loan Agreement (this “Agreement”) is dated January 5, 2011 and is between UBS
REAL ESTATE SECURITIES INC., a Delaware corporation, as lender (together with its successors and
assigns, including any lawful holder of any portion of the Indebtedness, as hereinafter defined,
“Lender”), and TERRAPINS OWNER LLC, a Delaware limited liability company, as borrower
(together with its permitted successors and assigns, “Borrower”).

RECITALS

     Borrower desires to obtain from Lender the Loan (as hereinafter defined) in connection with
the financing of the property known as the Skamania Lodge in Stevenson, Washington.

     Lender is willing to make the Loan on the terms and conditions set forth in this Agreement if
Borrower joins in the execution and delivery of this Agreement, issues the Note and executes and
delivers the other Loan Documents.

     In consideration of the premises and the agreements, provisions and covenants contained
herein, and for other good and valuable consideration, the sufficiency of which is hereby
acknowledged, Lender and Borrower agree as follows:

DEFINITIONS

     (a) When used in this Agreement, the following capitalized terms have the following meanings:

     “Account Collateral” means, collectively, the Collateral Accounts and all sums at any
time held, deposited or invested therein, together with any interest or other earnings thereon, and
all securities and investment property credited thereto and all proceeds thereof (including
proceeds of sales and other dispositions), whether accounts, general intangibles, chattel paper,
deposit accounts, instruments, documents or securities.

     “Affiliate” shall mean, as to any Person, any other Person that, directly or
indirectly, is in Control of, is Controlled by or is under common Control with such Person or is a
director or officer of such Person or of an Affiliate of such Person.

     “Agreement” means this Loan Agreement, as the same may from time to time hereafter be
amended, restated, replaced, supplemented or otherwise modified.

     “ALTA” means the American Land Title Association, or any successor thereto.

     “Alteration” means any demolition, alteration, installation, improvement or expansion
of or to the Property or any portion thereof.

     “Annual Budget” means the Yearly Budget, as defined in the Approved Management
Agreement, which budget shall include, without limitation, a general business plan, a capital

 

 

replacement budget and such other items required under Section 3.2 of the Approved Management
Agreement.

     “Appraisal” means an as-is appraisal of the Property that is prepared by a member of
the Appraisal Institute selected by Lender, meets the minimum appraisal standards for national
banks promulgated by the Comptroller of the Currency pursuant to Title XI of the Financial
Institutions Reform, Recovery, and Enforcement Act of 1989, as amended (FIRREA) and complies with
the Uniform Standards of Professional Appraisal Practice (USPAP).

     “Approved Annual Budget” means (i) so long as no Event of Default or Trigger Period
shall be continuing, the Annual Budget and (ii) during the continuance of an Event of Default
and/or Trigger Period, the Annual Budget, as approved by Lender in accordance with Section
5.17.

     “Approved Management Agreement” means that certain Management Agreement, dated as of
November 3, 2010, between Operating Lessee and the initial Approved Property Manager, as amended by
Amendment dated on or about the date hereof, as the same may be further amended, restated,
replaced, supplemented or otherwise modified in accordance herewith with the consent of Lender, and
any other management agreement that is approved by Lender and with respect to which the Rating
Condition is satisfied, as the same may be amended, restated, replaced, supplemented or otherwise
modified in accordance herewith with the consent of Lender.

     “Approved Property Manager” means (i) Destination Washington Management, Inc. and, so
long as it is an affiliate of Destination Hotels and Resorts, (ii) a management company not
affiliated with Sponsor (a) possessing no less than five (5) years’ experience in managing hotel
properties similar in size, quality and value to the Property, (b) which is approved by the
applicable hotel franchisor of the Property, if any, and (c) managing at least ten (10) hotels in
multiple states, with multiple franchisors and having at least an aggregate of 1000 rooms, or (iii)
any other management company approved by Lender and with respect to which the Rating Condition is
satisfied, in each case unless and until Lender requests the termination of that management company
pursuant to Section 5.10(d).

     “Assignment” has the meaning set forth in Section 9.7(b).

     “Assumption” has the meaning set forth in Section 2.2.

     “Bankruptcy Code” has the meaning set forth in Section 7.1(d).

     “Basic Carrying Costs Escrow Account” has the meaning set forth in Section
3.4(a).

     “Borrower” has the meaning set forth in the first paragraph of this Agreement.

     “Borrower FF&E Subsidiary” shall mean Skamania Lodge Furnishings, LLC, a Delaware
limited liability company, which is wholly-owned by Borrower.

     “Budgeted Operating Expenses” means, with respect to any calendar month, (i) an amount
equal to the Operating Expenses for such calendar month in the then-applicable

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Approved Annual Budget, or (ii) such greater amount as shall equal Borrower’s and/or Operating
Lessee’s actual Operating Expenses for such month, except that during the continuance of a
Trigger Period such greater amount may in no event exceed 105% of the amount specified in clause
(i), with no individual budget line item exceeding 110% of the amount set forth in the
then-applicable Approved Annual Budget with respect to such line item for such month, in each case
without the prior written consent of Lender, not to be unreasonably withheld or delayed.

     “Business Day” means any day other than (i) a Saturday and a Sunday and (ii) a day on
which federally insured depository institutions in the State of New York or the state in which the
offices of Lender, its trustee, its Servicer or its Servicer’s collection account are located are
authorized or obligated by law, governmental decree or executive order to be closed.

     “Capital Expenditure” means hard and soft costs incurred by Borrower (or Operating
Lessee) with respect to replacements and capital repairs made to the Property (including repairs
to, and replacements of, structural components, roofs, building systems, parking garages and
parking lots, but excluding expenditures on FF&E), in each case to the extent capitalized in
accordance with GAAP.

     “Cash Management Account” has the meaning set forth in Section 3.1(a).

     “Cash Management Agreement” has the meaning set forth in Section 3.1(a).

     “Cash Management Bank” means a depository institution selected by Borrower and
reasonably approved by Lender in which Eligible Accounts may be maintained. The initial Cash
Management Bank shall be U.S. Bank, National Association.

     “Casualty” means a fire, explosion, flood, collapse, earthquake or other casualty
affecting all or any portion of the Property.

     “Cause” means, with respect to an Independent Director, (i) acts or omissions by such
Independent Director that constitute systematic and persistent or willful disregard of such
Independent Director’s duties, (ii) such Independent Director has been indicted or convicted for
any crime or crimes of moral turpitude or dishonesty or for any violation of any Legal
Requirements, (iii) such Independent Director no longer satisfies the requirements set forth in the
definition of “Independent Director”, (iv) the fees charged for the services of such Independent
Director are materially in excess of the fees charged by the other providers of Independent
Directors listed in the definition of “Independent Director “ or (v) any other reason for which the
prior written consent of Lender shall have been obtained.

     “Certificates” means, collectively, any senior and/or subordinate notes, debentures or
pass-through certificates, or other evidence of indebtedness, or debt or equity securities, or any
combination of the foregoing, representing a direct or beneficial interest, in whole or in part, in
the Loan.

     “Change of Control” means the occurrence of any of the following: (i) the failure of
Borrower to be Controlled by one or more Qualified Equityholders (individually or collectively),
(ii) the failure of Operating Lessee to be Controlled by the same Qualified Equityholders that

3

 

Control Borrower or (iii) the failure of the Single-Purpose Equityholder (if any) to be
Controlled by the same Qualified Equityholders that Control Borrower.

     “Closing Date” means the date of this Agreement.

     “Closing Date NOI” means $4,129,492 (before the Monthly FF&E Amount); $3,369,292 (net
of the Monthly FF&E Amount).

     “Code” means the Internal Revenue Code of 1986, as amended, and as it may be further
amended from time to time, any successor statutes thereto, and applicable U.S. Department of
Treasury regulations issued pursuant thereto in temporary or final form.

     “Collateral” means (i) all assets owned from time to time by Borrower (including the
Borrower FF&E Subsidiary) and/or Operating Lessee including the Property, the FF&E, the Revenues,
and all other tangible and intangible property (including any Defeasance Collateral and all of
Borrower’s and Operating Lessee’s respective right, title and interest in and to the Operating
Lease and the Approved Management Agreement) in respect of which Lender is granted a Lien under the
Loan Documents, and all proceeds thereof, and (ii) the Operating Lessee Pledged Collateral.

     “Collateral Accounts” means, collectively, the Cash Management Account, the Loss
Proceeds Account, the Basic Carrying Costs Escrow Account, the FF&E Reserve Account, the Qualified
FF&E Account, the Qualified Operating Expense Account, the Excess Cash Flow Reserve Account, the
Seasonality Reserve Account and the Deferred Maintenance and Environmental Escrow Account (if any).

     “Condemnation” means a taking or voluntary conveyance of all or part of the Property
or any interest therein or right accruing thereto or use thereof, as the result of, or in
settlement of, any condemnation or other eminent domain proceeding by any Governmental Authority.

     “Contingent Obligation” means, with respect to any Person, any obligation of such
Person directly or indirectly guaranteeing any Debt of any other Person in any manner and any
contingent obligation to purchase, to provide funds for payment, to supply funds to invest in any
other Person or otherwise to assure a creditor against loss.

     “Control” of any entity means the ownership, directly or indirectly, of at least 51%
of the equity interests in, and the right to at least 51% of the distributions from, such entity
and the possession, directly or indirectly, of the power to direct or cause the direction of the
management or policies of such entity, whether through the ability to exercise voting power, by
contract or otherwise (“Controlled” and “Controlling” each have the meanings
correlative thereto).

     “Cooperation Agreement” means that certain Mortgage Loan Cooperation Agreement, dated
as of the Closing Date, among Borrower, Lender and Sponsor, as the same may from time to time be
amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

     “Damages” to a party means any and all liabilities, obligations, losses, demands,
damages, penalties, assessments, actions, causes of action, judgments, proceedings, suits, claims,

4

 

costs, expenses and disbursements of any kind or nature whatsoever (including reasonable
attorneys’ fees and other costs of defense and/or enforcement whether or not suit is brought),
fines, charges, fees, settlement costs and disbursements imposed on, incurred by or asserted
against such party, whether based on any federal, state or foreign laws, statutes, rules or
regulations (including securities and commercial laws, statutes, rules or regulations and
Environmental Laws), on common law or equitable cause or on contract or otherwise.

     “DBRS” means DBRS, Inc. or its applicable affiliate.

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

     (i) all indebtedness of such Person to any other party (regardless of whether such
indebtedness is evidenced by a written instrument such as a note, bond or debenture),
including indebtedness for borrowed money or for the deferred purchase price of property or
services;

     (ii) all letters of credit issued for the account of such Person and all unreimbursed
amounts drawn thereunder;

     (iii) all indebtedness secured by a Lien on any property owned by such Person (whether
or not such indebtedness has been assumed) except obligations for impositions that are not
yet due and payable;

     (iv) all Contingent Obligations of such Person;

     (v) all payment obligations of such Person under any interest rate protection agreement
(including any interest rate swaps, floors, collars or similar agreements) and similar
agreements;

     (vi) all contractual indemnity obligations of such Person; and

     (vii) any material actual or contingent liability to any Person or Governmental
Authority with respect to any employee benefit plan (within the meaning of Section 3(3) of
ERISA) subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code.

     “Default” means the occurrence of any event that, but for the giving of notice or the
passage of time, or both, would be an Event of Default.

     “Default Interest” means, during the continuance of an Event of Default, the amount by
which interest accrued on the Notes at their respective Default Rates exceeds the amount of
interest that would have accrued on the Notes at their respective Interest Rates.

     “Default Rate” means, with respect to any Note, the greater of (x) 4% per annum in
excess of the interest rate then applicable to such Note hereunder and (y) 1% per annum in excess
of the Prime Rate from time to time; provided that, if the foregoing would result in an interest
rate in excess of the maximum rate permitted by applicable law, the Default Rate shall be limited
to the maximum rate permitted by applicable law.

5

 

     “Defeasance Borrower” has the meaning set forth in Section 2.1(b).

     “Defeasance Collateral” means (i) direct full faith and credit obligations of the
United States of America that are not subject to prepayment, call or early redemption or (ii) to
the extent acceptable to the Rating Agencies, other “government securities” within the meaning of
Section 2(a)(16) of the Investment Company Act of 1940, as amended.

     “Defeasance Pledge Agreement” has the meaning set forth in Section
2.1(a)(iii).

     “Defease” means to deliver Defeasance Collateral as substitute Collateral for the Loan
in accordance with Section 2.1 and to cause the Defeased Note to be assumed by a Defeasance
Borrower in accordance herewith; and the terms “Defeased” and “Defeasance” have
meanings correlative to the foregoing.

     “Deferred Maintenance Amount” means $0.

     “Deferred Maintenance Conditions” means those items described in Schedule C.

     “Deferred Maintenance and Environmental Escrow Account” has the meaning set forth in
Section 3.7(a).

     “Eligible Account” shall mean a separate and identifiable account from all other funds
held by the holding institution that is either (i) an account or accounts (or subaccounts thereof)
maintained with a federal or state-chartered depository institution or trust company which complies
with the definition of Eligible Institution or (ii) a segregated trust account or accounts (or
subaccounts thereof) maintained with a federal or state chartered depository institution or trust
company acting in its fiduciary capacity that has a Moody’s rating of at least “Baa3” and that, in
the case of a state chartered depository institution or trust company, is subject to regulations
substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus
of at least $50,000,000 and subject to supervision or examination by federal and state authority.
An Eligible Account shall not be evidenced by a certificate of deposit, passbook or other
instrument.

     “Eligible Institution” shall mean a depository institution or trust company insured by
the Federal Deposit Insurance Corporation the short term unsecured debt obligations or commercial
paper of which are rated at least “A-1” by S&P, “P-1” by Moody’s, and “F-1” by Fitch in the case of
accounts in which funds are held for thirty (30) days or less or, in the case of Letters of Credit
or accounts in which funds are held for more than thirty (30) days, the long term unsecured debt
obligations of which are rated at least “A+” by S&P, “A2” by Moody’s and “AA-” by Fitch.

     “Embargoed Person” has the meaning set forth in Section 4.39.

     “Engineering Report” means a structural and seismic engineering report or reports
(including a “probable maximum loss” calculation, if applicable) with respect to the Property
prepared by an independent engineer approved by Lender and delivered to Lender in connection with
the Loan, and any amendments or supplements thereto delivered to Lender.

6

 

     “Environmental Claim” means any written notice, claim, proceeding, notice of
proceeding, investigation, demand, abatement order or other order or directive by any Person or
Governmental Authority alleging or asserting liability with respect to Borrower, Operating Lessee
or the Property arising out of, based on, in connection with, or resulting from (i) the actual or
alleged presence, Use or Release of any Hazardous Substance, (ii) any actual or alleged violation
of any Environmental Law, or (iii) any actual or alleged injury or threat of injury to property,
health or safety, natural resources or to the environment caused by Hazardous Substances.

     “Environmental Indemnity” means that certain environmental indemnity agreement
executed by Borrower and the Sponsor as of the Closing Date, as the same may from time to time be
amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

     “Environmental Laws” means any and all present and future federal, State of Washington
and local laws, statutes, ordinances, orders, rules, regulations and the like, as well as common
law, any judicial or administrative orders, decrees or judgments thereunder, and any permits,
approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in
effect, relating to (i) the pollution, protection or cleanup of the environment, (ii) the impact of
Hazardous Substances on property, health or safety, (iii) the Use or Release of Hazardous
Substances, (iv) occupational safety and health, industrial hygiene or the protection of human,
plant or animal health or welfare or (v) the liability for or costs of other actual or threatened
danger to health or the environment. The term “Environmental Law” includes, but is not
limited to, the following statutes, as amended, any successors thereto, and any regulations
promulgated pursuant thereto, and any State of Washington or local statutes, ordinances, rules,
regulations and the like addressing similar issues: the Comprehensive Environmental Response,
Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the
Hazardous Materials Transportation Act; the Resource Conservation and Recovery Act (including
Subtitle I relating to underground storage tanks); the Clean Water Act; the Clean Air Act; the
Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act;
the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act;
the Endangered Species Act; the National Environmental Policy Act; and the River and Harbors
Appropriation Act. The term “Environmental Law” also includes, but is not limited to, any
present and future federal state and local laws, statutes ordinances, rules, regulations and the
like, as well as common law, conditioning transfer of property upon a negative declaration or other
approval of a Governmental Authority of the environmental condition of a property; or requiring
notification or disclosure of Releases of Hazardous Substances or other environmental conditions of
a property to any Governmental Authority or other Person, whether or not in connection with
transfer of title to or interest in property.

     “Environmental Reports” means “Phase I Environmental Site Assessments” as referred to
in the ASTM Standards on Environmental Site Assessments for Commercial Real Estate, E 1527-05 (and,
if necessary, “Phase II Environmental Site Assessments”), prepared by an independent environmental
auditor approved by Lender and delivered to Lender in connection with the Loan and any amendments
or supplements thereto delivered to Lender, and shall also include any other environmental reports
delivered to Lender pursuant to this Agreement and the Environmental Indemnity.

7

 

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

     “ERISA Affiliate,” at any time, means each trade or business (whether or not
incorporated) that would, at the time, be treated together with Borrower or Operating Lessee as a
single employer under Title IV or Section 302 of ERISA or Section 412 of the Code.

     “Event of Default” has the meaning set forth in Section 7.1.

     “Excess Cash Flow Reserve Account” has the meaning set forth in Section
3.9(a).

     “Exception Report” means the report prepared by Borrower and attached to this
Agreement as Schedule B, setting forth any exceptions to the representations set forth in
Article IV.

     “FF&E” means furniture, fixtures and equipment located in the Property.

     “Fiscal Quarter” means the three-month period ending on March 31, June 30, September
30 and December 31 of each year, or such other fiscal quarter of Borrower as Borrower may select
from time to time with the prior consent of Lender, such consent not to be unreasonably withheld.

     “Fiscal Year” means the 12-month period ending on December 31 of each year, or such
other fiscal year of Borrower as Borrower may select from time to time with the prior consent of
Lender, not to be unreasonably withheld.

     “Fitch” means Fitch, Inc. and its successors.

     “Force Majeure” means a delay due to acts of God, governmental restrictions, stays,
judgments, orders, decrees, enemy actions, civil commotion, fire, casualty, strikes, work stoppage,
shortages of labor or materials or similar causes beyond the reasonable control of Borrower;
provided that, with respect to any of such circumstances, for the purposes of this Agreement, (1)
any period of Force Majeure shall apply only to performance of the obligations necessarily affected
by such circumstance and shall continue only so long as Borrower is continuously and diligently
using all reasonable efforts to minimize the effect and duration thereof; and (2) Force Majeure
shall not include the unavailability or insufficiency of funds.

     “Form W-8BEN” means Form W-8BEN (Certificate of Foreign Status of Beneficial Owner for
United States Tax Withholding) of the Department of Treasury of the United States of America, and
any successor form.

     “Form W-8ECI” means Form W-8ECI (Certificate of Foreign Person’s Claim for Exemption
from Withholding of Tax on Income Effectively Connected with the Conduct of a Trade or Business in
the United States) of the Department of the Treasury of the United States of America, and any
successor form.

     “Funding Date” shall mean January 25, 2011.

8

 

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

     “Governmental Authority” means any federal, state, county, regional, local or
municipal government, any bureau, department, agency or political subdivision thereof and any
Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative
functions of or pertaining to government (including any court).

     “Guaranty” means that certain guaranty, dated as of the Closing Date, executed by
Sponsor for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified in accordance herewith.

     “Hazardous Substances” means any and all substances (whether solid, liquid or gas)
defined, listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances,
hazardous materials, extremely hazardous wastes, toxic substances, toxic pollutants, contaminants,
pollutants or words of similar meaning or regulatory effect under any present or future
Environmental Laws or that may have a negative impact on human health or the indoor or outdoor
environment or the presence of which on, in or under the Property is prohibited or requires
investigation or remediation under Environmental Law, including petroleum and petroleum
by-products, asbestos and asbestos-containing materials, microbial matters, polychlorinated
biphenyls, lead and radon, and compounds containing them (including gasoline, diesel fuel, oil and
lead-based paint), pesticides and radioactive materials, flammables and explosives and compounds
containing them.

     “Increased Costs” has the meaning set forth in Section 1.4(d).

     “Indebtedness” means the Principal Indebtedness, together with interest and all other
obligations and liabilities of Borrower under the Loan Documents, including all transaction costs,
Yield Maintenance Premiums and other amounts due or to become due to Lender pursuant to this
Agreement, under the Notes or in accordance with any of the other Loan Documents, and all other
amounts, sums and expenses reimbursable by Borrower to Lender hereunder or pursuant to the Notes or
any of the other Loan Documents.

     “Indemnified Liabilities” has the meaning set forth in Section 9.19(b).

     “Indemnified Parties” has the meaning set forth in Section 9.17.

     “Independent Director” of any corporation or limited liability company means an
individual who is provided by CT Corporation, Corporation Service Company, National Registered
Agents, Inc., Wilmington Trust Company, Stewart Management Company, Lord Securities Corporation or,
if none of those companies is then providing professional independent directors, another
nationally-recognized company reasonably approved by Lender, in each case that is not an affiliate
of Borrower and that provides professional independent directors and other corporate services in
the ordinary course of its business, and which individual is duly appointed as a member of the
board of directors or board of managers of such corporation or limited liability company and is
not, and has never been, and will not while serving as Independent Director be, any of the
following:

9

 

     (i) a member (other than an independent, non-economic “springing” member), partner,
equityholder, manager, director, officer or employee of such corporation or limited
liability company or any of its equityholders or affiliates (other than as an independent
director or manager of an affiliate of such corporation or limited liability company that is
not in the direct chain of ownership of such corporation or limited liability company and
that is required by a creditor to be a single purpose bankruptcy remote entity, provided
that such independent director or manager is employed by a company that routinely provides
professional independent directors or managers);

     (ii) a creditor, supplier or service provider (including provider of professional
services) to such corporation or limited liability company or any of its equityholders or
affiliates (other than a nationally recognized company that routinely provides professional
independent managers or directors and that also provides lien search and other similar
services to such corporation or limited liability company or any of its equityholders or
affiliates in the ordinary course of business);

     (iii) a family member of any such member, partner, equityholder, manager, director,
officer, employee, creditor, supplier or service provider; or

     (iv) a Person that controls (whether directly, indirectly or otherwise) any of (i),
(ii) or (iii) above.

A natural person who otherwise satisfies the foregoing definition other than subparagraph (i) by
reason of being the Independent Director of a Single-Purpose Entity affiliated with the corporation
or limited liability company in question shall not be disqualified from serving as an Independent
Director of such corporation or limited liability company, provided that the fees that such natural
person earns from serving as Independent Director of affiliates of such the corporation or limited
liability company in any given year constitute in the aggregate less than five percent of such
natural person’s annual income for that year. The same natural persons may not serve as
Independent Directors of a corporation or limited liability company and, at the same time, serve as
Independent Directors of an equityholder or member of such corporation or limited liability
company.

     “Initial Interest Rate” means 5.4425% per annum, as same may be adjusted pursuant to
the Rate Lock Agreement.

     “Insurance Requirements” means, collectively, (i) all material terms of any insurance
policy required pursuant to this Agreement and (ii) all material regulations and then-current
standards applicable to or affecting the Property or any portion thereof or any use or condition
thereof, which may, at any time, be recommended by the board of fire underwriters, if any, having
jurisdiction over the Property, or any other body exercising similar functions.

     “Insurance Reserve Exemption Period” has the meaning set forth in Section
3.4(d)(iii).

     “Interest Accrual Period” means each period from and including the eleventh day of a
calendar month through and including the tenth day of the immediately succeeding calendar month;
provided, that, prior to a Securitization, Lender shall have the right, in connection with
a

10

 

change in the Payment Date in accordance with the definition thereof, to make a corresponding
change to the Interest Accrual Period. Notwithstanding the foregoing, the first Interest Accrual
Period shall commence on and include the Funding Date.

     “Interest Rate” means (i) with respect to the initial Note, the Initial Interest Rate,
and (ii) with respect to each Note resulting from the bifurcation of the initial Note into multiple
Notes pursuant to Section 1.1(c), the per annum interest rate of such Note as determined by
Lender in accordance with such Section.

     “Lease” means any lease (except the Operating Lease), license, letting, concession,
occupancy agreement or sublease to which Borrower and/or Operating Lessee is a party or has a
consent right, or other agreement (whether written or oral and whether now or hereafter in effect)
under which Borrower and/or Operating Lessee is a lessor, sublessor, licensor or other grantor
existing as of the Closing Date or thereafter entered into by Borrower and/or Operating Lessee, in
each case pursuant to which any Person is granted a possessory interest in, or right to use or
occupy all or any portion of any space in the Property, and every modification or amendment
thereof, and every guarantee of the performance and observance of the covenants, conditions and
agreements to be performed and observed by the other party thereto, excluding short-term agreements
in the ordinary course of business pursuant to which hotel rooms and facilities are made available
to individual hotel guests.

     “Leasing Commissions” means leasing commissions required to be paid by Borrower or
Operating Lessee in connection with the leasing of space to Tenants at the Property pursuant to
Leases entered into by Borrower or Operating Lessee in accordance herewith and payable in
accordance with third-party/arm’s-length written brokerage agreements, provided that the
commissions payable pursuant thereto are commercially reasonable based upon the then current
brokerage market for property of a similar type and quality to the Property in the geographic
market in which the Property is located.

     “Legal Requirements” means all governmental statutes, laws, rules, orders,
regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities (including
Environmental Laws) affecting Borrower, Sponsor, Operating Lessee, the Property or any other
Collateral or any portion thereof or the construction, ownership, use, alteration or operation
thereof, or any portion thereof (whether now or hereafter enacted and in force), and all permits,
licenses and authorizations and regulations relating thereto.

     “Lender” has the meaning set forth in the first paragraph of this Agreement and in
Section 9.7.

     “Lender 80% Determination” means a reasonable determination by Lender that, based on a
current or updated Appraisal, a broker’s price opinion by Jones Lang LaSalle or Eastdil Secured (or
such other broker satisfactory to Lender should neither Jones Lang LaSalle nor Eastdil Secured be
actively engaged in the business of real estate valuation) or other written determination of value
using a commercially reasonable valuation method satisfactory to Lender, the fair market value of
the Property securing the Indebtedness at the time of such determination (but excluding any value
attributable to property that is not an interest in real property within the

11

 

meaning of section 860G(a)(3)(A) of the Code) is at least 80% of the amount of the
Indebtedness (including any accrued and unpaid interest) at the time of such determination.

     “Lien” means any mortgage, lien (statutory or other), pledge, hypothecation,
assignment, preference, priority, security interest, or any other encumbrance or charge on or
affecting any Collateral or any portion thereof, or any interest therein (including any conditional
sale or other title retention agreement, any sale-leaseback, any financing lease or similar
transaction having substantially the same economic effect as any of the foregoing, the filing of
any financing statement or similar instrument under the Uniform Commercial Code or comparable law
of any other jurisdiction, domestic or foreign, and mechanics’, materialmen’s and other similar
liens and encumbrances, as well as any option to purchase, right of first refusal, right of first
offer or similar right).

     “Loan” has the meaning set forth in Section 1.1(a).

     “Loan Amount” means $31,000,000.

     “Loan Documents” means this Agreement, the Note, the Mortgage (and related financing
statements), the Environmental Indemnity, the Subordination of Property Management Agreement, the
Subordination of Operating Lease, the Pledge and Security Agreement (Equity), the Cash Management
Agreement, the Cooperation Agreement, the Guaranty, any Defeasance Pledge Agreement, the Qualified
Operating Expense Account Agreement, the Qualified FF&E Account Control Agreement (if any), and all
other agreements, instruments, certificates and documents necessary to effectuate the granting to
Lender of first-priority Liens on the Collateral or otherwise in satisfaction of the requirements
of this Agreement or the other documents listed above, as all of the aforesaid may be amended,
restated, replaced, supplemented or otherwise modified from time to time in accordance herewith.

     “Lockout Period” means the period from the Closing Date to but excluding the first
Payment Date following the earlier to occur of (i) the third anniversary of the Closing Date and
(ii) the second anniversary of the date on which the entire Loan (including any subordinated
interest therein) has been Securitized pursuant to a Securitization or series of Securitizations.

     “Loss Proceeds” means amounts, awards or payments payable to Borrower, Operating
Lessee or Lender in respect of all or any portion of the Property in connection with a Casualty or
Condemnation thereof (after the deduction therefrom and payment to Borrower, Operating Lessee and
Lender, respectively, of any and all reasonable expenses incurred by Borrower, Operating Lessee and
Lender in the recovery thereof, including all attorneys’ fees and disbursements, the fees of
insurance experts and adjusters and the costs incurred in any litigation or arbitration with
respect to such Casualty or Condemnation).

     “Loss Proceeds Account” has the meaning set forth in Section 3.3(a).

     “Major Lease” means any Lease that (i) when aggregated with all other Leases at the
Property with the same Tenant (or affiliated Tenants), and assuming the exercise of all expansion
rights and all preferential rights to lease additional space contained in such Lease, is expected
to cover more than 5,000 rentable square feet, (ii) contains an option or preferential right to

12

 

purchase all or any portion of the Property, (iii) is with an affiliate of Borrower as
Tenant or (iv) is entered into during the continuance of an Event of Default.

