Document:

EX-10.1 Third Amended & Restated Credit Agreement

 

$515,000,000

THIRD AMENDED AND RESTATED

CREDIT AGREEMENT

dated as of January 24, 2007

by and among

THE GEO GROUP, INC.

(formerly known as Wackenhut Corrections Corporation),

as Borrower,

the Lenders referred to herein,

and

BNP PARIBAS,

as Administrative Agent

 

BNP PARIBAS SECURITIES CORP.,

as Lead Arranger and Syndication Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I DEFINITIONS	 	 	1	 
	SECTION 1.1

	 	Definitions

	 	 	1	 
	SECTION 1.2

	 	Terms Generally

	 	 	21	 
	SECTION 1.3

	 	Currency Equivalents

	 	 	22	 
	 
	 	 
	 	 	 	 
	ARTICLE II REVOLVING CREDIT FACILITY	 	 	22	 
	SECTION 2.1

	 	Revolving Credit Loans

	 	 	22	 
	SECTION 2.2

	 	Swingline Loans

	 	 	22	 
	SECTION 2.3

	 	Procedure for Advances of Revolving Credit Loans and Swingline Loans

	 	 	23	 
	SECTION 2.4

	 	Repayment of Loans

	 	 	24	 
	SECTION 2.5

	 	Notes

	 	 	25	 
	SECTION 2.6

	 	Permanent Reduction of the Revolving Credit Commitments

	 	 	25	 
	SECTION 2.7

	 	Termination of Revolving Credit Facility

	 	 	26	 
	 
	 	 
	 	 	 	 
	ARTICLE III LETTER OF CREDIT FACILITY	 	 	26	 
	SECTION 3.1

	 	L/C Commitment

	 	 	26	 
	SECTION 3.2

	 	Procedure for Issuance of Letters of Credit

	 	 	27	 
	SECTION 3.3

	 	Commissions and Other Charges

	 	 	27	 
	SECTION 3.4

	 	L/C Participations

	 	 	28	 
	SECTION 3.5

	 	Reimbursement of Letter of Credit Drawings

	 	 	29	 
	SECTION 3.6

	 	Obligations Absolute

	 	 	30	 
	SECTION 3.7

	 	Excess L/C Obligations

	 	 	30	 
	SECTION 3.8

	 	Regulatory Limitation

	 	 	30	 
	SECTION 3.9

	 	Exchange Indemnification and Increased Costs

	 	 	31	 
	SECTION 3.10

	 	Effect of Application

	 	 	31	 
	 
	 	 
	 	 	 	 
	ARTICLE IV TERM LOAN FACILITY	 	 	31	 
	SECTION 4.1

	 	Initial Term Loan

	 	 	31	 
	SECTION 4.2

	 	Procedure for Advance of Term Loans

	 	 	31	 
	SECTION 4.3

	 	Repayment of the Term Loans

	 	 	32	 
	SECTION 4.4

	 	Prepayments of Term Loans

	 	 	33	 
	SECTION 4.5

	 	Term Notes

	 	 	35	 
	 
	 	 
	 	 	 	 
	ARTICLE V GENERAL LOAN PROVISIONS	 	 	36	 
	SECTION 5.1

	 	Interest

	 	 	36	 
	SECTION 5.2

	 	Notice and Manner of Conversion or Continuation of Loans

	 	 	38	 

     i     

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 5.3

	 	Fees

	 	 	38	 
	SECTION 5.4

	 	Manner of Payment

	 	 	39	 
	SECTION 5.5

	 	Crediting of Payments and Proceeds

	 	 	40	 
	SECTION 5.6

	 	Adjustments

	 	 	40	 
	SECTION 5.7

	 	Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption
by the Administrative Agent

	 	 	40	 
	SECTION 5.8

	 	Changed Circumstances

	 	 	41	 
	SECTION 5.9

	 	Indemnity

	 	 	42	 
	SECTION 5.10

	 	Capital Requirements

	 	 	43	 
	SECTION 5.11

	 	Taxes

	 	 	43	 
	SECTION 5.12

	 	Security

	 	 	45	 
	 
	 	 
	 	 	 	 
	ARTICLE VI CLOSING; CONDITIONS OF CLOSING AND BORROWING	 	 	45	 
	SECTION 6.1

	 	Closing

	 	 	45	 
	SECTION 6.2

	 	Conditions to Closing

	 	 	45	 
	SECTION 6.3

	 	Conditions to All Extensions of Credit

	 	 	52	 
	 
	 	 
	 	 	 	 
	ARTICLE VII REPRESENTATIONS AND WARRANTIES OF THE BORROWER	 	 	53	 
	SECTION 7.1

	 	Representations and Warranties

	 	 	53	 
	SECTION 7.2

	 	Survival of Representations and Warranties, Etc

	 	 	59	 
	 
	 	 
	 	 	 	 
	ARTICLE VIII FINANCIAL INFORMATION AND NOTICES	 	 	60	 
	SECTION 8.1

	 	Financial Statements and Projections

	 	 	60	 
	SECTION 8.2

	 	Officer’s Compliance Certificate

	 	 	61	 
	SECTION 8.3

	 	Annual Accountants’ Certificate

	 	 	61	 
	SECTION 8.4

	 	Other Reports

	 	 	61	 
	SECTION 8.5

	 	Notice of Litigation and Other Matters

	 	 	62	 
	SECTION 8.6

	 	Accuracy of Information

	 	 	62	 
	 
	 	 
	 	 	 	 
	ARTICLE IX AFFIRMATIVE COVENANTS	 	 	63	 
	SECTION 9.1

	 	Preservation of Corporate Existence and Related Matters

	 	 	63	 
	SECTION 9.2

	 	Maintenance of Property

	 	 	63	 
	SECTION 9.3

	 	Insurance

	 	 	63	 
	SECTION 9.4

	 	Accounting Methods and Financial Records

	 	 	63	 
	SECTION 9.5

	 	Payment and Performance of Obligations

	 	 	63	 
	SECTION 9.6

	 	Compliance with Laws and Approvals

	 	 	63	 
	SECTION 9.7

	 	Environmental Laws

	 	 	63	 
	SECTION 9.8

	 	Compliance with ERISA

	 	 	64	 

     ii     

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 9.9

	 	Compliance with Agreements

	 	 	64	 
	SECTION 9.10

	 	Visits and Inspections

	 	 	64	 
	SECTION 9.11

	 	Additional Subsidiaries

	 	 	64	 
	SECTION 9.12

	 	Use of Proceeds

	 	 	66	 
	SECTION 9.13

	 	Landlord Consents

	 	 	66	 
	SECTION 9.14

	 	Notification of Additional Material Contracts

	 	 	66	 
	SECTION 9.15

	 	Post-Closing Real Estate

	 	 	66	 
	SECTION 9.16

	 	Further Assurances

	 	 	67	 
	 
	 	 
	 	 	 	 
	ARTICLE X FINANCIAL COVENANTS	 	 	67	 
	SECTION 10.1

	 	Leverage Ratios

	 	 	67	 
	SECTION 10.2

	 	Fixed Charge Coverage Ratio

	 	 	68	 
	SECTION 10.3

	 	Capital Expenditures

	 	 	69	 
	 
	 	 
	 	 	 	 
	ARTICLE XI NEGATIVE COVENANTS	 	 	70	 
	SECTION 11.1

	 	Limitations on Debt

	 	 	70	 
	SECTION 11.2

	 	Limitations on Liens

	 	 	71	 
	SECTION 11.3

	 	Limitations on Loans, Advances, Investments and Acquisitions

	 	 	72	 
	SECTION 11.4

	 	Limitations on Mergers and Liquidation

	 	 	74	 
	SECTION 11.5

	 	Limitations on Sale of Assets

	 	 	74	 
	SECTION 11.6

	 	Restricted Payments

	 	 	75	 
	SECTION 11.7

	 	Limitations on Exchange and Issuance of Capital Stock

	 	 	75	 
	SECTION 11.8

	 	Transactions with Affiliates

	 	 	75	 
	SECTION 11.9

	 	Certain Accounting Changes; Organizational Documents

	 	 	75	 
	SECTION 11.10

	 	Payments and Prepayments of Certain Debt

	 	 	75	 
	SECTION 11.11

	 	Restrictive Agreements

	 	 	76	 
	SECTION 11.12

	 	Nature of Business

	 	 	76	 
	SECTION 11.13

	 	Impairment of Security Interests

	 	 	76	 
	SECTION 11.14

	 	Amendments of Certain Agreements

	 	 	76	 
	 
	 	 
	 	 	 	 
	ARTICLE XII DEFAULT AND REMEDIES	 	 	76	 
	SECTION 12.1

	 	Events of Default

	 	 	76	 
	SECTION 12.2

	 	Remedies

	 	 	79	 
	SECTION 12.3

	 	Rights and Remedies Cumulative; Non-Waiver; etc

	 	 	79	 
	SECTION 12.4

	 	Judgment Currency

	 	 	80	 

     iii     

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE XIII THE ADMINISTRATIVE AGENT	 	 	80	 
	SECTION 13.1

	 	Appointment

	 	 	80	 
	SECTION 13.2

	 	Delegation of Duties

	 	 	80	 
	SECTION 13.3

	 	Exculpatory Provisions

	 	 	81	 
	SECTION 13.4

	 	Reliance by the Administrative Agent

	 	 	81	 
	SECTION 13.5

	 	Notice of Default

	 	 	81	 
	SECTION 13.6

	 	Non-Reliance on the Administrative Agent and Other Lenders

	 	 	81	 
	SECTION 13.7

	 	Indemnification

	 	 	82	 
	SECTION 13.8

	 	The Administrative Agent in its Individual Capacity

	 	 	82	 
	SECTION 13.9

	 	Resignation of the Administrative Agent; Successor Administrative Agent

	 	 	82	 
	 
	 	 
	 	 	 	 
	ARTICLE XIV MISCELLANEOUS	 	 	83	 
	SECTION 14.1

	 	Notices

	 	 	83	 
	SECTION 14.2

	 	Expenses; Indemnity

	 	 	85	 
	SECTION 14.3

	 	Set-off

	 	 	85	 
	SECTION 14.4

	 	Governing Law

	 	 	86	 
	SECTION 14.5

	 	Jurisdiction and Venue

	 	 	86	 
	SECTION 14.6

	 	Waiver of Jury Trial

	 	 	86	 
	SECTION 14.7

	 	Reversal of Payments

	 	 	86	 
	SECTION 14.8

	 	Injunctive Relief; Punitive Damages

	 	 	87	 
	SECTION 14.9

	 	Accounting Matters

	 	 	87	 
	SECTION 14.10

	 	Successors and Assigns; Participations

	 	 	87	 
	SECTION 14.11

	 	Amendments, Waivers and Consents

	 	 	91	 
	SECTION 14.12

	 	Performance of Duties

	 	 	92	 
	SECTION 14.13

	 	All Powers Coupled with Interest

	 	 	92	 
	SECTION 14.14

	 	Survival of Indemnities

	 	 	92	 
	SECTION 14.15

	 	Titles and Captions

	 	 	93	 
	SECTION 14.16

	 	Severability of Provisions

	 	 	93	 
	SECTION 14.17

	 	Counterparts

	 	 	93	 
	SECTION 14.18

	 	Term of Agreement

	 	 	93	 
	SECTION 14.19

	 	Advice of Counsel

	 	 	93	 
	SECTION 14.20

	 	No Strict Construction

	 	 	93	 
	SECTION 14.21

	 	Inconsistencies with Other Documents; Independent Effect of Covenants

	 	 	93	 
	SECTION 14.22

	 	Increase of Revolving Credit Commitments

	 	 	94	 

     iv     

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	SECTION 14.23

	 	Incremental Term Loans

	 	 	94	 
	SECTION 14.24

	 	USA PATRIOT Act

	 	 	95	 
	SECTION 14.25

	 	Transition Provisions

	 	 	95	 

     v     

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	EXHIBITS
	 	 	 	 

	 
	 	 	 	 

	Exhibit A-1
	 	-
	 	Form of Revolving Credit Note

	Exhibit A-2
	 	-
	 	Form of Swingline Note

	Exhibit A-3
	 	-
	 	Form of Term Note

	Exhibit B
	 	-
	 	Form of Notice of Borrowing

	Exhibit C
	 	-
	 	Form of Notice of Account Designation

	Exhibit D
	 	-
	 	Form of Notice of Prepayment

	Exhibit E
	 	-
	 	Form of Notice of Conversion/Continuation

	Exhibit F
	 	-
	 	[Reserved]

	Exhibit G
	 	-
	 	Form of Officer’s Compliance Certificate

	Exhibit H
	 	-
	 	Form of Assignment and Acceptance

	Exhibit I
	 	-
	 	Form of Guaranty Agreement

	Exhibit J
	 	-
	 	Form of Collateral Agreement

	Exhibit K
	 	-
	 	Form of Joinder Agreement

	Exhibit L
	 	-
	 	Form of Collateral Assignment

	Exhibit M
	 	-
	 	Form of Lender Addendum

	 
	 	 	 	 

	SCHEDULES
	 	 	 	 

	 
	 	 	 	 

	Schedule 1.1(a)
	 	-
	 	Unrestricted Subsidiaries

	Schedule 4.4(b)(iii)(y)
	 	-
	 	Fifty Percent (50%) Assets

	Schedule 4.4(b)(iii)(z)
	 	-
	 	Zero Percent (0%) Assets

	Schedule 6.2(g)
	 	-
	 	Acquisition

	Schedule 7.1(a)
	 	-
	 	Jurisdictions of Organization and Qualification

	Schedule 7.1(b)
	 	-
	 	Subsidiaries and Capitalization

	Schedule 7.1(i)
	 	-
	 	ERISA Plans

	Schedule 7.1(l)
	 	-
	 	Material Contracts

	Schedule 7.1(m)
	 	-
	 	Labor and Collective Bargaining Agreements

	Schedule 7.1(r)
	 	-
	 	Real Estate Owned

	Schedule 7.1(t)
	 	-
	 	Debt and Guaranty Obligations

	Schedule 7.1(u)
	 	-
	 	Litigation

	Schedule 10.1
	 	-
	 	EBITDA for Target Company and its Subsidiaries

	Schedule 11.2
	 	-
	 	Existing Liens

	Schedule 11.3(a)
	 	-
	 	Existing Loans, Advances and Investments

	Schedule 11.3(i)
	 	-
	 	Specified Investments

     vi     

 

 

     This THIRD AMENDED AND RESTATED CREDIT AGREEMENT, dated as of January 24, 2007 (as amended,
restated, supplemented or otherwise modified from time to time, this “Agreement”), by and
among THE GEO GROUP, INC. (formerly known as Wackenhut Corrections Corporation), a Florida
corporation, as borrower (the “Borrower”), the lenders who are or may become a party to
this Agreement, as lenders, and BNP PARIBAS, as administrative agent for the lenders (together with
its permitted successors, the “Administrative Agent”).

STATEMENT OF PURPOSE

     WHEREAS, the Borrower, certain financial institutions, as lenders, and BNP Paribas, as
administrative agent and as syndication agent, and other parties, entered into a Second Amended and
Restated Credit Agreement dated as of September 14, 2005 (as amended, modified or supplemented to
the date hereof, the “Existing Facility”).

     WHEREAS, the Borrower has requested that the Lenders (as defined below) extend credit to the
Borrower, under the guarantee of the Guarantors (as defined below), in an aggregate principal or
face amount not exceeding Five Hundred Fifteen Million Dollars ($515,000,000), to finance the
Acquisition (as defined below), to refinance certain indebtedness (including all loans under the
Existing Facility) and for other purposes.

     WHEREAS, one of the conditions to the effectiveness of this Agreement is the prior or
simultaneous consummation of the Acquisition.

     WHEREAS, the parties hereto desire to amend and restate the Existing Facility as provided
herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, such parties hereby agree that the Existing Facility
shall be amended and restated in its entirety as follows:

ARTICLE I

DEFINITIONS

     SECTION 1.1 Definitions. The following terms when used in this Agreement shall have the
meanings assigned to them below:

     “Acquisition” means the acquisition by the CPT Acquisition Subsidiary of 100% of the
outstanding capital stock of the Target Company in accordance with the Merger Agreement.

     “Acquisition Date” means the date on which the Acquisition is consummated.

     “Additional Capital Expenditures Basket” has the meaning assigned thereto in Section
10.3.

     “Administrative Agent” has the meaning assigned thereto in the Preamble hereof.

     “Administrative Agent’s Office” means the office of the Administrative Agent specified
in or determined in accordance with the provisions of Section 14.1(c).

     “Affiliate” means, with respect to any Person, any other Person (other than a
Restricted Subsidiary of the Borrower) which directly or indirectly through one or more
intermediaries, controls, or

 

 

is controlled by, or is under common control with, such first Person or any of its
Subsidiaries. The term “control” means (a) the power to vote ten percent (10%) or more of the
securities or other equity interests of a Person having ordinary voting power, or (b) the
possession, directly or indirectly, of any other power to direct or cause the direction of the
management and policies of a Person, whether through ownership of voting securities, by contract or
otherwise.

     “Aggregate Commitment” means the aggregate amount of the Lenders’ Commitments
hereunder, as such amount may be reduced or otherwise modified at any time or from time to time
pursuant to the terms hereof. On the Closing Date, the Aggregate Commitment shall be Five Hundred
Fifteen Million Dollars ($515,000,000).

     “Agreement” has the meaning assigned thereto in the Preamble hereof.

     “Alternative Currency” means (a) Euros, (b) the Pound Sterling, (c) the Australian
Dollar, (d) the South African Rand and (e) with the prior written consent of the Issuing Lender,
any other lawful currency (other than Dollars); provided that in each case of (a) through
(e) above, such currency is freely transferable and convertible into Dollars in the United States
currency market and freely available to the Issuing Lender in the London interbank deposit market.

     “Alternative Currency Letter of Credit” means any Letter of Credit denominated in an
Alternative Currency and all such Alternative Currency Letters of Credit collectively as the
context requires.

     “Applicable Law” means all applicable provisions of constitutions, laws, statutes,
ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders
of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

     “Applicable Margin” has the meaning assigned thereto in Section 5.1(c).