     “Material Adverse Effect” means a material adverse effect upon (i) the ability of
Borrower or Sponsor to perform, or of Lender to enforce, any material provision of any Loan
Document, (ii) the enforceability of any material provision of any Loan Document, (iii) the ability
of Operating Lessee to operate the Property, or (iv) the value, Net Operating Income, use or
enjoyment of the Property or the operation or occupancy thereof.

     “Material Agreements” means (x) each contract and agreement (other than Leases)
relating to the Property, or otherwise imposing obligations on Borrower or Operating Lessee, under
which Borrower or Operating Lessee would have the obligation to pay more than $150,000 per annum or
that cannot be terminated by Borrower or Operating Lessee without cause upon 60 days’ notice or
less without payment of a termination fee in excess of $10,000, or that is with an affiliate of
Borrower or Operating Lessee, (y) any material reciprocal easement agreement, declaration of
covenants, condominium documents, ground lease, material parking agreement or other material
Permitted Encumbrance and (z) the Operating Lease.

     “Material Alteration” means any Alteration to be performed by or on behalf of Borrower
or Operating Lessee at the Property that (a) is reasonably expected to result in a Material Adverse
Effect, (b) is reasonably expected to cost in excess of $1,550,000, as determined by an independent
architect, or (c) is reasonably expected to permit (or is reasonably likely to induce) any Tenant
under a Major Lease to terminate its Lease or abate rent.

     “Maturity Date” means the Payment Date in February, 2016, or such earlier date as may
result from acceleration of the Loan in accordance with this Agreement.

     “Minimum Balance” has the meaning set forth in Section 3.2(a).

     “Monthly FF&E Amount” means, with respect to any calendar month, an amount equal to
the greater of (1) four percent (4%) of Operating Income for the immediately preceding calendar
month, and (2) the amount required to be reserved for FF&E pursuant to the Approved Management
Agreement.

     “Moody’s” means Moody’s Investors Service, Inc. and its successors.

     “Mortgage” means that certain Deed of Trust, Assignment of Leases and Rents, Security
Agreement and Fixture Filing encumbering the Property executed by Borrower as of the Closing Date,
as the same may from time to time be amended, restated, replaced, supplemented or otherwise
modified in accordance herewith.

     “Net Operating Income” means, with respect to any Test Period, the excess of (i)
Operating Income for such Test Period, minus (ii) Operating Expenses for such Test Period.

     “Nonconsolidation Opinion” means the opinion letter, dated the Closing Date, delivered
by Borrower’s counsel to Lender and addressing issues relating to substantive consolidation in
bankruptcy.

13

 

     “Note(s)” means that certain promissory note, dated as of the Closing Date, made by
Borrower to the order of Lender to evidence the Loan, as such note may be replaced by multiple
Notes in accordance with Section 1.1(c) and as otherwise assigned (in whole or in part),
amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

     “OFAC List” means the list of specially designated nationals and blocked persons
subject to financial sanctions that is maintained by the U.S. Treasury Department, Office of
Foreign Assets Control and any other similar list maintained by the U.S. Treasury Department,
Office of Foreign Assets Control pursuant to any applicable governmental statutes, laws, rules,
orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities,
including trade embargo, economic sanctions, or other prohibitions imposed by Executive Order of
the President of the United States. The OFAC List currently is accessible through the internet
website at www.treas.gov/ofac/t11sdn.pdf.

     “Officer’s Certificate” means a certificate delivered to Lender that is signed by an
authorized officer of Borrower and certifies the information therein to the best of such officer’s
knowledge.

     “Open Prepayment Commencement Date” shall mean the Payment Date that occurs three (3)
months prior to the Maturity Date.

     “Operating Expenses” means, for any period, all operating, renting, administrative,
management, legal and other ordinary expenses of Borrower and, without duplication, Operating
Lessee and Approved Property Manager, during such period, determined in accordance with GAAP and
the Uniform System of Accounts (excluding reserves for or expenditures on FF&E), plus a deemed
expenditure in respect of FF&E in an amount equal to the greater of (1) four percent (4%) of
Operating Income during such period and (2) the amount required to be reserved for FF&E pursuant to
the Approved Management Agreement; provided, however, that such expenses shall not
include (i) depreciation, amortization or other non-cash items (other than expenses that are due
and payable but not yet paid), (ii) interest, principal or any other sums due and owing with
respect to the Loan, (iii) income taxes or other taxes in the nature of income taxes, (iv) Capital
Expenditures, or (v) equity distributions.

     “Operating Income” means, for any period, all operating income of Borrower and,
without duplication, Operating Lessee and Approved Property Manager, from the Property during such
period, determined in accordance with GAAP and the Uniform System of Accounts (but without
straight-lining of rents), including without limitation: (i) all income and proceeds received from
any lease, Operating Lease and rental of rooms, exhibit, sales, commercial, meeting, conference or
banquet space within such Property, including net parking revenue, and net income from vending
machines, golf course fees, health club fees and service charges; (ii) all income and proceeds
received from food and beverage operations and from catering services conducted from such Property
even though rendered outside of such Property; (iii) all income and proceeds from business
interruption, rental interruption and use and occupancy insurance with respect to the operation of
such Property (after deducting therefrom all necessary costs and expenses incurred in the
adjustment or collection thereof and solely to the extent that such income and/or proceeds are
allocable to such period); (iv) all awards for temporary use (after deducting therefrom all costs
incurred in the adjustment or collection thereof and in restoration

14

 

of such Property and solely to the extent that such award is allocable to such period); (v)
all income and proceeds from judgments, settlements and other resolutions of disputes with respect
to matters which would be includable in this definition of “Operating Income” if received
in the ordinary course of such Property’s operation (after deducting therefrom all necessary costs
and expenses incurred in the adjustment or collection thereof); and (vi) interest on credit
accounts, rent concessions or credits, and other required pass-throughs; but excluding, (1) gross
receipts received by lessees, licensees or concessionaires of such Property; (2) consideration
received at such Property for hotel accommodations, goods and services to be provided at other
hotels, although arranged by, for or on behalf of the Borrower, Operating Lessee or Approved
Property Manager; (3) income and proceeds from the sale or other disposition of goods, capital
assets and other items not in the ordinary course of such Property’s operation; (4) federal, state
and municipal excise, sales and use taxes collected directly from patrons or guests of such
Property as a part of or based on the sales price of any goods, services or other items, such as
gross receipts, room, admission, cabaret or equivalent taxes; (5) awards (except to the extent
provided in clause (iv) above); (6) refunds of amounts not included in Operating Expenses at any
time and uncollectible accounts; (7) gratuities collected by employees at such Property; (8) the
proceeds of any financing; (9) other income or proceeds resulting other than from the use or
occupancy of such Property, or any part thereof, or other than from the sale of goods, services or
other items sold on or provided from such Property in the ordinary course of business; (10) any
credits or refunds made to customers, guests or patrons in the form of allowances or adjustments to
previously recorded revenues; (11) any revenue attributable to a Lease that is not a Qualifying
Lease; (12) any revenue attributable to a Lease to the extent it is paid more than 30 days prior to
the due date, (13) any interest income from any source (except to the extent provided in clause
(vi) above); (14) any repayments received from any third party of principal loaned or advanced to
such third party by Borrower or Operating Lessee; (15) any proceeds resulting from the Transfer of
all or any portion of such Property, (16) Loss Proceeds (except to the extent provided in clause
(iii) above); and (17) any other extraordinary or non-recurring items.

     “Operating Lease” means that certain Agreement of Lease dated November 3, 2010 by and
between Borrower and Operating Lessee.

     “Operating Lessee” means TERRAPINS LESSEE, LLC.

     “Operating Lessee Pledged Collateral” means one hundred percent of the equity
interests in Operating Lessee, which shall be pledged by Pebblebrook Hotel Lessee, Inc. to Lender
as additional collateral for the Loan pursuant to the Pledge and Security Agreement (Equity).

     “Participation” has the meaning set forth in Section 9.7(b).

     “PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001), as amended from time to time.

     “Payment Date” means, with respect to each Interest Accrual Period, the sixth day of
the calendar month in which such Interest Accrual Period ends (or, if such day is not a Business
Day, the first preceding Business Day); provided, that prior to a Securitization, Lender
shall have

15

 

the right to change the Payment Date so long as a corresponding change to the Interest Accrual
Period is also made.

     “Permits” means all licenses, permits, variances and certificates used in connection
with the ownership, operation, use or occupancy of the Property (including certificates of
occupancy, business licenses, state health department licenses, licenses to conduct business and
all such other permits, licenses and rights, obtained from any Governmental Authority or private
Person concerning ownership, operation, use or occupancy of the Property).

     “Permitted Debt” means:

     (i) the Indebtedness;

     (ii) Taxes that are not yet due and payable;

     (iii) tenant allowances and Capital Expenditures and product improvement plan costs
required under the Approved Management Agreement or any Leases or otherwise permitted to be
incurred under the Loan Documents that are paid on or prior to the date when due; and

     (iv) Trade Payables, if any, that are not represented by a note, customarily paid by
Borrower or Operating Lessee within 60 days of incurrence and in fact not more than 60 days
outstanding, which are incurred in the ordinary course of Borrower’s or Operating Lessee’s
business with respect to the Property, in amounts reasonable and customary for similar
properties and not exceeding 3.0% of the Loan Amount in the aggregate.

“Permitted Encumbrances” means:

     (i) the Liens created by the Loan Documents;

     (ii) all Liens and other matters specifically disclosed on Schedule B of the Qualified
Title Insurance Policy;

     (iii) Liens, if any, for Taxes not yet delinquent;

     (iv) mechanics’, materialmen’s or similar Liens, if any, and Liens for delinquent taxes
or impositions, in each case only if being diligently contested in good faith and by
appropriate proceedings, provided that no such Lien is in imminent danger of
foreclosure and provided further that either (a) each such Lien is released
or discharged of record or fully insured over by the title insurance company issuing the
Qualified Title Insurance Policy within 30 days of its creation, or (b) Borrower deposits
with Lender, by the expiration of such 30-day period, an amount equal to 150% of the dollar
amount of such Lien or a bond in the aforementioned amount from such surety, and upon such
terms and conditions, as is reasonably satisfactory to Lender, as security for the payment
or release of such Lien;

16

 

     (v) rights of existing and future Tenants as tenants only pursuant to written Leases
entered into in conformity with the provisions of this Agreement; and

     (vi) easements and other encroachments placed on the Property with the prior written
consent of Lender.

     “Permitted Investments” shall have the meaning set forth in the Cash Management
Agreement.

     “Person” means any natural person, corporation, limited liability company,
partnership, joint venture, estate, trust, unincorporated association or Governmental Authority and
any fiduciary acting in such capacity on behalf of any of the foregoing.

     “Plan Assets” means assets of any (i) employee benefit plan (as defined in Section
3(3) of ERISA) subject to Title I of ERISA, (ii) plan (as defined in Section 4975(e)(1) of the
Code) subject to Section 4975 of the Code, or (iii) governmental plan (as defined in Section 3(32)
of ERISA) subject to federal, state or local laws, rules or regulations substantially similar to
Title I of ERISA or Section 4975 of the Code.

     “Pledge and Security Agreement (Equity)” means that certain Pledge and Security
Agreement (Equity) dated the date hereof, by Pebblebrook Hotel Lessee, Inc. in favor of Lender.

     “Policies” has the meaning set forth in Section 5.15(b).

     “Post-Closing Matters” means those items described in Schedule D.

     “Prepayment Period” means the period commencing on the Open Prepayment Commencement
Date and ending on the Maturity Date.

     “Prime Rate” means the “prime rate” published in the “Money Rates” section of The
Wall Street Journal. If The Wall Street Journal ceases to publish the “prime rate,”
then Lender shall select an equivalent publication that publishes such “prime rate,” and if such
“prime rate” is no longer generally published or is limited, regulated or administered by a
governmental or quasi-governmental body, then Lender shall reasonably select a comparable interest
rate index.

     “Principal Indebtedness” means the principal balance of the Loan outstanding from time
to time.

     “Prohibited Pledge” has the meaning set forth in Section 7.1(f).

     “Property” means the real property described on Schedule A, together with all
buildings and other improvements thereon and all personal property encumbered by the Mortgage,
together with all rights pertaining to such property.

     “Qualified Equityholder” means (i) Sponsor (ii) any Person approved by Lender with
respect to which the Rating Condition is satisfied, (iii) a bank, saving and loan association,
investment bank, insurance company, trust company, commercial credit corporation, pension plan,
pension fund or pension advisory firm, mutual fund, government entity or plan, real estate

17

 

company, investment fund or an institution substantially similar to any of the foregoing,
provided in each case under this clause (iii) that such Person (x) has total assets (in name or
under management) in excess of $100,000,000 and (except with respect to a pension advisory firm or
similar fiduciary) capital/statutory surplus or shareholder’s equity in excess of $100,000,000 (in
both cases, exclusive of the Property), and (y) is regularly engaged in the business of owning and
operating comparable properties in major metropolitan areas, or (iv) any Person owned at least 51%
by, and Controlled by, a Person satisfying the requirements of clause (iii), but only during such
time period as such Person is so owned and Controlled.

     “Qualified FF&E Account” has the meaning set forth in Section 3.6(d).

     “Qualified FF&E Account Control Agreement” means an account control agreement
satisfactory to Lender which shall permit Borrower to have free access to the amounts contained
therein for the purposes permitted under the Loan Documents, provided that, during the continuance
of a Trigger Period or Event of Default all amounts contained therein shall be remitted to the FF&E
Reserve Account and shall be administered in accordance with Section 3.6.

     “Qualified Operating Expense Account” means an Eligible Account maintained by
Operating Lessee at an Eligible Institution, which account (i) shall only contain amounts in
respect of Operating Expenses for the Property (and no amounts unrelated to the Property shall be
deposited therein or otherwise commingled with the amounts on deposit in such account) and (ii) is
subject to a Qualified Operating Expense Account Agreement.

     “Qualified Operating Expense Account Agreement” means an agreement relating to the
Qualified Operating Expense Account, among Lender, Borrower and the Eligible Institution at which
such account is maintained, pursuant to which such account is pledged to the Lender and Borrower is
given full access to the funds on deposit therein but provides for the discontinuance of such
access upon receipt by such Eligible Institution of written notice from Lender of the occurrence of
an Event of Default, as such agreement may be amended, restated, replaced, supplemented or
otherwise modified in accordance herewith.

     “Qualified Successor Borrower” means a Single-Purpose Entity that is Controlled by one
or more Qualified Equityholders.

     “Qualified Successor Operating Lessee” means a Single-Purpose Entity that is
Controlled by the same Qualified Equityholders that Control Qualified Successor Borrower and is a
successor to the Operating Lessee under the Operating Lease.

     “Qualified Survey” means that certain ALTA land title survey of the Property dated
January 4, 2011, prepared by U.S. Surveyor and certified to Borrower, the title company issuing the
Qualified Title Insurance Policy and Lender and their respective successors and assigns, in form
and substance reasonably satisfactory to Lender.

     “Qualified Title Insurance Policy” means an ALTA extended coverage mortgagee’s title
insurance policy in form and substance reasonably satisfactory to Lender.

     “Qualifying Lease” means all Leases other than (i) Leases to a Tenant that is not in
occupancy at the Property and open for business at the Property and (ii) Leases to a Tenant that

18

 

is in default under its Lease or is the subject of bankruptcy or similar insolvency
proceedings (to the extent that such Tenant has not assumed such Lease in bankruptcy).

     “Rate Lock Agreement” shall mean that certain interest rate lock agreement dated
December 23, 2010 between Borrower and Lender, as amended by that certain amendment to interest
rate lock agreement dated of even date herewith.

     “Rating Agency” shall mean, prior to the final Securitization of the Loan, each of
S&P, Moody’s, DBRS and Fitch, or any other nationally-recognized statistical rating agency that has
been designated by Lender and, after the final Securitization of the Loan, shall mean any of the
foregoing that have rated and continue to rate any of the Certificates.

     “Rating Condition” means, with respect to any proposed action, the receipt by Lender
of confirmation in writing from each of the Rating Agencies that such action shall not result, in
and of itself, in a downgrade, withdrawal, or qualification of any rating then assigned to any
outstanding Certificates; except that if all or any portion of the Loan has not been Securitized
pursuant to a Securitization rated by the Rating Agencies, then “Rating Condition” shall instead
mean the receipt of prior written approval of both (x) the applicable Rating Agencies (if and to
the extent that any portion of the Loan has been Securitized pursuant to a Securitization or series
of Securitizations rated by such Rating Agencies (excluding shadow ratings)), and (y) Lender in its
sole discretion. No Rating Condition shall be regarded as having been satisfied unless and until
any conditions imposed on the effectiveness of any confirmation from any Rating Agency shall have
been satisfied. Lender shall have the right in its sole discretion to waive a Rating Condition
requirement with respect to any Rating Agency that Lender determines has declined to review the
applicable proposal.

     “Regulatory Change” means any change after the Closing Date in federal, state or
foreign laws or regulations or the adoption or the making, after such date, of any interpretations,
directives or requests applying to a class of banks or companies controlling banks, including
Lender, of or under any federal, state or foreign laws or regulations (whether or not having the
force of law) by any court or governmental or monetary authority charged with the interpretation or
administration thereof.

     “Release” with respect to any Hazardous Substance means any release, deposit,
discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring,
emptying, escaping, dumping, disposing or other movement of Hazardous Substances into the indoor or
outdoor environment (including the movement of Hazardous Substances through ambient air, soil,
surface water, ground water, wetlands, land or subsurface strata).

     “Rent Roll” has the meaning set forth in Section 4.14(a).

     “Revenues” means all rents (including percentage rent), rent equivalents, moneys
payable as damages pursuant to a Lease or in lieu of rent or rent equivalents, royalties (including
all oil and gas or other mineral royalties and bonuses), income and (without duplication) Operating
Income, receivables, receipts, revenues, deposits (including security, utility and other deposits),
accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever
form or nature received by or paid to or for the account of or benefit of Borrower or (without

19

 

duplication) Operating Lessee or Approved Property Manager (only with respect to the Property)
from any and all sources including any obligations now existing or hereafter arising or created out
of the sale, lease, sublease, license, concession or other grant of the right of the use and
occupancy of property or rendering of services by Borrower or Operating Lessee and proceeds, if
any, from business interruption or other loss of income insurance.

     “S&P” means Standard & Poor’s Ratings Services, a division of the McGraw-Hill
Companies, Inc., and its successors.

     “Seasonality Reserve Account” shall have the meaning set forth in Section 3.5
hereof.

     “Seasonality Reserve Required Balance” shall mean $524,694.

     “Securitization” means a transaction in which all or any portion of the Loan is
deposited into one or more trusts or entities that issue Certificates to investors, or a similar
transaction; and the term “Securitize” and “Securitized” have meanings correlative
to the foregoing.

     “Securitization Vehicle” means the issuer of Certificates in a Securitization of the
Loan.

     “Service” means the Internal Revenue Service or any successor agency thereto.

     “Servicer” means the entity or entities appointed by Lender from time to time to serve
as servicer and/or special servicer of the Loan. If at any time no entity is so appointed, the
term “Servicer” shall be deemed to refer to Lender.

     “Single Member LLC” means a limited liability company that either (x) has only one
member, or (y) has multiple members, none of which is a Single-Purpose Equityholder.

     “Single-Purpose Entity” means a Person that (a) was formed under the laws of the State
of Delaware solely for the purpose of acquiring and holding (i) an ownership or leasehold interest
in the Property (or, if applicable, Defeasance Collateral), or (ii) in the case of a Single-Purpose
Equityholder, an ownership interest in the Borrower (or, if applicable, Defeasance Collateral), (b)
does not engage in any business unrelated to (i) the Property (or, if applicable, Defeasance
Collateral), or (ii) in the case of a Single-Purpose Equityholder, its ownership interest in the
Borrower (or, if applicable, Defeasance Collateral), (c) does not have any assets other than those
related to (i) the Property (or, if applicable, Defeasance Collateral), or (ii) in the case of a
Single-Purpose Equityholder, its ownership interest in the Borrower (or, if applicable, Defeasance
Collateral), (d) does not have any Debt other than Permitted Debt, (e) maintains books, accounts,
records, financial statements, stationery, invoices and checks that are separate and apart from
those of any other Person (except that such Person’s financial position, assets, results of
operations and cash flows may be included in the consolidated financial statements of an affiliate
of such Person in accordance with GAAP, provided that any such consolidated financial
statements shall contain a note indicating that such Person and its affiliates are separate legal
entities and maintain records, books of account separate and apart from any other Person), (f) is
subject to and complies with all of the limitations on powers and separateness requirements set
forth in the organizational documentation of such Person as of the Closing Date, (g) holds itself
out as being a Person separate and apart from each other Person and not as a division or part of
another Person, (h) conducts its business in its own name (except for services rendered

20

 

under a management agreement with an affiliate, so long as the manager, or equivalent thereof,
under such management agreement holds itself out as an agent of such Person), (i) exercises
reasonable efforts to correct any known misunderstanding actually known to it regarding its
separate identity, and maintains an arm’s-length relationship with its affiliates, (j) pays its own
liabilities out of its own funds (including the salaries of its own employees) and reasonably
allocates any overhead that is shared with an affiliate, including paying for shared office space
and services performed by any officer or employee of an affiliate, (k) maintains a sufficient
number of employees in light of its contemplated business operations, (l) conducts its business so
that the assumptions made with respect to it that are contained in the Nonconsolidation Opinion
shall at all times be true and correct in all material respects, (m) maintains its assets in such a
manner that it will not be costly or difficult to segregate, ascertain or identify its individual
assets from those of any other Person, (n) observes all applicable entity-level formalities in all
material respects, (o) does not commingle its assets with those of any other Person and holds such
assets in its own name, (p) does not assume, guarantee or become obligated for the debts of any
other Person, and does not hold out its credit as being available to satisfy the obligations or
securities of others, (q) does not acquire obligations or securities of its shareholders, members
or partners, (r) does not pledge its assets for the benefit of any other Person (except, in the
case of Operating Lessee, a pledge of its assets for the benefit of Borrower pursuant to any Loan
Document) and does not make any loans or advances to any Person, (s) intends to maintain adequate
capital in light of its contemplated business operations (unless any such failure to maintain
adequate capital, is due solely to an insufficiency in gross income from the operation of the
Property); provided, however, that the foregoing shall not require any member,
partner or beneficiary to make additional capital contributions, (t) has two Independent Directors
on its board of directors or board of managers, or, in the case of a limited partnership, has a
Single-Purpose Equityholder with two Independent Directors on such Single-Purpose Equityholder’s
board of directors or board of managers, and has organizational documents that prohibit replacing
any Independent Director without Cause and without giving at least two Business Days’ prior written
notice to Lender (except in the case of the death, legal incapacity, or voluntary non-collusive
resignation of an Independent Director, in which case no prior notice to Lender or the Rating
Agencies shall be required in connection with the replacement of such Independent Director with a
new Independent Director that is provided by any of the companies listed in the definition of
“Independent Director”), (u) has by-laws or an operating agreement, or, in the case of a limited
partnership, has a Single-Purpose Equityholder with by-laws or an operating agreement, which
provides that, for so long as the Loan is outstanding, such Person shall not take or consent to any
of the following actions except to the extent expressly permitted in this Agreement and the other
Loan Documents:

     (i) the dissolution, liquidation, consolidation, merger or sale of all or substantially
all of its assets (and, in the case of a Single-Purpose Equityholder, the assets of the
Borrower);

     (ii) the engagement by such Person (and, in the case of a Single-Purpose Equityholder,
the engagement by the Borrower) in any business other than the acquisition, development,
management, leasing, ownership, maintenance and operation of the Property and activities
incidental thereto (and, in the case of a Single-Purpose Equityholder, activities incidental
to the acquisition and ownership of its interest in the Borrower);

21

 

     (iii) the filing, or consent to the filing, of a bankruptcy or insolvency petition, any
general assignment for the benefit of creditors or the institution of any other insolvency
proceeding, or the seeking or consenting to the appointment of a receiver, liquidator,
assignee, trustee, sequestrator, custodian or any similar official in respect of such Person
without the affirmative vote of both of its Independent Directors (and, in the case of a
Single-Purpose Equityholder, in respect of the Borrower without the affirmative vote of both
of such Single-Purpose Equityholder’s Independent Directors); and

     (iv) any amendment or modification of any provision of its (and, in the case of a
Single-Purpose Equityholder, the Borrower’s) organizational documents relating to
qualification as a “Single-Purpose Entity”,

and (v) if such entity is a Single Member LLC, has organizational documents that provide that upon
the occurrence of any event (other than a permitted equity transfer) that causes its sole member to
cease to be a member while the Loan is outstanding, at least one of its Independent Directors shall
automatically be admitted as the sole member of the Single Member LLC and shall preserve and
continue the existence of the Single Member LLC without dissolution.

     “Single-Purpose Equityholder” means a Single-Purpose Entity that (x) is a limited
liability company or corporation formed under the laws of the State of Delaware, (y) owns at least
a 1% direct equity interest in Borrower (or a lesser amount, providing that Lender receives
appropriate legal opinions with respect thereto), and (z) serves as the general partner or managing
member of Borrower.

     “Smith Travel Reports” means a “STAR Program Report” with respect to the Property
prepared by Smith Travel Research, Inc, or its successors and assigns.

     “Sponsor” means Pebblebrook Hotel Trust.

     “Subordination of Operating Lease” means that certain Subordination of Operating Lease
executed by Operating Lessee and Borrower as of the Closing Date, as the same may from time to time
be amended, restated, replaced, supplemented or otherwise modified in accordance herewith.

     “Subordination of Property Management Agreement” means that certain Consent and
Agreement of Manager and Subordination and Non-Disturbance of Management Agreement executed by
Operating Lessee and the Approved Property Manager as of the Closing Date, as the same may from
time to time be amended, restated, replaced, supplemented or otherwise modified in accordance
herewith.

     “Taxes” means all real estate and personal property taxes, assessments, fees, taxes on
rents or rentals, water rates or sewer rents, facilities and other governmental, municipal and
utility district charges or other similar taxes or assessments now or hereafter levied or assessed
or imposed against the Property, Borrower or Operating Lessee with respect to the Property or rents
therefrom, or the Operating Lessee Pledged Collateral or that may become Liens upon the Property,
without deduction for any amounts reimbursable to Borrower or Operating Lessee by third parties.

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     “Tax Reserve Exemption Period” has the meaning set forth in Section 3.4(d)(i).

     “Tenant” means any Person liable by contract or otherwise to pay monies (including a
percentage of gross income, revenue or profits) pursuant to a Lease.

     “Tenant Improvements” means, collectively, (i) tenant improvements to be undertaken
for any Tenant that are required to be completed by or on behalf of Borrower or Operating Lessee
pursuant to the terms of such Tenant’s Lease, and (ii) tenant improvements paid or reimbursed
through allowances to a Tenant pursuant to such Tenant’s Lease.

     “Tenant Notice” has the meaning set forth in Section 3.1(b).

     “Test Period” means each 12-month period ending on the last day of a Fiscal Quarter.

     “Trade Payables” means unsecured amounts payable by or on behalf of Borrower or
Operating Lessee for or in respect of the operation of the Property in the ordinary course and that
would under GAAP and the Uniform System of Accounts be regarded as ordinary expenses, including
amounts payable to suppliers, vendors, contractors, mechanics, materialmen or other Persons
providing property or services to the Property, Borrower or Operating Lessee and the capitalized
amount of any ordinary-course financing leases.

     “Transaction” means, collectively, the transactions contemplated and/or financed by
the Loan Documents.

     “Transfer” means the sale or other whole or partial conveyance of all or any portion
of the Property or any direct or indirect interest therein, including granting of any purchase
options, rights of first refusal, rights of first offer or similar rights in respect of any portion
of the Property or the subjecting of any portion of the Property to restrictions on transfer;
except that the conveyance of a space lease at the Property in accordance herewith shall not
constitute a Transfer.

     “Treasury Note Rate” shall mean, at the time of the prepayment, as applicable, the
rate of interest per annum equal to the yield to maturity (converted by Lender to the equivalent
monthly yield using Lender’s then system of conversion) of the United States Treasury obligations
selected by the holder of the Note having maturity dates closest to, but not exceeding, the
remaining term to the Open Prepayment Commencement Date.

     “Trigger Level” means Closing Date NOI times 80%.

     “Trigger Period” means any period from (a) the conclusion of any Test Period during
which Net Operating Income is less than the Trigger Level, to (b) the conclusion of any Test Period
thereafter during which Net Operating Income is equal to or greater than the Trigger Level.

     “Uniform System of Accounts” means the “Uniform System of Accounts for the Lodging
Industry” (tenth edition) published by The American Hotel & Lodging Association Educational
Institute.

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     “Use” means, with respect to any Hazardous Substance, the generation, manufacture,
processing, distribution, handling, possession, use, discharge, placement, treatment, disposal,
disposition, removal, abatement, recycling or storage of such Hazardous Substance or transportation
of such Hazardous Substance.

     “U.S. Person” means a United States person within the meaning of Section 7701(a)(30)
of the Code.

     “U.S. Tax” means any present or future tax, assessment or other charge or levy imposed
by or on behalf of the United States of America or any taxing authority thereof.

     “Waste” means any material abuse or destructive use (whether by action or inaction) of
the Property.

     “Yield Maintenance Premium” shall mean an amount equal to the excess, if any, of (a)
the present value (determined using a discount rate equal to the Treasury Note Rate at such time)
of all scheduled payments of principal and interest payable in respect of the principal amount of
the Loan being prepaid provided that the Note shall be deemed, for purposes of this definition, to
be due and payable on the Open Prepayment Commencement Date, over (b) the principal amount of the
Loan being prepaid;

provided that, the Yield Maintenance Premium shall not be less than 3% of the amount
prepaid.

     The calculation of the Yield Maintenance Premium shall be made by Lender and shall, absent
manifest error, be final, conclusive and binding upon all parties.

     (b) Rules of Construction. All references to sections, schedules and exhibits are to
sections, schedules and exhibits in or to this Agreement unless otherwise specified. Unless
otherwise specified: (i) all meanings attributed to defined terms in this Agreement shall be
equally applicable to both the singular and plural forms of the terms so defined, (ii) “including”
means “including, but not limited to”, (iii) “mortgage” means a mortgage, deed of trust, deed to
secure debt or similar instrument, as applicable, and “mortgagee” means the secured party under a
mortgage, deed of trust, deed to secure debt or similar instrument and (iv) the words “hereof,”
“herein,” “hereby,” “hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision, article, section or other
subdivision of this Agreement. All accounting terms not specifically defined in this Agreement
shall be construed in accordance with GAAP, as the same may be modified in this Agreement. Each
covenant of Borrower contained herein or in any other Loan Document (including, without limitation,
covenants relating to the Property) shall be construed to mean that Borrower shall comply or cause
the Operating Lessee to comply with such covenant; and any failure by the Operating Lessee to
comply with any such covenant shall constitute a Default or Event of Default hereunder or under
such other Loan Document, as applicable, even though Operating Lessee is not a party to this
Agreement or such other Loan Document. For the avoidance of doubt, the foregoing shall not impose
on Operating Lessee any liability to pay the Indebtedness.

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ARTICLE I

GENERAL TERMS

     Section 1.1. The Loan.

     (a) On the Closing Date, subject to the terms and conditions of this Agreement, Lender shall
make a loan to Borrower (the “Loan”) in an amount equal to the Loan Amount, which Loan
shall be disbursed on the Funding Date pursuant to the terms hereof. The Loan shall initially be
represented by a single Note that shall bear interest as described in this Agreement at a per annum
rate equal to the Initial Interest Rate.

     (b) The Loan shall be secured by the Collateral pursuant to the Mortgage and the other Loan
Documents.

     (c) Lender shall have the right at any time, at Lender’s sole discretion, to replace the
initial Note with two or more replacement Notes, and the holder of each replacement Note shall
similarly have the right at any time, at such holder’s sole discretion, to replace its Note with
two or more replacement Notes. Each replacement Note shall be in the form of the Note so replaced,
but for its principal amount and Interest Rate. The principal amount of each Note shall be
determined by the applicable holder in its sole discretion, provided that the initial sum
of the principal amounts of the replacement Notes shall equal the then-outstanding principal
balance of the Notes that are so replaced. The Interest Rate of each replacement Note shall be
determined by the applicable holder in its sole discretion, provided that the initial
weighted average of such Interest Rates, weighted on the basis of the principal balances of the
respective Notes, shall initially equal the Interest Rate of the Note so replaced. Borrower shall
execute and return to Lender each such Note within two Business Days after Borrower’s receipt of an
execution copy thereof, and Borrower’s failure to do so within such time period shall, at Lender’s
election, constitute an immediate Event of Default hereunder. Borrower hereby authorizes and
appoints Lender as its attorney-in-fact to execute such replacement Notes on Borrower’s behalf
should Borrower fail to do so. The foregoing grant of authority is a power of attorney coupled
with an interest and such appointment shall be irrevocable for the term of this Agreement.
Borrower hereby ratifies all actions that such attorney shall lawfully take or cause to be taken in
accordance with this Section 1.1(c). If requested by Lender, Borrower shall deliver to
Lender, together with such replacement Notes, an opinion of counsel with respect to the due
authorization and enforceability of such replacement Notes and confirming that the delivery of such
replacement Notes does not alter the conclusions reached in the legal opinions delivered to Lender
at Closing.

     (d) The Loan shall be disbursed on the Funding Date upon delivery to Lender of a date down
endorsement to the Qualified Title Insurance Policy in form and substance acceptable to Lender and
dated as of the Funding Date, satisfaction of all Post-Closing Matters pursuant to Section
5.22 hereof, payment of all costs due under the Rate Lock Agreement, and the payment of all
fees and costs of Lender’s counsel and all other third party out-of-pocket expenses incurred in
connection with the funding of the Loan. Failure to satisfy the foregoing on or before 3:00 p.m.,
New York City time, on the Funding Date shall be an immediate Event of Default, and shall terminate
Lender’s obligation to fund the Loan.

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     Section 1.2. Interest and Principal.

     (a) On each Payment Date Borrower shall pay to Lender a constant monthly payment of
$174,897.86, which amount shall be applied first toward the payment of interest on each Note for
the applicable Interest Accrual Period at the applicable Interest Rate (except that in each case,
interest shall be payable on the Indebtedness, including due but unpaid interest, at the Default
Rate with respect to any portion of such Interest Accrual Period falling during the continuance of
an Event of Default, in which case the monthly payment shall be increased by the amount of Default
Interest that shall accrue on the Notes during the applicable Interest Accrual Period), and the
balance shall be applied toward the reduction of the outstanding principal balances of the Notes
pro rata in accordance with their then outstanding principal balances. On the
Funding Date, Borrower shall pay interest from and including the Funding Date through the end of
the first Interest Accrual Period. Interest payable hereunder shall be computed on the basis of a
360-day year and the actual number of days elapsed in the related Interest Accrual Period.

     (b) No prepayments of the Loan shall be permitted except for (i) prepayments resulting from
Casualty or Condemnation as described in Section 5.16(f), and (ii) a prepayment of the Loan
in whole (but not in part) during the Prepayment Period on not less than 15 days prior written
notice; provided that any prepayment hereunder shall be accompanied by all interest accrued
on the amount prepaid, plus the amount of interest that would have accrued thereon if the Loan had
remained outstanding through the end of the Interest Accrual Period in which Payment Date following
the date of such prepayment occurs (or is such prepayment occurs on a Payment Date, the amount of
interest that would have accrued thereon if the Loan had remained outstanding through the end of
the Interest Accrual Period in which such Payment Date occurs), plus all other amounts then due
under the Loan Documents. Borrower’s notice of prepayment shall create an obligation of Borrower
to prepay the Loan as set forth therein, but may be rescinded with five days’ written notice to
Lender (subject to payment of any out-of-pocket costs and expenses resulting from such rescission).
In addition, Defeasance shall be permitted after the expiration of the Lockout Period as described
in Section 2.1. The entire outstanding principal balance of the Loan, together with
interest through the end of the applicable Interest Accrual Period and all other amounts then due
under the Loan Documents, shall be due and payable by Borrower to Lender on the Maturity Date.

     (c) If all or any portion of the Principal Indebtedness is paid to Lender following
acceleration of the Loan, Borrower shall pay to Lender an amount equal to the applicable Yield
Maintenance Premium. No Yield Maintenance Premium shall be payable in the case of a prepayment of
principal (or any portion thereof) pursuant to Section 5.16(f). Amounts received in
respect of the Indebtedness during the continuance of an Event of Default shall be applied toward
interest, principal and other components of the Indebtedness (in such order as Lender shall
determine) before any such amounts are applied toward payment of Yield Maintenance Premiums, with
the result that Yield Maintenance Premiums shall accrue as the Principal Indebtedness is repaid but
no amount received from Borrower shall constitute payment of a Yield Maintenance Premium until the
remainder of the Indebtedness shall have been paid in full. Borrower acknowledges that (i) a
prepayment will cause damage to Lender; (ii) the Yield Maintenance Premium is intended to
compensate Lender for the loss of its investment and the expense incurred and time and effort associated with making the Loan, which will not be fully

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repaid if the Loan is prepaid; (iii) it will be extremely difficult and impractical to ascertain
the extent of Lender’s damages caused by a prepayment after an acceleration or any other prepayment
not permitted by the Loan Documents; and (iv) the Yield Maintenance Premium represents Lender’s and
Borrower’s reasonable estimate of Lender’s damages from the prepayment and is not a penalty.

     (d) Any payments of interest and/or principal not paid when due hereunder shall bear interest
at the applicable Default Rate and, in the case of all payments due hereunder other than the
repayment of the Principal Indebtedness on the Maturity Date or on any other earlier date as a
result of an acceleration of the Loan, when paid, shall be accompanied by a late fee in an amount
equal to the lesser of three and one-half percent (3.5%) of such unpaid sum and the maximum amount
permitted by applicable law in order to defray a portion of the expense incurred by Lender in
handling and processing such delinquent payment and to compensate Lender for the loss of the use of
such delinquent payment.

     Section 1.3. Method and Place of Payment. Except as otherwise specifically provided
in this Agreement, all payments and prepayments under this Agreement and the Notes (including any
deposit into the Cash Management Account pursuant to Section 3.2(c)) shall be made to
Lender not later than 1:00 p.m., New York City time, on the date when due (except in the case of
the payment made on the Maturity Date, which shall be made not later than 2:00 p.m., New York City
time) and shall be made in lawful money of the United States of America by wire transfer in federal
or other immediately available funds to the account specified from time to time by Lender. Any
funds received by Lender after such time shall be deemed to have been paid on the next succeeding
Business Day. Lender shall notify Borrower in writing of any changes in the account to which
payments are to be made. If the amount received from Borrower (or from the Cash Management Account
pursuant to Section 3.2(b)) is less than the sum of all amounts then due and payable
hereunder, such amount shall be applied, at Lender’s sole discretion, either toward the components
of the Indebtedness (e.g., interest, principal and other amounts payable hereunder) and the
Notes, in such sequence as Lender shall elect in its sole discretion, or toward the payment of
Property expenses.

     Section 1.4. Taxes; Regulatory Change.

     (a) Borrower agrees to indemnify Lender against any present or future stamp, documentary or
other similar or related taxes or other similar or related charges now or hereafter imposed,
levied, collected, withheld or assessed by any United States Governmental Authority by reason of
the execution and delivery of the Loan Documents and any consents, waivers, amendments and
enforcement of rights under the Loan Documents.

     (b) If Borrower is required by law to withhold or deduct any amount from any payment hereunder
in respect of any U.S. Tax, Borrower shall withhold or deduct the appropriate amount, remit such
amount to the appropriate Governmental Authority and pay to each Person to whom there has been an
Assignment or Participation of a Loan and who is not a U.S. Person such additional amounts as are
necessary in order that the net payment of any amount due to
such non-U.S. Person hereunder after deduction for or withholding in respect of any U.S. Tax
imposed with respect to such payment (or in lieu thereof, payment of such U.S. Tax by such non-U.S.
Person), will not be less than the amount stated in this Agreement to be then due and

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payable;
except that the foregoing obligation to pay such additional amounts shall not apply (i) to any
assignee that has not complied with the obligations contained in Section 9.7(c), (ii) to
any U.S. Taxes imposed solely by reason of the failure by such Person (or, if such Person is not
the beneficial owner of the relevant Loan, such beneficial owner) to comply with applicable
certification, information, documentation or other reporting requirements concerning the
nationality, residence, identity or connections with the United States of America of such Person
(or beneficial owner, as the case may be) if such compliance is required by statute or regulation
of the United States of America as a precondition to relief or exemption from such U.S. Taxes; or
(iii) with respect to any Person who is a fiduciary or partnership or other than the sole
beneficial owner of such payment, to any U.S. Tax imposed with respect to payments made under any
Note to a fiduciary or partnership to the extent that the beneficial owner or member of the
partnership would not have been entitled to the additional amounts if such beneficial owner or
member of the partnership had been the holder of the Note.

     (c) Within 30 days after paying any amount from which it is required by law to make any
deduction or withholding, and within 30 days after it is required by law to remit such deduction or
withholding to any relevant taxing or other authority, Borrower shall deliver to such non-U.S.
Person satisfactory evidence of such deduction, withholding or payment (as the case may be).

     (d) If, as a result of any Regulatory Change, any reserve, special deposit or similar
requirements relating to any extensions of credit or other assets of, or any deposits with, Lender
or any holder of all or a portion of the Loan is imposed, modified or deemed applicable and the
result is to increase the cost to such Lender or such holder of making or holding the Loan, or to
reduce the amount receivable by Lender or such holder hereunder in respect of any portion of the
Loan by an amount deemed by Lender or such holder to be material (such increases in cost and
reductions in amounts receivable, “Increased Costs”), then Borrower agrees that it will pay
to Lender or such holder upon Lender’s or such holder’s request such additional amount or amounts
as will compensate Lender and/or such holder for such Increased Costs to the extent that such
Increased Costs are reasonably allocable to the Loan. Lender will notify Borrower in writing of
any event occurring after the Closing Date that will entitle Lender or any holder of the Loan to
compensation pursuant to this Section 1.4(d) as promptly as practicable after it obtains
knowledge thereof and determines to request such compensation and will designate a different
lending office if such designation will avoid the need for, or reduce the amount of, such
compensation and will not, in the reasonable judgment of such Lender, be otherwise disadvantageous
to such Lender. If such Lender shall fail to notify Borrower of any such event within 90 days
following the end of the month during which such event occurred, then Borrower’s liability for any
amounts described in this Section incurred by such Lender as a result of such event shall be
limited to those attributable to the period occurring subsequent to the 90th day prior to the date
upon which such Lender actually notified Borrower of the occurrence of such event. Notwithstanding
the foregoing, in no event shall Borrower be required to compensate Lender or any holder of the
Loan for any portion of the income or franchise taxes of Lender or such holder, whether or not
attributable to payments made by Borrower. If a Lender requests compensation under this
Section 1.4(d), Borrower may, by notice to Lender, require that
such Lender furnish to Borrower a statement setting forth in reasonable detail the basis for
requesting such compensation and the method for determining the amount thereof.

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     Section 1.5. Release. Upon payment of the Indebtedness in full when permitted or
required hereunder, Lender shall execute instruments prepared by Borrower and reasonably
satisfactory to Lender, which, at Borrower’s election and at Borrower’s sole cost and expense: (a)
release and discharge all Liens on all Collateral securing payment of the Indebtedness (subject to
Borrower’s obligation to pay any associated fees and expenses), including all balances in the
Collateral Accounts; or (b) assign such Liens (and the Loan Documents) to a new lender designated
by Borrower. Any release or assignment provided by Lender pursuant to this Section 1.5
shall be without recourse, representation or warranty of any kind.

ARTICLE II

DEFEASANCE AND ASSUMPTION

     Section 2.1. Defeasance.

     (a) On any date after the expiration of the Lockout Period, provided no Event of Default is
then continuing and subject to the notice requirement described in Section 2.1(c), Borrower
may obtain the release of the Collateral (other than the Defeasance Collateral) from the Liens of
the Loan Documents upon the payment to Lender of all sums then due under the Loan Documents and the
delivery of the following to Lender:

     (i) Defeasance Collateral sufficient to provide payments on or prior to, and in any
event as close as possible to, all successive Payment Dates in an amount sufficient to make
all payments of interest and principal due hereunder, including the then outstanding
Principal Indebtedness, on the first Payment Date in the Prepayment Period or such other
Payment Date in the Prepayment Period as Borrower shall elect;

     (ii) written confirmation from an independent certified public accounting firm
reasonably satisfactory to Lender that such Defeasance Collateral is sufficient to provide
the payments described in clause (i) above;

     (iii) a security agreement, in form and substance reasonably satisfactory to Lender,
creating in favor of Lender a first priority perfected security interest in such Defeasance
Collateral (a “Defeasance Pledge Agreement”);

     (iv) an opinion of counsel for Borrower, in form and substance reasonably satisfactory
to Lender and delivered by counsel reasonably satisfactory to Lender, opining that (1) the
Defeasance Pledge Agreement has been duly authorized and is enforceable against Borrower in
accordance with its terms and that Lender has a perfected first priority security interest
in such Defeasance Collateral; and (2) if the Loan has been Securitized, the Defeasance,
including any assumption under Section 2.1(b), does not cause a tax to be imposed
on the Securitization Vehicle or, if the Securitization Vehicle is a REMIC, does not cause
any portion of the Loan to cease to be a “qualified mortgage” within the meaning of section 860G(a)(3) of the Code, and (3) that the
Defeasance does not constitute a “significant modification” of the Loan under Section 1001
of the Code;

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     (v) if the Loan has been Securitized, the Rating Condition with respect to such
Defeasance shall have been satisfied;

     (vi) instruments reasonably satisfactory to Lender releasing and discharging or
assigning to a third party Lender’s Liens on the Collateral (other than the Defeasance
Collateral);

     (vii) such other customary certificates, opinions, documents or instruments as Lender
and the Rating Agencies may reasonably request; and

     (viii) reimbursement for any costs and expenses incurred in connection with this
Section 2.1 (including Rating Agency and Servicer fees and expenses, reasonable fees
and expenses of legal counsel and any revenue, documentary stamp or intangible taxes or any
other tax or charge due in connection herewith).

Lender shall reasonably cooperate with Borrower to avoid the incurrence of mortgage recording taxes
in connection with a Defeasance at Borrower’s sole cost and expense.

     (b) At the time of the Defeasance, the Loan shall be assumed by a bankruptcy-remote entity
established or designated by Borrower and acceptable to Lender and each Rating Agency, to which
Borrower shall transfer all of the Defeasance Collateral (a “Defeasance Borrower”). The
right of the initial Lender hereunder or its designee to establish or designate a Defeasance
Borrower shall be retained by the initial Lender notwithstanding the sale or transfer of the Loan
unless such obligation is specifically assigned to and assumed by the transferee. Such Defeasance
Borrower shall execute and deliver to Lender an assumption agreement in form and substance
reasonably satisfactory to Lender, such Uniform Commercial Code financing statements as may be
reasonably requested by Lender and legal opinions of counsel reasonably acceptable to Lender that
are substantially equivalent to the opinions delivered to Lender on the Closing Date, including new
nonconsolidation opinions reasonably satisfactory to Lender and satisfactory to the Rating
Agencies; and Borrower and the Defeasance Borrower shall deliver such other documents, certificates
and legal opinions as Lender shall reasonably request.

     (c) Borrower must give Lender and each Rating Agency at least 30 days’ (and not more than 90
days’) prior written notice of any Defeasance under this Section 2.1, specifying the date
on which the Defeasance is to occur. If such Defeasance is not made on such date (x) Borrower’s
notice of Defeasance will be deemed rescinded, and (y) Borrower shall on such date pay to Lender
all reasonable losses, costs and expenses suffered by Lender as a consequence of such rescission.

     (d) Upon satisfaction of the requirements contained in this Section 2.1, Lender will
execute and deliver to Borrower, at Borrower’s sole cost and expense, such instruments, prepared by
Borrower and approved by Lender, as shall be necessary to release the Property from the Liens of
the Loan Documents.

     Section 2.2. Assumption. The initial Borrower shall have the right to Transfer all of
the Collateral to a Qualified Successor Borrower that will, contemporaneously with such Transfer,
assume all of the obligations of Borrower hereunder and under the other Loan Documents (an
“Assumption”), provided no Event of Default or material monetary Default is

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then continuing or would result therefrom and the following conditions are met to the reasonable satisfaction of
Lender:

     (i) such Qualified Successor Borrower shall have executed and delivered to Lender an
assumption agreement (including an assumption of the Mortgage in recordable form, if
requested by Lender), in form and substance reasonably acceptable to Lender, evidencing its
agreement to abide and be bound by the terms of the Loan Documents and containing
representations substantially equivalent to those contained in
Article IV (recast,
as necessary, such that representations that specifically relate to Closing Date are remade
as of the date of such assumption), and such other representations (and evidence of the
accuracy of such representations) as the Servicer shall reasonably request;

     (ii) the obligations of Operating Lessee under the Operating Lease shall have been
assumed by a Qualified Successor Operating Lessee pursuant to an assumption agreement, in
form and substance reasonably acceptable to Lender, and such Qualified Successor Operating
Lessee shall have delivered to Lender all documents reasonably requested by Lender relating
to the existence of such Qualified Successor Operating Lessee and the due authorization of
such Qualified Operating Lessee to assume the obligations under the Operating Lease, each in
form and substance reasonably satisfactory to Lender, including a certified copy of the
applicable resolutions from all appropriate persons, certified copies of the organizational
documents of the Qualified Successor Operating Lessee, together with all amendments thereto,
and certificates of good standing or existence for the Qualified Successor Operating Lessee
issued as of a recent date by its state of organization and each other state where such
entity, by the nature of its business, is required to qualify or register;

     (iii) such Uniform Commercial Code financing statements as may be reasonably requested
by Lender shall be filed;

     (iv) a party satisfactory to Lender in its sole discretion assumes all obligations,
liabilities, guarantees and indemnities of Sponsor and any other guarantor under the Loan
Documents pursuant to documentation satisfactory to Lender (and upon such assumption by such
party, Sponsor and any other such guarantor shall be released from such obligations,
liabilities, guarantees and indemnities);

     (v) such Qualified Successor Borrower, Qualified Successor Operating Lessee and
Borrower FF&E Subsidiary shall have delivered to Lender legal opinions of counsel reasonably
acceptable to Lender that are equivalent to the opinions delivered to Lender on the Closing
Date, including new nonconsolidation opinions that are reasonably satisfactory to Lender and
satisfactory to each of the Rating Agencies; and Borrower, Qualified Successor Borrower,
Qualified Successor Operating Lessee and Borrower FF&E Subsidiary shall have delivered such
other documents, certificates and legal opinions, including relating to REMIC matters, as
Lender shall reasonably request;

     (vi) such Qualified Successor Borrower, Qualified Successor Operating Lessee and
Borrower FF&E Subsidiary shall have delivered to Lender all documents reasonably requested
by it relating to the existence of each such entity and the due authorization of

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the
Qualified Successor Borrower to assume the Loan and to execute and deliver the documents
described in this Section 2.2, and the due authorization of the Qualified Successor
Operating Lessee to assume the Operating Lease and to execute and deliver the documents
described in this Section 2.2, each in form and substance reasonably satisfactory to
Lender, including a certified copy of the applicable resolutions from all appropriate
persons, certified copies of the organizational documents of the Qualified Successor
Borrower and Qualified Successor Operating Lessee, together with all amendments thereto, and
certificates of good standing or existence for the Qualified Successor Borrower, Qualified
Successor Operating Lessee and Borrower FF&E Subsidiary issued as of a recent date by its
state of organization and each other state where such entity, by the nature of its business,
is required to qualify or register;

     (vii) the Qualified Title Insurance Policy shall have been properly endorsed to reflect
the Transfer of the Property to the Qualified Successor Borrower;

     (viii) Neither the Qualified Successor Borrower, the Qualified Successor Operating
Lessee, nor any other Person that is a bankrupty-remote entity under common ownership or
control with Qualified Successor Borrower or the Qualified Successor Operating Lessee, shall
have filed a petition under any state or federal bankruptcy or insolvency laws or liquidated
all or a major portion of its assets or property within seven (7) years prior to the date of
the proposed Transfer.

     (ix) the Rating Condition shall have been satisfied with respect to the legal structure
of the Qualified Successor Borrower and Qualified Successor Operating Lessee, the
documentation of the Assumption and the related legal opinions; and

     (x) Borrower shall have paid to Lender a nonrefundable assumption fee in an amount
equal to 1.0% of the Principal Indebtedness, and Borrower shall have reimbursed Lender for
its reasonable out-of-pocket costs and expenses incurred in connection with such assumption.

     Notwithstanding clause (x) above, in connection with the first assumption of the Loan in
accordance with this Section 2.2, Borrower shall have paid to Lender a nonrefundable
assumption fee in an amount equal to $30,000, and Borrower shall have reimbursed Lender for its
reasonable out-of-pocket costs and expenses incurred in connection with such assumption.

     In determining whether or not the foregoing conditions are satisifed, Servicer shall use
commercially reasonable efforts to make its determination within thirty (30) days after receipt
from Borrower of all required information, including any additional information that Servicer
requests.

     Section 2.3. Transfers of Equity Interests in Borrower.

     (a) No direct or indirect equity interests in Borrower or Operating Lessee shall be conveyed
or otherwise transferred to any Person prior to the first anniversary of the Closing Date. From
and after the first anniversary of the Closing Date, provided that no Event of Default is
continuing, transfers (but not pledges, except as permitted under Section 7.1(f)) of direct
and

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indirect equity interests in Borrower and Operating Lessee shall be permitted upon 10 days
advance written notice thereof to Lender, provided that:

     (i) no such transfer shall result in a Change of Control without Lender’s prior written
consent;

     (ii) as a condition to any such transfer that results in Borrower ceasing to be
Controlled by Sponsor, and each subsequent transfer that again changes the identity of the
Qualified Equityholder that Controls Borrower, shall be conditioned upon payment to Lender
of a transfer fee in an amount equal to 1.0% of the Principal Indebtedness at the time of
such transfer;

     (iii) as a condition to any such transfer that results in any Person acquiring more
than 49% of the direct or indirect equity interest in Borrower, Operating Lessee or a
Single-Purpose Equityholder (even if not constituting a Change of Control), Borrower and
Operating Lessee shall deliver to Lender with respect to such Person a new non-consolidation
opinion satisfactory to (A) prior to the occurrence of any Securitization of the Loan,
Lender (Lender’s approval of any such non-consolidation opinion that is in substantially the
form of the Nonconsolidation Opinion not to be unreasonably withheld), and (B) at any time
following any Securitization or series of Securitizations of the Loan, each of the Rating
Agencies rating such Securitization or Securitizations; and

     (iv) Borrower shall have reimbursed Lender for its reasonable out-of-pocket costs and
expenses actually incurred in connection with any such transfer.

     Notwithstanding clause (ii) above, in connection with the first transfer in accordance with
this Section 2.3, Borrower shall have paid to Lender a nonrefundable transfer fee an amount
equal to $30,000, and Borrower shall have reimbursed Lender for its reasonable out-of-pocket costs
and expenses incurred in connection with such assumption.

     (b) Notwithstanding Section 2.3(a) above, the following transactions shall not be
deemed prohibited transfers under this Agreement and shall not require the consent of Lender:

     (i) the issuance of additional shares or the transfer of existing shares of Sponsor on
any public exchange or the issuance of new units or transfers of existing units in
Pebblebrook Hotel, L.P. (the “Operating Partnership”), provided that it shall
continue to be Controlled by Sponsor; and

     (ii) any merger of Sponsor or the Operating Partnership or a sale of all or
substantially all of the assets of Sponsor or the Operating Partnership, provided that the
new direct or indirect owner of Borrower resulting from such transaction assumes all
obligations of Sponsor under the Loan Documents, and shall continue to Control both Borrower
and Operating Lessee.

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ARTICLE III

ACCOUNTS

     Section 3.1. Cash Management Account.

     (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank a cash management account into which income from the Property payable to
Borrower or Operating Lessee will be deposited (the “Cash Management Account”), which
account shall be owned by Borrower but remain under the sole and exclusive control (as defined in
the New York Uniform Commercial Code) of Lender. As a condition precedent to the closing of the
Loan, Borrower shall cause the Cash Management Bank to execute and deliver an agreement (as
amended, restated, replaced, supplemented or otherwise modified in accordance herewith, a “Cash
Management Agreement”) that provides, inter alia, that no party other than
Lender and Servicer shall have the right to withdraw funds from the Cash Management Account and
that the Cash Management Bank shall comply with all instructions and entitlement orders of Lender
relating to the Cash Management Account and the other Collateral Accounts, in each case, without
the consent of Borrower, Operating Lessee or any other Person. The fees and expenses of the Cash
Management Bank shall be paid by Borrower.

     (b) Borrower shall cause Approved Property Manager to remit all sums in the Agency Account (as
defined in the Approved Management Agreement) after (i) payment of Gross Operating Expenses (as
defined in the Approved Management Agreement); (ii) payment of any Management Fees (as defined in
the Approved Management Agreement) or other amounts owed to Manager or its affiliates under the
Approved Management Agreement then due; (iii) the deposit of an amount equal to 4% of Gross Revenue
into the Reserve (as defined in the Approved Management Agreement); and (iv) retention of Working
Capital (as defined in the Approved Management Agreement) in the Agency Account of at least
$250,000, to the Cash Management Account.

     (c) Lender shall have the right at any time, upon not less than 30 days’ prior written notice
to Borrower, to replace the Cash Management Bank with any Eligible Institution at which Eligible
Accounts may be maintained that will promptly execute and deliver to Lender a Cash Management
Agreement substantially identical to the Cash Management Agreement executed at Closing.

     (d) Borrower shall maintain at all times a Qualified Operating Expense Account. Borrower shall
not permit any amounts unrelated to the Property to be commingled with amounts on deposit in the
Qualified Operating Expense Account and shall cause all amounts payable with respect to Operating
Expenses for the Property (to the extent such Operating Expenses have not previously been paid or
retained by Approved Property Manager in accordance with the Approved Management Agreement) to be
paid from the Qualified Operating Expense Account or the Cash Management Account (to the extent
required or permitted hereunder) and no other account. Borrower shall deliver to Lender each month
the monthly bank statement related to such Qualified Operating Expense Account. Unless and until an Event of Default shall occur,
Borrower shall have direct access to, and shall be permitted to make withdrawals and, except

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during
the continuance of a Trigger Period, equity distributions from, the Qualified Operating Expense
Account, without the consent of Lender. Upon, and during the continuance of, an Event of Default,
any balance in the Qualified Operating Expense Account shall be remitted to the Cash Management
Account.