     “Application” means an application, in the form specified by the Issuing Lender from
time to time, requesting the Issuing Lender to issue a Letter of Credit.

     “Approved Fund” means any Person (other than a natural Person), including, without
limitation, any special purpose entity, that is (or will be) engaged in making, purchasing, holding
or otherwise investing in commercial loans and similar extensions of credit in the ordinary course
of its business; provided that such Approved Fund must be administered by (a) a Lender, (b)
an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages
a Lender.

     “Assignment Agreement” has the meaning set forth in the Collateral Agreement.

     “Assignment and Acceptance” has the meaning assigned thereto in Section 14.10.

     “Assignment of Claims Act” means Assignment of Claims Act of 1940 (41 U.S.C. Section
15, 31 U.S.C. Section 3737, and 31 U.S.C. Section 3727), including all amendments thereto and
regulations promulgated thereunder.

     “Australian Dollars” means, at any time of determination, the then official currency
of Australia.

     “Base Rate” means, at any time, the higher of (a) the Prime Rate and (b) the Federal
Funds Rate plus 1/2 of 1%; each change in the Base Rate shall take effect simultaneously with
the corresponding change or changes in the Prime Rate or the Federal Funds Rate.

2

 

     “Base Rate Loan” means any Loan bearing interest at a rate based upon the Base Rate as
provided in Section 5.1(a).

     “Benefited Lender” has the meaning assigned thereto in Section 5.6.

     “Borrower” has the meaning assigned thereto in the Preamble hereof.

     “Broward Transition Center” means the correctional facility located in Broward
Country, Florida to be acquired by the CPT Acquisition Subsidiary on the Acquisition Date.

     “Business Day” means (a) for all purposes other than as set forth in clause (b) below,
any day other than a Saturday, Sunday or legal holiday on which banks in New York, New York, are
open for the conduct of their domestic or international commercial banking business, as applicable,
and (b) with respect to all notices and determinations in connection with, and payments of
principal and interest on, any LIBOR Rate Loan, any day that is a Business Day described in clause
(a) and that is also a day for trading by and between banks in Dollar deposits in the London
interbank market. Notwithstanding the foregoing, with respect to any amount denominated or to be
denominated in Euros, any reference to a “Business Day” shall be construed as a reference to a day
(other than a Saturday or Sunday) on which banks are generally open for business in New York, New
York and prime banks in London generally provide quotations for deposits denominated in Euros.

     “Calculation Date” has the meaning assigned thereto in Section 5.1(c).

     “Capital Asset” means, with respect to the Borrower and its Subsidiaries, any asset
that should, in accordance with GAAP, be classified and accounted for as a capital asset on a
Consolidated balance sheet of the Borrower and its Subsidiaries.

     “Capital Expenditures” means with respect to the Borrower and its Restricted
Subsidiaries for any period, the aggregate cost of all Capital Assets acquired by the Borrower and
its Restricted Subsidiaries during such period, other than Reimbursed Capital Expenditures, as
determined in accordance with GAAP.

     “Capital Lease” means any lease of any property by the Borrower or any of its
Restricted Subsidiaries, as lessee, that should, in accordance with GAAP, be classified and
accounted for as a capital lease on a Consolidated balance sheet of the Borrower and its
Subsidiaries, other than any leases entered into in connection with Non-Recourse Project Financing
Indebtedness.

     “CentraCore Transactions” means, collectively, the following transactions that shall
occur substantially contemporaneously (a) the consummation of the Acquisition, (b) the
capitalization, with equity and/or inter-company loans, in cash, of the CPT Acquisition Subsidiary
by the Borrower with up to Four Hundred Thirty-Two Million Dollars ($432,000,000) in aggregate
(including transaction fees and expenses), (c) the merger of the Target Company with and into the
CPT Acquisition Subsidiary and (d) the other transactions contemplated by the Merger Agreement.

     “Change in Control” has the meaning assigned thereto in Section 12.1(h).

     “Closing Date” means the Business Day upon which each condition described in Section
6.2 shall be satisfied or waived in all respects in a manner acceptable to the Administrative
Agent, in its sole discretion.

3

 

     “Code” means the Internal Revenue Code of 1986, and the rules and regulations
thereunder, each as amended or modified from time to time.

     “Collateral” means the collateral security for the Obligations pledged or granted
pursuant to the Security Documents.

     “Collateral Agreement” means the Third Amended and Restated Collateral Agreement of
even date executed by the Borrower and each Restricted Domestic Subsidiary in favor of the
Administrative Agent for the ratable benefit of itself and the Lenders, substantially in the form
of Exhibit J, as further amended, restated, supplemented or otherwise modified from time to time.

     “Collateral Assignment” means the Third Amended and Restated Collateral Assignment
Agreement of even date herewith executed by the Borrower or any of its Restricted Subsidiaries, as
applicable, substantially in the form of Exhibit L, in favor of the Administrative Agent for the
ratable benefit of itself and the Lenders, as further amended, restated, supplemented or otherwise
modified from time to time.

     “Commitment” means, as to any Lender, the sum of such Lender’s Revolving Credit
Commitment and Term Loan Commitment(s), as set forth in the Register, as the same may be reduced or
modified at any time or from time to time pursuant to the terms hereof. The initial Revolving
Credit Commitment of each Lender is set forth on the applicable Lender Addendum or in the
Assignment and Acceptance pursuant to which such Lender shall have assumed its Revolving Credit
Commitment. The Initial Term Loan Commitment of each Lender is set forth on the applicable Lender
Addendum or in the Assignment and Acceptance pursuant to which such Lender shall have assumed its
Initial Term Loan Commitment. The Incremental Term Loan Commitment of each Lender shall be set
forth on the applicable Incremental Term Loan Addendum or in the Assignment and Acceptance pursuant
to which such Lender shall have assumed its Incremental Term Loan Commitment.

     “Commitment Percentage” means, as to any Lender at any time, the ratio of (a) the sum
of the Revolving Credit Commitment of such Lender and the outstanding principal balance of the Term
Loan(s) of such Lender to (b) the sum of the aggregate Revolving Credit Commitments of all Lenders
and the aggregate outstanding principal balance of the Term Loans of all Lenders.

     “Consolidated” means, when used with reference to financial statements or financial
statement items of the Borrower and its Subsidiaries, such statements or items on a consolidated
basis in accordance with applicable principles of consolidation under GAAP.

     “CPT Acquisition Subsidiary” means GEO Acquisition II, Inc., a Wholly-Owned Subsidiary
created by the Borrower to merge with the Target Company in order to consummate the Acquisition
and, following such merger, shall be the surviving entity.

     “Credit Facility” means, collectively, the Revolving Credit Facility, the Term Loan
Facility, the Swingline Facility and the L/C Facility.

     “Debt” means, with respect to the Borrower and its Subsidiaries at any date and
without duplication, the sum of the following calculated in accordance with GAAP: (a) all
liabilities, obligations and indebtedness for borrowed money including, but not limited to,
obligations evidenced by bonds, debentures, notes or other similar instruments of any such Person,
(b) all obligations to pay the deferred purchase price of property or services of any such Person
(including, without limitation, all obligations under non-competition agreements, except for
non-competition agreements in existence as of the Closing Date with Persons who are employees of
the Borrower or its Subsidiaries), except trade payables arising

4

 

in the ordinary course of business not more than ninety (90) days past due or payable on such
later date as is customary in the trade, (c) all obligations of any such Person as lessee under
Capital Leases (other than the existing Florence West, Arizona lease and the existing Phoenix,
Arizona lease), (d) all Debt of any other Person secured by a Lien on any asset of the Borrower or
of any of its Restricted Subsidiaries (other than assets consisting of rights under any Government
Contract assigned by the Borrower or any of its Restricted Subsidiaries to secure any Non-Recourse
Project Financing Indebtedness related to such Government Contract), (e) all Guaranty Obligations
of any such Person, (f) all obligations, contingent or otherwise, of any such Person under letters
of credit, whether or not drawn, including, without limitation, any Reimbursement Obligation, and
banker’s acceptances issued for the account of any such Person, (g) all obligations of any such
Person to redeem, repurchase, exchange, defease or otherwise make payments in respect of capital
stock or other securities or partnership interests of such Person, (h) all net payment obligations
incurred by any such Person pursuant to Hedging Agreements (which shall be deemed to be the
Termination Value thereof as of the date of calculation), to the extent such net payment
obligations exceed One Million Dollars ($1,000,000) on the date of determination, except for any
net payment obligations associated with any Non-Recourse Project Financing Indebtedness, (i) all
outstanding payment obligations with respect to Synthetic Leases, (j) the outstanding attributed
principal amount under any asset securitization program and (k) all outstanding payment obligations
with respect to performance surety bonds that have been drawn upon.

     “Default” means any of the events specified in Section 12.1 which with the passage of
time, the giving of notice or any other condition, would constitute an Event of Default.

     “Delaney Hall Facility” means the correctional facility located in Newark, New Jersey
owned by CPT Operating Partnership L.P. on the Acquisition Date.

     “Disputes” shall have the meaning set forth in Section 14.6.

     “Dollar Amount” means (a) with respect to each Letter of Credit issued or extended (or
to be issued or extended), in Dollars, the principal amount thereof and (b) on any date, with
respect to any sum expressed in an Alternative Currency (including the face amount of any
Alternative Currency Letter of Credit), the amount of Dollars which is equivalent to the amount so
expressed in an Alternative Currency, at the spot exchange rate quoted by the Issuing Lender at the
office of the Issuing Lender’s Correspondent to prime banks in New York in the New York foreign
exchange market of the relevant Alternative Currency at approximately 11:00 a.m. (New York time) on
such date.

     “Dollars” or “$” means, unless otherwise qualified, dollars in lawful currency of the
United States.

     “Domestic Subsidiary” means any Subsidiary that is organized under the laws of any
political subdivision of the United States.

     “EBITDA” means, for any period, the sum of the following determined on a Consolidated
basis, without duplication, for the Borrower and its Restricted Subsidiaries in accordance with
GAAP: (a) Net Income for such period plus (b) the sum of the following to the extent
deducted in determining Net Income: (i) income and franchise taxes, (ii) Interest Expense, (iii)
amortization, depreciation and other non-cash charges (excluding insurance reserves), (iv)
extraordinary losses and (v) start-up costs incurred in connection with new facilities
(provided that for any four (4) Fiscal Quarter period, the maximum amount that may be added
to EBITDA pursuant to this clause (v) shall be the lesser of Five Million Dollars ($5,000,000) or
fifty percent (50%) of such start-up costs incurred during such four (4) Fiscal Quarter period)
less (c) to the extent added in determining Net Income: (1) interest income and any
extraordinary gains, (2) Non-Recourse Debt Service and (3) any rental payments paid in cash under
that

5

 

certain Lease Agreement dated January 7, 2000 between the Borrower and CPT Operating
Partnership L.P. with respect to the facility known as the Jena Juvenile Justice Center in Jena,
Louisiana.

     “Eligible Assignee” means, with respect to any assignment of the rights, interest and
obligations of a Lender hereunder, a Person that is at the time of such assignment (a) a commercial
bank organized under the laws of the United States or any state thereof, having combined capital
and surplus in excess of Five Hundred Million Dollars ($500,000,000), (b) a commercial bank
organized under the laws of any other country that is a member of the Organization of Economic
Cooperation and Development, or a political subdivision of any such country, having combined
capital and surplus in excess of Five Hundred Million Dollars ($500,000,000), (c) a finance
company, insurance company or other financial institution which in the ordinary course of business
extends credit of the type extended hereunder and that has total assets in excess of One Billion
Dollars ($1,000,000,000), (d) already a Lender hereunder (whether as an original party to this
Agreement or as the assignee of another Lender), (e) the successor (whether by transfer of assets,
merger or otherwise) to all or substantially all of the commercial lending business of the
assigning Lender, (f) any Affiliate of an assigning Lender, (g) any Approved Fund or (h) any other
Person that has been approved in writing as an Eligible Assignee by the Borrower (other than upon
the occurrence and during the continuance of any Default or Event of Default) and the
Administrative Agent.

     “Eligible Investments” means:

     (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States of America), in each
case maturing within one (1) year from the date of acquisition thereof;

     (b) marketable direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof maturing within one
(1) year from the date of acquisition thereof and, at the time of acquisition, having one of the
two highest ratings obtainable from either S&P or Moody’s;

     (c) investments in commercial paper maturing within two hundred seventy (270) days from the
date of acquisition thereof and having, at such date of acquisition, the highest credit rating
obtainable from either S&P or Moody’s;

     (d) investments in certificates of deposit, banker’s acceptances and time deposits maturing
within (1) one year from the date of acquisition thereof issued or guaranteed by or placed with,
and money market deposit accounts issued or offered by, any domestic office of any commercial bank
organized under the laws of the United States of America or any state thereof which has a combined
capital and surplus and undivided profits of not less than Five Hundred Million Dollars
($500,000,000);

     (e) fully collateralized repurchase agreements with a term of not more than ninety (90) days
for securities described in clause (a) of this definition and entered into with a financial
institution satisfying the criteria described in clause (d) of this definition;

     (f) investments in money market funds which invest substantially all their assets in
securities of the types described in clauses (a) through (e) above; and

     (g) money market accounts with any financial institution whose long-term credit rating is not
less than “AAA” by S&P and “Aaa” by Moody’s and whose short-term credit rating is not less than
“P-1” by Moody’s and “A-1” by S&P.

6

 

     “Employee Benefit Plan” means any employee benefit plan within the meaning of Section
3(3) of ERISA which (a) is maintained for employees of the Borrower or any ERISA Affiliate or (b)
has at any time within the preceding six (6) years been maintained for the employees of the
Borrower or any current or former ERISA Affiliate.

     “Environmental Claims” means any and all administrative, regulatory or judicial
actions, suits, demands, demand letters, claims, liens, accusations, allegations, notices of
noncompliance or violation, investigations (other than internal reports prepared by any Person in
the ordinary course of business and not in response to any third party action or request of any
kind) or proceedings relating in any way to any actual or alleged violation of or liability under
any Environmental Law or relating to any permit issued, or any approval given, under any such
Environmental Law, including, without limitation, any and all claims by Governmental Authorities
for enforcement, cleanup, removal, response, remedial or other actions or damages, contribution,
indemnification, cost recovery, compensation or injunctive relief resulting from Hazardous
Materials or arising from alleged injury or threat of injury to human health or the environment.

     “Environmental Laws” means any and all federal, foreign, state, provincial and local
laws, statutes, ordinances, rules, regulations, permits, licenses, approvals, and orders of courts
or Governmental Authorities, relating to the protection of human health or the environment,
including, but not limited to, requirements pertaining to the manufacture, processing,
distribution, use, treatment, storage, disposal, transportation, handling, reporting, licensing,
permitting, investigation or remediation of Hazardous Materials.

     “Equity Consideration” shall have the meaning assigned thereto in the definition of
“Permitted Acquisition.”

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

     “ERISA Affiliate” means any Person who together with the Borrower is treated as a
single employer within the meaning of Section 414(b), (c), (m) or (o) of the Code or Section
4001(b) of ERISA.

     “Euro” means the single currency of participating member states of the European Union.

     “Eurodollar Reserve Percentage” means, for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for
such day as prescribed by the Federal Reserve Board (or any successor) for determining the maximum
reserve requirement (including, without limitation, any basic, supplemental or emergency reserves)
in respect of eurocurrency liabilities or any similar category of liabilities for a member bank of
the Federal Reserve System in New York City.

     “Event of Default” means any of the events specified in Section 12.1, provided
that any requirement for passage of time, giving of notice, or any other condition, has been
satisfied.

     “Excess Cash Flow” means, for any period, the sum of the following determined on a
Consolidated basis, without duplication, for the Borrower and its Restricted Subsidiaries in
accordance with GAAP: (a) EBITDA minus (b) Interest Expense paid in cash minus (c)
taxes paid in cash, (d)(i) minus any increases in working capital or (ii) plus any
decreases in working capital minus (e) Capital Expenditures to the extent paid in cash,
minus (f) all payments and repayments made with respect to the Term Loan Facility.

     “Existing Facility” has the meaning assigned thereto in the Statement of Purpose
hereof.

7

 

     “Existing Revolving Credit Loan” means the aggregate principal amount of all revolving
credit loans under the Existing Facility outstanding immediately prior to the effectiveness of this
Agreement.

     “Existing Swingline Loan” means the aggregate principal amount of all swingline loans
under the Existing Facility outstanding immediately prior to the effectiveness of this Agreement.

     “Extensions of Credit” means, as to any Lender at any time, (a) an amount equal to the
sum of (i) the aggregate principal amount of all Revolving Credit Loans made by such Lender then
outstanding, (ii) such Lender’s Revolving Credit Commitment Percentage of the L/C Obligations then
outstanding, (iii) such Lender’s Revolving Credit Commitment Percentage of the Swingline Loans then
outstanding and (iv) the aggregate principal amount of all Term Loans made by such Lender then
outstanding, or (b) the making of any Loan or participation in any Letter of Credit by such Lender,
as the context requires.

     “FDIC” means the Federal Deposit Insurance Corporation, or any successor thereto.

     “Federal Funds Rate” means, for any day, the rate per annum (rounded upwards, if
necessary, to the nearest 1/100th of 1%) representing 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 on the next succeeding 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, then “Federal Funds
Rate” shall mean a daily rate which is determined, in the reasonable opinion of the Administrative
Agent, to be the rate at which federal funds are being offered for sale in the national federal
funds market at 9:00 a.m. (New York time). Rates for weekends or holidays shall be the same as the
rate for the most immediately preceding Business Day.

     “Fiscal Quarter” means the fiscal quarter of the Borrower and its Subsidiaries.

     “Fiscal Year” means the fiscal year of the Borrower and its Subsidiaries ending on the
last Sunday closest to calendar year end.

     “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary.

     “GAAP” means generally accepted accounting principles, as recognized by the American
Institute of Certified Public Accountants and the Financial Accounting Standards Board,
consistently applied and maintained on a consistent basis for the Borrower and its Subsidiaries
throughout the period indicated and (subject to Section 14.9) consistent with the prior financial
practice of the Borrower and its Subsidiaries.