     Section 3.2. Distributions from Cash Management Account.

     (a) The Cash Management Agreement shall provide that the Cash Management Bank shall remit to
the Qualified Operating Expense Account, at the end of each Business Day (or, at Borrower’s
election, on a less frequent basis), the amount, if any, by which amounts then contained in the
Cash Management Account exceed the aggregate amount required (or estimated by Lender to be
required) to be paid to or reserved with Lender on the next Payment Date pursuant hereto (the
“Minimum Balance”); provided, however, that Lender shall have the right to
terminate such remittances during the continuance of an Event of Default or Trigger Period upon
notice to the Cash Management Bank. Lender may notify the Cash Management Bank at any time of any
change in the Minimum Balance. Upon notice to Borrower following an Event of Default or Trigger
Period, Borrower shall remit to the Cash Management Account all sums previously remitted to the
Qualified Operating Expense Account during the then current Interest Accrual Period.

     (b) On each Payment Date, provided no Event of Default is continuing, Lender shall transfer
amounts from the Cash Management Account, to the extent available therein, to make the following
payments in the following order of priority:

     (i) to the Basic Carrying Costs Escrow Account, the amounts then required to be
deposited therein pursuant to Section 3.4;

     (ii) to Lender, the amount of all scheduled or delinquent interest and principal on the
Loan and all other amounts then due and payable under the Loan Documents (with any amounts
in respect of principal paid last);

     (iii) during the continuance of a Trigger Period, to the Qualified Operating Expense
Account, an amount equal to the Budgeted Operating Expenses for the month in which such
Payment Date occurs, to the extent such Budgeted Operating Expenses have not previously been
paid or retained by Approved Property Manager in accordance with the Approved Management
Agreement as certified by Borrower in an Officer’s Certificate delivered to Lender at least
five Business Days prior to such payment date, or otherwise disbursed to Borrower pursuant
to Section 3.2(a), provided that the amounts disbursed to such account
pursuant to this clause (iii) shall be used solely to pay Budgeted Operating Expenses for
such month (Borrower agreeing that, in the event that such Budgeted Operating Expenses
exceed the actual operating expenses for such month, such excess amounts shall be remitted
to the Cash Management Account prior to the next succeeding Payment Date);

     (iv) to the FF&E Reserve Account, the amounts, if any, required to be deposited
therein pursuant to Section 3.6;

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     (v) if no Trigger Period is continuing, on each Payment Date commencing in August of
each year, and continuing until the balance in the Seasonality Reserve Account equals or
exceeds the Seasonality Reserve Required Balance, all remaining amounts to the Seasonality
Reserve Account;

     (vi) during the continuance of a Trigger Period, all remaining amounts to the Excess
Cash Flow Reserve Account; and

     (vii) if no Trigger Period is continuing, all remaining amounts to the Qualified
Operating Expense Account.

     (c) If on any Payment Date the amount in the Cash Management Account shall be insufficient to
make all of the transfers described in Section 3.2(b)(i) through (iv), Borrower
shall deposit into the Cash Management Account on such Payment Date the amount of such deficiency.
If Borrower shall fail to make such deposit, the same shall constitute an Event of Default and, in
addition to all other rights and remedies provided for under the Loan Documents, Lender may
disburse and apply the amounts in the Collateral Accounts in accordance with Section
3.10(c).

     Section 3.3. Loss Proceeds Account.

     (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the purpose of depositing any Loss Proceeds (the “Loss
Proceeds Account”).

     (b) Provided no Event of Default is continuing, funds in the Loss Proceeds account shall be
applied in accordance with Section 5.16.

     Section 3.4. Basic Carrying Costs Escrow Account.

     (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the purpose of reserving amounts payable by Borrower in respect
of Taxes and insurance premiums (the “Basic Carrying Costs Escrow Account”).

     (b) On the Funding Date, the Basic Carrying Costs Escrow Account shall be funded in an amount
equal to the sum of (i) an amount sufficient to pay all Taxes by the 30th day prior to
the date they come due, assuming subsequent monthly fundings on Payment Dates of 1/12 of projected
annual Taxes, plus (ii) an amount sufficient to pay all insurance premiums by the
30th day prior to the date they come due, assuming subsequent monthly fundings on
Payment Dates of 1/12 of projected annual insurance premiums.

     (c) On each subsequent Payment Date, an additional deposit shall be made therein in an amount
equal to the sum of:

     (A) 1/12 of the Taxes that Lender reasonably estimates, based on information provided
by Borrower, will be payable during the next ensuing 12 months, plus

36

 

     (B) Intentionally omitted, plus

     (C) 1/12 of the insurance premiums that Lender reasonably estimates, based on
information provided by Borrower, will be payable during the next ensuing 12 months;

provided, however, that if at any time Lender reasonably determines that the amount
in the Basic Carrying Costs Escrow Account will not be sufficient to accumulate (upon payment of
subsequent monthly amounts in accordance with the provisions of this Agreement) the full amount of
all installments of Taxes and insurance premiums by the date on which such amounts come due, then
Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments
to the Basic Carrying Costs Escrow Account by the amount that Lender reasonably estimates is
sufficient to achieve such accumulation.

     (d) Notwithstanding the terms and provisions of the foregoing paragraphs of this Section
3.4:

     (i) Borrower shall have no obligation to comply with subclause (i) of Section
3.4(b) and Section 3.4(c)(A) for so long as (i) no Event of Default or Trigger
Period shall be continuing, (ii) no Taxes that are currently due and payable remain unpaid;
and (iii) Borrower shall maintain in the Basic Carrying Costs Escrow Account an amount equal
to 50% of the Taxes that Lender reasonably estimates, based on information provided by
Borrower, will be payable on the next semi-annual payment date (such estimate not to be
reduced to the extent of any actual or proposed tax appeal) (excluding any amounts in such
Basic Carrying Costs Escrow Account on account of insurance premiums) (any such period, a
“Tax Reserve Exemption Period”);

     (ii) Intentionally omitted; and

     (iii) Borrower shall have no obligation to comply with subclause (iii) of Section
3.4(b) and Section 3.4(c)(C) for so long as (i) no Event of Default or Trigger
Period shall be continuing, (ii) no insurance premiums that are currently due and payable
remain unpaid; and (iii) Borrower shall have provided Lender with satisfactory evidence (as
determined by Lender) that the Property is insured in accordance with the requirements of
this Agreement pursuant to a blanket insurance Policy covering substantially all real
property owned directly or indirectly by Sponsor, including, without limitation, the
Property (any such period, a “Insurance Reserve Exemption Period”).

     (e) Borrower shall provide Lender with copies of all tax and insurance bills relating to the
Property promptly after Borrower’s receipt thereof. During any Tax Reserve Exemption Period,
Borrower shall make all Tax payments on or before the date due. During any Insurance Reserve
Exemption Period, Borrower shall make all insurance premium payments on or before
the date due. At all other times, provided no Event of Default is continuing, Lender
will apply amounts in the Basic Carrying Costs Escrow Account toward the purposes for which such
amounts are deposited therein, including, for the avoidance of doubt, Taxes due and payable. In
connection with the making of any payment from the Basic Carrying Costs Escrow Account, Lender may
cause such payment to be made according to any bill, statement or estimate procured

37

 

from, as
applicable, the appropriate public office or insurance carrier, without inquiry into the accuracy
of such bill, statement or estimate or into the validity of any tax, assessment, sale, forfeiture,
tax lien or title or claim thereof unless given written advance notice by Borrower of such
inaccuracy, invalidity or other contest.

     Section 3.5. Seasonality Reserve Account.

     (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the purpose of reserving amounts in respect of seasonal
fluctuations in Net Operating Income (the “Seasonality Reserve Account”).

     (b) On each Payment Date commencing in August of each year, and continuing until the balance
in the Seasonality Reserve Account equals or exceeds the Seasonality Reserve Required Balance,
there shall be deposited into the Seasonality Reserve Account all amounts set forth in Section
3.2(b)(v).

     (c) Provided that no Event of Default is continuing, on the Payment Date in each November,
Lender shall cause one-third of the balance in the Seasonality Reserve Account to be applied toward
the monthly payment of principal and interest then due; on the Payment Date in each December,
Lender shall cause one-half of the remaining balance in the Seasonality Reserve Account to be
applied toward the monthly payment of principal and interest then due; and on the Payment Date in
each January, Lender shall cause the remaining balance in the Seasonality Reserve Account to be
applied toward the monthly payment of principal and interest then due. Notwithstanding the
foregoing, if a Trigger Period exists on the Payment Date in November, December or January, such
funds from the Seasonality Reserve shall be deposited into the Excess Cash Flow Reserve Account.

     Section 3.6. FF&E Reserve Account.

     (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the purpose of reserving amounts in respect of FF&E
expenditures (the “FF&E Reserve Account”).

     (b) On each Payment Date there shall be deposited into the FF&E Reserve Account an amount
equal to the Monthly FF&E Amount.

     (c) Upon the request of Borrower at any time that no Event of Default is continuing (but not
more often than once per calendar month), Lender shall cause disbursements to Borrower from the
FF&E Reserve Account to reimburse Borrower for FF&E expenditures that are consistent with the
Approved Annual Budget; provided that:

     (i) Borrower shall deliver to Lender invoices evidencing that the costs for which such
disbursements are requested are due and payable;

     (ii) Borrower shall deliver to Lender an Officer’s Certificate confirming that all such
costs have been previously paid by Borrower or will be paid from the proceeds of the
requested disbursement and that all conditions precedent to such disbursement required by
the Loan Documents have been satisfied; and

38

 

     (iii) Lender may condition the making of a requested disbursement on (1) reasonable
evidence establishing that Borrower has applied any amounts previously received by it in
accordance with this Section for the expenses to which specific draws made hereunder relate,
(2) a reasonably satisfactory site inspection, and (3) receipt of lien releases and waivers
from any contractors, subcontractors and others with respect to such amounts.

     (d) Notwithstanding the foregoing, Borrower shall have no obligation to comply with subclause
(b) of this Section 3.6 for so long as (i) no Event of Default or Trigger Period is
continuing, (ii) Borrower maintains with an Eligible Institution a separate account (the
“Qualified FF&E Account”) owned by Borrower but subject to a Qualified FF&E Account Control
Agreement, into which Borrower shall deposit, or cause to be deposited, on a monthly basis, an
amount equal to the Monthly FF&E Amount and (iii) Borrower’s chief financial officer shall deliver
to Lender within ten Business Days of the end of each Fiscal Quarter, an Officer’s Certificate
certifying as to the amount contained in the Qualified FF&E Account on the last day of such Fiscal
Quarter and, upon Lender’s request, further certifying that; no amount has been remitted from the
Qualified FF&E Account for any purpose other than the payment of FF&E expenditures pursuant to the
Approved Annual Budget. Upon the occurrence of a Trigger Period or an Event of Default all amounts
contained in the Qualified FF&E Account shall be remitted into the FF&E Reserve Account.

     Section 3.7. Deferred Maintenance and Environmental Escrow Account.

     (a) On or prior to the Closing Date, if the Deferred Maintenance Amount is greater than zero,
Borrower shall establish and thereafter maintain with the Cash Management Bank an account for the
purpose of reserving amounts anticipated to be required to correct Deferred Maintenance Conditions
(the “Deferred Maintenance and Environmental Escrow Account”).

     (b) On the Funding Date, Borrower shall deposit into the Deferred Maintenance and
Environmental Escrow Account, from the proceeds of the Loan, an amount equal to the Deferred
Maintenance Amount.

     (c) Upon the request of Borrower at any time that no Event of Default is continuing (but not
more often than once per calendar month), Lender shall cause disbursements to Borrower from the
Deferred Maintenance and Environmental Escrow Account to reimburse Borrower for reasonable costs
and expenses incurred in order to correct Deferred Maintenance Conditions, provided that

     (i) Borrower shall deliver to Lender invoices evidencing that the costs for which such
disbursements are requested are due and payable;

     (ii) Borrower shall deliver to Lender an Officer’s Certificate confirming that all such
costs have been previously paid by Borrower or will be paid from the proceeds of the
requested disbursement and that all conditions precedent to such disbursement required by
the Loan Documents have been satisfied; and

     (iii) Lender may condition the making of a requested disbursement on (1) reasonable
evidence establishing that Borrower has applied any amounts previously

39

 

received by it in
accordance with this Section for the expenses to which specific draws made hereunder relate,
(2) a reasonably satisfactory site inspection, and (3) receipt of lien releases and waivers
from any contractors, subcontractors and others with respect to such amounts.

     (d) Upon substantial completion (as reasonably determined by Lender) of the portion of the
Deferred Maintenance Conditions identified on any line on Schedule C, and provided no Event
of Default or Trigger Period is then continuing, the remainder of the portion of the Deferred
Maintenance Reserve Account held for such line item (as shown adjacent to such line item on
Schedule C) shall promptly be remitted to Borrower. Upon the correcting of all Deferred
Maintenance Conditions, provided no Event of Default or Trigger Period is then continuing, any
amounts then remaining in the Deferred Maintenance Reserve Account shall promptly be remitted to
Borrower and the Deferred Maintenance Account will no longer be maintained.

     Section 3.8. [Intentionally omitted].

     Section 3.9.
Excess Cash Flow Reserve Account.

     (a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the
Cash Management Bank an account for the deposit of amounts required to be deposited therein in
accordance with Section 3.2(b)(vi) (the “Excess Cash Flow Reserve Account”).

     (b) Provided that no Event of Default is then continuing, Lender shall release to the Cash
Management Account all amounts then contained in the Excess Cash Flow Reserve Account on the first
Payment Date after Borrower delivers to Lender evidence reasonably satisfactory to Lender
establishing that no Trigger Period is then continuing. Such a release shall not preclude the
subsequent commencement of a Trigger Period and the deposit of amounts into the Excess Cash Flow
Reserve Account as set forth in Section 3.2(b)(vi).

     Section 3.10. Account Collateral.

     (a) Borrower hereby grants a perfected first-priority security interest in favor of Lender in
and to the Account Collateral as security for the Indebtedness, together with all rights of a
secured party with respect thereto. Each Collateral Account shall be an Eligible Account under the
sole dominion and control of Lender and shall be in the name of Borrower, as pledgor,
and Lender, as pledgee. Borrower shall have no right to make withdrawals from any of the
Collateral Accounts. Funds in the Collateral Accounts shall not be commingled with any other
monies at any time. Borrower shall execute any additional documents that Lender in its reasonable
discretion may require and shall provide all other evidence reasonably requested by Lender to
evidence or perfect its first-priority security interest in the Account Collateral. Funds in the
Collateral Accounts shall be invested at Lender’s discretion only in Permitted Investments, which
Permitted Investments shall be credited to the related Collateral Account. All income and gains
from the investment of funds in the Collateral Accounts shall be retained in the Collateral
Accounts from which they were derived for the benefit of Borrower. After the Loan and all other
Indebtedness have been paid in full, the Collateral Accounts shall be closed and the balances
therein, if any, shall be paid to Borrower.

40

 

     (b) The insufficiency of amounts contained in the Collateral Accounts shall not relieve
Borrower from its obligation to fulfill all covenants contained in the Loan Documents.

     (c) During the continuance of an Event of Default, Lender may, in its sole discretion, apply
funds in the Collateral Accounts, and funds resulting from the liquidation of Permitted Investments
contained in the Collateral Accounts, either toward the components of the Indebtedness
(e.g., interest, principal and other amounts payable hereunder), the Loan and the Notes in
such sequence as Lender shall elect in its sole discretion, and/or toward the payment of Property
expenses.

     Section 3.11. Bankruptcy. Borrower and Lender acknowledge and agree that upon the
filing of a bankruptcy petition by or against Borrower under the Bankruptcy Code, the Account
Collateral and the Revenues (whether then already in the Collateral Accounts, or then due or
becoming due thereafter) shall be deemed not to be property of Borrower’s bankruptcy estate within
the meaning of Section 541 of the Bankruptcy Code. If, however, a court of competent jurisdiction
determines that, notwithstanding the foregoing characterization of the Account Collateral and the
Revenues by Borrower and Lender, the Account Collateral and/or the Revenues do constitute property
of Borrower’s bankruptcy estate, then Borrower and Lender further acknowledge and agree that all
such Revenues, whether due and payable before or after the filing of the petition, are and shall be
cash collateral of Lender. Borrower acknowledges that Lender does not consent to Borrower’s use of
such cash collateral and that, in the event Lender elects (in its sole discretion) to give such
consent, such consent shall only be effective if given in writing signed by Lender. Except as
provided in the immediately preceding sentence, Borrower shall not have the right to use or apply
or require the use or application of such cash collateral (i) unless Borrower shall have received a
court order authorizing the use of the same, and (ii) Borrower shall have provided such adequate
protection to Lender as shall be required by the bankruptcy court in accordance with the Bankruptcy
Code.

ARTICLE IV

REPRESENTATIONS

          Borrower represents to Lender that, as of the Closing Date, except as set forth in the
Exception Report:

     Section 4.1. Organization.

     (a) Borrower, Operating Lessee and Borrower FF&E Subsidiary each are duly organized, validly
existing and in good standing under the laws of the State of Delaware, and is in good standing in
each other jurisdiction where ownership of its property or the conduct of its business requires it
to be so, and each has all power and authority under such laws and its organizational documents and
all material governmental licenses, authorizations, consents and approvals required to carry on its
business as now conducted.

     (b) Borrower, Operating Lessee and Borrower FF&E Subsidiary each have no subsidiaries and do
not own any equity interest in any other Person, provided, however, Borrower is the sole member and
equity holder of Borrower FF&E Subsidiary.

41

 

     (c) The organizational chart contained in Exhibit A is true and correct as of the date
hereof.

     (d) The limited liability company interests of Borrower, Operating Lessee and Borrower FF&E
Subsidiary are not represented by any limited liability company certificates, other certificates or
other instruments of any kind.

     Section 4.2. Authorization. Borrower has the power and authority to enter into this
Agreement and the other Loan Documents, to perform its obligations hereunder and thereunder and to
consummate the transactions contemplated by the Loan Documents and has by proper action duly
authorized the execution and delivery of the Loan Documents.

     Section 4.3. No Conflicts. Neither the execution and delivery of the Loan Documents,
nor the consummation of the transactions contemplated therein, nor performance of and compliance
with the terms and provisions thereof will (i) violate or conflict with any provision of its
formation and governance documents, (ii) violate any Legal Requirement, regulation (including
Regulation U, Regulation X or Regulation T), order, writ, judgment, injunction, decree or permit
applicable to it, (iii) violate or conflict with contractual provisions of, or cause an event of
default under, any indenture, loan agreement, mortgage, contract or other Material Agreement to
which Borrower, Operating Lessee or Sponsor is a party or by which Borrower, Operating Lessee or
Sponsor may be bound, or (iv) result in or require the creation of any Lien or other charge or
encumbrance upon or with respect to the Collateral in favor of any party other than Lender.

     Section 4.4. Consents. No consent, approval, authorization or order of, or
qualification with, any court or Governmental Authority is required
in connection with the execution, delivery or performance by Borrower of this Agreement or the
other Loan Documents, except for any of the foregoing that have already been obtained.

     Section 4.5. Enforceable Obligations. This Agreement and the other Loan Documents
have been duly executed and delivered by Borrower and constitute Borrower’s legal, valid and
binding obligations, enforceable in accordance with their respective terms, subject to bankruptcy,
insolvency and similar laws of general applicability relating to or affecting creditors’ rights and
to general equity principles. The Loan Documents are not subject to any right of rescission,
set-off, counterclaim or defense by Borrower, including the defense of usury.

     Section 4.6. No Default. No Default or Event of Default will exist immediately
following the making of the Loan.

     Section 4.7. Payment of Taxes. Borrower, Operating Lessee and Borrower FF&E
Subsidiary each have filed, or caused to be filed, all tax returns (federal, state, local and
foreign) required to be filed and paid all amounts of taxes due (including interest and penalties)
except for taxes that are not yet delinquent and has paid all other taxes, fees, assessments and
other governmental charges (including mortgage recording taxes, documentary stamp taxes and
intangible taxes) owing by it necessary to preserve the Liens in favor of Lender.

     Section 4.8. Compliance with Law. Borrower, Operating Lessee, Borrower FF&E
Subsidiary, the Property and the use thereof comply in all material respects with all applicable

42

 

Insurance Requirements and Legal Requirements, including building and zoning ordinances and codes
(including, without limitation, the Americans with Disabilities Act). The Property conforms to
current zoning requirements (including requirements relating to parking) and is neither an illegal
nor a legal nonconforming use. Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary is
in default or violation of any order, writ, injunction, decree or demand of any Governmental
Authority the violation of which could adversely affect the Property or the condition (financial or
otherwise) or business of Borrower, Operating Lessee or Borrower FF&E Subsidiary. There has not
been committed by or on behalf of Borrower, Operating Lessee, Borrower FF&E Subsidiary or, to the
best of Borrower’s knowledge, any other person in occupancy of or involved with the operation or
use of the Property, any act or omission affording any federal Governmental Authority or any state
or local Governmental Authority the right of forfeiture as against the Property or any portion
thereof or any monies paid in performance of its obligations under any of the Loan Documents. None
of Borrower, Operating Lessee, Borrower FF&E Subsidiary or Sponsor has purchased any portion of the
Property with proceeds of any illegal activity.

     Section 4.9. ERISA. None of Borrower, Operating Lessee, Borrower FF&E Subsidiary, or
any ERISA Affiliate of Borrower or Operating Lessee has incurred or could be subjected to any
liability under Title IV or Section 302 of ERISA or Section 412 of the Code or maintains or
contributes to, or is or has been required to maintain or contribute to, any employee benefit plan
(as defined in Section 3(3) of ERISA) subject to Title IV or Section 302 of ERISA or Section 412 of
the Code. The consummation of the transactions contemplated by this Agreement will not constitute
or result in any non-exempt
prohibited transaction under Section 406 of ERISA, Section 4975 of the Code or substantially
similar provisions under federal, state or local laws, rules or regulations.

     Section 4.10. Investment Company Act. Neither Borrower, Operating Lessee nor Borrower
FF&E Subsidiary is an “investment company”, or a company “controlled” by an “investment company”,
registered or required to be registered under the Investment Company Act of 1940, as amended.

     Section 4.11. No Bankruptcy Filing. Neither Borrower, Operating Lessee nor Borrower
FF&E Subsidiary is contemplating either the filing of a petition by it under any state or federal
bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or
property. Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary has knowledge of any
Person contemplating the filing of any such petition against it. During the ten year period
preceding the Closing Date, no petition in bankruptcy has been filed by or against Borrower,
Operating Lessee, Borrower FF&E Subsidiary, any Single-Purpose Equityholder or Sponsor, or any
affiliate of any of the aforementioned Persons, or any person who owns or controls, directly or
indirectly, ten percent or more of the beneficial ownership interests of any such Person.

     Section 4.12. Other Debt. Neither Borrower, Operating Lessee nor Borrower FF&E
Subsidiary has outstanding any Debt other than Permitted Debt.

     Section 4.13. Litigation. There are no actions, suits, proceedings, arbitrations or
governmental investigations by or before any Governmental Authority or other court or agency now
pending, and to the best of Borrower’s knowledge there are no such actions, suits,

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proceedings,
arbitrations or governmental investigations threatened against or affecting Borrower, Operating
Lessee or the Collateral, in each case, except as listed in the Exception Report (and none of the
matters listed in the Exception Report, even if determined against Borrower, Operating Lessee or
the Collateral, could reasonably be expected to result in a Material Adverse Effect).

     Section 4.14. Leases; Material Agreements.

     (a) Except as set forth in Schedule G, there are no Leases and neither Borrower nor Operating
Lessee is currently engaged in negotiations with any prospective tenant to enter into any Lease.

     (b) There are no Material Agreements except as described in Schedule E. Borrower has
made available to Lender true and complete copies of all Material Agreements. Each Material
Agreement has been entered into at arm’s length in the ordinary course of business by or on behalf
of Borrower or Operating Lessee. The Material Agreements are in full force and effect and there
are no defaults thereunder by Borrower, Operating Lessee, or to Borrower’s knowledge, any other
party thereto. Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary is in default in
any material respect in the performance, observance or fulfillment of any of the obligations,
covenants or conditions contained in any Permitted Encumbrance or any
other agreement or instrument to which it is a party or by which it or the Property is bound
(including, for the avoidance of doubt, the Operating Lease).

     (c) Other than as disclosed on Schedule E, Operating Lessee is not a party to any
Material Agreements related to the Property.

     Section 4.15. Full and Accurate Disclosure. No statement of fact heretofore delivered
by Borrower, Sponsor or Operating Lessee to Lender in writing in respect of the Property or
Borrower, Sponsor or Operating Lessee contains any untrue statement of a material fact or omits to
state any material fact necessary to make statements contained therein not misleading unless
subsequently corrected. There is no fact, event or circumstance presently known to Borrower,
Sponsor or Operating Lessee that has not been disclosed to Lender that has had or could reasonably
be expected to result in a Material Adverse Effect.

     Section 4.16. Financial Condition. All financial data concerning Borrower, Operating
Lessee and the Property heretofore provided to Lender fairly presents in accordance with GAAP the
financial position of Borrower and Operating Lessee in all material respects, as of the date on
which it was made, and does not omit to state any fact necessary to make statements contained
herein or therein not misleading. Since the delivery of such data, except as otherwise disclosed
in writing to Lender, there have occurred no changes or circumstances that have had or are
reasonably expected to result in a Material Adverse Effect.

     Section 4.17. Single-Purpose Requirements.

     (a) Each of Borrower and Operating Lessee is now, and has always been since its formation, a
Single-Purpose Entity and has conducted its business in substantial compliance with the provisions
of its organizational documents. Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary
has ever (i) owned any property other than the Property and/or

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related personal property , (ii)
engaged in any business, except the ownership and/or operation of the Property, or (iii) had any
material contingent or actual obligations or liabilities unrelated to the Property.

     (b) Borrower has provided Lender with true, correct and complete copies of (i) Borrower’s and
Operating Lessee’s current financial statements; and (ii) Borrower’s and Operating Lessee’s
respective current operating agreements, together with all amendments and modifications thereto.

     Section 4.18. Use of Loan Proceeds. No part of the proceeds of the Loan will be used
for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulations T,
U or X of the Board of Governors of the Federal Reserve System or for any other purpose that would
be inconsistent with such Regulations T, U or X or any other Regulations of such Board of
Governors, or for any purpose prohibited by Legal Requirements or by the terms and conditions of
the Loan Documents. The
Loan is solely for the business purpose of Borrower or for distribution to Borrower’s
equityholders in accordance with Legal Requirements.

     Section 4.19. Not Foreign Person. Neither Borrower, Operating Lessee nor Borrower
FF&E Subsidiary is a “foreign person” within the meaning of Section 1445(f)(3) of the Code.

     Section 4.20. Labor Matters. Neither Borrower, Operating Lessee nor Borrower FF&E
Subsidiary is a party to any collective bargaining agreements.

     Section 4.21. Title. Borrower owns good, marketable and insurable fee title to the
Property. Borrower, through its wholly-owned subsidiary, Skamania Lodge Furnishing, LLC, owns good
and marketable title to the FF&E. Borrower and/or Operating Lessee own good and marketable title
to all personal property related to the Property (other than the FF&E, which is owned solely by
Borrower), to the Collateral Accounts and to any other Collateral), in each case free and clear of
all Liens whatsoever except the Permitted Encumbrances. The Mortgage, when properly recorded in the
appropriate records, together with any Uniform Commercial Code financing statements required to be
filed in connection therewith, will create (i) a valid, perfected first priority Lien on the
Property and the rents therefrom, enforceable as such against creditors of and purchasers from
Borrower or Operating Lessee and subject only to Permitted Encumbrances, and (ii) perfected Liens
(pursuant to the Uniform Commercial Code of the State of New York) in and to all personalty, all in
accordance with the terms thereof, in each case subject only to any applicable Permitted
Encumbrances. The Permitted Encumbrances do not and will not materially and adversely affect or
interfere with the value, or current or contemplated use or operation, of the Property, or the
security intended to be provided by the Mortgage or Borrower’s ability to repay the Indebtedness in
accordance with the terms of the Loan Documents. Except as insured over by a Qualified Title
Insurance Policy, there are no claims for payment for work, labor or materials affecting the
Property that are or may become a Lien prior to, or of equal priority with, the Liens created by
the Loan Documents. No creditor of Borrower (other than Lender) or Operating Lessee has in its
possession any goods that constitute or evidence the Collateral.

     Section 4.22. No Encroachments. Except as shown on the Qualified Survey, all of the
improvements on the Property lie wholly within the boundaries and building restriction lines

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of the
Property, and no improvements on adjoining property encroach upon the Property, and no easements or
other encumbrances upon the Property encroach upon any of the improvements, so as, in either case,
to adversely affect the value or marketability of the Property, except those that are insured
against by a Qualified Title Insurance Policy.

     Section 4.23. Physical Condition.

     (a) Except for matters set forth in the Engineering Reports, the Property (including
sidewalks, storm drainage system, roof, plumbing system, HVAC system, fire protection system,
electrical system, equipment, elevators, exterior sidings and doors, irrigation system and all
structural components) is in good condition, order and repair in all respects material to its
use, operation or value.

     (b) Borrower is not aware of any material structural or other material defect or damages in
the Property, whether latent or otherwise.

     (c) Borrower has not received and is not aware of any other party’s receipt of notice from any
insurance company or bonding company of any defects or inadequacies in the Property that would,
alone or in the aggregate, adversely affect in any material respect the insurability of the same or
cause the imposition of extraordinary premiums or charges thereon or of any termination or
threatened termination of any policy of insurance or bond.

     Section 4.24. Fraudulent Conveyance. Neither Borrower nor Operating Lessee has
entered into the Transaction or any of the Loan Documents with the actual intent to hinder, delay
or defraud any creditor. Borrower and Operating Lessee each have received reasonably equivalent
value in exchange for its obligations under the Loan Documents. On the Closing Date, the fair
salable value of Borrower’s aggregate assets is and will, immediately following the making of the
Loan and the use and disbursement of the proceeds thereof, be greater than Borrower’s probable
aggregate liabilities (including subordinated, unliquidated, disputed and Contingent Obligations).
Borrower’s aggregate assets do not and, immediately following the making of the Loan and the use
and disbursement of the proceeds thereof will not, constitute unreasonably small capital to carry
out its business as conducted or as proposed to be conducted. Neither Borrower nor Operating
Lessee intends to, and does not believe that it will, incur debts and liabilities (including
Contingent Obligations and other commitments) beyond its ability to pay such debts as they mature
(taking into account the timing and amounts to be payable on or in respect of obligations of
Borrower or Operating Lessee, respectively).

     Section 4.25. Management. Except for any Approved Management Agreement, no property
management agreements are in effect with respect to the Property. The Approved Management
Agreement is in full force and effect and there is no event of default thereunder by any party
thereto and no event has occurred that, with the passage of time and/or the giving of notice would
constitute a default thereunder.

     Section 4.26. Condemnation. No Condemnation has been commenced or, to Borrower’s
knowledge, is contemplated with respect to all or any portion of the Property or for the relocation
of roadways providing access to the Property.

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     Section 4.27. Utilities and Public Access. The Property has adequate rights of access
to dedicated public ways (and makes no material use of any means of access or egress that is not
pursuant to such dedicated public ways or recorded, irrevocable rights-of-way or easements) and is
adequately served by all public utilities necessary to the continued use and enjoyment of the
Property as presently used and enjoyed.

     Section 4.28. Environmental Matters. Except as disclosed in the Environmental
Reports:

     (i) The Property is in compliance in all material respects with all Environmental Laws
applicable to the Property (which compliance includes, but is not limited to, the possession
of, and compliance with, all environmental, health and safety permits, approvals, licenses,
registrations and other governmental authorizations required in connection with the
ownership and operation of the Property under all Environmental Laws).

     (ii) No Environmental Claim is pending with respect to the Property, nor, to Borrower’s
knowledge, is any threatened, nor are there any consent decrees or other decrees, consent
orders, administrative orders or other orders, or other administrative or judicial
requirements outstanding under any Environmental Law with respect to Borrower, Operating
Lessee or the Property.

     (iii) Without limiting the generality of the foregoing, there is not present at, on, in
or under the Property, any Hazardous Substances, PCB-containing equipment, asbestos or
asbestos containing materials, underground storage tanks or surface impoundments for any
Hazardous Substance, lead in drinking water (except in concentrations that comply with all
Environmental Laws), or lead-based paint.

     (iv) There have not been and are no past, present or threatened Releases of any
Hazardous Substance from or at the Property that are reasonably likely to form the basis of
any Environmental Claim, and, to Borrower’s knowledge, there is no threat of any Release of
any Hazardous Substance migrating to the Property.

     (v) No Liens are presently recorded with the appropriate land records under or pursuant
to any Environmental Law with respect to the Property and, to Borrower’s knowledge, no
Governmental Authority has been taking any action to subject the Property to Liens under any
Environmental Law.

     (vi) There have been no material environmental investigations, studies, audits, reviews
or other analyses conducted by or that are in the possession of Borrower or Operating Lessee
in relation to the Property that have not been made available to Lender.

     Section 4.29. Assessments. There are no pending or, to Borrower’s knowledge, proposed
special or other assessments for public improvements or otherwise affecting the Property, nor are
there any contemplated improvements to the Property that may result in such special or other
assessments. No extension of time for assessment or payment of Taxes is in effect.

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     Section 4.30. No Joint Assessment. Borrower has not suffered, permitted or initiated
the joint assessment of the Property (i) with any other real property constituting a separate tax
lot, or (ii) with any personal property, or any other procedure whereby the Lien of any Taxes that
may be levied against such other real property or personal property shall be assessed or levied or
charged to the Property as a single Lien.

     Section 4.31. Separate Lots. No portion of the Property is part of a tax lot that
also includes any real property that is not Collateral.

     Section 4.32. Permits; Certificate of Occupancy. To the best of Borrower’s knowledge
after due inquiry, Borrower, Operating Lessee and/or Approved Property Manager have obtained all
Permits necessary for the present and contemplated use and operation of the Property. The uses
being made of the Property are in conformity in all material respects with the certificate of
occupancy and/or Permits for the Property and any other restrictions, covenants or conditions
affecting the Property.

     Section 4.33. Flood Zone. None of the improvements on the Property is located in an
area identified by the Federal Emergency Management Agency or the Federal Insurance Administration
as a “100 year flood plain” or as having special flood hazards (including Zones A and V), or, to
the extent that any portion of the Property is located in such an area, the Property is covered by
flood insurance meeting the requirements set forth in Section 5.15(a)(ii).

     Section 4.34. Security Deposits. Neither Borrower, Operating Lessee nor Borrower FF&E
Subsidiary are in possession of any security deposits.

     Section 4.35. Acquisition Documents. Borrower has delivered to Lender true and
complete copies of all material agreements and instruments under which Borrower, Operating Lessee
or any of their affiliates or the seller of the Property have remaining rights or obligations in
respect of Borrower’s acquisition of the Property.

     Section 4.36. Insurance. Borrower or Operating Lessee has obtained, or caused to be
obtained, insurance policies reflecting the insurance coverages, amounts and other requirements set
forth in this Agreement. All premiums on such insurance policies required to be paid as of the
Closing Date have been paid for the current policy period. No Person, including Borrower and
Operating Lessee, has done, by act or omission, anything that would impair the coverage of any such
policy.

     Section 4.37. No Dealings. Borrower, Operating Lessee and the Sponsor are not aware
of any unlawful influence on the assessed value of the Property.

     Section 4.38. Estoppel Certificates. Borrower has delivered to Lender true and
complete copies of (a) the form(s) of estoppel certificate heretofore sent by Borrower, Operating
Lessee or any of their affiliates to every Tenant at the Property, and (b) each estoppel
certificate received back from any such Tenant prior to the Closing Date.

     Section 4.39. Compliance with Anti-Terrorism, Embargo, Sanctions and Anti-Money Laundering
Laws. (a) None of the funds or other assets of any of Borrower, Operating Lessee, any
Single-Purpose Equityholder or Sponsor constitute property of, or are beneficially owned,

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directly
or indirectly, by any person, entity or government subject to trade restrictions under federal law,
including the International Emergency Economic Powers Act, 50 U.S.C. §§ 1701 et seq., The
Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any executive orders or
regulations promulgated thereunder, with the result that (i) the investment in any of Borrower,
Operating Lessee, any Single-Purpose Equityholder or Sponsor, as applicable (whether directly or
indirectly), is prohibited by law or (ii) the Loan is in violation of law (any such person, entity
or government, an “Embargoed Person”); (b) no Embargoed Person has any interest of any
nature whatsoever in any of Borrower, Operating Lessee, any Single-Purpose Equityholder or Sponsor,
as applicable (whether directly or indirectly), with the result that (i) the investment in any of
Borrower, Operating Lessee, any Single-Purpose Equityholder or Sponsor, as applicable (whether
directly or indirectly) is prohibited by law or (ii) the Loan is in violation of law, (c) none of
the funds of any of Borrower, Operating Lessee, any Single-Purpose Equityholder or Sponsor, as
applicable, have been derived from any unlawful activity with the result that (i) the investment in
any of Borrower, Operating Lessee, any Single-Purpose Equityholder or Sponsor, as applicable
(whether directly or indirectly) is prohibited by law or (ii) the Loan is in violation of law, (d)
to the best of Borrower’s knowledge, no Tenant at the Property is identified on the OFAC List and
(e) Borrower, Operating Lessee, any Single-Purpose Equityholder and Sponsor are in material
compliance with the PATRIOT Act. Borrower has implemented procedures, and will consistently apply
those procedures throughout the term of the Loan, to ensure the foregoing representations and
warranties remain true and correct during the term of the Loan. Notwithstanding Section
4.41 to the contrary, the representations and warranties contained in this Section 4.39
shall survive in perpetuity.

     Section 4.40. Intentionally omitted. 

     Section 4.41. Intentionally omitted.

     Section 4.42. Survival. Borrower agrees that all of the representations of Borrower
set forth in this Agreement and in the other Loan Documents shall survive for so long as any
portion of the Indebtedness is outstanding. All representations, covenants and agreements made by
Borrower in this Agreement or in the other Loan Documents shall be deemed to have been relied upon
by Lender notwithstanding any investigation heretofore or hereafter made by Lender or on its
behalf. On the date of any Securitization, on not less than three days’ prior written notice,
Borrower shall deliver to Lender a certification (x) confirming that all of the representations
contained in this Agreement are true and correct as of the date of such Securitization, or (y)
otherwise specifying any changes in or qualifications to such representations as of such date as
may be necessary to make such representations consistent with the facts as they exist on such date.

ARTICLE V

AFFIRMATIVE COVENANTS

     Section 5.1. Existence. Borrower, Operating Lessee and if applicable, any
Single-Purpose Equityholder shall do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its existence and all rights, licenses, Permits, franchises and
other agreements necessary for the continued use and operation of its business. Borrower,
Operating

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Lessee and, if applicable, each Single-Purpose Equityholder shall deliver to Lender a
copy of each amendment or other modification to any of its organizational documents promptly after
the execution thereof.

     Section 5.2. Maintenance of Property.

     (a) Borrower shall cause the Property to be maintained in good and safe working order and
repair, reasonable wear and tear excepted, and in keeping with the condition and repair of
properties of a similar use, value, age, nature and construction. Borrower shall not, and shall
not cause or permit Operating Lessee or Approved Property Manager to, use, maintain or operate the
Property in any manner that constitutes a public or private nuisance or that makes void, voidable,
or cancelable, or increases the premium of, any insurance then in force with respect thereto.
Subject to Section 6.13, without the prior written consent of Lender, no improvements or
equipment located at or on the Property shall be removed, demolished or materially altered (except
for replacement of equipment in the ordinary course of Borrower’s or Operating Lessee’s business
with items of the same utility and of equal or greater value and sales of obsolete equipment no
longer needed for the operation of the Property). Subject to Section 6.13, Borrower shall
from time to time make, or cause to be made, all reasonably necessary and desirable repairs,
renewals, replacements, betterments and improvements to the Property. Borrower shall not, and
shall not cause or permit Operating Lessee or Approved Property Manager to, make any change in the
use of the Property that would materially increase the risk of fire or other hazard arising out of
the operation of the Property, or do or permit to be done thereon anything that may in any way
impair the value of the Property in any material respect or the Lien of the Mortgage or otherwise
cause or reasonably be expected to result in a Material Adverse Effect. Borrower shall not install
or permit to be installed on the Property any underground storage tank. Borrower shall not,
without the prior written consent of Lender, permit any drilling or exploration for or extraction,
removal, or production of any minerals from the surface or the subsurface of the Property,
regardless of the depth thereof or the method of mining or extraction thereof.

     (b) Borrower shall remediate the Deferred Maintenance Conditions within 9 months following the
Closing Date, subject to Force Majeure, and upon request from Lender after the expiration of such
period shall deliver to Lender an Officer’s Certificate confirming that such remediation has been
completed and that all associated expenses have been paid.

     Section 5.3. Compliance with Legal Requirements. Borrower shall, and shall cause
Operating Lessee to,
comply with, and shall cause the Property to comply with and be operated, maintained, repaired
and improved in compliance with, all Legal Requirements, Insurance Requirements and all material
contractual obligations by which Borrower is legally bound.

     Section 5.4. Impositions and Other Claims. Borrower shall pay and discharge all
taxes, assessments and governmental charges levied upon it, its income and its assets as and when
such taxes, assessments and charges are due and payable, as well as all lawful claims for labor,
materials and supplies or otherwise, subject to any rights to contest contained in the definition
of Permitted Encumbrances. Borrower shall file all federal, state and local tax returns and other
reports that it is required by law to file. If any law or regulation applicable to Lender, any
Note, any of the Collateral or the Mortgage is enacted that deducts from the value of

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property for
the purpose of taxation any Lien thereon, or imposes upon Lender the payment of the whole or any
portion of the taxes or assessments or charges or Liens required by this Agreement to be paid by
Borrower, or changes in any way the laws or regulations relating to the taxation of mortgages or
security agreements or debts secured by mortgages or security agreements or the interest of the
mortgagee or secured party in the property covered thereby, or the manner of collection of such
taxes, so as to affect the Mortgage, the Indebtedness or Lender, then Borrower, upon demand by
Lender, shall pay such taxes, assessments, charges or Liens, or reimburse Lender for any amounts
paid by Lender. If in the opinion of Lender’s counsel it might be unlawful to require Borrower to
make such payment or the making of such payment might result in the imposition of interest beyond
the maximum amount permitted by applicable Law, Lender may elect to declare all of the Indebtedness
to be due and payable 90 days from the giving of written notice by Lender to Borrower.

     Section 5.5. Access to Property. Borrower shall, and shall cause Operating Lessee and
Approved Property Manager to permit agents, representatives and employees of Lender and the
Servicer to enter and inspect the Property or any portion thereof, and/or inspect, examine, audit
and copy the books and records of Borrower, Operating Lessee and Approved Property Manager
(including all recorded data of any kind or nature, regardless of the medium of recording), at such
reasonable times as may be requested by Lender upon reasonable advance notice ( all subject to the
terms and conditions of the Approved Management Agreement). If Lender shall determine that an
Event of Default exists, the cost of such inspections, examinations, copying or audits shall be
borne by Borrower, including the cost of all follow up or additional investigations, audits or
inquiries deemed reasonably necessary by Lender. The cost of such inspections, examinations,
audits and copying, if not paid for by Borrower following demand, may be added to the Indebtedness
and shall bear interest thereafter until paid at the Default Rate. If Borrower prohibits, bars or
fails to permit agents, representatives and employees of Lender and Servicer from entering and
inspecting the Property or from inspecting, examining, auditing and copying the books and records
of Borrower, Operating Lessee and Approved Property Manager, as required by this Section, for more
than five days after a written request is made by Lender to do so, Borrower agrees to pay Lender on
demand the sum of $1,000.00 for each day after such five-day period that Borrower so prohibits or
bars such inspection, and such sum or sums shall be part of the Indebtedness. Notwithstanding any
of Lender’s or Servicer’s rights in this Section, in no event shall Lender or Servicer have any
right to enter or inspect the Property or inspect, examine, audit or copy the books and records of
Approved Property Manager that is greater than or inconsistent with the access afforded to Borrower
under the terms of the Approved Management Agreement.

     Section 5.6. Cooperate in Legal Proceedings. Except with respect to any claim by
Borrower against Lender, Borrower shall, and shall cause Operating Lessee to, cooperate fully with
Lender with respect to any proceedings before any Governmental Authority that may in any way affect
the rights of Lender hereunder or under any of the Loan Documents and, in connection therewith,
Lender may, at its election, participate or designate a representative to participate in any such
proceedings.

     Section 5.7. Leases.

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     (a) Borrower shall furnish Lender with executed copies of all Leases, together with a detailed
breakdown of income and cost associated therewith. All new Leases and renewals or amendments of
Leases must (i) be entered into on an arms-length basis with Tenants that are not affiliates of
Borrower and whose identity and creditworthiness is appropriate for tenancy in property of
comparable quality, (ii) provide for rental rates and other economic terms that, taken as a whole,
are at least equivalent to then-existing market rates, based on the applicable market, and
otherwise contain terms and conditions that are commercially reasonable, (iii) have an initial term
of not more than 10 years, (iv) not have or reasonably be expected to result in a Material Adverse
Effect, (v) be expressly subject and subordinate to the Mortgage and contain provisions for the
agreement by the Tenant thereunder to attorn to Lender and any purchaser at a foreclosure sale,
such attornment to be self-executing and effective upon acquisition of title to the Property by any
purchaser at a foreclosure sale and (vi) require the Tenant thereunder to execute and deliver to
Borrower an estoppel certificate addressing the issues set forth in Section 9.16(b) of this
Agreement (in each case, unless Lender consents to such Lease in its sole discretion).

     (b) All new Leases that are Major Leases, and all terminations, renewals and amendments of
Major Leases, and any surrender of rights under any Major Lease, shall be subject to the prior
written consent of Lender. If Lender shall fail to respond to Borrower’s request for such consent
within five (5) Business Days of Lender’s receipt thereof, Borrower may deliver to Lender a second
request for consent stating in bold and capitalized type that “LENDER’S FAILURE TO RESPOND TO THE
ENCLOSED REQUEST WITHIN TEN (10) BUSINESS DAYS SHALL BE DEEMED LENDER’S APPROVAL.” In the event
Lender fails to approve or disapprove such request within ten (10) Business Days of Lender’s
receipt of such second request, such request shall be deemed approved.

     (c) Borrower shall, and shall cause Operating Lessee to, (i) observe and punctually perform
all the material obligations imposed upon the lessor under the Leases; (ii) enforce all of the
material terms, covenants and conditions contained in the Leases on the part of the lessee
thereunder to be observed or performed, short of termination thereof, except that the lessor may
terminate any Lease following a material default thereunder by the respective Tenant; (iii) not
collect any of the rents thereunder more than one month in advance; (iv) not execute any assignment
of lessor’s interest in the Leases or associated rents other than the assignment of rents and
leases under the Mortgage; (v) not cancel or terminate any guarantee of any of the Major Leases
without the prior written consent of Lender; and (vi) not permit any subletting of any space
covered by a Lease or an assignment of the Tenant’s rights under a Lease, except in strict
accordance with the terms of such Lease. Borrower shall, or shall cause Operating Lessee to,
deliver to each new Tenant a Tenant Notice upon execution of such Tenant’s Lease, and
promptly thereafter deliver to Lender a copy thereof and evidence of such Tenant’s receipt
thereof.

     (d) Security deposits of Tenants under all Leases, whether held in cash or any other form,
shall not be commingled with any other funds of Borrower or Operating Lessee and, if cash, shall be
deposited by Borrower or Operating Lessee in an account at such commercial or savings bank as may
be reasonably satisfactory to Lender, which account shall be pledged to Lender. Borrower shall, or
shall cause Operating Lessee to, maintain books and records of sufficient detail to identify all
security deposits of Tenants separate and apart from any other payments received from Tenants. Any
bond or other instrument that Borrower or Operating

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Lessee is permitted to hold in lieu of cash security deposits under any applicable Legal
Requirements shall be maintained in full force and effect unless replaced by cash deposits as
described above, shall be issued by an institution reasonably satisfactory to Lender, shall (if not
prohibited by any Legal Requirements) name Lender as payee or mortgagee thereunder (or at Lender’s
option, be fully assignable to Lender) or may name Borrower or Operating Lessee as payee thereunder
so long as such bond or other instrument is pledged to Lender as security for the Indebtedness and
shall, in all respects, comply with any applicable Legal Requirements and otherwise be reasonably
satisfactory to Lender. Borrower shall, upon Lender’s request, provide Lender with evidence
reasonably satisfactory to Lender of Borrower’s and Operating Lessee’s compliance with the
foregoing. During the continuance of any Trigger Period or Event of Default, Borrower shall, upon
Lender’s request, cause to be deposited with Lender in an Eligible Account pledged to Lender an
amount equal to the aggregate security deposits of the Tenants (and any interest theretofore earned
on such security deposits and actually received by Borrower or Operating Lessee) that Borrower and
Operating Lessee had not returned to the applicable Tenants or applied in accordance with the terms
of the applicable Lease.

     (e) Borrower shall cause to be promptly delivered to Lender a copy of each written notice from
a Tenant under any Major Lease claiming that Borrower or Operating Lessee is in default in the
performance or observance of any of the material terms, covenants or conditions thereof. Borrower
shall cause each Major Lease executed after the Closing Date to which Borrower or Operating Lessee
is a party to provide that any Tenant delivering any such notice shall send a copy of such notice
directly to Lender.

     Section 5.8. Plan Assets, etc. Borrower will do, or cause to be done, all things
necessary to ensure that neither Borrower nor Operating Lessee will be deemed to hold Plan Assets
at any time.

     Section 5.9. Further Assurances. Borrower shall (and, as applicable, shall cause
Operating Lessee to), at Borrower’s sole cost and expense, from time to time as reasonably
requested by Lender, execute, acknowledge, record, register, file and/or deliver to Lender such
other instruments, agreements, certificates and documents (including Uniform Commercial Code
financing statements and amended or replacement mortgages) as Lender may reasonably request to
evidence, confirm, perfect and maintain the Liens securing or intended to secure the obligations of
Borrower and the rights of Lender under the Loan Documents or to facilitate a replacement of the
Cash Management Bank pursuant to Section 3.1(c) or a bifurcation of the Notes pursuant to
Sections 1.1(c) and/or 9.7(b) or a restructuring of the Loan pursuant to the
Cooperation Agreement, in each case if requested by Lender, and do and execute all such further
lawful and reasonable acts, conveyances and assurances for the better and more effective carrying
out of the intents and purposes of this Agreement and the other Loan Documents as Lender shall
reasonably request from time to time. Upon foreclosure, the appointment of a receiver or any other
relevant action, Borrower shall (and, as applicable, shall cause Operating Lessee or Approved
Property Manager to), at Borrower’s sole cost and expense, cooperate fully and completely to effect
the assignment or transfer of any license, permit, agreement or any other right necessary or useful
to the operation of the Collateral. Borrower hereby authorizes and appoints Lender as its
attorney-in-fact to execute, acknowledge, record, register and/or file such instruments,
agreements, certificates and documents, and to do and execute such acts, conveyances and
assurances, should Borrower fail to do so itself in violation of this Agreement

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or the other Loan Documents following written
request from Lender, in each case without the signature of Borrower. The foregoing grant of
authority is a power of attorney coupled with an interest and such appointment shall be irrevocable
for the term of this Agreement. Borrower hereby ratifies all actions that such attorney shall
lawfully take or cause to be taken in accordance with this Section 5.9.

     Section 5.10. Management of Collateral.

     (a) The Property shall be managed at all times by an Approved Property Manager pursuant to an
Approved Management Agreement. Pursuant to the Subordination of Property Management Agreement,
Approved Property Manager shall agree that the Approved Management Agreement and the incentive fee
payable thereunder are subordinate to the Indebtedness. Borrower may from time to time appoint an
Approved Property Manager to manage the Property pursuant to an Approved Management Agreement, and
such successor manager shall execute for Lender’s benefit a Subordination of Property Management
Agreement in form and substance reasonably satisfactory to Lender. The per annum fees of the
Approved Property Manager (including any incentive fees) shall not exceed the fees specified in the
Approved Management Agreement. In connection with any approval by Lender of a replacement Approved
Property Manager, including any negotiation of a replacement Subordination of Property Management
Agreement, Servicer shall use commercially reasonable efforts to make its determination within
thirty (30) days after receipt from Borrower of all required information, including any additional
information that Servicer requests.

     (b) Borrower shall cause each Approved Property Manager (including any successor Approved
Property Manager) to maintain at all times worker’s compensation insurance as required by
Governmental Authorities.

     (c) Borrower shall notify Lender in writing of any default of Borrower, Operating Lessee or
the Approved Property Manager under the Approved Management Agreement, after the expiration of any
applicable cure periods, of which Borrower has actual knowledge. Lender shall have the right,
after reasonable notice to Borrower and in accordance with the Subordination of Management
Agreement, to cure defaults of Borrower or Operating Lessee under the Approved Management
Agreement. Any out-of-pocket expenses incurred by Lender to cure any such default shall constitute
a part of the Indebtedness and shall be due from Borrower upon demand by Lender.

     (d) During the continuance of an Event of Default and, simultaneously, a material default by
the Approved Property Manager under the Approved Management Agreement after the expiration of any
applicable cure period or upon the filing of a bankruptcy petition or the occurrence of a similar
event with respect to the Approved Property Manager, Lender may, in its sole discretion, require
Borrower to cause the termination of the Approved Management Agreement and the engagement of an
Approved Property Manager selected by Lender to serve as replacement Approved Property Manager
pursuant to an Approved Management Agreement.

     Section 5.11. Notice of Material Event.

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     (i) Borrower shall give Lender prompt notice (containing reasonable detail) of (i) any
material change in the financial or physical condition of the Property, as reasonably
determined by Borrower, including the termination or cancellation of any Major Lease and the
termination or cancellation of terrorism or other insurance required by this Agreement, (ii)
any notice from the Approved Property Manager, to the extent such notice relates to a matter
that is reasonably expected to result in a Material Adverse Effect, (iii) any litigation or
governmental proceedings pending or threatened in writing against Borrower, Operating Lessee
or the Property that is reasonably expected to result in a Material Adverse Effect, (iv) the
insolvency or bankruptcy filing of Borrower, Operating Lessee, any Single-Purpose
Equityholder, Sponsor or an affiliate of any of the foregoing and (v) any other circumstance
or event reasonably expected to result in a Material Adverse Effect.

     (ii) Borrower shall deliver to Lender, within three Business Days of receipt thereof,
the periodic reports regarding the Property, if any, delivered to Borrower and/or Operating
Lessee by Approved Property Manager.

     Section 5.12. Annual Financial Statements. As soon as available, and in any event
within 90 days after the close of each Fiscal Year, Borrower shall furnish to Lender, in an Excel
spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost
and expense), or, in the case of predominantly text documents, in Adobe pdf format, a balance sheet
of Borrower as of the end of such year, together with related statements of income and
equityholders’ capital for such Fiscal Year, in each case either audited or reviewed by a certified
public accounting firm reasonably satisfactory to Lender. Together with Borrower’s annual
financial statements, Borrower shall furnish to Lender, in an Excel spreadsheet file in electronic
format (which may be via an intralinks site at Borrower’s sole cost and expense), or, in the case
of predominantly text documents, in Adobe pdf format:

     (i) a statement of cash flows and income and expenses in the format set forth in the
most recent Uniform System of Accounts (as shown on Exhibit C);

     (ii) average daily room rates, sales reports, Smith Travel Reports (to the extent
available) and occupancy reports;

     (iii) an annual report for the most recently completed fiscal year, describing Capital
Expenditures (stated separately with respect to any project costing in excess of $100,000);
and

     (iv) such other information as Lender shall reasonably request.

     Section 5.13. Quarterly Financial Statements. As soon as available, and in any event
within 45 days after the end of each Fiscal Quarter (including year-end), Borrower shall furnish to
Lender, in an Excel spreadsheet file in electronic format (which may be via an intralinks site at
Borrower’s sole cost and expense), or, in the case of predominantly text documents, in Adobe pdf
format, quarterly and year-to-date unaudited financial statements prepared for such fiscal quarter
with respect to
Borrower, including a balance sheet and operating statement as of the end of such Fiscal
Quarter, together with related statements of income, equityholders’ capital and

55

 

cash flows for such
Fiscal Quarter and for the portion of the Fiscal Year ending with such Fiscal Quarter, which
statements shall include income and expenses in the format set forth in the most recent Uniform
System of Accounts (as shown on Exhibit C) and be accompanied by an Officer’s Certificate
certifying that the same are true, correct and complete and were prepared in accordance with GAAP
applied on a consistent basis, subject to changes resulting from audit and normal year-end audit
adjustments. Each such quarterly report shall be accompanied by the following, in an Excel
spreadsheet file in electronic format (which may be via an intralinks site at Borrower’s sole cost
and expense), or, in the case of predominantly text documents, in Adobe pdf format:

     (i) a statement in reasonable detail that calculates Net Operating Income for each of
the Fiscal Quarters in the Test Period ending in such Fiscal Quarter, in the case of each
such Fiscal Quarter, ending at the end thereof;

     (ii) copies of each of the Leases signed during such quarter, together with a summary
thereof that shall include the Tenant’s name, lease term, base rent, Tenant Improvements,
leasing commissions paid, free rent and other material tenant concessions;

     (iii) average daily room rates, sales reports, Smith Travel Reports (to the extent
available) and occupancy reports; and

     (iv) such other information as Lender shall reasonably request.

     Section 5.14. Monthly Financial Statements; Non-Delivery of Financial Statements.