     “Government Contract” means a contract between the Borrower or any Restricted
Subsidiary and an agency, department or instrumentality of the United States or any state,
municipal or local Governmental Authority located in the United States or all obligations of any
such Governmental Authority arising under any Account (as defined in the UCC) now or hereafter
owing by any Governmental Authority, as account debtor, to the Borrower or any Restricted
Subsidiary.

     “Governmental Approvals” means all authorizations, consents, approvals, licenses and
exemptions of, registrations and filings with, and reports to, any Governmental Authority.

     “Governmental Authority” means any nation, province, state or political subdivision
thereof, and any government or any Person exercising executive, legislative, regulatory or
administrative functions of or pertaining to government, and any corporation or other entity owned
or controlled, through stock or capital ownership or otherwise, by any of the foregoing.

8

 

     “Guarantors” means the Restricted Domestic Subsidiaries and any other Person which,
after the Closing Date, becomes a party to the Guaranty Agreement by executing and delivering a
Joinder Agreement.

     “Guaranty Agreement” means the Third Amended and Restated Guaranty Agreement of even
date executed by the Guarantors in favor of the Administrative Agent for the ratable benefit of
itself and the Lenders, substantially in the form of Exhibit I, as further amended, restated,
supplemented or otherwise modified from time to time.

     “Guaranty Obligation” means, with respect to the Borrower and its Subsidiaries,
without duplication, any obligation, contingent or otherwise, of any such Person pursuant to which
such Person has directly or indirectly guaranteed any Debt or other financial obligation of any
other Person and, without limiting the generality of the foregoing, any obligation, direct or
indirect, contingent or otherwise, of any such Person (a) to purchase or pay (or advance or supply
funds for the purchase or payment of) such Debt or other obligation (whether arising by virtue of
partnership arrangements, by agreement to keep well, to purchase assets, goods, securities or
services, to take-or-pay, or to maintain financial statement condition or otherwise) or (b) entered
into for the purpose of assuring in any other manner the obligee of such Debt or other financial
obligation of the payment thereof or to protect such obligee against loss in respect thereof (in
whole or in part); provided that the term Guaranty Obligation shall not include
endorsements for collection or deposit in the ordinary course of business.

     “Hazardous Materials” means any substances or materials (a) which are or become
defined as hazardous wastes, hazardous substances, pollutants, contaminants, chemical substances or
mixtures or toxic substances under any Environmental Law, (b) which are toxic, explosive,
corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic or otherwise harmful to
human health or the environment and are or become regulated by any Governmental Authority, (c) the
presence of which require investigation or remediation under any Environmental Law or common law,
(d) the discharge or emission or release of which requires a permit or license under any
Environmental Law or other Governmental Approval, (e) which are deemed to constitute a nuisance or
a trespass which pose a health or safety hazard to Persons or neighboring properties, (f) which are
contained in underground or aboveground storage tanks or (g) which contain asbestos,
polychlorinated biphenyls, urea formaldehyde foam insulation, petroleum hydrocarbons, petroleum
derived substances or waste, crude oil, nuclear fuel, natural gas or synthetic gas.

     “Hedging Agreement” means any agreement with respect to any Interest Rate Contract,
forward rate agreement, commodity swap, forward foreign exchange agreement, currency swap
agreement, cross-currency rate swap agreement, currency option agreement or other agreement or
arrangement designed to alter the risks of any Person arising from fluctuations in interest rates,
currency values or commodity prices, all as amended, restated, supplemented or otherwise modified
from time to time.

     “Hedging Obligations” has the meaning assigned thereto in the definition of
“Obligations”.

     “High-Yield Notes” means $150,000,000 81/4% senior unsecured high-yield notes due 2013
issued by the Borrower on July 9, 2003, as amended, restated, supplemented or otherwise modified
from time to time.

     “High-Yield Note Indenture” means the Indenture under which the High-Yield Notes were
issued.

     “Incremental Term Loan Addendum” means, with respect to any Incremental Term Loan
Lender, an instrument setting forth the terms and conditions of the Incremental Term Loans of a
particular Series

9

 

in a form approved by the Administrative Agent, to be executed and delivered by such
Incremental Term Loan Lender, the Borrower and the Administrative Agent in order to become
effective.

     “Incremental Term Loan Commitment” means, with respect to each Incremental Term Loan
Lender and a particular Series of Incremental Term Loans, the commitment of such Lender to make
Incremental Term Loans of such Series hereunder as set forth on the applicable Incremental Term
Loan Addendum delivered by such Lender.

     “Incremental Term Loan Commitment Percentage” means, as to any Lender at any time, the
ratio of (a) the amount of the Incremental Term Loan Commitment of such Lender for a particular
Series of Incremental Term Loans to (b) the Incremental Term Loan Commitments of all Lenders for
that Series of Incremental Term Loans.

     “Incremental Term Loan Lenders” means (a) the Persons that deliver an Incremental Term
Loan Addendum (other than any such Person that has ceased to be a party hereto pursuant to an
Assignment and Acceptance) and (b) any Person that has become a party hereto as an Incremental Term
Loan Lender pursuant to an Assignment and Acceptance.

     “Incremental Term Loans” shall have the meaning assigned thereto in Section 14.23.

     “Initial Term Loan Commitment” means, with respect to all Lenders, Three Hundred
Sixty-Five Million Dollars ($365,000,000) and, with respect to any Lender, the amount set forth on
the applicable Lender Addendum or in the Assignment and Acceptance pursuant to which such Lender
acquired its interest in the Term Loans advanced on the Closing Date.

     “Initial Term Loan Commitment Percentage” means, as to any Lender at any time, the
ratio of (a) the amount of the Initial Term Loan Commitment of such Lender to (b) the Initial Term
Loan Commitments of all Lenders.

     “Initial Term Loans” means the term loans made to the Borrower by the Lenders pursuant
to Section 4.1.

     “Insurance and Condemnation Proceeds” has the meaning assigned thereto in Section
4.4(b)(iv).

     “Interest Expense” means, with respect to the Borrower and its Restricted Subsidiaries
(other than with respect to any Non-Recourse Project Financing Indebtedness) for any period, the
gross interest expense (including, without limitation, interest expense attributable to Capital
Leases, Synthetic Leases (which shall be treated the same as Capital Leases for purposes of this
definition) and all net payment obligations pursuant to Hedging Agreements), all determined for
such period on a Consolidated basis, without duplication, in accordance with GAAP except as
expressly provided in this definition.

     “Interest Period” has the meaning assigned thereto in Section 5.1(b).

     “Interest Rate Contract” means any interest rate swap agreement, interest rate cap
agreement, interest rate floor agreement, interest rate collar agreement, interest rate option or
any other agreement regarding the hedging of interest rate risk exposure executed in connection
with hedging the interest rate exposure of any Person and any confirming letter executed pursuant
to such agreement, all as amended, restated, supplemented or otherwise modified from time to time.

     “ISP98” means the International Standby Practices (1998 Revision, effective January 1,
1999), International Chamber of Commerce Publication No. 590.

10

 

     “Issuing Lender” means BNP Paribas, in its capacity as issuer of any Letter of Credit,
or any successor thereto, or any other Lender to whom any portion of the L/C Commitment is assigned
in the case where the Issuing Lender is not able to issue the requested Letter of Credit.

     “Issuing Lender’s Correspondent” means BNP Paribas, New York Branch, or any other
financial institution designated by the Issuing Lender to act as its correspondent hereunder with
respect to the issuance and payment of any Alternative Currency Letter of Credit.

     “Joinder Agreement” means collectively, each joinder agreement executed in favor of
the Administrative Agent for the ratable benefit of itself and the Lenders, substantially in the
form of Exhibit K.

     “L/C Commitment” means the lesser of (a) Ninety-Seven Million Five Hundred Thousand
Dollars ($97,500,000) and (b) the Revolving Credit Commitments of all Lenders.

     “L/C Facility” means the letter of credit facility established pursuant to Article
III.

     “L/C Obligations” means on any day, an amount equal to the sum of (a) the aggregate
undrawn and unexpired amount of the then outstanding Letters of Credit (provided that the
undrawn and unexpired amount of any outstanding Alternative Currency Letter of Credit shall be the
Dollar Amount of such Alternative Currency Letter of Credit as determined by the Administrative
Agent on such day) and (b) the aggregate amount of drawings under Letters of Credit which have not
then been reimbursed pursuant to Section 3.5 (provided that the amount of any unreimbursed
drawing under an Alternative Currency Letter of Credit shall be the Dollar Amount of such amount as
determined by the Administrative Agent on such day).

     “L/C Participants” means the collective reference to all the Lenders with Revolving
Credit Commitments (or, if the Revolving Credit Commitments have terminated, Lenders with Revolving
Credit Commitments immediately before such termination) other than the Issuing Lender.

     “Lender” means each Person that shall have become a party hereto pursuant to a Lender
Addendum (including, without limitation, the Issuing Lender and the Swingline Lender unless the
context otherwise requires), each Incremental Term Loan Lender and each other Person that hereafter
becomes a party to this Agreement as a Lender pursuant to Section 14.10, but excluding any such
Person that ceases to be a party hereto as a Lender pursuant to Section 14.10.

     “Lender Addendum” means a Lender Addendum in the form of Exhibit M or any other form
approved by the Administrative Agent (including Lender Addenda executed and delivered in connection
with the Existing Facility or any other predecessor agreement hereof) entered into by a Person, and
accepted and agreed to by the Borrower and the Administrative Agent, pursuant to which such Person
becomes (or became) a party hereto as a Lender, or increases (or increased) its Commitment.

     “Lending Office” means, with respect to any Lender, the office of such Lender
maintaining such Lender’s Revolving Credit Commitment Percentage or Term Loan Percentage, as
applicable, of the Extensions of Credit.

     “Letters of Credit” shall have the meaning assigned thereto in Section 3.1.

     “LIBOR” means the rate of interest per annum determined on the basis of the rate for
deposits in Dollars in an amount equal to the amount of the Loan requested by the Borrower for a
period equal to the applicable Interest Period which appears on the Screen at approximately 11:00
a.m. (London time) two

11

 

(2) Business Days prior to the first day of the applicable Interest Period (rounded upward, if
necessary, to the nearest 1/100th of 1%). If, for any reason, such rate does not appear on the
Screen, then “LIBOR” shall be determined by the Administrative Agent to be the arithmetic average
of the rate per annum at which deposits in Dollars in an amount equal to the amount of the Loan
requested by the Borrower would be offered by first class banks in the London interbank market to
the Administrative Agent at approximately 11:00 a.m. (London time) two (2) Business Days prior to
the first day of the applicable Interest Period for a period equal to such Interest Period. Each
calculation by the Administrative Agent of LIBOR shall be conclusive and binding for all purposes,
absent manifest error.

     “LIBOR Rate” means a rate per annum (rounded upwards, if necessary, to the next higher
1/100th of 1%) determined by the Administrative Agent pursuant to the following formula:

	 	 	 	 	 	 	 
	LIBOR Rate	 	=	 	LIBOR	 	 

	 	 	 	 	 
	 	 

	 	 	 	 	1.00-Eurodollar Reserve Percentage	 	 

     “LIBOR Rate Loan” means any Loan bearing interest at a rate based upon the LIBOR Rate
as provided in Section 5.1(a).

     “Lien” means, with respect to any asset, any mortgage, leasehold mortgage, lien,
pledge, charge, security interest, hypothecation or encumbrance of any kind in respect of such
asset. For the purposes of this Agreement, a Person shall be deemed to own subject to a Lien any
asset which it has acquired or holds subject to the interest of a vendor or lessor under any
conditional sale agreement, Capital Lease or other title retention agreement relating to such
asset.

     “Loan Documents” means, collectively, this Agreement, the Notes, the Applications, the
Security Documents, each Joinder Agreement and each other document, instrument, certificate and
agreement executed and delivered by the Borrower or any Subsidiary thereof in connection with this
Agreement (excluding any Hedging Agreement), all as may be amended, restated, supplemented or
otherwise modified from time to time.

     “Loans” means the collective reference to the Revolving Credit Loans, the Term Loans
and the Swingline Loans, and “Loan” means any of such Loans.

     “Material Adverse Effect” means, with respect to the Borrower or any of its Restricted
Subsidiaries, a material adverse effect on the properties, business, operations or condition
(financial or otherwise) of any such Person or the ability of any such Person to perform its
obligations under any Loan Document in each case to which it is a party.

     “Material Contract” means (a) any Material Government Contract or (b) any other
contract or agreement, written or oral, of the Borrower or any of its Restricted Subsidiaries the
failure to comply with which could reasonably be expected to have a Material Adverse Effect.

     “Material Government Contract” means any Government Contract, with respect to which
the aggregate amount of EBITDA reasonably attributable to such Government Contract for the four (4)
Fiscal Quarters ending on or most recently ended prior to any date of determination is greater than
five percent (5%) of EBITDA for the same four (4) Fiscal Quarter period.

     “Merger Agreement” means that certain Agreement and Plan of Merger dated as of
September 19, 2006 by and among Borrower, the CPT Acquisition Subsidiary and the Target Company
providing for the Acquisition, as the same may be amended from time to time; provided that
any such amendments that

12

 

would have a material adverse effect on the interests of the Lenders or the Borrower shall be
subject to the reasonable approval of the Required Lenders.

     “Mesa Verde Facility” means the correctional facility located in Bakersfield,
California owned by CPT Operating Partnership L.P. on the Acquisition Date.

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

     “Mortgages” means the collective reference to each deed of trust, mortgage or other
real property security document (including any amendment to any Mortgage existing on the Closing
Date recorded in connection with the Existing Facility) encumbering all real property now or
hereafter owned by the Borrower or any Restricted Domestic Subsidiary, in each case, in form and
substance reasonably satisfactory to the Administrative Agent and executed by the Borrower or any
Restricted Domestic Subsidiary thereof in favor of the Administrative Agent, for the ratable
benefit of itself and the Lenders, as any such document may be amended, restated, supplemented or
otherwise modified from time to time.

     “Multiemployer Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of
ERISA to which the Borrower or any ERISA Affiliate is making, or is accruing an obligation to make,
or has accrued an obligation to make contributions within the preceding six (6) years.

     “Net Cash Proceeds” means, as applicable, (a) with respect to any sale or other
disposition of assets, the gross cash proceeds received by the Borrower or any of its Restricted
Subsidiaries from such sale less the sum of (i) all income taxes and other taxes assessed
by a Governmental Authority as a result of such sale and any other fees and expenses (including
legal, brokerage, consulting and accounting fees and expenses) incurred in connection therewith and
(ii) the principal amount of, premium, if any, and interest on any Debt secured by a Lien on the
asset (or a portion thereof) sold, which Debt is required to be repaid in connection with such
sale, (b) with respect to any offering of equity securities or issuance of Debt, the gross cash
proceeds received by the Borrower or any of its Restricted Subsidiaries therefrom less all
legal, underwriting and other fees and expenses incurred in connection therewith and (c) with
respect to any payment under an insurance policy or in connection with a condemnation proceeding,
the amount of cash proceeds received by the Borrower or its Restricted Subsidiaries from an
insurance company or a Governmental Authority, as applicable, net of all expenses of collection.

     “Net Income” means, with respect to the Borrower and its Subsidiaries, for any period
of determination, the net income (or loss) for such period, determined on a Consolidated basis in
accordance with GAAP; provided that there shall be excluded from Net Income (a) the net
income (or loss) of any Person (other than South African Custodial Services Pty Ltd.), in which the
Borrower or any of its Restricted Subsidiaries has a joint interest with a third party, except to
the extent such net income is actually paid to the Borrower or any of its Restricted Subsidiaries
by dividend or other distribution during such period (in an amount not to exceed the Borrower’s or
such Restricted Subsidiary’s share (pro rata to its equity interest in such Person)
of the net income of such Person), (b) the net income (or loss) of any Person accrued prior to the
date it becomes a Subsidiary of such Person or is merged into or consolidated with such Person or
any of its Restricted Subsidiaries or that Person’s assets are acquired by such Person or any of
its Restricted Subsidiaries except to the extent included pursuant to the foregoing clause (a), and
(c) the net income (or loss) of any Unrestricted Subsidiary (other than South African Custodial
Management Pty Ltd.), except to the extent net income of any such Unrestricted Subsidiary is
actually paid to the Borrower or any of its Restricted Subsidiaries by dividend or distribution
during such period (in an amount not to exceed the Borrower’s or any Restricted Subsidiary’s share
(pro rata to its equity interest in such Unrestricted Subsidiary) of the net income
of such Unrestricted Subsidiary).

13

 

     “Non-Recourse Debt Service” means, for any period, the sum of (a) the gross interest
expense of the Borrower and its Restricted Subsidiaries with respect to the Non-Recourse Project
Financing Indebtedness determined for such period on a Consolidated basis, without duplication, in
accordance with GAAP and (b) the scheduled principal payments required to be made by the Borrower
and its Restricted Subsidiaries with respect to Non-Recourse Project Financing Indebtedness during
such period.

     “Non-Recourse Project Financing Indebtedness” means any Debt of the Borrower or any of
its Subsidiaries, determined in accordance with GAAP, incurred in connection with the acquisition,
construction, development, operation or management of any facility:

     (a) where either the Borrower or a Subsidiary of the Borrower operates or is responsible for
the management or operation of the facility pursuant to a management services contract, operating
agreement, use agreement or similar agreement with a Governmental Authority (a “Project
Financing Government Contract”);

     (b) as to which neither the Borrower nor any of its Restricted Subsidiaries (other than a
Subsidiary formed for the purpose of facilitating the financing of the facility (a “Project
Financing Subsidiary”)), whether upon the occurrence of any contingency or otherwise, (i)
provides credit support of any kind (including any undertaking, agreement or instrument that would
constitute Debt), it being understood that (A) equity investments funded at the time of or prior to
the incurrence of such Debt and (B) the assignment by the Borrower or any of its Restricted
Subsidiaries of its rights under any Government Contract relating to such facility, in each case,
shall not be deemed credit support or (ii) is directly or indirectly liable as a guarantor or
otherwise;

     (c) where, upon the termination of the Project Financing Government Contract, neither the
Borrower nor any of its Restricted Subsidiaries, other than the Project Financing Subsidiary, will
be liable, directly or indirectly, to make any payments with respect to such Debt (or portions
thereof);

     (d) where the interest expense related to such Debt is fully serviced directly or indirectly
by cash payments made pursuant to an agreement with a Governmental Authority; and

     (e) in the case where a Project Financing Subsidiary is an obligor under such Debt, such
Project Financing Subsidiary has no assets other than the assets, including working capital,
reasonably related to the design, construction, management, operation and financing of the
facility.