     (a) Until the occurrence of a Securitization and during the continuance of a Trigger Period or
an Event of Default (or, in the case of item (iii) below, at all times), Borrower shall furnish
within 30 days after the end of each calendar month (other than the calendar month immediately
following the final calendar month of any Fiscal Year or Fiscal Quarter), in an Excel spreadsheet
file in electronic format (which may be via an intralinks site at Borrower’s sole cost and
expense), or, in the case of predominantly text documents, in Adobe pdf format, monthly and
year-to-date unaudited financial statements prepared for the applicable month with respect to
Borrower, including a balance sheet and operating statement as of the end of such month, together
with related statements of income, equityholders’ capital and cash flows for such month and for the
portion of the Fiscal Year ending with such month , which statements shall include income and
expenses in the format set forth in the most recent Uniform System of Accounts (as shown on
Exhibit C) and be accompanied by an Officer’s Certificate certifying that the same are
true, correct and complete and were prepared in accordance with GAAP applied on a consistent basis,
subject to changes resulting from audit and normal year-end audit adjustments. Each such monthly
report shall be accompanied by the following:

     (i) a summary of Leases signed during such month, which summary shall include the
Tenant’s name, lease term, base rent, escalations, Tenant Improvements, leasing commissions
paid, free rent and other concessions;

     (ii) then current rent roll, average daily room rates, sales reports, Smith Travel
Reports (to the extent available) and occupancy reports; and

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     (iii) such other information as Lender shall reasonably request.

     (b) If Borrower fails to provide to Lender any of the financial statements and other
information specified in Sections 5.12, 5.13 or this Section 5.14 within
the respective time period specified in such Sections, Lender shall deliver to Borrower written
notice of such failure. If Borrower fails to provide such financial statements and other
information within ten Business Days after receipt of such notice, such failure shall constitute a
Trigger Period, and if such failure continues for an additional ten Business Days, such failure
shall, at Lender’s election, constitute an Event of Default.

     Section 5.15. Insurance.

     (a) Borrower shall cause to be obtained and maintained with respect to the Property, for the
mutual benefit of Borrower and Lender at all times, the following policies of insurance:

     
(i) insurance against loss or damage by standard perils included within the
classification “All Risks Special Form Cause of Loss” (including coverage for damage caused
by windstorm and hail). Such insurance shall (A) be in an amount equal to the full
replacement cost of the Property and fixtures (without deduction for physical depreciation);
(B) have deductibles acceptable to Lender (but in any event not in excess of $50,000, except
in the case of windstorm and earthquake coverage, which shall have deductibles not in excess
of 5% of the total insurable value of the Property); (C) be paid annually in advance; (D)
contain a “Replacement Cost Endorsement” with a waiver of depreciation and an “Agreed Upon
Amount Endorsement” waiving all coinsurance provisions; (E) include an ordinance or law
coverage endorsement containing Coverage A: “Loss Due to Operation of Law” (with a limit
equal to replacement cost, provided, that, the limit under the coverage in
effect as of the Closing Date may be maintained so long as the Property remains legal and
conforming under all applicable zoning requirements), Coverage B: “Demolition Cost” and
Coverage C: “Increased Cost of Construction” coverages each with limits of no less than 10%
of replacement cost or such lesser amounts as Lender may require in its sole discretion; (F)
permit that the improvements and other property covered by such insurance be rebuilt at
another location in the event that such improvements and other property cannot be rebuilt at
the location on which they are situated as of the date hereof. If such insurance excludes
mold, Borrower shall implement a mold prevention program satisfactory to Lender;

     (ii) flood insurance if the Property is located in a “100 Year Flood Plain”, “special
hazard area” (Zones A and V) in an amount equal to the maximum limit of coverage available
from FEMA/FIA, plus such excess limits requested by Lender;

     (iii) commercial general liability insurance, including broad form coverage of property
damage, blanket contractual liability and personal injury (including death resulting
therefrom), to be on the so-called “occurrence” form containing minimum limits per
occurrence of not less than $1,000,000 with not less than a $2,000,000 general
aggregate for any policy year (with a per location aggregate if the Property is on a
blanket policy). In addition, at least $50,000,000 excess and/or umbrella liability
insurance shall

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be obtained and maintained for any and all claims, including all legal
liability imposed upon Borrower and all related court costs and attorneys’ fees and
disbursements;

     (iv) rental loss and/or business interruption insurance covering all risks required to
be covered by the insurance provided for herein, including but not limited to, clauses
(i), (ii), (v), (vii), (viii) and (ix) of this Section 5.15(a), and covering the
18month period commencing on the date of any Casualty or Condemnation, and containing an
extended period of indemnity endorsement covering the 12 month period commencing on the date
on which the Property has been restored, as reasonably determined by the applicable insurer
(even if the policy will expire prior to the end of such period). The amount of such
insurance shall be increased from time to time as and when the gross revenues from the
Property increase;

     (v) insurance against loss or damage from (A) leakage of sprinkler systems, if not
provided by the policy required by Section 5.15(a)(i), and (B) explosion of steam
boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure
vessels or similar apparatus now or hereafter installed in any of the improvements (without
exclusion for explosions) and insurance against loss of occupancy or use arising from any
breakdown, in such amounts as are generally available and are generally required by
institutional lenders for properties comparable to the Property;

     (vi) worker’s compensation insurance with respect to all employees of Borrower as and
to the extent required by any Governmental Authority or Legal Requirement and employer’s
liability coverage of at least $1,000,000 (if applicable);

     (vii) during any period of repair or restoration, and only if the property and
liability coverage forms do not otherwise apply, owner’s contingent or protective liability
insurance covering claims not covered by or under the terms or provisions of the insurance
provided for in Section 5.15(a)(iii). The insurance provided for in Section
5.15(a) shall (1) be written in a so-called builder’s risk completed value form or
equivalent coverage, including coverage for 100% of the total costs of construction on a
non-reporting basis and against all risks insured against pursuant to clauses (i), (ii),
(iv), (v), (viii) and (ix) of Section 5.15(a), (2) shall include
permission to occupy the Property, and (3) shall contain an agreed amount endorsement
waiving co-insurance provisions;

     (viii) if required by Lender, earthquake insurance (A) with minimum coverage equivalent
to the greater of 1.0x SUL (scenario upper loss) and 1.5x SEL (scenario expected loss)
multiplied by the full replacement cost of the building plus business income, (B) having a
deductible approved by Lender (but in any event not be in excess of 5% of the total
insurable value of the Property), and (C) if the Property is legally nonconforming under
applicable zoning ordinances and codes, containing ordinance of law coverage in amounts as
required by Lender;

     (ix) so long as the Terrorism Risk Insurance Program Reauthorization Act of 2007
(“TRIPRA”) or a similar statute is in effect, terrorism insurance for Certified and
Non-Certified acts (as such terms are defined in TRIPRA or similar statute) in an
amount equal to the full replacement cost of the Property (plus twelve months of business

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interruption coverage). If TRIPRA or a similar statute is not in effect, then provided that
terrorism insurance is commercially available, Borrower shall be required to carry terrorism
insurance throughout the term of the Loan as required by the preceding sentence, but in such
event Borrower shall not be required to spend on terrorism insurance coverage more than two
times the amount of the insurance premium that is payable at such time in respect of the
property and business interruption/rental loss insurance required hereunder (without giving
effect to the cost of terrorism and earthquake components of such property and business
interruption/rental loss insurance), and if the cost of terrorism insurance exceeds such
amount, Borrower shall purchase the maximum amount of terrorism insurance available with
funds equal to such amount;

     (x) liquor liability insurance in an amount of at least $10,000,000 or in such greater
amount as may be required by applicable Legal Requirements against claims or liability
arising directly or indirectly to persons or property on account of the sale or dispensing
of alcoholic beverages at the Property and public liability insurance in an amount of at
least $10,000,000 or in such greater amount as may be required by applicable Legal
Requirements providing coverage against such claims or liability;

     (xi) crime coverage in an amount not less than $2,000,000 to protect against employee
dishonesty and related incidents, containing minimum limits per occurrence of $1,000,000;

     (xii) motor vehicle liability coverage for all owned and non owned vehicles, including
rented and leased vehicles containing minimum limits per occurrence of $1,000,000.00 (if
applicable); and

     (xiii) such other insurance as may from time to time be requested by Lender.

     (b) All policies of insurance (the “Policies”) required pursuant to this Section
5.15 shall be issued by one or more primary insurers having a claims-paying ability of at least
“A” or “A2” by each of the Rating Agencies, or by a syndicate of insurers through which at least
75% of the coverage (if there are 4 or fewer members of the syndicate) or at least 60% of the
coverage (if there are 5 or more members of the syndicate) is with carriers having such
claims-paying ability ratings (provided that the first layers of coverage are from carriers rated
at least “A” or “A2” and all such carriers shall have claims-paying ability ratings of not less
than “BBB+” or “Baa1”). Notwithstanding anything to the contrary herein, for purposes of
determining whether the insurer ratings requirements set forth above have been satisfied, (1) any
insurer that is not rated by Fitch will be regarded as having a Fitch rating that is the equivalent
of the rating given to such insurer by any of Moody’s and S&P that does rate such insurer (or, if
both such rating agencies rate such insurer, the lower of the two ratings), (2) any insurer that is
not rated by Moody’s will be regarded as having a Moody’s rating of “Baa1” or better if it is rated
“A-” or better by S&P and will be regarded as having a Moody’s rating of “A2” or better if it is
rated “A+” or better by S&P, and (3) RSUI Indemnity Company shall be deemed to have satisfied such
insurer ratings requirements with respect to insurance coverage provided by it as of the Closing
Date so long as it maintains a Moody’s rating of A3.

     (c) All Policies required pursuant to this Section 5.15:

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     (i) shall contain deductibles that, in addition to complying with any other
requirements expressly set forth in Section 5.15(a), are approved by Lender (such
approval not to be unreasonably withheld, delayed or conditioned, but subject to the
requirements of each Rating Agency) and are no larger than is customary for similar policies
covering similar properties in the geographic market in which the Property is located, but
in any event are not in excess of $25,000 (except in the case of windstorm and earthquake
coverage, which shall have deductibles not in excess of 5% of the total insurable value of
the Property);

     (ii) shall be maintained throughout the term of the Loan without cost to Lender and
shall name Borrower as the named insured;

     (iii) with respect to casualty policies, shall contain a standard noncontributory
mortgagee clause naming Lender and its successors and assigns as their interests may appear
as first mortgagee and loss payee;

     (iv) with respect to liability policies, shall name Lender and its successors and
assigns as their interests may appear as additional insureds;

     (v) with respect to rental or business interruption insurance policies, shall name
Lender and its successors and/or assigns as their interests may appear as loss payee;

     (vi) shall contain an endorsement providing that neither Borrower nor Lender nor any
other party shall be a co-insurer under said Policies;

     (vii) shall contain an endorsement providing that Lender shall receive at least 30
days’ prior written notice of any modification, reduction or cancellation thereof;

     (viii) shall contain an endorsement providing that no act or negligence of Borrower or
of a Tenant or other occupant or any foreclosure or other proceeding or notice of sale
relating to the Property shall affect the validity or enforceability of the insurance
insofar as a mortgagee is concerned;

     (ix) shall provide that Lender shall not be liable for any insurance premiums thereon
or subject to any assessments thereunder;

     (x) shall contain a waiver of subrogation against Lender;

     (xi) may be in the form of a blanket policy, provided that Borrower shall
provide evidence satisfactory to Lender that the insurance premiums for the Property are
separately allocated under such Policy to the Property and that (i) payment of such
allocated amount shall maintain the effectiveness of such Policy as to the Property
notwithstanding the failure of payment of any other portion of premiums, and (ii) overall
insurance limits will under no circumstance limit the amount that will be paid in respect of
the Property, and provided further that any such blanket policy shall specifically
allocate to the Property the amount of coverage from time to time required hereunder or
shall otherwise provide the same protection as would a separate Policy in Lender’s

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discretion, subject to review and approval by Lender based on the schedule of locations and
values; and

     (xii) shall otherwise be reasonably satisfactory in form and substance to Lender and
shall contain such other provisions as Lender deems reasonably necessary or desirable to
protect its interests.

     (d) Borrower shall pay the premiums for all Policies as the same become due and payable.
Copies of such Policies, certified as true and correct by Borrower, shall be delivered to Lender
promptly upon request. Not later than 30 days prior to the expiration date of each Policy,
Borrower shall deliver to Lender evidence, reasonably satisfactory to Lender, of its renewal.
Borrower shall promptly forward to Lender a copy of each written notice received by Borrower of any
modification, reduction or cancellation of any of the Policies or of any of the coverages afforded
under any of the Policies. Within 30 days after request by Lender, Borrower shall obtain such
increases in the amounts of coverage required hereunder as may be reasonably requested by Lender,
taking into consideration changes in the value of money over time, changes in liability laws,
changes in prudent customs and practices, and the like.

     (e) Borrower shall not procure any other insurance coverage that would be on the same level of
payment as the Policies or would adversely impact in any way the ability of Lender or Borrower to
collect any proceeds under any of the Policies. If at any time Lender is not in receipt of written
evidence that all Policies are in full force and effect when and as required hereunder, Lender
shall have the right to take such action as Lender deems necessary to protect its interest in the
Property, including the obtaining of such insurance coverage as Lender in its sole discretion deems
appropriate (but limited to the coverages and amounts required hereunder). All premiums incurred
by Lender in connection with such action or in obtaining such insurance and keeping it in effect
shall be paid by Borrower to Lender upon demand and, until paid, and shall bear interest at the
Default Rate.

     (f) In the event of foreclosure of the Mortgage or other transfer of title to the Property in
extinguishment in whole or in part of the Indebtedness, all right, title and interest of Borrower
in and to the Policies then in force with respect to the Property and all proceeds payable
thereunder shall thereupon vest in the purchaser at such foreclosure or in Lender or other
transferee in the event of such other transfer of title.

     Section 5.16. Casualty and Condemnation.

     (a) Borrower shall give prompt notice to Lender of any Casualty or Condemnation or of the
actual or threatened commencement of proceedings that would result in a Condemnation

     (b) Lender may participate in any proceedings for any taking by any public or quasi-public
authority accomplished through a Condemnation or any transfer made in lieu of or in anticipation of
a Condemnation, to the extent permitted by law. Upon Lender’s request, Borrower shall deliver to
Lender all instruments reasonably requested by it to permit such participation. Borrower shall, at
its sole cost and expense, diligently prosecute any such
proceedings, and shall consult with Lender, its attorneys and experts, and cooperate with them
in the carrying on or defense of any such proceedings. Borrower shall not consent or agree to a

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Condemnation or action in lieu thereof without the prior written consent of Lender in each
instance, which consent shall not be unreasonably withheld or delayed in the case of a taking of an
immaterial portion of the Property.

     (c) Lender may (x) jointly with Borrower settle and adjust any claims, (y) during the
continuance of an Event of Default, settle and adjust any claims without the consent or cooperation
of Borrower, or (z) allow Borrower to settle and adjust any claims; except that if no Event of
Default is continuing, Borrower may settle and adjust claims aggregating not in excess of $300,000
if such settlement or adjustment is carried out in a competent and timely manner, but Lender shall
be entitled to collect and receive (as set forth below) any and all Loss Proceeds. The reasonable
expenses incurred by Lender in the adjustment and collection of Loss Proceeds shall become part of
the Indebtedness and shall be reimbursed by Borrower to Lender upon demand therefor.

     (d) All Loss Proceeds from any Casualty or Condemnation shall be immediately deposited into
the Loss Proceeds Account (monthly rental loss/business interruption proceeds to be initially
deposited into the Loss Proceeds Account and subsequently deposited into the Cash Management
Account in installments as and when the lost rental income covered by such proceeds would have been
payable). Following the occurrence of a Casualty, Borrower, regardless of whether proceeds are
available, shall in a reasonably prompt manner proceed to restore, repair, replace or rebuild the
Property to be of at least equal value and of substantially the same character as prior to the
Casualty, all in accordance with the terms hereof applicable to Alterations. If any Condemnation
or Casualty occurs as to which, in the reasonable judgment of Lender:

     (i) in the case of a Casualty, the cost of restoration would not exceed 25% of the Loan
Amount and the Casualty does not render untenantable, or result in the cancellation of
Leases covering, more than 25% of the gross rentable area of the Property, or result in
cancellation of Leases covering more than 25% of the base contractual rental revenue of the
Property;

     (ii) in the case of a Condemnation, the Condemnation does not render untenantable, or
result in the cancellation of Leases covering, more than 15% of the gross rentable area of
the Property;

     (iii) restoration of the Property is reasonably expected to be completed prior to the
expiration of rental interruption insurance and at least six months prior to the Maturity
Date;

     (iv) after such restoration, the fair market value of the Property is reasonably
expected to equal at least the fair market value of the Property immediately prior to such
Condemnation or Casualty; and

     (v) all necessary approvals and consents from Governmental Authorities will be obtained
to allow the rebuilding and re-occupancy of the Property;

or if Lender otherwise elects to allow Borrower to restore the Property, then, provided no Event of
Default is continuing, the Loss Proceeds after receipt thereof by Lender and reimbursement of

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any
reasonable expenses incurred by Lender in connection therewith shall be applied to the cost of
restoring, repairing, replacing or rebuilding the Property or part thereof subject to the Casualty
or Condemnation, in the manner set forth below (and Borrower shall commence, as promptly and
diligently as practicable, to prosecute such restoring, repairing, replacing or rebuilding of the
Property in a workmanlike fashion and in accordance with applicable law to a status at least
equivalent to the quality and character of the Property immediately prior to the Condemnation or
Casualty). Provided that no Event of Default shall have occurred and be then continuing, Lender
shall disburse such Loss Proceeds to Borrower upon Lender’s being furnished with (i) evidence
reasonably satisfactory to it of the estimated cost of completion of the restoration, (ii) funds,
or assurances reasonably satisfactory to Lender that such funds are available and sufficient in
addition to any remaining Loss Proceeds, to complete the proposed restoration (including for any
reasonable costs and expenses of Lender to be incurred in administering such restoration) and for
payment of the Indebtedness as it becomes due and payable during the restoration, and (iii) such
architect’s certificates, waivers of lien, contractor’s sworn statements, title insurance
endorsements, bonds, plats of survey and such other evidences of cost, payment and performance as
Lender may reasonably request; and Lender may, in any event, require that all plans and
specifications for restoration reasonably estimated by Lender to exceed $300,000 be submitted to
and approved by Lender prior to commencement of work (which approval shall not be unreasonably
withheld). If Lender reasonably estimates that the cost to restore will exceed $300,000, Lender
may retain a local construction consultant to inspect such work and review Borrower’s request for
payments and Borrower shall, on demand by Lender, reimburse Lender for the reasonable fees and
expenses of such consultant (which fees and expenses shall constitute Indebtedness). No payment
shall exceed 90% of the value of the work performed from time to time until such time as 50% of the
restoration (calculated based on the anticipated aggregate cost of the work) has been completed,
and amounts retained prior to completion of 50% of the restoration shall not be paid prior to the
final completion of the restoration. Funds other than Loss Proceeds shall be disbursed prior to
disbursement of such Loss Proceeds, and at all times the undisbursed balance of such proceeds
remaining in the Loss Proceeds Account, together with any additional funds irrevocably and
unconditionally deposited therein or irrevocably and unconditionally committed for that purpose,
shall be at least sufficient in the reasonable judgment of Lender to pay for the cost of completion
of the restoration free and clear of all Liens or claims for Lien.

     (e) Borrower shall cooperate with Lender in obtaining for Lender the benefits of any Loss
Proceeds lawfully or equitably payable to Lender in connection with the Property. Lender shall be
reimbursed for any expenses reasonably incurred in connection therewith (including reasonable
attorneys’ fees and disbursements, and, if reasonably necessary to collect such proceeds, the
expense of an Appraisal on behalf of Lender) out of such Loss Proceeds or, if insufficient for such
purpose, by Borrower. Borrower hereby irrevocably constitutes and appoints Lender as the
attorney-in-fact of Borrower for matters in excess of $300,000.00 with respect to the Property,
with full power of substitution, subject to the terms of this Section 5.16, to settle for,
collect and receive all Loss Proceeds and any other awards, damages, insurance proceeds, payments
or other compensation from the parties or authorities making the same, to appear in and prosecute
any proceedings therefor and to give receipts and acquittance therefor (which power of attorney
shall be irrevocable so long as any of the Indebtedness is outstanding,
shall be deemed coupled with an interest, and shall survive the voluntary or involuntary
dissolution of Borrower).

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     (f) If Borrower is not entitled to apply Loss Proceeds toward the restoration of the Property
pursuant to Section 5.16(d) and Lender elects not to permit such Loss Proceeds to be so
applied, such Loss Proceeds shall be applied on the first Payment Date following such election to
the prepayment of the principal of the Loan and shall be accompanied by interest through the end of
the applicable Interest Accrual Period (calculated as if the amount prepaid were outstanding for
the entire Interest Accrual Period). If the Note has been bifurcated into multiple Notes pursuant
to Section 1.1(c), all prepayments of the Loan made by Borrower in accordance with this
Section 5.16(f) shall be applied to the Notes in ascending order of interest rate
(i.e., first to the Note with the lowest interest rate until its outstanding principal
balance has been reduced to zero, then to the Note with the second lowest interest rate until its
outstanding principal balance has been reduced to zero, and so on) or in such other order as Lender
shall determine.

     (g) Notwithstanding the foregoing provisions of this Section 5.16, if the Loan is
included in a REMIC and immediately following a release of any portion of the applicable Property
from the Lien of the Loan Documents in connection with a Casualty or Condemnation the Loan would
fail to satisfy a Lender 80% Determination, then the principal of the Loan shall be prepaid in
accordance with Section 5.16(f) in an amount equal to either (i) so much of the Loss
Proceeds as are necessary to cause the Lender 80% Determination to be satisfied, or if the
aggregate Loss Proceeds are insufficient for such purpose, then the amount realized by Borrower
from the Casualty or Condemnation for purposes of computing gain or loss under section 1001 of the
Code, or (ii) a lesser amount provided the Borrower delivers to Lender an opinion of counsel for
Borrower, in form and substance reasonably satisfactory to Lender and delivered by counsel
reasonably satisfactory to Lender, opining that such release of Property from the Lien does not
cause any portion of the Loan to cease to be a “qualified mortgage” within the meaning of section
860G(a)(3) of the Code.

     Section 5.17. Annual Budget. Each calendar year during the term of the Loan, as soon
as made available to Borrower and/or Operating Lessee in accordance with the terms of Sections
3.2 of the Approved Management Agreement, Borrower or Operating Lessee shall deliver or shall
cause Approved Property Manager to deliver to Lender, for informational purposes only, the Annual
Budget and, promptly after preparation thereof, any subsequent revisions to the Annual Budget. If
the budget approval process under the Approved Management Agreement shall be ongoing during the
continuance of a Trigger Period or an Event of Default, neither Borrower nor Operating Lessee shall
exercise any budget approval right they may have under the Approved Management Agreement without
the approval of Lender, such approval not to be unreasonably conditioned, withheld or delayed. For
so long as Lender shall withhold its consent to any Annual Budget or any revisions thereto, the
Annual Budget in effect prior to any such request for approval shall remain in effect. Without the
prior written consent of Lender, which consent shall not be unreasonably withheld or delayed,
during the continuance of a Trigger Period neither Borrower nor Operating Lessee shall make or
approve any expenditures that are either not provided for in the Approved Annual Budget or that
would, in the aggregate, cause any line item in the Approved Annual Budget to be exceeded by 5% or
more measured on an annual basis, other than expenditures for non-discretionary items and
expenditures required to be made by reason of the occurrence of any
emergency (i.e., an unexpected event that threatens imminent harm to persons or
property at the Property) and with respect to which it would be impracticable, under the
circumstances, to obtain Lender’s prior consent thereto. For the avoidance of doubt, decreases made
or approved to any line item in the Approved Annual

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Budget shall not require Lender’s consent.
Borrower and/or Operating Lessee shall deliver, or cause to be delivered, the 2011 Annual Budget as
soon as is practical.

     Section 5.18. Nonbinding Consultation. Lender shall have the right to consult with
and advise Borrower regarding significant business activities and business and financial
developments of Borrower and Operating Lessee, provided that any such advice or consultation or the
result thereof shall be completely nonbinding on Borrower.

     Section 5.19. Compliance with Encumbrances and Material Agreements. Borrower
covenants and agrees as follows:

     (i) Borrower shall, and shall cause Operating Lessee to, comply with all material
terms, conditions and covenants of each Material Agreement and each material Permitted
Encumbrance, including any reciprocal easement agreement, any declaration of covenants,
conditions and restrictions, and any condominium arrangements.

     (ii) Borrower shall, and shall cause Operating Lessee to, promptly deliver to Lender a
true, correct and complete copy of each and every notice of default received by Borrower or
Operating Lessee with respect to any obligation of such Borrower or Operating Lessee under
the provisions of any Material Agreement and/or Permitted Encumbrance.

     (iii) Borrower shall, and shall cause Operating Lessee to, deliver to Lender copies of
any written notices of default or event of default relating to any Material Agreement and/or
Permitted Encumbrance served by Borrower or Operating Lessee.

     (iv) After the occurrence of an Event of Default, so long as the Loan is outstanding,
Borrower shall not, and shall not cause Operating Lessee to, grant or withhold any material
consent, approval or waiver under any Material Agreement or Permitted Encumbrance without
the prior written consent of Lender.

     (v) Borrower shall, and shall cause Operating Lessee to, deliver to each other party to
any Permitted Encumbrance and any Material Agreement notice of the identity of Lender and
each assignee of Lender of which Borrower is aware if such notice is required in order to
protect Lender’s interest thereunder.

     (vi) Borrower shall, and shall cause Operating Lessee to, enforce, short of termination
thereof, the performance and observance of each and every material term, covenant and
provision of each Material Agreements to be performed or observed, if any.

     Section 5.20. Prohibited Persons. None of Borrower, Operating Lessee, Sponsor or any
Person owning a direct or indirect
beneficial interest in Borrower, Operating Lessee, or Sponsor shall (i) knowingly conduct any
business, or engage in any transaction or dealing, with any Embargoed Person, including, but not
limited to, the making or receiving of any contribution of funds, goods, or services, to or for the
benefit of a Embargoed Person, or (ii) knowingly engage in or conspire to engage in any transaction
that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any of
the prohibitions set forth in Executive Order 13224. Borrower shall deliver to Lender from time to
time written certification or other evidence

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as may be reasonably requested by Lender, confirming
that (x) none of Borrower, Operating Lessee, Sponsor or, to Borrower’s knowledge, any Person owning
a direct or indirect beneficial interest in Borrower, Operating Lessee, or Sponsor is an Embargoed
Person and (y) none of Borrower, Operating Lessee, Sponsor or, to Borrower’s knowledge, any Person
owning a direct or indirect beneficial interest in Borrower, Operating Lessee, or Sponsor has
knowingly engaged in any business, transaction or dealings with a Embargoed Person, including, but
not limited to, the making or receiving of any contribution of funds, goods, or services, to or for
the benefit of a Embargoed Person.

     Section 5.21. Operating Lease.

     (i) Borrower shall cause Operating Lessee to comply with the affirmative and negative
covenants contained in this Agreement as if Operating Lessee were the Borrower hereunder and
no Default hereunder shall be excused by virtue of the fact that such Default was caused by
Operating Lessee.

     (ii) Borrower shall use best efforts to cause the Operating Lease to remain in effect
so long as any portion of the Indebtedness is outstanding.

     (iii) Notwithstanding anything to the contrary herein or in any other Loan Documents or
in the Operating Lease, during the continuance of an Event of Default (but only after Lender
shall have exercised its rights and remedies under the Mortgage), Lender may, at its sole
option and regardless of whether Operating Lessee is in default or compliance with the terms
of the Operating Lease, terminate the Operating Lease without payment of any termination
fee, penalty or other amount (the parties hereto agreeing that any such fee, penalty or
other amount shall be solely the obligation of Sponsor and shall be paid by Sponsor or an
affiliate of Sponsor other than Borrower or Operating Lessee).

     Section 5.22. Post-Closing Matters. Within ten (10) Business Days after the Closing
Date, or such longer time as set forth on Schedule D, Borrower shall satisfy all of the
Post-Closing Matters.

ARTICLE VI

NEGATIVE COVENANTS

     Section 6.1. Liens on the Collateral. None of Borrower, Operating Lessee or, if
applicable, any Single-Purpose Equityholder shall permit or suffer the existence of any Lien on any
of its assets, other than Permitted Encumbrances.

     Section 6.2. Ownership. Neither Borrower, Operating Lessee nor Borrower FF&E
Subsidiary shall hold any interest in any assets other than the Property and related personal
property and fixtures located therein or used in connection therewith,.

     Section 6.3. Transfer; Change of Control. Neither Borrower nor Operating Lessee shall
Transfer any Collateral other than in compliance with Article II and other than the
replacement or other disposition of obsolete or non-useful personal property and fixtures in the
ordinary course of business, and neither Borrower nor Operating Lessee shall hereafter file a

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declaration of condominium with respect to the Property. No Change of Control or Prohibited Pledge
shall occur. Borrower shall not Transfer any of its equity interests in Borrower FF&E Subsidiary.

     Section 6.4. Debt. Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary
shall have any Debt, other than Permitted Debt.

     Section 6.5. Dissolution; Merger or Consolidation. None of Borrower, Operating Lessee
or, if applicable, any Single-Purpose Equityholder shall dissolve, terminate, liquidate, merge
with or consolidate into another Person without first causing the Loan to be assumed by a Qualified
Successor Borrower pursuant to Section 2.2.

     Section 6.6. Change in Business. Neither Borrower, Operating Lessee nor Borrower FF&E
Subsidiary shall make any material change in the scope or nature of its business objectives,
purposes or operations or undertake or participate in activities other than the continuance of its
present business.

     Section 6.7. Debt Cancellation. Neither Borrower, Operating Lessee nor Borrower FF&E
Subsidiary shall cancel or otherwise forgive or release any material claim or Debt owed to it by
any Person, except for adequate consideration or in the ordinary course of its business.

     Section 6.8. Affiliate Transactions. Neither Borrower, Operating Lessee nor Borrower
FF&E Subsidiary shall enter into, or be a party to, any transaction with any affiliate, except on
terms that are no less favorable to Borrower or Operating Lessee than would be obtained in a
comparable arm’s length transaction with an unrelated third party.

     Section 6.9. Misapplication of Funds. Neither Borrower nor Operating Lessee shall (a)
distribute any Revenue or Loss Proceeds in violation of the provisions of this Agreement (and shall
promptly cause the reversal of any such distributions made in error of which Borrower becomes
aware), (b) fail to remit amounts to the Cash Management Account as required by Section
3.1, or (c) misappropriate any security deposit or portion thereof.

     Section 6.10. Jurisdiction of Formation; Name. Neither Borrower, Borrower FF&E
Subsidiary nor Operating
Lessee shall change its jurisdiction of formation or name without receiving Lender’s prior
written consent and promptly providing Lender such information and replacement Uniform Commercial
Code financing statements and legal opinions as Lender may reasonably request in connection
therewith.

     Section 6.11. Modifications and Waivers. Unless otherwise consented to in writing by
Lender, none of Borrower, Operating Lessee or, in the case of clause (ii) below, any Single-Purpose
Equityholder (if applicable) shall:

     (i) amend, modify, terminate, renew, or surrender any rights or remedies under any
Lease, or enter into any Lease, except in compliance with Section 5.7;

     (ii) terminate, amend or modify its organizational documents (including any operating
agreement, limited partnership agreement, by-laws, certificate of formation, certificate of
limited partnership or certificate of incorporation);

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     (iii) terminate, amend or modify the Approved Management Agreement, except immaterial
amendments and modifications that have no adverse effect on Lender and do not alter any
economic term of the Approved Management Agreement; and

     (iv) amend, modify, surrender or waive any material rights or remedies under, or enter
into or terminate, or default in its obligations under, any Material Agreement.

     Section 6.12. ERISA.

     (a) Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary shall maintain or
contribute to, or agree to maintain or contribute to, or permit any ERISA Affiliate to maintain or
contribute to or agree to maintain or contribute to, any employee benefit plan (as defined in
Section 3(3) of ERISA) subject to Title IV or Section 302 of ERISA or Section 412 of the Code.

     (b) Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary shall engage in a
non-exempt prohibited transaction under Section 406 of ERISA, Section 4975 of the Code, or
substantially similar provisions under federal, state or local laws, rules or regulations or in any
transaction that would cause any obligation or action taken or to be taken hereunder (or the
exercise by Lender of any of its rights under the Notes, this Agreement, the Mortgage or any other
Loan Document) to be a non-exempt prohibited transaction under such provisions.

     Section 6.13. Alterations and Expansions. During the continuance of any Trigger
Period or Event of Default, Borrower shall not, and shall not permit Operating Lessee to, perform
or contract to perform any capital improvements requiring Capital Expenditures that are not
consistent with the Approved Annual Budget. Borrower shall not, and shall not permit Operating
Lessee to, perform, undertake, contract to perform or consent to any Material Alteration without
the prior written consent of Lender, which consent (in the absence of an Event of Default) shall
not be unreasonably withheld, but such consent may be conditioned on the delivery of additional
collateral acceptable to Lender in respect of the unpaid cost of any such Material Alteration. If
Lender’s consent is requested hereunder with respect to a Material Alteration, Lender may
retain a construction consultant to review such request and, if such request is granted, Lender may
retain a construction consultant to inspect the work from time to time. Borrower shall, on demand
by Lender, reimburse Lender for the reasonable fees and disbursements of such consultant.

     Section 6.14. Advances and Investments. Neither Borrower, Operating Lessee nor
Borrower FF&E Subsidiary shall lend money or make advances to any Person, or purchase or acquire
any stock, obligations or securities of, or any other interest in, or make any capital contribution
to, any Person, except for Permitted Investments.

     Section 6.15. Single-Purpose Entity. Neither Borrower, Borrower FF&E Subsidiary nor
Operating Lessee shall cease to be a Single-Purpose Entity. Neither Borrower, Operating Lessee nor
Borrower FF&E Subsidiary shall remove or replace any Independent Director without Cause and without
providing at least two (2) Business Days’ advance written notice thereof to Lender and the Rating
Agencies.

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     Section 6.16. Zoning and Uses. Neither Borrower nor Operating Lessee shall do any of
the following:

     (i) initiate or support any limiting change in the permitted uses of the Property (or
to the extent applicable, zoning reclassification of the Property) or any portion thereof,
seek any variance under existing land use restrictions, laws, rules or regulations (or, to
the extent applicable, zoning ordinances) applicable to the Property, or use or permit the
use of the Property in a manner that would result in the use of the Property becoming a
nonconforming use under applicable land-use restrictions or zoning ordinances or that would
violate the terms of any Lease, Material Agreement or Legal Requirement (and if under
applicable zoning ordinances the use of all or any portion of the Property is a
nonconforming use, Borrower shall not cause or permit such nonconforming use to be
discontinued or abandoned without the express written consent of Lender);

     (ii) consent to any modification, amendment or supplement to any of the terms of, or
materially default in its obligations under, any Permitted Encumbrance;

     (iii) impose or consent to the imposition of any restrictive covenants, easements or
encumbrances upon the Property in any manner that adversely affects in any material respect
its value, utility or transferability;

     (iv) execute or file any subdivision plat affecting the Property, or institute, or
permit the institution of, proceedings to alter any tax lot comprising the Property;

     (v) amend or cause to be amended any Material Agreement in any manner that might (x)
diminish the value of the Property, (y) diminish the rights of Borrower or Lender thereunder
or (z) or otherwise cause or reasonably be expected to result in a Material Adverse Effect,
or terminate the same for any reason or purpose whatsoever, in each case, without the prior
written consent of Lender; or

     (vi) permit or consent to the Property’s being used by the public or any Person in
such manner as might make possible a claim of adverse usage or possession or of any implied
dedication or easement.

     Section 6.17. Waste. Neither Borrower, Operating Lessee nor Borrower FF&E Subsidiary
shall commit or permit any Waste on the Property, nor take any actions that might invalidate any
insurance carried on the Property (and Borrower shall promptly correct any such actions of which
Borrower becomes aware).

     Section 6.18. Joint Assessment. Borrower shall not suffer, permit or initiate the
joint assessment of the Property (i) with any other real property constituting a separate tax lot,
or (ii) with any personal property, or any other procedure whereby the Lien of any Taxes that may
be levied against such other real property or personal property shall be assessed or levied or
charged to the Property as a single Lien.

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ARTICLE VII

DEFAULTS

     Section 7.1. Event of Default. The occurrence of any one or more of the following
events shall be, and shall constitute the commencement of, an “Event of Default” hereunder
(any Event of Default that has occurred shall continue unless and until waived by Lender in writing
in its sole discretion):

     (a) Payment.

     (i) Borrower shall default in the payment when due of any principal or interest owing
hereunder or under the Notes (including any mandatory prepayment required hereunder)
provided that the Default Rate shall not apply to any amount owing hereunder or under the
Notes unless and until Borrower and Borrower’s counsel shall have received email
notification at the email addresses provided in Section 9.4, or any other form of
notice permitted under this Agreement, setting forth the payment amount and the due date
thereof; or

     (ii) Borrower shall default, and such default shall continue for at least five Business
Days after notice to Borrower that such amounts are owing, in the payment when due of fees,
expenses or other amounts owing hereunder, under the Notes or under any of the other Loan
Documents (other than principal and interest owing hereunder or under the Note).

     (b) Representations. Any representation made by Borrower, Borrower FF&E Subsidiary,
Sponsor or Operating Lessee in any of the Loan Documents, or in any report, certificate, financial
statement or other instrument, agreement or document furnished to Lender proves to be untrue in any
material respect (or, with respect to any representation that itself contains a materiality
qualifier, in any respect) as of the date such representation was made.

     (c) Other Loan Documents. Any Loan Document shall fail to be in full force and effect
or to convey the material Liens, rights, powers and privileges purported to be created thereby; or
a default shall occur under any of the other Loan Documents or Material Agreements, or a default by
Borrower or Operating Lessee, as applicable, shall occur under the Approved Management Agreement,
or the Operating Lease, in each case, beyond the expiration of any applicable cure period.

     (d) Bankruptcy; Reorganization; Receivership; and Insolvency.

     (i) Borrower, Borrower FF&E Subsidiary, Operating Lessee or, if applicable, any
Single-Purpose Equityholder shall commence a voluntary case concerning itself under Title 11
of the United States Code (as amended, modified, succeeded or replaced, from time to time,
the “Bankruptcy Code”);

     (ii) Borrower, Borrower FF&E Subsidiary, Operating Lessee or, if applicable, any
Single-Purpose Equityholder shall commence any other proceeding under any reorganization,
arrangement, adjustment of debt, relief of creditors, dissolution,

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insolvency or similar law
of any jurisdiction whether now or hereafter in effect relating to Borrower, Borrower FF&E
Subsidiary, Operating Lessee or such Single-Purpose Equityholder, or shall dissolve or
otherwise cease to exist;

     (iii) there is commenced against Borrower, Borrower FF&E Subsidiary, Operating Lessee
or, if applicable, any Single-Purpose Equityholder an involuntary case under the Bankruptcy
Code, or any such other proceeding, which remains undismissed for a period of 60 days after
commencement;

     (iv) Borrower, Borrower FF&E Subsidiary, Operating Lessee or, if applicable, any
Single-Purpose Equityholder is adjudicated insolvent or bankrupt;

     (v) Borrower, Borrower FF&E Subsidiary, Operating Lessee or, if applicable, any
Single-Purpose Equityholder suffers appointment of any custodian or the like for it or for
any substantial portion of its property and such appointment continues unchanged or unstayed
for a period of 60 days after commencement of such appointment;

     (vi) Borrower, Borrower FF&E Subsidiary, Operating Lessee or, if applicable, any
Single-Purpose Equityholder makes a general assignment for the benefit of creditors; or

     (vii) any action is taken by Borrower, Borrower FF&E Subsidiary, Operating Lessee or,
if applicable, any Single-Purpose Equityholder for the purpose of effecting any of the
foregoing.

     (e) Change of Control.

     (i) A Change of Control shall occur; or

     (ii) the failure to deliver any Nonconsolidation Opinion required pursuant to
Section 2.3.

     (f) Equity Pledge; Preferred Equity. Any direct or indirect equity interest in or
right to distributions from Borrower, Borrower FF&E Subsidiary or Operating Lessee shall be subject
to a Lien in favor of any Person, or Borrower, Borrower FF&E Subsidiary, Operating Lessee or any
holder of a direct or indirect interest in Borrower, Borrower FF&E Subsidiary or Operating Lessee
shall issue preferred equity (or debt granting the holder thereof rights substantially similar to
those generally associated with preferred equity); except that the following shall be permitted:

     (i) any pledge of direct and indirect equity interests in and rights to distributions
from a Qualified Equityholder meeting the requirements of subclauses (i), (ii) or (iii) of
the definition of Qualified Equityholder; and

     (ii) the issuance of preferred equity interests in a Qualified Equityholder meeting the
requirements of subclauses (i), (ii) or (iii) of the definition of Qualified Equityholder.

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Any act, action or state of affairs that would result in an Event of Default pursuant to this
Section 7.1(f) shall be referred to in this Agreement as a “Prohibited Pledge”.

     (g) Insurance. Any of the Policies required hereunder shall not be maintained in full
force and effect.

     (h) ERISA; Negative Covenants. A default shall occur in the due performance or
observance by Borrower or Operating Lessee of any term, covenant or agreement contained in
Section 5.8 or in Article VI.

     (i) Legal Requirements. If Borrower fails to cure or cause the cure of any violations
of Legal Requirements affecting all or any portion of the Property within 30 days after Borrower
first receives written notice of any such violations; provided, however, if any
such violation is reasonably susceptible of cure, but not within such 30 day period, then Borrower
shall be permitted up to an additional 30 days to cure such violation provided that cure is
commenced within such initial 30 day period and thereafter diligently and continuously pursued.

     (j) Other Covenants. A default shall occur in the due performance or observance by
Borrower of any term, covenant or agreement (other than those referred to in any other subsection
of this Section 7.1) contained in this Agreement or in any of the other Loan Documents,
except that in the case of a default that can be cured by the payment of money, such default shall
not constitute an Event of Default unless and until it shall remain uncured for 10 days after
Borrower receives written notice thereof; and in the case of a default that cannot be cured by the
payment of money but is susceptible of being cured within 30 days, such default shall not
constitute an Event of Default unless and until it remains uncured for 30 days after Borrower
receives written notice thereof, provided that within 5 days of its receipt of such written notice,
Borrower delivers written notice to Lender of its intention and ability to effect such cure within
such 30 day period; and if such non-monetary default is not cured within such 30 day period despite
Borrower’s diligent efforts but is susceptible of being cured within 90 days of Borrower’s receipt
of Lender’s original notice, then Borrower shall have such additional time as is reasonably
necessary to effect such cure, but in no event in excess of 90 days from Borrower’s receipt of
Lender’s original notice, provided that prior to the expiration of the initial
30 day period, Borrower delivers written notice to Lender of its intention and ability to
effect such cure prior to the expiration of such 90 day period.

     (k) Intentionally omitted.

     (l) Operating Lease. The Operating Lease shall no longer be in effect for any reason
whatsoever, including, without limitation, expiration of the Operating Lease by its terms absent
renewal or extension of the Operating Lease.

     Section 7.2. Remedies.

     (a) During the continuance of an Event of Default, Lender may by written notice to Borrower,
in addition to any other rights or remedies available pursuant to this Agreement, the Notes, the
Mortgage and the other Loan Documents, at law or in equity, declare by written notice to Borrower
all or any portion of the Indebtedness to be immediately due and payable, whereupon all or such
portion of the Indebtedness shall so become due and payable, and Lender

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may enforce or avail itself
of any or all rights or remedies provided in the Loan Documents against Borrower and the Collateral
(including all rights or remedies available at law or in equity); provided,
however, that, notwithstanding the foregoing, if an Event of Default specified in paragraph
7.1(d) shall occur, then the Indebtedness shall immediately become due and payable without
the giving of any notice or other action by Lender. Any actions taken by Lender shall be
cumulative and concurrent and may be pursued independently, singly, successively, together or
otherwise, at such time and in such order as Lender may determine in its sole discretion, to the
fullest extent permitted by law, without impairing or otherwise affecting the other rights and
remedies of Lender permitted by law, equity or contract or as set forth in this Agreement or in the
other Loan Documents.

     (b) If Lender forecloses on the Property, Lender shall apply all net proceeds of such
foreclosure to repay the Indebtedness, the Indebtedness shall be reduced to the extent of such net
proceeds and the remaining portion of the Indebtedness shall remain outstanding and secured by the
Property and the other Loan Documents, it being understood and agreed by Borrower that Borrower is
liable for the repayment of all the Indebtedness; provided, however, that at the
election of Lender, the Notes shall be deemed to have been accelerated only to the extent of the
net proceeds actually received by Lender with respect to the Property and applied in reduction of
the Indebtedness.

     (c) During the continuance of any Event of Default (including an Event of Default resulting
from a failure to satisfy the insurance requirements specified herein), Lender may, but without any
obligation to do so and without notice to or demand on Borrower and without releasing Borrower from
any obligation hereunder, take any action to cure such Event of Default. Lender may enter upon any
or all of the Property upon reasonable notice to Borrower for such purposes or appear in, defend,
or bring any action or proceeding to protect its interest in the Collateral or to foreclose the
Mortgage or collect the Indebtedness. The costs and expenses incurred by Lender in exercising
rights under this Section (including reasonable attorneys’ fees), with interest at the Default Rate
for the period after notice from Lender that such costs or expenses were incurred to the date of
payment to Lender, shall constitute a portion of the
Indebtedness, shall be secured by the Mortgage and other Loan Documents and shall be due and
payable to Lender upon demand therefor.

     (d) Interest shall accrue on any judgment obtained by Lender in connection with its
enforcement of the Loan at a rate of interest equal to the Default Rate.

     Section 7.3. No Waiver. No delay or omission to exercise any remedy, right or power
accruing upon an Event of Default shall impair any such remedy, right or power or shall be
construed as a waiver thereof, but any such remedy, right or power may be exercised from time to
time and as often as may be deemed by Lender to be expedient. A waiver of any Default or Event of
Default shall not be construed to be a waiver of any subsequent Default or Event of Default or to
impair any remedy, right or power consequent thereon.

     Section 7.4. Application of Payments after an Event of Default. Notwithstanding
anything to the contrary contained herein, during the continuance of an Event of Default, all
amounts received by Lender in respect of the Loan shall be applied at Lender’s sole discretion
either toward the components of the Indebtedness (e.g., Lender’s expenses in enforcing the
Loan,

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interest, principal and other amounts payable hereunder) and the Notes in such sequence as
Lender shall elect in its sole discretion, or toward the payment of Property expenses.

ARTICLE VIII

INTENTIONALLY OMITTED

ARTICLE IX

MISCELLANEOUS

     Section 9.1. Successors. Except as otherwise provided in this Agreement, whenever in
this Agreement any of the parties to this Agreement is referred to, such reference shall be deemed
to include the successors and permitted assigns of such party. All covenants, promises and
agreements in this Agreement contained, by or on behalf of Borrower, shall inure to the benefit of
Lender and its successors and assigns.

     Section 9.2. GOVERNING LAW.

     (A) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF
THE STATE OF NEW YORK WITHOUT REGARD TO CHOICE OF LAW RULES TO THE EXTENT THE APPLICATION OF
THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

     (B) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER, BORROWER, OPERATING LESSEE OR
SPONSOR ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS
(OTHER THAN ANY ACTION IN RESPECT OF THE CREATION, PERFECTION OR ENFORCEMENT OF A LIEN OR
SECURITY INTEREST CREATED PURSUANT TO ANY LOAN DOCUMENTS NOT GOVERNED BY THE LAWS OF THE
STATE OF NEW YORK) SHALL BE INSTITUTED IN ANY FEDERAL OR STATE COURT IN NEW YORK, NEW YORK.
BORROWER, OPERATING LESSEE AND SPONSOR HEREBY (i) IRREVOCABLY WAIVE, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING
OF VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT
ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM, (ii)
IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION OR
PROCEEDING, AND (iii) IRREVOCABLY CONSENT TO SERVICE OF PROCESS BY MAIL, PERSONAL SERVICE
OR IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, AT THE ADDRESS SPECIFIED IN SECTION
9.4 (AND AGREES THAT SUCH SERVICE AT SUCH ADDRESS IS SUFFICIENT TO CONFER PERSONAL
JURISDICTION OVER
ITSELF IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY SUCH COURT, AND OTHERWISE
CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT).

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     Section 9.3. Modification, Waiver in Writing. Neither this Agreement nor any other
Loan Document may be amended, changed, waived, discharged or terminated, nor shall any consent or
approval of Lender be granted hereunder, unless such amendment, change, waiver, discharge,
termination, consent or approval is in writing signed by Lender.

     Section 9.4. Notices. All notices, consents, approvals and requests required or
permitted hereunder or under any other Loan Document shall be given either (i) in writing by
expedited prepaid delivery service, either commercial or United States Postal Service, with proof
of delivery or attempted delivery, addressed as follows (or at such other address and person as
shall be designated from time to time by any party to this Agreement, as the case may be, in a
written notice to the other parties to this Agreement in the manner provided for in this Section)
or (ii) by email at the email addresses provided below, provided that such email notification is
followed by an additional written notice delivered in accordance with clause (i) of this paragraph,
provided, however, that no such additional notification shall be required in the
case of email notice of a payment default, as provided for in Section 7.1(a). A notice
shall be deemed to have been given when delivered or upon refusal to accept delivery.

	 	 	 	 	 

	 

	 	If to Lender:
	 	UBS Real Estate Securities Inc.
	 

	 	 	 	1285 Avenue of the Americas
	 

	 	 	 	New York, New York 10019
	 

	 	 	 	Attention: Transaction Manager — Henry Chung
	 

	 	 	 	Facsimile No.: 212-821-2943
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Katten Muchin Rosenman LLP
	 

	 	 	 	550 South Tryon Street, Suite 2900
	 

	 	 	 	Charlotte, North Carolina 28202
	 

	 	 	 	Attention: Daniel S. Huffenus, Esq.
	 

	 	 	 	Facsimile No.: 704-344-3056
	 
	 	 	 	 
	 

	 	If to Borrower:
	 	TERRAPINS Owner LLC
	 

	 	 	 	c/o Pebblebrook Hotel Trust
	 

	 	 	 	2 Bethesda Metro Center
	 

	 	 	 	Suite 1530
	 

	 	 	 	Bethesda, MD 20814
	 

	 	 	 	Attention: Raymond D. Martz
	 

	 	 	 	Email: rmartz@pebblebrookhotels.com
	 
	 	 	 	 
	 

	 	with a copy to:
	 	Honigman Miller Schwartz and Cohn LLP
	 

	 	 	 	38500 Woodward Avenue, Suite 100
	 

	 	 	 	Bloomfield Hills, Michigan 48304-5048
	 

	 	 	 	Attention: J. Adam Rothstein
	 

	 	 	 	Facsimile: (248) 566-8479

     Section 9.5. TRIAL BY JURY. LENDER, BORROWER, OPERATING LESSEE AND SPONSOR, TO THE
FULLEST EXTENT THAT THEY MAY LAWFULLY DO SO, HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE
TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE

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EXTENT THAT ANY SUCH
RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR
OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN
KNOWINGLY AND VOLUNTARILY BY LENDER, BORROWER, OPERATING LESSEE AND SPONSOR AND IS INTENDED TO
ENCOMPASS INDIVIDUALLY EACH INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD
OTHERWISE ACCRUE. LENDER, BORROWER, OPERATING LESSEE AND/OR SPONSOR ARE HEREBY AUTHORIZED TO FILE
A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS WAIVER BY BORROWER,
OPERATING LESSEE AND SPONSOR.

     Section 9.6. Headings. The Article and Section headings in this Agreement are
included in this Agreement for convenience of reference only and shall not constitute a part of
this Agreement for any other purpose.

     Section 9.7. Assignment and Participation.

     (a) Except as explicitly set forth in Sections 2.1 and 2.2, Borrower may not
sell, assign or transfer any interest in the Loan Documents or any portion thereof (including
Borrower’s rights, title, interests, remedies, powers and duties hereunder and thereunder).

     (b) Lender and each assignee of all or a portion of the Loan shall have the right from time to
time in its discretion to sell one or more of the Notes or any interest therein (an
“Assignment”) and/or sell a participation interest in one or more of the Notes (a
“Participation”). Borrower agrees to reasonably cooperate with Lender, at Lender’s
request, in order to effectuate any such Assignment or Participation, and Borrower shall promptly
provide such information, legal opinions and documents relating to Borrower, any Single-Purpose
Equityholder, Sponsor, the Property, the Approved Property Manager and any Tenants as Lender may
reasonably request in connection with such Assignment or Participation. In the case of an
Assignment, (i) each assignee shall have, to the extent of such Assignment, the rights, benefits
and obligations of the assigning Lender as a “Lender” hereunder and under the other Loan Documents,
(ii) the assigning Lender shall, to the extent that rights and obligations hereunder have been
assigned by it pursuant to an Assignment, relinquish its rights and be released from its
obligations under this Agreement, and (iii) one Lender shall serve as agent for all Lenders and
shall be the sole Lender to whom notices, requests and other communications shall be addressed and
the sole party authorized to grant or withhold consents hereunder on behalf of the Lenders
(subject, in each case, to appointment of a Servicer, pursuant to Section 9.22, to receive
such notices, requests and other communications and/or to grant or withhold consents, as the case
may be) and to be the sole Lender to designate the account to which payments shall be made by
Borrower to the
Lenders hereunder. Lender (or an Affiliate of Lender) or, upon the appointment of a Servicer,
such Servicer, shall maintain, or cause to be maintained, as agent for Borrower, a register on
which it shall enter the name or names of the registered owner or owners from time to time of the
Notes. Borrower agrees that upon effectiveness of any Assignment of any Note in part, Borrower
will promptly provide to the assignor and the assignee separate promissory notes in the amount of
their respective interests (but, if applicable, with a notation thereon that it is given in
substitution for and replacement of an original Note or any replacement thereof), and otherwise in
the form of such Note, upon return of the Note then being replaced. The assigning Lender

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shall
notify in writing each of the other Lenders of any Assignment. Each potential or actual assignee,
participant or investor in a Securitization, and each Rating Agency, shall be entitled to receive
all information received by Lender under this Agreement. After the effectiveness of any
Assignment, the party conveying the Assignment shall provide notice to Borrower and each Lender of
the identity and address of the assignee. Notwithstanding anything in this Agreement to the
contrary, after an Assignment, the assigning Lender (in addition to the assignee) shall continue to
have the benefits of any indemnifications contained in this Agreement that such assigning Lender
had prior to such assignment with respect to matters occurring prior to the date of such
assignment.

     (c) If, pursuant to this Section 9.7, any interest in this Agreement or any Note is
transferred to any transferee that is not a U.S. Person, the transferor Lender shall cause such
transferee, concurrently with the effectiveness of such transfer, (i) to furnish to the transferor
Lender either Form W-8BEN or Form W-8ECI or any other form in order to establish an exemption from,
or reduction in the rate of, U.S. withholding tax on all interest payments hereunder, and (ii) to
agree (for the benefit of Lender and Borrower) to provide the transferor Lender a new Form W-8BEN
or Form W-8ECI or any forms reasonably requested in order to establish an exemption from, or
reduction in the rate of, U.S. withholding tax upon the expiration or obsolescence of any
previously delivered form and comparable statements in accordance with applicable U.S. laws and
regulations and amendments duly executed and completed by such transferee, and to comply from time
to time with all applicable U.S. laws and regulations with regard to such withholding tax
exemption.

     Section 9.8. Severability. Wherever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provision or the remaining provisions of this Agreement.

     Section 9.9. Preferences; Waiver of Marshalling of Assets. Lender shall have no
obligation to marshal any assets in favor of Borrower or any other party or against or in payment
of any or all of the obligations of Borrower pursuant to this Agreement, the Notes or any other
Loan Document. Lender shall have the continuing and exclusive right to apply or reverse and
reapply any and all payments by Borrower to any portion of the obligations of Borrower hereunder
and under the Loan Documents. To the extent Borrower makes a payment or payments to Lender, which
payment or proceeds or any portion thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside or required to be repaid to a
trustee, receiver or any other party under any bankruptcy law, state or federal law, common
law or equitable cause, then, to the extent of such payment or proceeds received, the obligations
hereunder or portion thereof intended to be satisfied shall be revived and continue in full force
and effect, as if such payment or proceeds had not been received by Lender. To the fullest extent
permitted by law, Borrower, for itself and its permitted successors and assigns, waives all rights
to a marshalling of the assets of Borrower, and Borrower’s partners and others with interests in
Borrower, or to a sale in inverse order of alienation in the event of foreclosure of the Mortgage,
and agrees not to assert any right under any laws pertaining to the marshalling of assets, the sale
in inverse order of alienation, homestead exemption, the administration of estates of decedents, or
any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan

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Documents to a sale of the Property for the collection of the Indebtedness without any prior or
different resort for collection or of the right of Lender to the payment of the Indebtedness out of
the net proceeds of the Properties in preference to every other claimant whatsoever. In addition,
to the fullest extent permitted by law, Borrower, for itself and its successors and assigns, waives
in the event of foreclosure of the Mortgage, any legal right otherwise available to Borrower that
would require the separate sale of any Collateral or require Lender to exhaust its remedies against
any Collateral before proceeding against any other Collateral; and further in the event of such
foreclosure, Borrower does hereby expressly consent to and authorize, at the option of Lender, the
foreclosure and sale either separately or together of any combination of the Collateral.

     Section 9.10. Remedies of Borrower. If a claim is made that Lender or its agents have
unreasonably delayed acting or acted unreasonably in any case where by law or under this Agreement,
the Notes, the Mortgage or the other Loan Documents, any of such Persons has an obligation to act
promptly or reasonably, Borrower agrees that no such Person shall be liable for any monetary
damages, and Borrower’s sole remedy shall be limited to commencing an action seeking specific
performance, injunctive relief and/or declaratory judgment. Without in any way limiting the
foregoing, Borrower shall not assert, and hereby waives, any claim against Lender and/or its
affiliates, directors, employees, attorneys, agents or sub-agents, on any theory of liability, for
direct, special, indirect, consequential or punitive damages (whether or not the claim therefor is
based on contract, tort or duty imposed by any applicable legal requirement) arising out of, as a
result of, or in any way related to, the Loan Agreement or any other Loan Document or any agreement
or instrument contemplated hereby or thereby or referred to herein or therein, the transactions
contemplated hereby or thereby, the Loan or the use of the proceeds thereof or any act or omission
or event occurring in connection therewith, and Borrower hereby waives, releases and agrees not to
sue upon any such claim for any such damages, whether or not accrued and whether or not known or
suspected to exist in its favor.