     “Notes” means the collective reference to the Revolving Credit Notes, the Term Notes
and the Swingline Note, and “Note” means any of such Notes.

     “Notice of Account Designation” shall have the meaning assigned thereto in Section
2.3(b).

     “Notice of Assignment” shall have the meaning assigned thereto in the Collateral
Agreement.

     “Notice of Borrowing” shall have the meaning assigned thereto in Section 2.3(a).

     “Notice of Conversion/Continuation” shall have the meaning assigned thereto in Section
5.2.

     “Notice of Prepayment” shall have the meaning assigned thereto in Section 2.4(c).

     “Obligations” means, in each case, whether now in existence or hereafter arising: (a)
the principal of and interest on (including interest accruing after the filing of any bankruptcy or
similar petition) the Loans, (b) the L/C Obligations, (c) all existing or future payment and other
obligations

14

 

owing by the Borrower under any Hedging Agreement permitted hereunder with any Person that is
a Lender hereunder or an Affiliate of a Lender hereunder at the time such Hedging Agreement is
executed (all such obligations with respect to any such Hedging Agreement, the “Hedging
Obligations”) and (d) all other interest, fees and commissions (including reasonable attorneys’
fees), charges, indebtedness, loans, liabilities, financial accommodations, obligations, covenants
and duties owing by the Borrower or any of its Subsidiaries to the Lenders or the Administrative
Agent, in each case under or in respect of this Agreement, any Note, any Letter of Credit or any of
the other Loan Documents of every kind, nature and description, direct or indirect, absolute or
contingent, due or to become due, contractual or tortious, liquidated or unliquidated, and whether
or not evidenced by any note.

     “Officer’s Compliance Certificate” shall have the meaning assigned thereto in Section
8.2.

     “Operating Lease” shall mean, as to any Person as determined in accordance with GAAP,
any lease of property (whether real, personal or mixed) by such Person as lessee which is not a
Capital Lease.

     “Other Consolidated Persons” means Persons, none of the capital stock or other equity
interests of which are owned by the Borrower or any of its Subsidiaries, whose financial statements
are required to be consolidated with the financial statements of the Borrower in accordance with
GAAP.

     “Other Taxes” shall have the meaning assigned thereto in Section 5.11(b).

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

     “Pension Plan” means any Employee Benefit Plan, other than a Multiemployer Plan, which
is subject to the provisions of Title IV of ERISA or Section 412 of the Code and which (a) is
maintained for the employees of the Borrower or any ERISA Affiliates or (b) has at any time within
the preceding six (6) years been maintained for the employees of the Borrower or any of its current
or former ERISA Affiliates.

     “Permitted Acquisition” means an acquisition using (a) that portion of (i) Net Cash
Proceeds from the sale or other disposition of assets owned by the Borrower or any of its
Restricted Subsidiaries or the offering of equity securities by the Borrower or any of its
Restricted Subsidiaries and/or (ii) Excess Cash Flow and/or (iii) cash on hand, in each case in
clauses (i) and (ii), to the extent not required to be used to make prepayments pursuant to Section
4.4(b) and/or (b) shares of capital stock or other ownership interests of the Borrower and/or its
Subsidiaries (“Equity Consideration”) in exchange for shares of capital stock or other
ownership interests of the Person being acquired or all the assets or substantially all of the
assets of a Person; provided that: (A) EBITDA for the four (4) most recently completed
Fiscal Quarters for which financial statements are available, calculated on a pro forma basis as if
the acquisition had been made on the first day of such period, would be positive, all as calculated
by the Borrower in reasonable detail and reviewed and approved by the Administrative Agent, (B) the
Total Leverage Ratio and Senior Secured Leverage Ratio for the four (4) most recently completed
Fiscal Quarters for which financial statements are available, calculated on a pro forma basis as if
the acquisition had been made on the first day of such period, would be at least 0.25 below the
Total Leverage Ratio and Senior Secured Leverage Ratio, respectively, required to be maintained by
the Borrower pursuant to Section 10.1 as of the last day of such period, (C) such acquisition shall
be of a business, a line of business or a facility in the same line of business as is conducted by
the Borrower and its Restricted Subsidiaries on the Closing Date or a business reasonably related
thereto or ancillary or incidental thereto or a reasonable extension thereof, including the
privatization of governmental services (a “Permitted Business”) and the acquired business,
line of business or facility (to the extent constituting one or more Persons) shall become one or
more Restricted Subsidiaries, or (to the extent constituting assets that are not Persons) shall be
acquired directly by the Borrower and/or one or more of its Restricted Subsidiaries, as a result of
such acquisition,

15

 

and (D) if any such acquisition, when added to all such acquisitions made after the Closing
Date, is (excluding Equity Consideration) in an aggregate amount in excess of (1) One Hundred
Million Dollars ($100,000,000) plus (2) the Net Cash Proceeds from the offering of equity
securities of the Borrower or any of its Restricted Subsidiaries after the Acquisition Date not
required to be used for prepayments under Section 4.4(b)(ii) (the sum of clauses (1) and (2), the
“Permitted Acquisition Basket”), then such acquisition shall require the consent of the
Required Lenders (provided that (x) any acquisition to which the Required Lenders consent
shall not be considered usage of the Permitted Acquisition Basket and (y) any usage of the
Additional Capital Expenditure Basket in excess of Seventy-Five Million Dollars ($75,000,000), and
any investments, loans, advances, extensions of credit or acquisitions (except to the extent made
with Equity Consideration) as permitted by Section 11.3(j), shall be considered usage of the
Permitted Acquisition Basket. Notwithstanding anything to the contrary herein, the Acquisition
shall be deemed to be a Permitted Acquisition and shall not be considered a utilization of the
Permitted Acquisition Basket).

     “Permitted Acquisition Basket” shall have the meaning assigned thereto in the
definition “Permitted Acquisition.”

     “Permitted Business” shall have the meaning assigned thereto in the definition
“Permitted Acquisition.”

     “Permitted Currency” means Dollars or any Alternative Currency, or each such currency,
as the context requires.

     “Person” means an individual, corporation, limited liability company, partnership,
association, trust, business trust, joint venture, joint stock company, pool, syndicate, sole
proprietorship, unincorporated organization, Governmental Authority or any other form of entity or
group thereof.

     “PIK Preferred Stock” shall mean preferred stock or other junior equity securities of
the Borrower that (a) require dividends or interest to be “paid-in-kind” by the issuance of like
preferred stock or other junior securities and do not require cash dividends or interest to be
paid, in each case, issued on terms and conditions acceptable to the Administrative Agent and (b)
are not convertible or exchangeable into Debt or required to be redeemed or repurchased before the
Term Loan Maturity Date.

     “Pounds Sterling” means, at any time of determination, the then official currency of
the United Kingdom of Great Britain and Northern Ireland.

     “Premier Custodial Finance Limited Debt” means the Debt of Premier Custodial Finance
Limited incurred pursuant to that certain Subordinated Loan Agreement dated as of December 17,
1999, as amended, restated and modified from time to time, including but not limited to by that
certain Amendment Agreement dated as of June 30, 2000.

     “Prime Rate” means, at any time, the rate of interest per annum established from time
to time by BNP Paribas as its prevailing “base rate” or “prime rate” for loans in Dollars in the
United States. Each change in the Prime Rate shall be effective as of the opening of business on
the day such change in such prime rate occurs. The parties hereto acknowledge that the rate
announced publicly by BNP Paribas as its prime rate is an index or base rate and shall not
necessarily be its lowest or best rate charged to its customers or other banks.

     “Project Financing Government Contract” shall have the meaning assigned thereto in the
definition “Non-Recourse Project Financing Indebtedness”.

16

 

     “Project Financing Subsidiary” shall have the meaning assigned thereto in the
definition “Non-Recourse Project Financing Indebtedness”.

     “Purchasing Lender” shall have the meaning assigned thereto in Section 14.10(b).

     “Register” shall have the meaning assigned thereto in Section 14.10(d).

     “Reimbursed Capital Expenditures” means with respect to the Borrower and its
Restricted Subsidiaries for any period, the aggregate cost of all Capital Assets acquired by the
Borrower and its Restricted Subsidiaries during such period, as determined in accordance with GAAP,
which are reimbursable to the Borrower or any of its Restricted Subsidiaries by a Person (other
than the Borrower or any of its Restricted Subsidiaries) within three (3) months after such costs
were incurred pursuant to a legally binding agreement with respect to which such Person is not in
default.

     “Reimbursement Obligation” means the obligation of the Borrower to reimburse the
Issuing Lender pursuant to Section 3.5 for amounts drawn under Letters of Credit.

     “Rental Expense” means, with respect to the Borrower and its Restricted Subsidiaries
for any period, all rent expense paid in cash with respect to long-term real property leases during
such period, determined on a Consolidated basis in accordance with GAAP.

     “Required Lenders” means, at any date, any combination of Lenders whose Commitment
Percentages aggregate more than fifty percent (50%) or, if the Credit Facility has been terminated
pursuant to Section 12.2, any combination of Lenders holding more than fifty percent (50%) of the
aggregate Extensions of Credit.

     “Responsible Officer” means any of the following: the chief executive officer, chief
financial officer or treasurer of the Borrower or any other officer of the Borrower designated by
the chief executive officer, chief financial officer or treasurer and reasonably acceptable to the
Administrative Agent.

     “Restricted Payments” means (a) any direct or indirect distribution, dividend or other
payment to any Person (other than to the Borrower or any of its Restricted Subsidiaries) on account
of any capital stock or other ownership interests of the Borrower or any of its Subsidiaries (other
than dividends payable solely in capital stock or other ownership interests of such Person and
splits thereof), (b) the purchase, redemption, retirement or other acquisition, whether direct or
indirect, of any shares of the Borrower’s or its Restricted Subsidiaries’ capital stock or other
ownership interests, (c) any distribution of cash, property or assets among the holders of shares
of the Borrower’s or any of its Restricted Subsidiaries’ capital stock or other ownership
interests, (d) any cash interest payments with respect to Subordinated Debt, or (e) any change in
the Borrower’s or any Restricted Subsidiary’s capital structure (except for any exchanges by the
Borrower of common stock for PIK Preferred Stock with any of its existing stockholders;
provided that no Default or Event of Default is continuing or would result from such
exchange).

     “Restricted Domestic Subsidiary” means any Domestic Subsidiary of the Borrower that is
not an Unrestricted Subsidiary.

     “Restricted Foreign Subsidiary” means any Foreign Subsidiary of the Borrower that is
not an Unrestricted Subsidiary.

     “Restricted Subsidiary” means any Subsidiary of the Borrower that is not an
Unrestricted Subsidiary.

17

 

     “Revolving Credit Commitment” means (a) as to any Lender, the obligation of such
Lender to make Revolving Credit Loans in an aggregate principal amount at any time outstanding not
to exceed the amount set forth in the Register for such Lender, as such amount may be reduced or
modified at any time or from time to time pursuant to the terms hereof and (b) as to all Lenders,
the several obligations of the Lenders to make Revolving Credit Loans in an aggregate principal
amount at any time outstanding not to exceed the aggregate amount set forth in the Register for all
Lenders, as such amount may be reduced at any time or from time to time pursuant to the terms
hereof. The Revolving Credit Commitment of all Lenders on the Closing Date shall be One Hundred
Fifty Million Dollars ($150,000,000), and with respect to each Lender on the Closing Date, the
amount set forth on the applicable Lender Addendum.

     “Revolving Credit Commitment Percentage” means, as to any Lender at any time, the
ratio of (a) the amount of the Revolving Credit Commitment of such Lender to (b) the Revolving
Credit Commitments of all Lenders.

     “Revolving Credit Facility” means the revolving credit facility established pursuant
to Article II.

     “Revolving Credit Loan” means any revolving loan made to the Borrower pursuant to
Section 2.1, and all such revolving loans collectively as the context requires.

     “Revolving Credit Maturity Date” means the earliest of the dates referred to in
Section 2.7.

     “Revolving Credit Notes” means the collective reference to the Revolving Credit Notes
made by the Borrower payable to the order of each Lender holding a Revolving Credit Commitment,
substantially in the form of Exhibit A-1 hereto, evidencing the Revolving Credit Facility, and any
amendments, supplements and modifications thereto, any substitutes therefor, and any replacements,
restatements, renewals or extension thereof, in whole or in part.

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

     “Screen” means the display page for LIBOR for Dollars (as determined by the
Administrative Agent) on the Telerate Service; provided that, if the Administrative Agent
determines that there is no such display page for LIBOR for U.S. Dollars, “Screen” means the
relevant display page for LIBOR for Dollars (as determined by the Administrative Agent) on the
Reuter Monitor Money Rates Service.

     “Securities Act” means the Securities Act of 1933, including all amendments thereto
and regulations promulgated thereunder.

     “Security Documents” means the collective reference to the Guaranty Agreement, the
Collateral Agreement, the Mortgages, the Collateral Assignment and each other agreement or writing
pursuant to which the Borrower or any Restricted Subsidiary thereof purports to pledge or grant a
security interest in any property or assets securing the Obligations or any such Person purports to
guaranty the payment and/or performance of the Obligations, in each case, as amended, restated,
supplemented or otherwise modified from time to time.

     “Senior Secured Leverage Ratio” shall have the meaning assigned thereto in Section
10.1(b).

     “Series” shall have the meaning assigned thereto in Section 14.23.

     “Solvent” means, as to the Borrower and its Restricted Subsidiaries on a particular
date, that any such Person (a) has capital sufficient to carry on its business and transactions and
all business and transactions in which it is about to engage and is able to pay its debts as they
mature, and (b) owns

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property having a value, both at fair valuation and at present fair saleable value, greater
than the amount required to pay its probable liabilities (including contingencies).

     “South African Rand” means, at any time of determination, the then official currency
of South Africa.

     “Subordinated Debt” means the collective reference to any Debt of the Borrower or any
Restricted Subsidiary subordinated in right and time of payment to the Obligations and containing
such other terms and conditions (including, without limitation, subordination terms), in each case
as are satisfactory to the Required Lenders.

     “Subsidiary” means as to any Person, any corporation, partnership, limited liability
company or other entity of which more than fifty percent (50%) of the outstanding capital stock or
other ownership interests having ordinary voting power to elect a majority of the board of
directors or other managers of such corporation, partnership, limited liability company or other
entity is at the time owned by or the management is otherwise controlled directly or indirectly by
such Person, or one or more of the Subsidiaries of such Person, or a combination thereof
(irrespective of whether, at the time, capital stock or other ownership interests of any other
class or classes of such corporation, partnership, limited liability company or other entity shall
have or might have voting power by reason of the happening of any contingency). Unless otherwise
qualified, references to “Subsidiary” or “Subsidiaries” herein shall refer to those of the
Borrower.

     “Survey Affidavit” shall have the meaning assigned thereto in Section 6.2(c).

     “Swingline Commitment” means the lesser of (a) Ten Million Dollars ($10,000,000) and
(b) the aggregate Revolving Credit Commitments of all Lenders.

     “Swingline Facility” means the swingline facility established pursuant to Section 2.2.

     “Swingline Lender” means BNP Paribas in its capacity as swingline lender hereunder.

     “Swingline Loan” means any swingline loan made by the Swingline Lender to the Borrower
pursuant to Section 2.2, and all such swingline loans collectively as the context requires.

     “Swingline Note” means the Swingline Note made by the Borrower payable to the order of
the Swingline Lender, substantially in the form of Exhibit A-2 hereto, evidencing the Swingline
Loans, and any amendments, supplements and modifications thereto, any substitutes therefor, and any
replacements, restatements, renewals or extensions thereof, in whole or in part.

     “Swingline Termination Date” means the first to occur of (a) the resignation of BNP
Paribas as Administrative Agent in accordance with Section 13.9 or (b) the Revolving Credit
Maturity Date.

     “Synthetic Lease” means any synthetic lease, tax retention operating lease,
off-balance sheet loan or similar off-balance sheet financing product where such transaction is
considered borrowed money indebtedness for tax purposes but is classified as an Operating Lease in
accordance with GAAP.

     “Target Company” means CentraCore Properties Trust, a real estate investment trust
organized under the laws of the State of Maryland.

     “Target Company Recourse Debt” means all Debt of the Target Company and its
Subsidiaries other than Non-Recourse Project Financing Indebtedness.

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     “Taxes” shall have the meaning assigned thereto in Section 5.11(a).

     “Term Loan Commitment” means (a) as to any Lender, the obligation of such Lender to
extend a Term Loan or Term Loans, as the case may be, in an aggregate principal amount not to
exceed the amount set forth in the Register for such Lender (and for the applicable Series, in the
case of Incremental Term Loans), as such amount may be reduced or otherwise modified at any time or
from time to time pursuant to the terms hereof and (b) as to all Lenders, the several obligations
of the Lenders to extend the Term Loans in an aggregate principal amount at any time outstanding
not to exceed the aggregate amount set forth in the Register for all Lenders.

     “Term Loan Commitment Percentage” means, as to any Lender at any time, the ratio of
(a) the amount of all Term Loan Commitments of such Lender to (b) the Term Loan Commitments of all
Lenders.

     “Term Loan Facility” shall mean the term loan facility established pursuant to Article
IV and Section 14.23, in the event that any Incremental Term Loans are made thereunder.

     “Term Loan Maturity Date” means the first to occur of (a) the seventh anniversary of
the consummation of the Acquisition, (b) in the event that the High-Yield Notes have not been
refinanced on terms reasonably satisfactory to the Administrative Agent on or prior to January 15,
2013, January 15, 2013 and (c) the date of termination by the Administrative Agent on behalf of the
Lenders pursuant to Section 12.2(a).

     “Term Loan Percentage” means, as to any Lender, the ratio of (a) the outstanding
principal balance of the Term Loan(s) of such Lender to (b) the aggregate outstanding principal
balance of the Term Loans of all Lenders.

     “Term Loans” shall mean the Initial Term Loans and the Incremental Term Loans, if any.

     “Term Notes” means the collective reference to the Term Notes made by the Borrower
payable to the order of each Lender holding a Term Loan Commitment, substantially in the form of
Exhibit A-3 hereto, evidencing the Term Loan Facility, and any amendments, modifications and
supplements thereto, any substitute therefor, and any replacement, restatements, renewals or
extensions thereof, in whole or in part.

     “Termination Event” means except for any such event or condition that could not
reasonably be expected to have a Material Adverse Effect: (a) a “Reportable Event” described in
Section 4043 of ERISA for which the notice requirement has not been waived by the PBGC, or (b) the
withdrawal of the Borrower or any ERISA Affiliate from a Pension Plan during a plan year in which
it was a “substantial employer” as defined in Section 4001(a)(2) of ERISA, or (c) the termination
of a Pension Plan, the filing of a notice of intent to terminate a Pension Plan or the treatment of
a Pension Plan amendment as a termination, under Section 4041 of ERISA, if the plan assets are not
sufficient to pay all plan liabilities, or (d) the institution of proceedings to terminate, or the
appointment of a trustee with respect to, any Pension Plan by the PBGC, or (e) any other event or
condition which would constitute grounds under Section 4042(a) of ERISA for the termination of, or
the appointment of a trustee to administer, any Pension Plan, or (f) the imposition of a Lien
pursuant to Section 412 of the Code or Section 302 of ERISA, or (g) the partial or complete
withdrawal of the Borrower of any ERISA Affiliate from a Multiemployer Plan if withdrawal liability
is asserted by such plan, or (h) any event or condition which results in the reorganization or
insolvency of a Multiemployer Plan under Sections 4241 or 4245 of ERISA, or (i) any event or
condition which results in the termination of a Multiemployer Plan under Section 4041A of

20

 

ERISA or the institution by PBGC of proceedings to terminate a Multiemployer Plan under
Section 4042 of ERISA.

     “Termination Value” means, in respect of any one or more Hedging Agreements, after
taking into account the effect of any legally enforceable netting agreement relating to such
Hedging Agreements, (a) for any date on or after the date such Hedging Agreements have been closed
out and termination value(s) determined in accordance therewith, such termination value(s), and (b)
for any date prior to the date referenced in clause (a), the amount(s) determined as the
mark-to-market value(s) for such Hedging Agreements, as determined based upon one or more
mid-market or other readily available quotations provided by any recognized dealer in such Hedging
Agreements (which may include a Lender or any Affiliate of a Lender).

     “Total Leverage Ratio” shall have the meaning assigned thereto in Section 10.1(a).

     “UCC” means the Uniform Commercial Code as in effect in the State of New York, as
amended or modified from time to time.

     “Uniform Customs” means the Uniform Customs and Practice for Documentary Credits (1993
Revision), effective January, 1994 International Chamber of Commerce Publication No. 500 and,
commencing July 1, 2007, the 2007 Revision, effective July 1, 2007, International Chamber of
Commerce Publication No. 600.

     “United States” means the United States of America.

     “Unrestricted Subsidiary” means any Subsidiary of the Borrower listed on Schedule
1.1(a) or which is designated as an Unrestricted Subsidiary after the Closing Date pursuant to
Section 9.11, provided that (a) such Unrestricted Subsidiary’s obligations are non-recourse
to the Borrower and the Borrower’s other Subsidiaries and (b) such Unrestricted Subsidiary meets
the requirements set forth in Section 9.11.

     “Wholly-Owned” means, with respect to a Subsidiary, that all of the shares of capital
stock or other ownership interests of such Subsidiary are, directly or indirectly, owned or
controlled by the Borrower and/or one or more of its Wholly-Owned Subsidiaries (except for
directors’ qualifying shares or other shares required by Applicable Law (including for purposes of
qualifying as a real estate investment trust) to be owned by a Person other than the Borrower).

     SECTION 1.2 Terms Generally. The definitions of terms herein shall apply equally to the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”. Unless the
context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as
from time to time amended, supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein), (b) any reference herein to any Person
shall be construed to include such Person’s successors and assigns, (c) the words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision hereof, (d) all references herein to
Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of,
and Exhibits and Schedules to, this Agreement, (e) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible and

21

 

intangible assets and properties, including cash, securities, accounts and contract rights and (f)
any reference herein to “New York time” shall refer to the applicable time of day in New York, New
York.

     SECTION 1.3 Currency Equivalents.

     (a) For purposes of Articles II, III and IV, the applicable outstanding amount of Letters of
Credit and L/C Obligations shall be deemed to refer to the Dollar Amount thereof.

     (b) All Loans made under this Agreement, including, without limitation, Loans made to refund
drawings made under Alternative Currency Letters of Credit, shall be made only in Dollars.

ARTICLE II

REVOLVING CREDIT FACILITY

     SECTION 2.1 Revolving Credit Loans. Subject to the terms and conditions of this Agreement,
and in reliance upon the representations and warranties set forth herein, each Lender severally
agrees to make Revolving Credit Loans to the Borrower in Dollars from time to time from the Closing
Date through, but not including, the Revolving Credit Maturity Date as requested by the Borrower in
accordance with the terms of Section 2.3; provided that (a) the aggregate principal amount
of all outstanding Revolving Credit Loans (after giving effect to any amount requested) shall not
exceed the aggregate Revolving Credit Commitments of all Lenders less the sum of all
outstanding Swingline Loans and L/C Obligations, (b) the principal amount of outstanding Revolving
Credit Loans from any Lender to the Borrower shall not at any time exceed such Lender’s Revolving
Credit Commitment less such Lender’s Revolving Credit Commitment Percentage of outstanding
L/C Obligations and outstanding Swingline Loans and (c) Revolving Credit Loans in excess of Five
Million Dollars ($5,000,000) may not be borrowed on the Closing Date except to pay or repay, as the
case may be, in full the Existing Revolving Credit Loan and the Existing Swingline Loan, all
accrued and unpaid interest thereon, any associated breakage costs, and all accrued and unpaid
commitment fees and letter of credit commissions owing by the Borrower under the Existing Facility.
Each Revolving Credit Loan by a Lender shall be in a principal amount equal to such Lender’s
Revolving Credit Commitment Percentage of the aggregate principal amount of Revolving Credit Loans
requested on such occasion. Subject to the terms and conditions hereof, the Borrower may borrow,
repay and reborrow Revolving Credit Loans hereunder until the Revolving Credit Maturity Date. Each
Lender’s Revolving Credit Commitment as of the Closing Date is set forth on the applicable Lender
Addendum.

     SECTION 2.2 Swingline Loans.

     (a) Availability. Subject to the terms and conditions of this Agreement, the
Swingline Lender agrees to make Swingline Loans to the Borrower in Dollars from time to time from
the first Business Day following the Closing Date through, but not including, the Swingline
Termination Date; provided that the aggregate principal amount of all outstanding Swingline
Loans (after giving effect to any amount requested) shall not exceed the lesser of (A) the
aggregate Revolving Credit Commitments of all Lenders less the sum of all outstanding
Revolving Credit Loans and the L/C Obligations and (B) the Swingline Commitment. If the Swingline
Lender has received notice (by telephone or in writing) from the Administrative Agent (including at
the request of any Lender) at least one hour before the making of any Swingline Loan (A) directing
the Swingline Lender not to make such Swingline Loan as a result of the limitations set forth in
the proviso in this Section 2.2(a) or (B) that one or more of the applicable conditions specified
in Article VI is not then satisfied, then the Swingline Lender will not make such Swingline Loan.

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     (b) Refunding.

          (i) Swingline Loans shall be refunded by the Lenders on demand by the Swingline Lender. Such
refundings shall be made by the Lenders in accordance with their respective Revolving Credit
Commitment Percentages and shall thereafter be reflected as Revolving Credit Loans of the Lenders
on the books and records of the Administrative Agent. Each Lender shall fund its respective
Revolving Credit Commitment Percentage of Revolving Credit Loans as required to repay Swingline
Loans outstanding to the Swingline Lender upon demand by the Swingline Lender but in no event later
than 2:00 p.m. (New York time) on the next succeeding Business Day after such demand is made. No
Lender’s obligation to fund its respective Revolving Credit Commitment Percentage of a Swingline
Loan shall be affected by any other Lender’s failure to fund its Revolving Credit Commitment
Percentage of a Swingline Loan, nor shall any Lender’s Revolving Credit Commitment Percentage be
increased as a result of any such failure of any other Lender to fund its Revolving Credit
Commitment Percentage of a Swingline Loan.

          (ii) The Borrower shall pay to the Swingline Lender on demand the amount of such Swingline
Loans to the extent amounts received from the Lenders are not sufficient to repay in full the
outstanding Swingline Loans requested or required to be refunded. In addition, the Borrower hereby
authorizes the Administrative Agent to charge any account maintained by the Borrower with the
Swingline Lender (up to the amount available therein) in order to pay immediately the Swingline
Lender the amount of such Swingline Loans to the extent amounts received from the Lenders are not
sufficient to repay in full the outstanding Swingline Loans requested or required to be refunded.
If any portion of any such amount paid to the Swingline Lender shall be recovered by or on behalf
of the Borrower from the Swingline Lender in bankruptcy or otherwise, the loss of the amount so
recovered shall be ratably shared among all the Lenders in accordance with their respective
Revolving Credit Commitment Percentages (unless the amounts so recovered by or on behalf of the
Borrower pertain to a Swingline Loan extended after the occurrence and during the continuance of an
Event of Default of which the Administrative Agent has received notice in the manner required
pursuant to Section 13.5 and which such Event of Default has not been waived by the Required
Lenders or the Lenders, as applicable).

          (iii) Each Lender acknowledges and agrees that its obligation to refund Swingline Loans in
accordance with the terms of this Section 2.2 is absolute and unconditional and shall not be
affected by any circumstance whatsoever, including, without limitation, non-satisfaction of the
conditions set forth in Article VI. Further, each Lender agrees and acknowledges that if prior to
the refunding of any outstanding Swingline Loans pursuant to this Section 2.2, one of the events
described in Section 12.1(i) or (j) shall have occurred, each Lender will, on the date the
applicable Revolving Credit Loan would have been made, purchase an undivided participating interest
in the Swingline Loan to be refunded in an amount equal to its Revolving Credit Commitment
Percentage of the aggregate amount of such Swingline Loan. Each Lender will immediately transfer
to the Swingline Lender, in immediately available funds, the amount of its participation and upon
receipt thereof the Swingline Lender will deliver to such Lender a certificate evidencing such
participation dated the date of receipt of such funds and for such amount. Whenever, at any time
after the Swingline Lender has received from any Lender such Lender’s participating interest in a
Swingline Loan, the Swingline Lender receives any payment on account thereof, the Swingline Lender
will distribute to such Lender its participating interest in such amount (appropriately adjusted,
in the case of interest payments, to reflect the period of time during which such Lender’s
participating interest was outstanding and funded).

     SECTION 2.3 Procedure for Advances of Revolving Credit Loans and Swingline Loans.

     (a) Requests for Borrowing. The Borrower shall give the Administrative Agent
irrevocable prior written notice substantially in the form attached hereto as Exhibit B (a
“Notice of Borrowing”) for

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Revolving Credit Loans or Swingline Loans, as the case may be, not later than 1:00 p.m. (New
York time) (i) on the same Business Day as each Base Rate Loan and each Swingline Loan and (ii) at
least three (3) Business Days before each LIBOR Rate Loan, of its intention to borrow, specifying
(A) the date of such borrowing, which shall be a Business Day, (B) the amount of such borrowing,
which shall be, (x) with respect to Base Rate Loans (other than Swingline Loans), in an aggregate
minimum principal amount of One Million Dollars ($1,000,000), (y) with respect to LIBOR Rate Loans,
in an aggregate minimum principal amount of Two Million Five Hundred Thousand Dollars ($2,500,000)
or, at the Borrower’s option, if such borrowing is to be used to pay a principal installment due
under Section 4.3, in an amount equal to the principal amount of such installment, and (z) with
respect to Swingline Loans, in an aggregate principal amount of One Hundred Thousand Dollars
($100,000) or a whole multiple of One Hundred Thousand Dollars ($100,000) in excess thereof, (C)
whether such Loan is to be a Revolving Credit Loan or Swingline Loan, (D) in the case of a
Revolving Credit Loan whether the Loans are to be LIBOR Rate Loans or Base Rate Loans, and (E) in
the case of a LIBOR Rate Loan, the duration of the Interest Period applicable thereto. A Notice of
Borrowing received after 1:00 p.m. (New York time) shall be deemed received on the next Business
Day. The Administrative Agent shall promptly notify the Lenders of each Notice of Borrowing.

     (b) Disbursement of Revolving Credit and Swingline Loans. Not later than 2:00 p.m.
(New York time) on the proposed borrowing date, (i) each Lender will make available to the
Administrative Agent, for the account of the Borrower, at the office of the Administrative Agent in
funds immediately available to the Administrative Agent, such Lender’s Revolving Credit Commitment
Percentage of the Revolving Credit Loans to be made on such borrowing date and (ii) the Swingline
Lender will make available to the Administrative Agent, for the account of the Borrower, at the
office of the Administrative Agent in funds immediately available to the Administrative Agent, the
Swingline Loans to be made on such borrowing date. The Borrower hereby irrevocably authorizes the
Administrative Agent to disburse the proceeds of each borrowing requested pursuant to this Section
2.3 in immediately available funds by crediting or wiring such proceeds to the deposit account of
the Borrower identified in the most recent notice substantially in the form of Exhibit C hereto (a
“Notice of Account Designation”) delivered by the Borrower to the Administrative Agent or
as may be otherwise agreed upon by the Borrower and the Administrative Agent from time to time;
provided, however, that notwithstanding anything to the contrary herein, proceeds
of any borrowing requested pursuant to this Section 2.3 shall be applied first to pay or repay, as
the case may be, in full the Existing Revolving Credit Loan and the Existing Swingline Loan, all
accrued and unpaid interest thereon, any associated breakage costs, and all accrued and unpaid
commitment fees and letter of credit commissions owing by the Borrower under the Existing Facility
before any other disbursement shall be made in accordance with this sentence. Subject to Section
5.7 hereof, the Administrative Agent shall not be obligated to disburse the portion of the proceeds
of any Revolving Credit Loan requested pursuant to this Section 2.3 to the extent that any Lender
has not made available to the Administrative Agent its Revolving Credit Commitment Percentage of
such Loan. Revolving Credit Loans to be made for the purpose of refunding Swingline Loans shall be
made as Base Rate Loans and shall be made by the Lenders as provided in Section 2.2(b).

     SECTION 2.4 Repayment of Loans.

     (a) Repayment on Termination Date. The Borrower hereby agrees to repay the
outstanding principal amount of (i) all Revolving Credit Loans in full on the Revolving Credit
Maturity Date, and (ii) all Swingline Loans in accordance with Section 2.2(b), together, in each
case, with all accrued but unpaid interest thereon. Any Swingline Loan not repaid prior to the
Revolving Credit Maturity Date shall be repaid in full on such date.

     (b) Mandatory Repayment of Revolving Credit Loans. If at any time (i) the outstanding
principal amount of all Revolving Credit Loans plus the sum of all outstanding Swingline
Loans and L/C

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Obligations exceeds the aggregate Revolving Credit Commitments of all Lenders or (ii) proceeds
remain after the prepayment in full of the Term Loans pursuant to Section 4.4(b), the Borrower
agrees to repay immediately (upon notice from the Administrative Agent in the case of clause (i)),
by payment to the Administrative Agent for the account of the Lenders, Extensions of Credit in an
amount equal to such excess with each such repayment applied, first, to the principal
amount of outstanding Swingline Loans, second, to the principal amount of outstanding
Revolving Credit Loans and, third, for deposit into a cash collateral account opened by the
Administrative Agent pursuant to Section 3.7 in an amount equal to the excess, if any, of the
outstanding amount of all L/C Obligations over the lesser of (A) the Aggregate Commitment
less the sum of the amount of all outstanding Loans and (B) the L/C Commitment.

     (c) Optional Repayments. The Borrower may at any time and from time to time repay the
Loans, in whole or in part, upon at least three (3) Business Days’ irrevocable notice to the
Administrative Agent with respect to LIBOR Rate Loans and on the same day of irrevocable notice
with respect to Base Rate Loans and Swingline Loans (provided that any such notice received
by the Administrative Agent after 1:00 p.m. (New York time) shall be deemed to have been received
on the next Business Day), substantially in the form attached hereto as Exhibit D (a “Notice of
Prepayment”) specifying the date and amount of repayment and whether the repayment is of LIBOR
Rate Loans, Base Rate Loans, Swingline Loans or a combination thereof, and, if of a combination
thereof, the amount allocable to each. Upon receipt of such notice, the Administrative Agent shall
promptly notify each Lender. If any such notice is given, the amount specified in such notice
shall be due and payable on the date set forth in such notice. Partial repayments shall be in an
aggregate minimum amount of One Million Dollars ($1,000,000) or a whole multiple of One Million
Dollars ($1,000,000) in excess thereof with respect to Base Rate Loans (other than Swingline
Loans), Two Million Five Hundred Thousand Dollars ($2,500,000) with respect to LIBOR Rate Loans,
and One Hundred Thousand Dollars ($100,000) or a whole multiple of One Hundred Thousand Dollars
($100,000) in excess thereof with respect to Swingline Loans. Each such repayment shall be
accompanied by any amount required to be paid pursuant to Section 5.9 hereof.

     (d) Limitation on Repayment of LIBOR Rate Loans. The Borrower may not repay any LIBOR
Rate Loan on any day other than on the last day of the Interest Period applicable thereto unless
such repayment is accompanied by any amount required to be paid pursuant to Section 5.9 hereof.

     (e) Hedging Agreements. No repayment or prepayment pursuant to this Section 2.4 shall
affect any of the Borrower’s obligations under any Hedging Agreement.

     SECTION 2.5 Notes.