     Section 9.11. Offsets, Counterclaims and Defenses. All payments made by Borrower
hereunder or under the other Loan Documents shall be made irrespective of, and without any
deduction for, any setoffs or counterclaims. Borrower waives the right to assert a counterclaim,
other than a mandatory or compulsory counterclaim, in any action or proceeding brought against it
by Lender arising out of or in any way connected with the Notes, this Agreement, the other Loan
Documents or the Indebtedness. Any assignee of Lender’s interest in the Loan shall take the same
free and clear of all offsets, counterclaims or defenses that are unrelated to the Loan.

     Section 9.12. No Joint Venture. Nothing in this Agreement is intended to create a
joint venture, partnership, tenancy-in-common, or joint tenancy relationship between Borrower and
Lender, nor to grant Lender any interest in the Property other than that of mortgagee or lender.

     Section 9.13. Conflict; Construction of Documents. In the event of any conflict
between the provisions of this Agreement and the provisions of the Notes, the Mortgage or any of
the other Loan Documents, the provisions of this Agreement shall prevail.

     Section 9.14. Brokers and Financial Advisors. Borrower and Sponsor each represent
that they have dealt with no financial advisors, brokers, underwriters, placement agents, agents

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or
finders in connection with the transactions contemplated by this Agreement. Borrower and Sponsor
each agree, jointly and severally, to indemnify and hold Lender harmless from and against any and
all claims, liabilities, costs and expenses of any kind in any way relating to or arising from a
claim by any Person that such Person acted on behalf of Borrower in connection with the
transactions contemplated in this Agreement. The provisions of this Section 9.14 shall
survive the expiration and termination of this Agreement and the repayment of the Indebtedness.

     Section 9.15. Counterparts. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument. Any counterpart delivered by facsimile, pdf
or other electronic means shall have the same import and effect as original counterparts and shall
be valid, enforceable and binding for the purposes of this Agreement.

     Section 9.16. Estoppel Certificates.

     (a) Borrower agrees at any time and from time to time, to execute, acknowledge and deliver to
Lender, within five days after receipt of Lender’s written request therefor, a statement in writing
setting forth (A) the Principal Indebtedness, (B) the date on which installments of interest and/or
principal were last paid, (C) any offsets or defenses to the payment of the Indebtedness, (D) that
the Notes, this Agreement, the Mortgage and the other Loan Documents are valid, legal and binding
obligations and have not been modified or if modified, giving particulars of such modification, (E)
that neither Borrower nor, to Borrower’s knowledge, Lender, is in default under the Loan Documents
(or specifying any such default), (F) that all Leases are in full force and effect and have not
been modified (except in accordance with the Loan Documents), (G) whether or not any of the Tenants
under the Leases are in material default under the Leases (setting forth the specific nature of any
such material defaults) and (H) such other matters as Lender may reasonably request. Any
prospective purchaser of any interest in a Loan shall be permitted to rely on such certificate.

     (b) Upon Lender’s written request, Borrower shall use commercially reasonable efforts to
obtain from each Tenant whose Lease requires such Tenant to execute and deliver an estoppel
certificate, and shall thereafter promptly deliver to Lender duly executed estoppel
certificates from any one or more Tenants under the Leases as requested by Lender, attesting
to such facts regarding the Leases as Lender may reasonably require, including, but not limited to,
attestations that each Lease covered thereby is in full force and effect with no material defaults
thereunder on the part of any party, that rent has not been paid more than one month in advance,
except as security, and that the Tenant claims no defense or offset against the full and timely
performance of its obligations under the Lease. Borrower shall not be required to deliver such
certificates more frequently than one time in any 12-month period, other than the 12-month period
during which a Securitization occurs or is attempted.

     Section 9.17. General Indemnity; Payment of Expenses; Mortgage Recording Taxes.

     (a) Borrower, at its sole cost and expense, shall protect, indemnify, reimburse, defend and
hold harmless Lender and its officers, partners, members, directors, trustees, advisors, employees,
agents, sub-agents, affiliates, successors, participants and assigns of any and all of the
foregoing (collectively, the “Indemnified Parties”) for, from and against, and shall be

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responsible for, any and all Damages of any kind or nature whatsoever that may be imposed on,
incurred by, or asserted against any of the Indemnified Parties arising out of (i) any negligence
or tortious act or omission on the part of Borrower, Operating Lessee, Sponsor or any of their
respective agents, contractors, servants, employees, sublessees, licensees or invitees; (ii) any
accident, injury to or death of persons or loss of or damage to property occurring in, on or about
the Property or any part thereof or on the adjoining sidewalks, curbs, adjacent property or
adjacent parking areas, streets or ways; (iii) any use, nonuse or condition in, on or about the
Property any part thereof or on adjoining sidewalks, curbs, adjacent property or adjacent parking
areas, streets or ways; (iv) any failure on the part of Borrower, Operating Lessee or Sponsor to
perform or comply with any of the terms of the Loan Documents; (v) performance of any labor or
services or the furnishing of any materials or other property in respect of the Property or any
part thereof; (vi) any failure of the Property, Borrower, Operating Lessee or Sponsor to comply
with any Legal Requirements; (vii) any claim by brokers, finders or similar persons claiming to be
entitled to a commission in connection with any lease or other transaction involving the Property
or any part thereof under any legal requirement or any liability asserted against any Indemnified
Party with respect thereto; and (viii) any and all claims and demands whatsoever that may be
asserted against any Indemnified Party by reason of any alleged obligations or undertakings on such
party’s part to perform or discharge any of the terms, covenants, or agreements contained in any
Lease, in each case, to the extent resulting, directly or indirectly, from any claim (including any
Environmental Claim) made (whether or not in connection with any legal action, suit, or proceeding)
by or on behalf of any Person; provided, however, that no Indemnified Party shall
have the right to be indemnified hereunder to the extent that such Damages have been found by a
final, non-appealable judgment of a court of competent jurisdiction to have resulted from the gross
negligence or willful misconduct of such Indemnified Party.

     (b) If for any reason (including violation of law or public policy) the undertakings to
defend, indemnify, pay and hold harmless set forth in this Section 9.17 are unenforceable
in whole or in part or are otherwise unavailable to Lender or insufficient to hold it harmless,
then Borrower shall contribute to the amount paid or payable by Lender as a result of any Damages
the maximum amount Borrower is permitted to pay under Legal Requirements. The obligations of
Borrower under this Section 9.17 will be in addition to any liability that Borrower may
otherwise have hereunder and under the other Loan Documents, will extend upon the same terms and
conditions to any affiliate of Lender and the partners, members, directors, agents, employees and
controlling persons (if any), as the case may be, of Lender and any such affiliate, and will be
binding upon and inure to the benefit of any successors, assigns, heirs and personal
representatives of Borrower, Lender, any such affiliate and any such person.

     (c) At the option of the Indemnified Parties and in their sole discretion, upon written
request by any Indemnified Party, Borrower shall defend such Indemnified Party (if requested by any
Indemnified Party, in the name of the Indemnified Party) by attorneys and other professionals
reasonably approved by such Indemnified Party. Notwithstanding the foregoing, any Indemnified
Party may engage its own attorneys and other professionals to defend or assist it (chosen at
Lender’s sole discretion), and, at the option of such Indemnified Party, its attorneys shall
control the resolution of any claim or proceeding. Upon demand, Borrower shall pay or, in the sole
discretion of the Indemnified Parties, reimburse, the Indemnified Parties for the payment

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of
reasonable and actual fees and disbursements of attorneys, engineers, environmental consultants,
laboratories and other professionals in connection therewith.

     (d) Any amounts payable to Lender by reason of the application of this Section 9.17
shall be secured by the Mortgage and shall become immediately due and payable and shall bear
interest at the Default Rate from the date Damages are sustained by the Indemnified Parties until
paid.

     (e) The provisions of and undertakings and indemnification set forth in this Section
9.17 shall survive the satisfaction and payment in full of the Indebtedness and termination of
this Agreement.

     (f) Borrower shall reimburse Lender upon receipt of written notice from Lender for (i) all
out-of-pocket costs and expenses incurred by Lender (or any of its affiliates) in connection with
the Transaction and the origination of the Loan, including legal fees and disbursements, fees of
auditors and consultants, accounting fees, and the costs of the Appraisal, the Engineering Report,
the Qualified Title Insurance Policy, the Qualified Survey, the Environmental Report and any other
third-party diligence materials; (ii) all out-of-pocket costs and expenses incurred by Lender (or
any of its affiliates) in connection with (A) monitoring Borrower’s ongoing performance of and
compliance with Borrower’s agreements and covenants contained in this Agreement and the other Loan
Documents on its part to be performed or complied with after the Closing Date, including confirming
compliance with environmental and insurance requirements, (B) the negotiation, preparation,
execution, delivery and administration of any consents, amendments, waivers or other modifications
to this Agreement and the other Loan Documents and any other documents or matters requested by
Borrower or by Lender (including Leases, Material Agreements, and Permitted Encumbrances), (C)
filing, registration or recording fees and expenses and other similar expenses incurred in creating
and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents
(including the filing, registration or recording of any instrument of further assurance) and all
federal, state, county and municipal, taxes (including, if applicable, intangible taxes), search
fees, title insurance premiums, duties, imposts, assessments and charges arising out of or in
connection with the
execution and delivery of the Loan Documents, any mortgage supplemental thereto, any security
instrument with respect to the Collateral or any instrument of further assurance, (D) enforcing or
preserving any rights, in response to third party claims or the prosecuting or defending of any
action or proceeding or other litigation, in each case against, under or affecting Borrower, this
Agreement, the other Loan Documents or any Collateral and (E) the satisfaction of the Rating
Condition required or requested by Borrower hereunder; and (iii) all actual out-of-pocket costs and
expenses (including attorney’s fees and, if the Loan has been Securitized, special servicing fees)
incurred by Lender (or any of its affiliates) in connection with the enforcement of any obligations
of Borrower, or a Default by Borrower, under the Loan Documents, including any actual or attempted
foreclosure, deed-in-lieu of foreclosure, refinancing, restructuring, settlement or workout and any
insolvency or bankruptcy proceedings (including any applicable transfer taxes).

     Section 9.18. No Third-Party Beneficiaries. This Agreement and the other Loan
Documents are solely for the benefit of Lender and Borrower, and nothing contained in this
Agreement or the other Loan Documents shall be deemed to confer upon anyone other than

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Lender,
Borrower and Indemnified Parties any right to insist upon or to enforce the performance or
observance of any of the obligations contained herein or therein. All conditions to the
obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit
of Lender, and no other Person shall have standing to require satisfaction of such conditions in
accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in
the absence of strict compliance with any or all thereof, and no other Person shall under any
circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely
waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or
desirable to do so.

     Section 9.19. Recourse.

     (a) Except for any indemnification by Borrower under this Agreement or any of the other Loan
Documents, the Loan shall not be recourse to Borrower and, subject to Section 9.19(c),
Lender’s recourse shall be solely to the Property and the Collateral, except as set forth below.
In addition, no recourse shall be had for the Loan against any other Person, including any
affiliate of Borrower or any officer, director, partner or equityholder of Borrower or any such
affiliate, unless expressly set forth in a Loan Document or other written agreement to which such
Person is a party.

     (b) Borrower shall indemnify Lender and hold Lender harmless from and against any and all
Damages to Lender (including the legal and other expenses of enforcing the obligations of Borrower
under this Section 9.19 and the Sponsor under the Guaranty) resulting from or arising out
of any of the following (the “Indemnified Liabilities”), which Indemnified Liabilities
shall be guaranteed by Sponsor pursuant to the Guaranty:

     (i) fraud or intentional misrepresentation by Borrower, Operating Lessee, Sponsor or
any Affiliate of Borrower, Operating Lessee or Sponsor in connection with the Property or
the Loan;

     (ii) the gross negligence or willful misconduct by Borrower, Operating Lessee, Sponsor
or any Affiliate of Borrower, Operating Lessee or Sponsor in connection with the Loan
misconduct (including wrongful interference by Borrower or Operating Lessee with the
exercise of remedies by Lender during an Event of Default, provided, however, the goof faith
assertion of valid defenses shall not be deemed “wrongful”);

     (iii) the breach of any representation, warranty, covenant or indemnification provision
in the environmental indemnity or in the mortgage concerning environmental laws, hazardous
substances and asbestos and any indemnification of Lender with respect thereto in either
document;

     (iv) the removal or disposal of any personal property during the existence of an Event
of Default, unless such personal property is removed or disposed of in the ordinary course
of business and replaced with personal property of equal or greater value;

     (v) the misapplication or conversion by Borrower or Operating Lessee of (A) any
insurance proceeds, (B) any condemnation awards, or (C) any rents during the existence of an
Event of Default or any Rents collected for more than one (1) month in

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advance to the extent
such Rents are not applied to the costs of maintenance and operation of the Property or to
amounts due under the loan documents;

     (vi) failure to pay charges for labor or materials or other charges that can create a
lien on the Property, provided, neither borrower nor any guarantor shall have liability for
such losses (I) if gross revenues from the Property were insufficient to pay all such
amounts, except to the extent Borrower or Operating Lessee has paid (during the relevant
period) any sums due to any Affiliate of Borrower or any guarantor, or (II) if funds were
available in the cash management account to pay such charges and could have been applied in
accordance with the loan documents, but Lender or its agent intentionally did not pay such
charges or did not pay such charges as a result of their gross negligence.

     (vii) Borrower or Operating Lessee incurs voluntary unsecured debt prohibited under the
loan documents (for these purposes, debt will be regarded as voluntary if either incurred
voluntarily, or incurred involuntarily but subsequently not repaid despite the availability
of sufficient cash flow from the Property);

     (viii) any security deposits, advance deposits or any other deposits collected with
respect to the Property which are not delivered to Lender upon a foreclosure of the Property
or action in lieu thereof;

     (ix) Borrower’s indemnification of Lender in connection with a securitization of the
loan as provided in the loan documents;

     (x) Borrower’s failure to pay any Taxes or assessments affecting the Property, or to
obtain and maintain in full force and effect insurance policies as required by the loan
documents or pay the amount of any insurance deductible following a casualty or other
insurance claim, provided, neither borrower nor any guarantor shall have liability for such
losses (I) if gross revenues from the Property were insufficient to pay all such amounts,
except to the extent Borrower or operating lessee has paid (during the relevant
period) any sums due to any affiliate of borrower or any guarantor, or (II) if funds
were available in the cash management account to pay such charges and could have been
applied in accordance with the loan documents, but Lender or its agent intentionally did not
pay such charges or did not pay such charges as a result of their gross negligence; or

     (xi) intentional or grossly negligent waste;

     (xii) any shortfall in the amount required to be contained in the Qualified FF&E
Account pursuant to the loan documents to the extent such amounts were not otherwise applied
to operation of the Property in accordance with the loan documents (excluding sums paid to
any affiliate of Borrower or Guarantor);

     (xiii) fees or commissions paid to affiliates in violation of the loan documents; or

     (xiv) Borrower or Operating Lessee fails to permit on-site inspections of the Property,
fails to provide financial information, or fails to appoint a new property

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manager upon the
request of Lender, each as required by, and in accordance with the terms and provisions of
the loan documents.

     In addition to the foregoing, the Loan shall be fully recourse to Borrower and Sponsor,
jointly and severally, upon (1) a violation of any Single-Purpose Entity covenant that results in a
substantive consolidation of Borrower with any affiliate in a bankruptcy or similar proceeding (or
the filing of a motion for substantive consolidation in bankruptcy citing any such violation which
is not dismissed, provided that, in the event such motion is dismissed, Borrower and Sponsor shall
nonetheless be liable for Lender’s actual damages arising from or relating to such filing or
proceeding); (2) Borrower fails to obtain Lender’s consent to any secured indebtedness or voluntary
lien encumbering the Property or any part thereof; (3) Borrower fails to obtain Lender’s prior
consent to any transfer the Property or any part thereof or interest therein, except to the extent
expressly permitted by the loan documents; (4) Borrower files a voluntary petition under the
Bankruptcy Code or any other Federal or state bankruptcy or insolvency law; (5) Borrower files an
answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed
against it by any other Person under the Bankruptcy Code or any other Federal or state bankruptcy
or insolvency law, or solicits or causes to be solicited petitioning creditors for any involuntary
petition from any Person; (6) Borrower makes an assignment for the benefit of creditors, or admits,
in writing or in any legal proceeding, its insolvency.

     (c) The foregoing limitations on personal liability shall in no way impair or constitute a
waiver of the validity of the Notes, the Indebtedness secured by the Collateral, or the Liens on
the Collateral, or the right of Lender, as mortgagee or secured party, to foreclose and/or enforce
its rights with respect to the Collateral after an Event of Default. Nothing in this Agreement
shall be deemed to be a waiver of any right which Lender may have under the Bankruptcy Code to file
a claim for the full amount of the debt owing to Lender by Borrower or to require that all
Collateral shall continue to secure all of the Indebtedness owing to Lender in accordance with the
Loan Documents. Lender may seek a judgment on the Note (and, if necessary, name Borrower in such
suit) as part of judicial proceedings to foreclose under the Mortgage or to foreclose pursuant to
any other Loan Documents, or as a prerequisite to any such foreclosure or
to confirm any foreclosure or sale pursuant to power of sale thereunder, and in the event any
suit is brought on the Notes, or with respect to any Indebtedness or any judgment rendered in such
judicial proceedings, such judgment shall constitute a Lien on and will be and can be enforced on
and against the Collateral and the rents, profits, issues, products and proceeds thereof. Nothing
in this Agreement shall impair the right of Lender to accelerate the maturity of the Note upon the
occurrence of an Event of Default, nor shall anything in this Agreement impair or be construed to
impair the right of Lender to seek personal judgments, and to enforce all rights and remedies under
applicable law, jointly and severally against any guarantors to the extent allowed by any
applicable guarantees. The provisions set forth in this Section 9.19 are not intended as a
release or discharge of the obligations due under the Note or under any Loan Documents, but are
intended as a limitation, to the extent provided in this Section, on Lender’s right to sue for a
deficiency or seek a personal judgment against Borrower or Sponsor except as required in order to
realize on the Collateral.

     Section 9.20. Right of Set-Off. In addition to any rights now or hereafter granted
under applicable law or otherwise, and not by way of limitation of any such rights, during the
continuance of an Event of Default, Lender may from time to time, without presentment,

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demand,
protest or other notice of any kind (all of such rights being hereby expressly waived), set-off and
appropriate and apply any and all deposits (general or special) and any other indebtedness at any
time held or owing by Lender (including branches, agencies or affiliates of Lender wherever
located) to or for the credit or the account of Borrower against the obligations and liabilities of
Borrower to Lender hereunder, under the Notes, the other Loan Documents or otherwise, irrespective
of whether Lender shall have made any demand hereunder and although such obligations, liabilities
or claims, or any of them, may be contingent or unmatured, and any such set-off shall be deemed to
have been made immediately upon the occurrence of an Event of Default even though such charge is
made or entered on the books of Lender subsequent thereto.

     Section 9.21. Exculpation of Lender. Lender neither undertakes nor assumes any
responsibility or duty to Borrower or any other party to select, review, inspect, examine,
supervise, pass judgment upon or inform Borrower or any third party of (a) the existence, quality,
adequacy or suitability of Appraisals of the Property or other Collateral, (b) any environmental
report, or (c) any other matters or items, including engineering, soils and seismic reports that
are contemplated in the Loan Documents. Any such selection, review, inspection, examination and
the like, and any other due diligence conducted by Lender, is solely for the purpose of protecting
Lender’s rights under the Loan Documents, and shall not render Lender liable to Borrower or any
third party for the existence, sufficiency, accuracy, completeness or legality thereof.

     Section 9.22. Servicer. Lender may delegate any and all rights and obligations of
Lender hereunder and under the other Loan Documents to the Servicer upon notice by Lender to
Borrower, whereupon any notice or consent from the Servicer to Borrower, and any action by Servicer
on Lender’s behalf, shall have the same force and effect as if Servicer were Lender.

     Section 9.23. No Fiduciary Duty.

     (a) Borrower acknowledges that, in connection with this Agreement, the other Loan Documents
and the Transaction, Lender has relied upon and assumed the accuracy and completeness of all of the
financial, legal, regulatory, accounting, tax and other information provided to, discussed with or
reviewed by Lender for such purposes, and Lender does not assume any liability therefor or
responsibility for the accuracy, completeness or independent verification thereof. Lender, its
affiliates and their respective stockholders and employees (for purposes of this Section, the
“Lending Parties”) have no obligation to conduct any independent evaluation or appraisal of
the assets or liabilities (including any contingent, derivative or off-balance sheet assets and
liabilities) of Sponsor, Borrower or any other Person or any of their respective affiliates or to
advise or opine on any related solvency or viability issues.

     (b) It is understood and agreed that (i) the Lending Parties shall act under this Agreement
and the other Loan Documents as an independent contractor, (ii) the Transaction is an arm’s-length
commercial transactions between the Lending Parties, on the one hand, and Borrower, on the other,
(iii) each Lending Party is acting solely as principal and not as the agent or fiduciary of
Borrower, Sponsor or their respective affiliates, stockholders, employees or creditors or any other
Person and (iv) nothing in this Agreement, the other Loan Documents, the Transaction or otherwise
shall be deemed to create (a) a fiduciary duty (or other implied duty) on the party of any Lending
Party to Sponsor, Borrower, any of their respective affiliates,

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stockholders, employees or
creditors, or any other Person or (b) a fiduciary or agency relationship between Sponsor, Borrower
or any of their respective affiliates, stockholders, employees or creditors, on the one hand, and
the Lending Parties, on the other. Borrower agrees that neither it nor Sponsor nor any of their
respective affiliates shall make, and hereby waives, any claim against the Lending Parties based on
an assertion that any Lending Party has rendered advisory services of any nature or respect, or
owes a fiduciary or similar duty to Borrower, Sponsor of their respective affiliates, stockholders,
employees or creditors. Nothing in this Agreement or the other Loan Documents is intended to
confer upon any other Person (including affiliates, stockholders, employees or creditors of
Borrower and Sponsor) any rights or remedies by reason of any fiduciary or similar duty.

     (c) Borrower acknowledges that it has been advised that the Lending Parties are a full service
financial services firm engaged, either directly or through affiliates in various activities,
including securities trading, investment banking and financial advisory, investment management,
principal investment, hedging, financing and brokerage activities and financial planning and
benefits counseling for both companies and individuals. In the ordinary course of these
activities, the Lending Parties may make or hold a broad array of investments and actively trade
debt and equity securities (or related derivative securities) and/or financial instruments
(including loans) for their own account and for the accounts of their customers and may at any time
hold long and short positions in such securities and/or instruments. Such investment and other
activities may involve securities and instruments of affiliates of Borrower, including Sponsor, as
well as of other Persons that may (i) be involved in transactions arising from or relating to the
Transaction, (ii) be customers or competitors of Borrower, Sponsor and/or their respective
affiliates, or (iii) have other relationships with Borrower, Sponsor and/or their respective
affiliates. In addition, the Lending Parties may provide investment banking, underwriting and
financial advisory services to such other Persons. The Lending Parties may also co-invest with,
make direct investments in, and invest or co-invest client monies in or with funds or other
investment vehicles managed by other parties, and such funds or other investment
vehicles may trade or make investments in securities of affiliates of Borrower, including
Sponsor, or such other Persons. The Transaction may have a direct or indirect impact on the
investments, securities or instruments referred to in this paragraph. Although the Lending Parties
in the course of such other activities and relationships may acquire information about the
Transaction or other Persons that may be the subject of the Transaction, the Lending Parties shall
have no obligation to disclose such information, or the fact that the Lending Parties are in
possession of such information, to Borrower, Sponsor or any of their respective affiliates or to
use such information on behalf of Borrower, Sponsor or any of their respective affiliates.

     (d) Borrower acknowledges and agrees that Borrower has consulted its own legal and financial
advisors to the extent it deemed appropriate and that it is responsible for making its own
independent judgment with respect to this Agreement, the other Loan Documents, the Transaction and
the process leading thereto.

     Section 9.24. Borrower Information. Borrower shall make available to Lender all
information concerning its business and operations that Lender may reasonably request, provided
that disclosure of such information does not and will not violate any securities laws or violate
the terms of any confidentiality agreement between Borrower and/or any affiliate of Borrower on the
one hand, and any third party, on the other hand. Lender shall have the right to disclose any and

86

 

all information provided to Lender by Borrower or Sponsor regarding Borrower, Sponsor, the Loan and
the Property (i) to affiliates of Lender and to Lender’s agents and advisors, (ii) to any bona fide
or potential assignee, transferee or participant in connection with the contemplated assignment,
transfer, participation or Securitization of all or any portion of the Loan or any participations
therein or by any direct or indirect contractual counterparties (or the professional advisors
thereto) to any swap or derivative transaction relating to Borrower and its obligations, in each
case, to the extent reasonably required by such Person, (iii) to any Rating Agency in connection
with a Securitization or as otherwise required in connection with a disposition of the Loan, (iv)
to any Person necessary or desirable in connection with the exercise of any remedies hereunder or
under any other Loan Document, (v) to any governmental agency or representative thereof or by the
National Association of Insurance Commissioners or pursuant to legal or judicial process and (vi)
in any Disclosure Document (as defined in the Cooperation Agreement). In addition, Lender may
disclose the existence of this Agreement and the information about this Agreement to market data
collectors, similar services providers to the lending industry, and service providers to Lender in
connection with the administration and management of this Agreement and the other Loan Documents.
Each party hereto (and each of their respective affiliates, employees, representatives or other
agents) may disclose to any and all Persons, without limitation of any kind, the tax treatment and
tax structure of the Transaction and all materials of any kind (including opinions and other tax
analyses) that are provided to any such party relating to such tax treatment and tax structure.
For the purpose of this Section 9.24, “tax structure” means any facts relevant to the
federal income tax treatment of the Transaction but does not include information relating to the
identity of any of the parties hereto or any of their respective affiliates.

     Section 9.25. PATRIOT Act Records. Lender hereby notifies Borrower that pursuant to
the requirements of the PATRIOT Act, it is required to obtain, verify and record information that
identifies Borrower and Sponsor,
which information includes the name and address of Borrower and Sponsor and other information
that will allow Lender to identify Borrower or Sponsor in accordance with the PATRIOT Act.

     Section 9.26. Prior Agreements. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS CONTAIN
THE ENTIRE AGREEMENT OF THE PARTIES HERETO AND THERETO IN RESPECT OF THE TRANSACTIONS CONTEMPLATED
HEREBY AND THEREBY, AND ALL PRIOR AGREEMENTS AMONG OR BETWEEN SUCH PARTIES, WHETHER ORAL OR
WRITTEN, INCLUDING ANY TERM SHEETS, CONFIDENTIALITY AGREEMENTS AND COMMITMENT LETTERS, ARE
SUPERSEDED BY THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT THAT ANY ORIGINATION
FEE SPECIFIED IN ANY TERM SHEET, COMMITMENT LETTER OR FEE LETTER SHALL BE AN OBLIGATION OF BORROWER
AND SHALL BE PAID AT CLOSING, AND ANY INDEMNIFICATIONS, FLEX PROVISION, EXIT FEES AND THE LIKE
PROVIDED FOR THEREIN SHALL SURVIVE THE CLOSING).

     Section 9.27. Publicity. If the Loan is made, Lender may issue press releases,
advertisements and other promotional materials describing in general terms or in detail Lender’s
participation in such transaction, and may utilize photographs of the Property in such promotional
materials. Borrower shall not make any references to Lender in any press release,

87

 

advertisement or
promotional material issued by Borrower or Sponsor, unless Lender shall have approved of the same
in writing prior to the issuance of such press release, advertisement or promotional material.

     Section 9.28. Delay Not a Waiver. Neither any failure nor any delay on the part of
Lender in insisting upon strict performance of any term, condition, covenant or agreement, or
exercising any right, power, remedy or privilege hereunder, or under the Note or under any other
Loan Document, or under any other instrument given as security therefor, shall operate as or
constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other
future exercise, or the exercise of any other right, power, remedy or privilege. In particular,
and not by way of limitation, by accepting payment after the due date of any amount payable under
this Agreement, the Note or any other Loan Document, Lender shall not be deemed to have waived any
right either to require prompt payment when due of all other amounts due under this Agreement, the
Note or the other Loan Documents, or to declare a default for failure to effect prompt payment of
any such other amount.

     Section 9.29. Schedules and Exhibits Incorporated. The Schedules and Exhibits annexed
hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set
forth in the body hereof.

     Section 9.30. Independence of Covenants. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would otherwise be within the
limitations of, another covenant
shall not avoid the occurrence of a Default or an Event of Default if such action is taken or
condition exists.

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     Lender and Borrower are executing this Agreement as of the date first above written.

	 	 	 	 	 
	 	LENDER:

UBS REAL ESTATE SECURITIES INC., a Delaware corporation

 	 
	 	By:  	/s/ Peter Morral
 	 
	 	 	Name:  	Peter Morral 	 
	 	 	Title:  	Managing Director 	 
	 
	 	By:  	                                              /s/ Oliver Striker
 	 
	 	 	Name:  	Oliver Striker 	 
	 	 	Title:  	Director 	 
	 
	 	BORROWER:

TERRAPINS OWNER LLC, a Delaware limited liability company

 	 
	 	By:  	/s/ Raymond D. Martz
 	 
	 	 	Name:  	Raymond D. Martz 	 
	 	 	Title:  	President

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