     (a) Revolving Credit Notes. Except as otherwise provided in Sections 14.10(a) through
(e), each Lender’s Revolving Credit Loans and the obligation of the Borrower to repay such
Revolving Credit Loans shall be evidenced by a separate Revolving Credit Note executed by the
Borrower payable to the order of such Lender.

     (b) Swingline Note. The Swingline Loans and the obligation of the Borrower to repay
such Swingline Loans shall be evidenced by a Swingline Note executed by the Borrower payable to the
order of the Swingline Lender.

     SECTION 2.6 Permanent Reduction of the Revolving Credit Commitments.

     (a) Voluntary Reduction. The Borrower shall have the right at any time and from time
to time, upon at least five (5) Business Days prior written notice to the Administrative Agent, to
reduce permanently, without premium or penalty, (i) the entire Revolving Credit Commitments of the
Lenders at any time or (ii) portions of the Revolving Credit Commitments of the Lenders, from time
to time, in an

25

 

aggregate principal amount not less than Three Million Dollars ($3,000,000) or any whole
multiple of One Million Dollars ($1,000,000) in excess thereof. The amount of each partial
permanent reduction shall permanently reduce the Lenders’ Revolving Credit Commitments pro
rata in accordance with their respective Revolving Credit Commitment Percentages.

     (b) Corresponding Payment. Each permanent reduction permitted pursuant to this
Section 2.6 shall be accompanied by a payment of principal sufficient to reduce the aggregate
outstanding Revolving Credit Loans, Swingline Loans and L/C Obligations, as applicable, after such
reduction to the Revolving Credit Commitments as so reduced and if the Revolving Credit Commitments
as so reduced are less than the aggregate amount of all outstanding Letters of Credit, the Borrower
shall be required to deposit cash collateral in a cash collateral account opened by the
Administrative Agent in an amount equal to the amount by which the aggregate face amount of all
outstanding Letters of Credit exceeds the Revolving Credit Commitments as so reduced. Such cash
collateral shall be applied in accordance with Section 12.2(b). Any reduction of the Revolving
Credit Commitments to zero shall be accompanied by payment of all outstanding Revolving Credit
Loans and Swingline Loans (and furnishing of cash collateral satisfactory to the Administrative
Agent for all L/C Obligations) and shall result in the termination of the Revolving Credit
Commitments and the Swingline Commitment and the Revolving Credit Facility. Such cash collateral
shall be applied in accordance with Section 12.2(b). If the reduction of the Revolving Credit
Commitments requires the repayment of any LIBOR Rate Loan, such repayment shall be accompanied by
any amount required to be paid pursuant to Section 5.9 hereof.

     SECTION 2.7 Termination of Revolving Credit Facility. The Revolving Credit Facility shall
terminate on the earliest of (a) September 14, 2010, (b) the date of termination by the Borrower
pursuant to Section 2.6, or (c) the date of termination by the Administrative Agent on behalf of
the Lenders pursuant to Section 12.2(a).

ARTICLE III

LETTER OF CREDIT FACILITY

     SECTION 3.1 L/C Commitment. Subject to the terms and conditions hereof, the Issuing
Lender, in reliance on the agreements of the L/C Participants set forth in Section 3.4(a), agrees
to issue standby letters of credit (“Letters of Credit”) for the account of the Borrower on
any Business Day from the Closing Date through but not including the date five (5) Business Days
prior to the Revolving Credit Maturity Date in such form as may be approved from time to time by
the Issuing Lender; provided that the Issuing Lender shall have no obligation to issue (and
shall not issue) any Letter of Credit if, after giving effect to such issuance, (a) the L/C
Obligations would exceed the L/C Commitment or (b) the aggregate principal amount of outstanding
Revolving Credit Loans plus the aggregate principal amount of outstanding Swingline Loans
plus the aggregate amount of L/C Obligations would exceed the aggregate Revolving Credit
Commitments of all Lenders. Each Letter of Credit shall (i) be denominated in a Permitted
Currency, (ii) be in a minimum amount of Twenty-Five Thousand Dollars ($25,000) (or, with respect
to any Alternative Currency Letter of Credit, the equivalent amount thereof in any Alternative
Currency based on the Dollar Amount of such amount as determined by the Administrative Agent on the
day which is two (2) Business Days prior to the issuance of such Alternative Currency Letter of
Credit), (iii) be a standby letter of credit issued to support obligations of the Borrower or any
of its Subsidiaries, contingent or otherwise, incurred in the ordinary course of business, (iv)
expire on a date satisfactory to the Issuing Lender, which date shall be a date no later than five
(5) Business Days prior to the Revolving Credit Maturity Date then in effect and (v) be subject to
the Uniform Customs and/or ISP98, as set forth in the Application or as determined by the Issuing
Lender and, to the extent not inconsistent therewith, the laws of the State of New York. The
Issuing Lender shall not at any time be obligated to issue any Letter of Credit hereunder if such
issuance would conflict with, or cause the Issuing Lender or any L/C

26

 

Participant to exceed any limits imposed by, any Applicable Law. References herein to “issue” and
derivations thereof with respect to Letters of Credit shall also include extensions or
modifications of any existing Letters of Credit, unless the context otherwise requires.

     SECTION 3.2 Procedure for Issuance of Letters of Credit. The Borrower may from time to
time request that the Issuing Lender issue a Letter of Credit by delivering to the Issuing Lender
at the Issuing Lender’s Lending Office an Application therefor, completed to the satisfaction of
the Issuing Lender, and such other certificates, documents and other papers and information as the
Issuing Lender may request (which information shall include the Permitted Currency in which the
Letter of Credit shall be denominated). Upon receipt of any Application, the Issuing Lender shall
process such Application and the certificates, documents and other papers and information delivered
to it in connection therewith in accordance with its customary procedures and shall, subject to
Section 3.1 and Article VI hereof, promptly issue the Letter of Credit requested thereby (but in no
event shall the Issuing Lender be required to issue any Letter of Credit earlier than (a) three (3)
Business Days, with respect to a Letter of Credit denominated in Dollars, and (b) four (4) Business
Days, with respect to an Alternative Currency Letter of Credit, after its receipt of the
Application therefor and all such other certificates, documents and other papers and information
relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as
otherwise may be agreed by the Issuing Lender and the Borrower. The Issuing Lender shall promptly
furnish to the Borrower a copy of such Letter of Credit and promptly notify each Lender of the
issuance and upon request by any Lender, furnish to such Lender a copy of such Letter of Credit and
the amount of such Lender’s participation therein. If the Issuing Lender has received notice (by
telephone or in writing) from the Administrative Agent (including at the request of any Lender) in
sufficient time to permit the Issuing Lender, through the exercise of commercially reasonable
efforts, to stop the issuance of any Letter of Credit requested by the Borrower (A) directing the
Issuing Lender not to issue such Letter of Credit as a result of the limitations set forth in the
proviso to the first sentence of Section 3.1(a) or (B) that one or more of the applicable
conditions specified in Article VI is not then satisfied, then the Issuing Lender will not issue
such Letter of Credit.

     SECTION 3.3 Commissions and Other Charges.

     (a) The Borrower shall pay to the Administrative Agent, for the account of the Issuing Lender
and the L/C Participants, a letter of credit commission with respect to each Letter of Credit in an
amount equal to the face amount of such Letter of Credit (reflected as the Dollar Amount thereof,
as determined by the Administrative Agent pursuant to the next sentence) multiplied
by the Applicable Margin with respect to Revolving Credit Loans that are LIBOR Rate Loans
(determined on a per annum basis). Such commission shall be payable quarterly in arrears on the
last Business Day of each calendar quarter and on the Revolving Credit Maturity Date and shall be
payable in Dollars based upon the Dollar Amount of such Letters of Credit for such quarter, as
determined by the Administrative Agent on the day which is two (2) Business Days prior to the day
such commission is payable. The Administrative Agent shall, promptly following its receipt
thereof, distribute to the Issuing Lender and the L/C Participants all commissions received
pursuant to this Section 3.3(a) in accordance with their respective Revolving Credit Commitment
Percentages.

     (b) In addition to the foregoing commission, the Borrower shall pay the Issuing Lender, for
its own account, an issuance fee with respect to each Letter of Credit in an amount equal to the
face amount of such Letter of Credit multiplied by 0.25%. Such issuance fee shall
be payable upon issuance and extension, if any, of each Letter of Credit and shall be payable in
Dollars.

     (c) In addition to the foregoing fees and commissions, the Borrower shall pay or reimburse the
Issuing Lender, for its own account, for such normal and customary costs and expenses as are
incurred or charged by the Issuing Lender in issuing, effecting payment under, amending or
otherwise

27

 

administering any Letter of Credit. Such costs and expenses shall be payable in the Permitted
Currency in which the Letter of Credit is denominated.

     SECTION 3.4 L/C Participations.

     (a) The Issuing Lender irrevocably agrees to grant and hereby grants to each L/C Participant,
and, to induce the Issuing Lender to issue Letters of Credit hereunder, each L/C Participant
irrevocably agrees to accept and purchase and hereby accepts and purchases from the Issuing Lender,
on the terms and conditions hereinafter stated, for such L/C Participant’s own account and risk an
undivided interest equal to such L/C Participant’s Revolving Credit Commitment Percentage in the
Issuing Lender’s obligations and rights under and in respect of each Letter of Credit issued
hereunder and the Dollar Amount of each payment by the Issuing Lender thereunder determined by the
Administrative Agent on the day of such payment. Each L/C Participant unconditionally and
irrevocably agrees with the Issuing Lender that, if a payment is made under any Letter of Credit
for which the Issuing Lender is not reimbursed in full by the Borrower through a Revolving Credit
Loan or otherwise in accordance with the terms of this Agreement, such L/C Participant shall pay to
the Issuing Lender upon demand at the Issuing Lender’s address for notices specified herein the
amount set forth on the relevant certificate of the Issuing Lender referred to in Section 3.4(b),
such amount being equal to the Dollar Amount of such L/C Participant’s Revolving Credit Commitment
Percentage of such payment, or any part thereof, which is not so reimbursed.

     (b) Upon becoming aware of any amount required to be paid by any L/C Participant to the
Issuing Lender pursuant to Section 3.4(a) in respect of any unreimbursed portion of any payment
made by the Issuing Lender under any Letter of Credit, the Issuing Lender shall notify each L/C
Participant of the Dollar Amount (as determined by the Administrative Agent with reference to the
Dollar Amount of the applicable payment by the Issuing Lender determined on the date of its
disbursement adjusted for any reimbursement payments received by the Issuing Lender pursuant to
Section 3.5) and due date of such required payment, and such L/C Participant shall pay to the
Issuing Lender the Dollar Amount specified on the applicable due date. If any such amount is paid
to the Issuing Lender after the date such payment is due, such L/C Participant shall pay to the
Issuing Lender on demand, in addition to such amount, the product of (i) such amount multiplied
by (ii) the daily average Federal Funds Rate as determined by the Administrative Agent during
the period from and including the date such payment is due to the date on which such payment is
immediately available to the Issuing Lender multiplied by (iii) a fraction the numerator of
which is the number of days that elapse during such period and the denominator of which is 360.
Notification of the amounts owing under this Section 3.4(b) by each L/C Participant shall be in the
form of a certificate of the Issuing Lender delivered to such L/C Participant, and such certificate
shall be conclusive of the amounts owing by the L/C Participant to the Issuing Lender in the
absence of manifest error. With respect to payment to the Issuing Lender of the unreimbursed
amounts described in this Section 3.4(b), if the L/C Participants receive notice that any such
payment is due (A) prior to 1:00 p.m. (New York time) on any Business Day, such payment shall be
due that Business Day, and (B) after 1:00 p.m. (New York time) on any Business Day, such payment
shall be due on the following Business Day.

     (c) Whenever, at any time after the Issuing Lender has made payment under any Letter of Credit
and has received from any L/C Participant its Revolving Credit Commitment Percentage of such
payment in accordance with this Section 3.4, the Issuing Lender receives any payment related to
such Letter of Credit (whether directly from the Borrower or otherwise), or any payment of interest
on account thereof for the account of such L/C Participant, the Issuing Lender will distribute to
such L/C Participant its pro rata share of the Dollar Amount thereof as determined
by the Administrative Agent on the day the Issuing Lender receives such payment; provided
that in the event that any such payment received by the Issuing Lender shall be required to be
returned by the Issuing Lender, such L/C Participant shall return to the Issuing Lender the portion
thereof previously distributed by the Issuing Lender to it.

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     (d) If the Issuing Lender has made a payment under any Letter of Credit, then, unless the
Borrower shall reimburse the Issuing Lender in full in accordance with Section 3.5(a) on the date
such payment is made, the unpaid amount thereof shall bear interest at the rate specified in
Section 5.1(d), for each day from and including the date such payment is made to but excluding the
date that the Borrower reimburses such payment in full in accordance with Section 3.5(a). Interest
accrued pursuant to this paragraph shall be for the account of the Issuing Lender, except that
interest accrued on and after the date of funding by an L/C Participant of its participation in a
Letter of Credit in accordance with Section 3.4(a) to reimburse the Issuing Lender for a payment
under such Letter of Credit shall be for the account of such L/C Participant to the extent of such
funding.

     (e) All payments made by any L/C Participant under this Section 3.4 shall be made in Dollars.
The Borrower shall be liable for any currency exchange loss pursuant to the terms of Section 3.9.

     SECTION 3.5 Reimbursement of Letter of Credit Drawings.

     (a) Reimbursement Obligation of the Borrower. In the event of any drawing under any
Letter of Credit, the Borrower agrees to reimburse (either with the proceeds of a Revolving Credit
Loan as provided for in this Section 3.5 or with funds from other sources), in same day funds in
Dollars, the Issuing Lender on each date on which the Issuing Lender notifies the Borrower of the
date and amount of a payment made under any Letter of Credit for (i) the Dollar Amount of such
payment as determined by the Administrative Agent on the date of such notification and (ii) any
amounts referred to in Section 3.3(c) incurred by the Issuing Lender in connection with such
payment (other then those payable pursuant to Section 3.5(c) below).

     (b) Reimbursement By the Lenders. Unless the Borrower shall immediately notify the
Issuing Lender that the Borrower intends to reimburse the Issuing Lender for such drawing from
other sources or funds, the Borrower shall be deemed to have timely given a Notice of Borrowing to
the Administrative Agent requesting that the Lenders make a Revolving Credit Loan funded in Dollars
bearing interest at the Base Rate on such date in the amount of (a) the Dollar Amount of such
payment as determined by the Administrative Agent on the date of its disbursement and (b) any
amounts referred to in Section 3.3(c) incurred by the Issuing Lender in connection with such
payment (including, without limitation, any and all costs, fees and other expenses incurred by the
Issuing Lender in effecting the payment of any Letter of Credit denominated in an Alternative
Currency), and the Lenders shall make a Revolving Credit Loan funded in Dollars bearing interest at
the Base Rate in such amount, the proceeds of which shall be applied to reimburse the Issuing
Lender for the amount of the related drawing and costs and expenses. Each Lender acknowledges and
agrees that its obligation to fund a Revolving Credit Loan in accordance with this Section 3.5 to
reimburse the Issuing Lender for any payment made under a Letter of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including, without
limitation, non-satisfaction of the conditions set forth in Section 2.3(a) or Article VI. If the
Borrower has elected to pay the amount of such drawing with funds from other sources and shall fail
to reimburse the Issuing Lender as provided above, the unreimbursed amount of such drawing shall
bear interest at the rate which would be payable on any outstanding Base Rate Loans which were then
overdue from the date such amounts become payable (whether at stated maturity, by acceleration or
otherwise) until payment in full.

     (c) Payment of Alternative Currency Letters of Credit. Each payment by the Borrower
on account of any Alternative Currency Letter of Credit (including the Reimbursement Obligation
with respect to any Alternative Currency Letter of Credit) shall be made in Dollars not later than
1:00 p.m. (New York time) on the date specified for payment under this Agreement to the
Administrative Agent’s account with the Issuing Lender’s Correspondent for the account of the
Issuing Lender in immediately

29

 

available funds, and shall be made without any set-off, counterclaim or deduction whatsoever.
Any payment received after such time but before 2:00 p.m. (New York time) on such day shall be
deemed a payment on such date for the purposes of Section 12.1, but for all other purposes shall be
deemed to have been made on the next succeeding Business Day. Any payment received after 2:00 p.m.
(the time of the Issuing Lender’s Correspondent) shall be deemed to have been made on the next
succeeding Business Day for all purposes.

     SECTION 3.6 Obligations Absolute. The Borrower’s obligations under this Article III
(including, without limitation, the Reimbursement Obligation) shall be absolute and unconditional
under any and all circumstances and irrespective of any set-off, counterclaim or defense to payment
which the Borrower may have or have had against the Issuing Lender or any beneficiary of a Letter
of Credit or any other Person. The Borrower also agrees that the Issuing Lender and the L/C
Participants shall not be responsible for, and the Borrower’s Reimbursement Obligation under
Section 3.5 shall not be affected by, among other things, the validity or genuineness of documents
or of any endorsements thereon, even though such documents shall in fact prove to be invalid,
fraudulent or forged, or any dispute between the Borrower and any beneficiary of any Letter of
Credit or any other party to which such Letter of Credit may be transferred or any claims
whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee.
The Issuing Lender shall not be liable for any error, omission, interruption or delay in
transmission, dispatch or delivery of any message or advice, however transmitted, in connection
with any Letter of Credit, except for errors or omissions caused by the Issuing Lender’s gross
negligence or willful misconduct. The Borrower agrees that any action taken or omitted by the
Issuing Lender under or in connection with any Letter of Credit or the related drafts or documents,
if done in the absence of gross negligence or willful misconduct, shall be binding on the Borrower
and shall not result in any liability of the Issuing Lender or any L/C Participant to the Borrower.
The responsibility of the Issuing Lender to the Borrower in connection with any draft presented
for payment under any Letter of Credit shall, in addition to any payment obligation expressly
provided for in such Letter of Credit, be limited to determining that the documents (including each
draft) delivered under such Letter of Credit in connection with such presentment are in conformity
with such Letter of Credit.

     SECTION 3.7 Excess L/C Obligations. If at any time (as determined by the Administrative
Agent pursuant to this Section 3.7) and because of currency fluctuations or for any other reason,
based upon the Dollar Amount of all outstanding Loans and L/C Obligations, the outstanding amount
of all L/C Obligations exceeds the lesser of (a) the Aggregate Commitment less the sum of
the amount of all outstanding Loans and (b) the L/C Commitment, then, in each such case, the
Borrower shall, at its option, either (i) repay Loans in an amount equal to such excess (to the
extent such repayment will eliminate such excess) or (ii) make a payment of cash collateral into a
cash collateral account opened by the Administrative Agent for the benefit of the Lenders in an
amount equal to such excess (such cash collateral to be applied in accordance with Section
12.2(b)). The Borrower’s compliance with this Section 3.7 shall be tested from time to time by the
Administrative Agent at its sole discretion, but in any event shall be tested on (x) the date on
which the Borrower requests the Lenders to make a Loan or requests the Issuing Lender to issue a
Letter of Credit under Section 6.3 and (y) the date an interest payment is due under Section
5.1(e). Each such repayment pursuant to this Section 3.7 shall be accompanied by any amount
required to be paid pursuant to Section 5.9 hereof.

     SECTION 3.8 Regulatory Limitation. In the event, as a result of increases in the value of
Alternative Currencies against the Dollar or for any other reason, the obligation of the Issuing
Lender to issue Alternative Currency Letters of Credit (taking into account the Dollar Amount of
the Obligations on the date of determination and all other indebtedness required to be aggregated
under 12 U.S.C.A. §84, as amended, the regulations promulgated thereunder and any other Applicable
Law) is determined by the Issuing Lender to exceed its then applicable legal lending limit under 12
U.S.C.A. §84, as amended, and the regulations promulgated thereunder, or any other Applicable Law,
the amount of additional

30

 

Alternative Currency Letters of Credit the Issuing Lenders shall be obligated to issue hereunder
shall immediately be reduced to the maximum amount which the Issuing Lender may legally advance (as
determined by the Issuing Lender) and, to the extent necessary under such laws and regulations (as
determined by the Issuing Lender, with respect to the applicability of such laws and regulations to
itself), the Borrower shall reduce, or cause to be reduced, complying to the extent practicable
with the remaining provisions hereof, the Obligations outstanding hereunder by an amount sufficient
to comply with such maximum amounts.

     SECTION 3.9 Exchange Indemnification and Increased Costs. The Borrower shall, upon demand
from the Issuing Lender or any L/C Participant, pay to the Issuing Lender or such L/C Participant,
the amount of (a) any loss or cost or increased cost incurred by the Issuing Lender or such L/C
Participant, (b) any reduction in any amount payable to or in the effective return on the capital
to the Issuing Lender or such L/C Participant or (c) any currency exchange loss, in each case that
the Issuing Lender or such L/C Participant sustains as a result of the Borrower’s or any L/C
Participant’s repayment in Dollars of any Alternative Currency Letter of Credit. A certificate of
the Issuing Lender setting forth in reasonable detail the basis for determining such additional
amount or amounts necessary to compensate the Issuing Lender shall, in the absence of manifest
error, be presumed to be correct and binding for all purposes.

     SECTION 3.10 Effect of Application. To the extent that any provision of any Application
related to any Letter of Credit is inconsistent with the provisions of this Article III, the
provisions of this Article III shall apply.

ARTICLE IV

TERM LOAN FACILITY

     SECTION 4.1 Initial Term Loan. Subject to the terms and conditions of this Agreement and
in reliance upon the representations and warranties set forth herein, each Lender severally agrees
to make a single Initial Term Loan to the Borrower on the Closing Date in an amount up to but not
exceeding such Lender’s Initial Term Loan Commitment. Each Initial Term Loan by a Lender shall be
in a principal amount equal to such Lender’s Initial Term Loan Commitment Percentage of the
aggregate principal amount of the Initial Term Loans advanced on the Closing Date. Each Lender’s
Initial Term Loan Commitment as of the Closing Date is set forth on the applicable Lender Addendum.

     SECTION 4.2 Procedure for Advance of Term Loans.

     (a) Requests for Borrowing. The Borrower shall give the Administrative Agent a Notice
of Borrowing for the Initial Term Loans or any Series of Incremental Term Loans not later than 1:00
p.m. (New York time) (i) on the same Business Day as each Base Rate Loan and (ii) at least three
(3) Business Days before each LIBOR Rate Loan, of its intention to borrow, specifying (A) the date
of such borrowing, which shall be a Business Day (and, in the case of the Initial Term Loans, the
Closing Date), (B) the amount of such borrowing, which shall be, (x) with respect to Base Rate
Loans, in an aggregate minimum principal amount of One Million Dollars ($1,000,000) and (y) with
respect to LIBOR Rate Loans, in an aggregate minimum principal amount of Two Million Five Hundred
Thousand Dollars ($2,500,000), (C) whether the Loans are to be LIBOR Rate Loans or Base Rate Loans
and (D) in the case of a LIBOR Rate Loan, the duration of the Interest Period applicable thereto.
A Notice of Borrowing received after 1:00 p.m. (New York time) shall be deemed received on the next
Business Day. The Administrative Agent shall promptly notify the Lenders of each Notice of
Borrowing. Notwithstanding anything to the contrary, however, if the Borrower fails to deliver a
Notice of Borrowing for the Initial Term Loans on the day required pursuant to this Section 4.2(a),
the Borrower shall be deemed to have: (1)

31

 

requested Initial Term Loans in an aggregate principal amount equal to the aggregate Initial
Term Loan Commitments and (2) elected that the Initial Term Loans are to be Base Rate Loans.

     (b) Disbursement of Term Loans. Not later than 2:00 p.m. (New York time) on the date
of the borrowing specified in the applicable Notice of Borrowing, each Lender will make available
to the Administrative Agent, for the account of the Borrower, at the office of the Administrative
Agent in funds immediately available to the Administrative Agent, such Lender’s Initial Term Loan
Commitment Percentage of the Initial Term Loans to be made on the Closing Date or such Lender’s
Incremental Term Loan Commitment Percentage of the Series of Incremental Term Loans on the date
specified in the applicable Incremental Term Loan Addendum, as the case may be. The Borrower
hereby irrevocably authorizes the Administrative Agent to disburse the proceeds of each borrowing
requested pursuant to this Section 4.2 in immediately available funds by crediting or wiring such
proceeds to the deposit account of the Borrower identified in the most recent Notice of Account
Designation delivered by the Borrower to the Administrative Agent or as may be otherwise agreed
upon by the Borrower and the Administrative Agent from time to time; provided,
however, that notwithstanding anything to the contrary herein, proceeds of any borrowing
requested pursuant to this Section 4.2 shall be applied first to pay or repay, as the case may be,
in full the Existing Revolving Credit Loan, all accrued and unpaid interest thereon, any associated
breakage costs, and all accrued and unpaid commitment fees and letter of credit commissions owing
by the Borrower under the Existing Facility before any other disbursement shall be made in
accordance with this sentence. Subject to Section 5.7 hereof, the Administrative Agent shall not
be obligated to disburse the portion of the proceeds of any Term Loan requested pursuant to this
Section 4.2 to the extent that any Lender has not made available to the Administrative Agent its
Initial Term Loan Commitment Percentage or its Incremental Term Loan Commitment Percentage, as
applicable, of such Loan.

     SECTION 4.3 Repayment of the Term Loans. The Borrower shall repay the aggregate
outstanding principal amount of the Initial Term Loan in consecutive quarterly installments on each
date specified below, except as the amounts of individual installments may be adjusted pursuant to
Section 4.4 hereof:

	 	 	 	 	 	 
	 	 	 	 	 	PRINCIPAL
	 	 	 	 	 	INSTALLMENT
	YEAR	 	Date	 	 	($)
	 	 	 	 
	2007
	 	Apr-30	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Jul-30	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Oct-29	 	 	912,500.00
	 	 	 	 
	2008
	 	Jan-28	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Apr-28	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Jul-28	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Oct-27	 	 	912,500.00
	 	 	 	 
	2009
	 	Jan-26	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Apr-27	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Jul-27	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Oct-26	 	 	912,500.00
	 	 	 	 

32

 

	 	 	 	 	 	 
	 	 	 	 	 	PRINCIPAL
	 	 	 	 	 	INSTALLMENT
	YEAR	 	Date	 	 	($)
	 	 	 	 
	2010
	 	Jan-25	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Apr-26	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Jul-26	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Oct-25	 	 	912,500.00
	 	 	 	 
	2011
	 	Jan-24	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Apr-25	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Jul-25	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Oct-24	 	 	912,500.00
	 	 	 	 
	2012
	 	Jan-23	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Apr-23	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Jul-23	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Oct-22	 	 	912,500.00
	 	 	 	 
	2013
	 	Jan-21	 	 	912,500.00
	 	 	 	 	 	 
	 
	 	Apr-22	 	 	85,775,000.00
	 	 	 	 	 	 
	 
	 	Jul-22	 	 	85,775,000.00
	 	 	 	 	 	 
	 
	 	Oct-21	 	 	85,775,000.00
	 	 	 	 
	2014
	 	Jan-20	 	 	85,775,000.00
	 	 	 	 
	Total
	 	 	 	 	365,000,000.00
	 	 	 	 

     In addition, the Borrower shall pay to the Administrative Agent for the account of each
Incremental Term Loan Lender of each Series the outstanding principal amount of the Incremental
Term Loans of such Series held by such Lender in such installments on such dates and in such
amounts as shall be agreed upon between the Borrower and such Incremental Term Loan Lender at the
time the Incremental Commitments of such Series are established pursuant to Section 14.23.

     If not sooner paid, the Term Loans shall be paid in full, together with accrued interest
thereon, on the Term Loan Maturity Date (in the case of the Initial Term Loans) or (in the case of
the Incremental Term Loans of any Series) on the earlier to occur of (a) the final maturity date
agreed upon between the Borrower and respective Incremental Term Lenders at the time the respective
Incremental Commitments of the respective Series are established pursuant to Section 14.23 and (b)
in the event that the High-Yield Notes have not been refinanced on terms reasonably satisfactory to
the Administrative Agent on or prior to January 15, 2013, January 15, 2013. Amounts repaid under
any Term Loan pursuant to this Section 4.3 may not be reborrowed.

     SECTION 4.4 Prepayments of Term Loans.

     (a) Optional Prepayment of Term Loans. The Borrower shall have the right at any time
and from time to time, upon delivery to the Administrative Agent of a Notice of Prepayment at least
three (3) Business Days prior to any repayment, to prepay the Term Loans in whole or in part
without premium or penalty except as provided in Section 5.9. Each optional prepayment of the Term
Loans hereunder shall be in an aggregate principal amount of at least Five Million Dollars
($5,000,000) and shall be applied to the outstanding principal installments of the Term Loans in
inverse order of maturity thereof. Each repayment shall be accompanied by any amount required to
be paid pursuant to Section 5.9 hereof.

33

 

     (b) Mandatory Prepayment of Loans.

          (i) Debt Proceeds. The Borrower shall make mandatory principal prepayments of the
Loans in the manner set forth in Section 4.4(b)(vii) below in amounts equal to one hundred percent
(100%) of the aggregate Net Cash Proceeds from any incurrence of Debt (other than Debt permitted
pursuant to Section 11.1 or otherwise permitted by the Required Lenders) by the Borrower or any of
its Restricted Subsidiaries. Such prepayment shall be made within three (3) Business Days after
the date of receipt of Net Cash Proceeds of any such transaction.

          (ii) Equity Proceeds. The Borrower shall make mandatory principal prepayments of the
Loans in the manner set forth in Section 4.4(b)(vii) below in amounts equal to fifty percent (50%)
of the aggregate Net Cash Proceeds from any offering of equity securities by the Borrower or any of
its Restricted Subsidiaries, other than Net Cash Proceeds resulting solely from (A) offerings of
equity securities made in connection with any employee stock option, incentive plan or stock
purchase plan or made in connection with compensation or incentive plans for directors and
officers, in each case, entered into in the ordinary course of business, (B) offerings of PIK
Preferred Stock, (C) offerings of equity securities made by a Restricted Subsidiary solely for the
purpose of qualifying as a real estate investment trust or (D) offerings of equity securities if
the Total Leverage Ratio immediately prior to giving effect thereto is less than 3.50 to 1.00;
provided that the Borrower may retain any portion of the Net Cash Proceeds raised in such
offerings of equity securities and received by the Borrower prior to December 31, 2007 if no
Default or Event of Default is continuing or would result from such offering. Such prepayment
shall be made within three (3) Business Days after the date of receipt of Net Cash Proceeds of any
such transaction.

          (iii) Asset Sale Proceeds. No later than the end of the Applicable Period (as defined
below) following the Borrower’s or the applicable Restricted Subsidiary’s receipt of the Net Cash
Proceeds from the sale or other disposition or series of related sales or other dispositions of
assets by the Borrower or any of its Subsidiaries, the Borrower shall make mandatory principal
prepayments of the Loans in the manner set forth in Section 4.4(b)(vii) below in amounts equal to
(x) one hundred percent (100%) of the aggregate Net Cash Proceeds from the sale or other
disposition or series of related sales or other dispositions of assets by the Borrower or any of
its Subsidiaries permitted pursuant to Section 11.5(f), Section 11.5(i), Section 11.5(j) or Section
11.5(k) or otherwise permitted by the Required Lenders and (y) fifty percent (50%) of the aggregate
Net Cash Proceeds from the sale or other disposition or series of related sales or other
dispositions by the Borrower or any of its Subsidiaries of those assets listed on Schedule
4.4(b)(iii)(y); provided that, in the case of this clause (y), the remaining balance of
such Net Cash Proceeds have been reinvested in Permitted Acquisitions or in other revenue producing
assets related to a Permitted Business within the Applicable Period following receipt of such Net
Cash Proceeds and (z) zero percent (0%) of the aggregate Net Cash Proceeds from the sale or other
disposition or series of related sales or other dispositions by the Borrower or any of its
Subsidiaries of those assets listed on Schedule 4.4(b)(iii)(z). With respect to the Net Cash
Proceeds referred to in clause (y) of the preceding sentence not reinvested by the end of the
Applicable Period following the Borrower’s or Restricted Subsidiary’s receipt thereof, the Borrower
shall make a mandatory prepayment in an amount equal to such Net Cash Proceeds as described above
on the last day of the Applicable Period. Notwithstanding any of the foregoing to the contrary,
upon and during the continuance of an Event of Default and upon notice from the Administrative
Agent, all Net Cash Proceeds from the sale or other disposition or series of related sales or other
dispositions of assets by the Borrower or any of its Restricted Subsidiaries, received by the
Borrower and its Restricted Subsidiaries shall be applied to make prepayments of the Loans pursuant
to Section 4.4(b)(vii), such prepayments to be made within three (3) Business Days after the
Borrower’s or such Restricted Subsidiary’s receipt of such Net Cash Proceeds. For purposes of this
paragraph, “Applicable Period” means Two Hundred Seventy (270) days, except that if the Borrower or
the applicable Restricted Subsidiary commits to reinvest the Net Cash Proceeds referred to in
clause (y) of

34

 

the first sentence of this paragraph (but only to the extent that such Net Cash Proceeds were
derived from the sale or other disposition of a facility) in the construction and equipping of one
or more facilities within two hundred seventy (270) days following receipt of such Net Cash
Proceeds, the Applicable Period for such Net Cash Proceeds shall be extended by eighteen (18)
months.

          (iv) Insurance and Condemnation Proceeds. No later than one hundred eighty (180) days
following the date of receipt by the Borrower or any of its Restricted Subsidiaries of any Net Cash
Proceeds under any of the insurance policies maintained pursuant to Section 9.3 or from any
condemnation proceeding, in each case relating to the assets of the Borrower or any of its
Restricted Subsidiaries, which have not been reinvested as of such date in similar replacement
assets (the “Insurance and Condemnation Proceeds”), the Borrower shall make mandatory
principal prepayments of the Loans in the manner set forth in Section 4.4(b)(vii) below in amounts
equal to one hundred percent (100%) of the aggregate amount of such Insurance and Condemnation
Proceeds received by the Borrower or any of its Restricted Subsidiaries. Notwithstanding any of
the foregoing to the contrary, upon and during the continuance of an Event of Default and upon
notice from the Administrative Agent, all Insurance and Condemnation Proceeds, received by the
Borrower and its Restricted Subsidiaries shall be applied to make prepayments of the Loans, such
prepayments to be made within three (3) Business Days after the Borrower’s or such Restricted
Subsidiary’s receipt of such Insurance and Condemnation Proceeds.

          (v) Excess Cash Flow. No later than one hundred twenty-five (125) days after the end
of any Fiscal Year commencing with the Fiscal Year ending on or nearest to December 31, 2005, if at
any Fiscal Year end the Total Leverage Ratio exceeds 1.50 to 1.00, the Borrower shall make a
mandatory principal repayment of the Loans in an amount equal to fifty percent (50%) of Excess Cash
Flow, if any, for such Fiscal Year. Notwithstanding the foregoing, Excess Cash Flow computed for
the Fiscal Year ending on or nearest to December 31, 2007 shall exclude excess cash flow
attributable to the Target Company and its subsidiaries for the portion of such Fiscal Year prior
to the Acquisition.

          (vi) Notice; Manner of Payment.

          (A) Upon the occurrence of any event triggering the prepayment requirement under
Sections 4.4(b)(i) through and including 4.4(b)(iv), the Borrower shall promptly deliver a
Notice of Prepayment to the Administrative Agent and upon receipt of such notice, the
Administrative Agent shall promptly so notify the Lenders.

          (B) Each prepayment under this Section 4.4(b) shall be applied as follows: (i)
first, to reduce on a pro rata basis the remaining scheduled
principal installments of the Initial Term Loans and each Series of Incremental Term Loans,
if any, pursuant to Section 4.3 and (ii) second, to the extent of any excess, to
repay any outstanding Revolving Credit Loans pursuant to Section 2.4(b) provided
that each Lender shall have the right, so long as there are any Loans outstanding under the
Revolving Credit Facility, to refuse any such mandatory prepayment of the Term Loans, at
which time the full amount of any such refused payments shall be applied to repay
outstanding Revolving Credit Loans without a corresponding reduction of the Revolving Credit
Commitments.

     (c) Reborrowings. Any principal amounts of the Term Loans prepaid pursuant to this
Section 4.4 may not be reborrowed.

     SECTION 4.5 Term Notes. Except as otherwise provided in Sections 14.10(a) through (e),
each Term Loan of each Lender and the obligation of the Borrower to repay each such Term Loan shall
be evidenced by a separate Term Note executed by the Borrower payable to the order of such Lender.

35

 

ARTICLE V

GENERAL LOAN PROVISIONS

     SECTION 5.1 Interest.

     (a) Interest Rate Options. Subject to the provisions of this Section 5.1, at the
election of the Borrower, (i) Revolving Credit Loans and Term Loans shall bear interest at (A) the
Base Rate plus the Applicable Margin or (B) the LIBOR Rate plus the Applicable
Margin and (ii) Swingline Loans shall bear interest at the Base Rate plus the Applicable
Margin. The Borrower shall select the rate of interest and Interest Period, if any, applicable to
any Loan at the time a Notice of Borrowing is given pursuant to Section 2.3(a) or Section 4.2(a),
as applicable, or at the time a Notice of Conversion/Continuation is given pursuant to Section 5.2.
Any Loan or any portion thereof as to which the Borrower has not duly specified an interest rate
as provided herein shall be deemed a Base Rate Loan.

     (b) Interest Periods. In connection with each LIBOR Rate Loan, the Borrower, by
giving notice at the times described in Section 5.1(a), shall elect an interest period (each, an
“Interest Period”) to be applicable to such Loan, which Interest Period shall be a period
of one (1), two (2), three (3), six (6), (or with the prior written consent of each Lender holding
or to hold such Loan) nine (9) or twelve (12) months with respect to each LIBOR Rate Loan;
provided that:

          (i) the Interest Period shall commence on the date of advance of or conversion to any LIBOR
Rate Loan and, in the case of immediately successive Interest Periods, each successive Interest
Period shall commence on the date on which the immediately preceding Interest Period expires;

          (ii) if any Interest Period would otherwise expire on a day that is not a Business Day, such
Interest Period shall expire on the next succeeding Business Day; provided that if any
Interest Period with respect to a LIBOR Rate Loan would otherwise expire on a day that is not a
Business Day but is a day of the month after which no further Business Day occurs in such month,
such Interest Period shall expire on the immediately preceding Business Day;

          (iii) any Interest Period with respect to a LIBOR Rate Loan that begins on the last Business
Day of a calendar month (or on a day for which there is no numerically corresponding day in the
calendar month at the end of such Interest Period) shall end on the last Business Day of the
relevant calendar month at the end of such Interest Period;

          (iv) no Interest Period shall extend beyond the Revolving Credit Maturity Date or the Term
Loan Maturity Date (or, in the case of any Series of Incremental Term Loans, the final maturity
thereof), as applicable, and Interest Periods shall be selected by the Borrower so as to permit the
Borrower to make the quarterly principal installment payments pursuant to Section 4.3 without
payment of any amounts pursuant to Section 5.9; and

          (v) there shall be no more than ten (10) Interest Periods in effect at any time.

     (c) Applicable Margin. The applicable margin (the “Applicable Margin”)
provided for in Section 5.1(a) with respect to: (i) any Initial Term Loan that is a LIBOR Rate Loan
shall be 2.00%, (ii) any Initial Term Loan that is a Base Rate Loan shall be 1.00%, (iii) any
Incremental Term Loan of any Series made after the date of the consummation of the Acquisition
shall be as agreed upon at the time the Incremental Term Loan Commitments of such Series are
established pursuant to Section 14.23 and (iv) any Revolving Credit Loan shall be based upon the
table set forth below and shall be determined and adjusted quarterly on the date (each a
“Calculation Date”) ten (10) Business Days after the date by which

36

 

the Borrower is required to provide an Officer’s Compliance Certificate for the most recently
ended Fiscal Quarter; provided, however, that (a) the initial Applicable Margin for
the Revolving Credit Loans shall be based on Pricing Level IV (as shown below) and shall remain at
Pricing Level IV until receipt by the Administrative Agent of the Officer’s Compliance Certificate
for the Fiscal Quarter ending on or nearest to June 30, 2007 and, thereafter the Pricing Level
shall be determined by reference to the Total Leverage Ratio as of the last day of the most
recently ended Fiscal Quarter preceding the applicable Calculation Date, and (b) if the Borrower
fails to provide the Officer’s Compliance Certificate as required by Section 8.2 for the most
recently ended Fiscal Quarter preceding the applicable Calculation Date, the Applicable Margin for
the Revolving Credit Loans from such Calculation Date shall be based on Pricing Level VI (as shown
below) until such time as an appropriate Officer’s Compliance Certificate is provided, at which
time (but with no retroactive effect) the Pricing Level shall be determined by reference to the
Total Leverage Ratio as of the last day of the most recently ended Fiscal Quarter preceding such
Calculation Date. The Applicable Margin for the Revolving Credit Loans shall be effective from one
Calculation Date until the next Calculation Date. Any adjustment in the Applicable Margin shall be
applicable to all Revolving Credit Loans then existing or subsequently made or issued.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Revolving Credit Loans	 
	 	Pricing Level	 	 	Total Leverage Ratio	 	 	LIBOR	 	 	Base Rate	 
	 	V
	 	 	Greater than 5.00 to 1.00

	 	 	 	2.50	%	 	 	 	1.50	%	 
	 	IV
	 	 	Greater than 3.00 to
1.00, but less than or
equal to 5.00 to 1.00

	 	 	 	2.25	%	 	 	 	1.25	%	 
	 	III
	 	 	Greater than 2.50 to
1.00, but less than or
equal to 3.00 to 1.00

	 	 	 	2.00	%	 	 	 	1.00	%	 
	 	II
	 	 	Greater than 2.00 to
1.00, but less than or
equal to 2.50 to 1.00

	 	 	 	1.75	%	 	 	 	0.75	%	 
	 	I
	 	 	Less than or equal to 2.00

	 	 	 	1.50	%	 	 	 	0.50	%	 
	 

     (d) Default Rate. Subject to Section 12.3, at the discretion of the
Administrative Agent or as directed by the Required Lenders, upon the occurrence and during the
continuance of an Event of Default, (i) the Borrower shall no longer have the option to request the
borrowing of, or the conversion of any outstanding Loans to, or the continuation of any outstanding
Loan as, LIBOR Rate Loans, (ii) all outstanding LIBOR Rate Loans shall bear interest at a rate per
annum of two percent (2%) in excess of the rate then applicable to LIBOR Rate Loans until the end
of the applicable Interest Period and thereafter at a rate equal to two percent (2%) in excess of
the rate then applicable to Base Rate Loans, and (iii) all outstanding Base Rate Loans, Swingline
Loans and other Obligations arising hereunder or under any other Loan Document shall bear interest
at a rate per annum equal to two percent (2%) in excess of the rate then applicable to Base Rate
Loans or such other Obligations arising hereunder or under any other Loan Document. Interest shall
continue to accrue on the Notes after the filing by or against the Borrower of any petition seeking
any relief in bankruptcy or under any act or law pertaining to insolvency or debtor relief, whether
state, federal or foreign.

37

 

     (e) Interest Payment and Computation. Interest on each Base Rate Loan shall be
payable in arrears on the last Business Day of each consecutive Fiscal Quarter ending on or nearest
to December 31, March 31, June 30 and September 30 during the term of this Agreement, commencing on
the last Business Day of the Fiscal Quarter ending on or nearest to March 31, 2007; and interest on
each LIBOR Rate Loan shall be payable on the last day of each Interest Period applicable thereto,
and if such Interest Period is longer than three (3) months, at the end of each three (3) month
interval during such Interest Period. Interest on LIBOR Rate Loans, Base Rate Loans (when the Base
Rate thereon is calculated by reference to the Federal Funds Rate) and all fees payable hereunder
shall be computed on the basis of a 360-day year and assessed for the actual number of days elapsed
and interest on Base Rate Loans (when the Base Rate thereon is calculated by reference to the Prime
Rate) shall be computed on the basis of a 365/366-day year and assessed for the actual number of
days elapsed.

     (f) Maximum Rate. In no contingency or event whatsoever shall the aggregate of all
amounts deemed interest hereunder or under any of the Notes charged or collected pursuant to the
terms of this Agreement or pursuant to any of the Notes exceed the highest rate permissible under
any Applicable Law which a court of competent jurisdiction shall, in a final determination, deem
applicable hereto. In the event that such a court determines that the Lenders have charged or
received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder
shall automatically be reduced to the maximum rate permitted by Applicable Law, and the Lenders
shall at the Administrative Agent’s option (i) promptly refund to the Borrower any interest
received by the Lenders in excess of the maximum lawful rate or (ii) apply such excess to the
principal balance of the Obligations on a pro rata basis. It is the intent hereof that the
Borrower not pay or contract to pay, and that neither the Administrative Agent nor any Lender
receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess
of that which may be paid by the Borrower under Applicable Law.

     SECTION 5.2 Notice and Manner of Conversion or Continuation of Loans. Provided that no
Default or Event of Default has occurred and is then continuing, the Borrower shall have the option
to (a) convert at any time following the third Business Day after the Closing Date all or any
portion of any outstanding Base Rate Loans (other than Swingline Loans) in a minimum principal
amount equal to Two Million Five Hundred Thousand Dollars ($2,500,000) into one or more LIBOR Rate
Loans and (b) upon the expiration of any Interest Period, (i) convert all or any part of its
outstanding LIBOR Rate Loans in a minimum principal amount equal to One Million Dollars
($1,000,000) into Base Rate Loans (other than Swingline Loans) or (ii) continue all or any part of
such LIBOR Rate Loans as LIBOR Rate Loans. Whenever the Borrower desires to convert or continue
Loans as provided above, the Borrower shall give the Administrative Agent irrevocable prior written
notice in the form attached as Exhibit E (a “Notice of Conversion/Continuation”) not later
than 1:00 p.m. (New York time) three (3) Business Days before the day on which a proposed
conversion or continuation of such Loan is to be effective specifying (A) the Loans to be converted
or continued, and, in the case of any LIBOR Rate Loan to be converted or continued, the last day of
the Interest Period therefor, (B) the effective date of such conversion or continuation (which
shall be a Business Day), (C) the principal amount of such Loans to be converted or continued, and
(D) the Interest Period to be applicable to such converted or continued LIBOR Rate Loan. The
Administrative Agent shall promptly notify the Lenders of such Notice of Conversion/Continuation.

     SECTION 5.3 Fees.

     (a) Commitment Fee. Commencing on the Closing Date, the Borrower shall pay to the
Administrative Agent, for the account of the Lenders, a non-refundable commitment fee on the
average daily unused portion of the aggregate Revolving Credit Commitments at a rate based upon the
table set forth below and shall be determined and adjusted quarterly on each Calculation Date ten
(10) Business Days after the date by which the Borrower is required to provide an Officer’s
Compliance Certificate for the most recently ended Fiscal Quarter; provided that the amount
of outstanding Swingline Loans shall

38

 

not be considered usage of the Revolving Credit Commitments for the purpose of calculating
such commitment fee; provided further, however, that (a) the initial rate shall be
based on Pricing Level II (as shown below) and shall remain at Pricing Level II until receipt by
the Administrative Agent of the Officer’s Compliance Certificate for the Fiscal Quarter ending on
or nearest to March 31, 2007 and, thereafter the Pricing Level shall be determined by reference to
the Total Leverage Ratio as of the last day of the most recently ended Fiscal Quarter preceding the
applicable Calculation Date and (b) if the Borrower fails to provide the Officer’s Compliance
Certificate as required by Section 8.2 for the most recently ended Fiscal Quarter preceding the
applicable Calculation Date, the Applicable Margin from such Calculation Date shall be based on
Pricing Level II (as shown below) until such time as an appropriate Officer’s Compliance
Certificate is provided, at which time (but with no retroactive effect) the Pricing Level shall be
determined by reference to the Total Leverage Ratio as of the last day of the most recently ended
Fiscal Quarter preceding such Calculation Date. The commitment fee rate so determined shall be
effective from one Calculation Date until the next Calculation Date. The commitment fee shall be
payable in arrears on the last Business Day of each consecutive Fiscal Quarter ending on or nearest
to December 31, March 31, June 30 and September 30 during the term of this Agreement, commencing on
the last Business Day of the Fiscal Quarter ending on or nearest to March 31, 2007, and on the
Revolving Credit Maturity Date. Such commitment fee shall be distributed by the Administrative
Agent to the Lenders pro rata in accordance with the Lenders’ respective Revolving
Credit Commitment Percentages.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	Commitment Fee Rate	 
	 	 	 	 	 	 	 	on Unused Portion	 
	 	 	 	 	 	 	 	of Revolving Credit	 
	 	Pricing Level	 	 	Total Leverage Ratio	 	 	Commitments	 
	 	II
	 	 	Greater than 2.00 to 1.00

	 	 	 	0.500	%	 
	 	I
	 	 	Less than or equal to 2.00 to 1.00

	 	 	 	0.375	%	 
	 

     (b) Administrative Agent’s and Other Fees. In order to compensate the
Administrative Agent for structuring and syndicating the Loans and for its obligations hereunder,
the Borrower agrees to pay to the Administrative Agent, for its account, the fees set forth in the
separate fee letter agreement executed by the Borrower and the Administrative Agent dated December
13, 2006.

     SECTION 5.4 Manner of Payment. Each payment by the Borrower on account of the principal of
or interest on the Loans or of any fee, commission or other amounts (including the Reimbursement
Obligation) payable to the Lenders under this Agreement or any Note shall be made not later than
1:00 p.m. (New York time) on the date specified for payment under this Agreement to the
Administrative Agent at the Administrative Agent’s Office for the account of the Lenders (other
than as set forth below) pro rata in accordance with their respective Revolving
Credit Commitment Percentages or Term Loan Percentages, as applicable, (except as specified below),
in Dollars, in immediately available funds and shall be made without any set-off, counterclaim or
deduction whatsoever. Any payment received after such time but before 2:00 p.m. (New York time) on
such day shall be deemed a payment on such date for the purposes of Section 12.1, but for all other
purposes shall be deemed to have been made on the next succeeding Business Day. Any payment
received after 2:00 p.m. (New York time) shall be deemed to have been made on the next succeeding
Business Day for all purposes. Upon receipt by the Administrative Agent of each such payment, the
Administrative Agent shall distribute to each Lender in accordance with the wiring instructions set
forth in the relevant Lender Addendum or Assignment and Acceptance, as the case may be, or as
subsequently notified by such Lender to the Administrative Agent, its pro rata
share of such payment in accordance with such Lender’s Revolving Credit Commitment Percentage or
Term Loan Percentage, as applicable, (except as specified below) and shall wire the amount of such
credit to each Lender. Each payment to the Administrative Agent of the Issuing Lender’s fees or

39

 

L/C Participants’ commissions shall be made in like manner, but for the account of the Issuing
Lender or the L/C Participants, as the case may be. Each payment to the Administrative Agent of
Administrative Agent’s fees or expenses shall be made for the account of the Administrative Agent
and any amount payable to any Lender under Sections 5.8, 5.9, 5.10, 5.11 or 14.2 shall be paid to
the Administrative Agent for the account of the applicable Lender. Subject to Section 5.1(b)(ii)
if any payment under this Agreement or any Note shall be specified to be made upon a day which is
not a Business Day, it shall be made on the next succeeding day which is a Business Day and such
extension of time shall in such case be included in computing any interest if payable along with
such payment.

     SECTION 5.5 Crediting of Payments and Proceeds. In the event that the Borrower shall fail
to pay any of the Obligations when due and the Obligations have been accelerated pursuant to
Section 12.2, all payments received by the Lenders upon the Notes and the other Obligations and all
net proceeds from the enforcement of the Obligations shall be applied: (a) first, to all
expenses then due and payable by the Borrower hereunder and under the other Loan Documents, (b)
second, to all indemnity obligations then due and payable by the Borrower hereunder and
under the other Loan Documents, (c) third, to all of the Administrative Agent’s and Issuing
Lender’s fees then due and payable, (d) fourth, to all commitment and other fees and
commissions then due and payable and all accrued and unpaid interest on the Notes, accrued and
unpaid interest on the Reimbursement Obligation and accrued and unpaid periodic payments or
interest (but not any settlement amounts) payable under any Hedging Obligations (pro
rata in accordance with all such amounts due), (e) fifth, to the principal amount
of the Notes and Reimbursement Obligation and any settlement amounts payable under any Hedging
Obligations (pro rata in accordance with all such amounts due) and (f)
sixth, to the cash collateral account described in Section 12.2(b) hereof to the extent of
any L/C Obligations then outstanding.

     SECTION 5.6 Adjustments. If any Lender (a “Benefited Lender”) shall at any time
receive any payment of all or part of the Obligations owing to it, or interest thereon, or if any
Lender shall at any time receive any collateral in respect to the Obligations owing to it (whether
voluntarily or involuntarily, by set-off or otherwise) (other than pursuant to Sections 5.8, 5.9,
5.10, 5.11 or 14.2 hereof) in a greater proportion than any such payment to and collateral received
by any other Lender, if any, in respect of the similar Obligations owing to such other Lender, or
interest thereon, such Benefited Lender shall purchase for cash from the other Lenders such portion
of each such other Lender’s Extensions of Credit, or shall provide such other Lenders with the
benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause such
Benefited Lender to share the excess payment or benefits of such collateral or proceeds ratably
with each of the Lenders; provided that if all or any portion of such excess payment or
benefits is thereafter recovered from such Benefited Lender, such purchase shall be rescinded, and
the purchase price and benefits returned to the extent of such recovery, but without interest. The
Borrower agrees that each Lender so purchasing a portion of another Lender’s Extensions of Credit
may exercise all rights of payment (including, without limitation, rights of set-off) with respect
to such portion as fully as if such Lender were the direct holder of such portion.

     SECTION 5.7 Nature of Obligations of Lenders Regarding Extensions of Credit; Assumption by the
Administrative Agent. The obligations of the Lenders under this Agreement to make the Loans
and issue or participate in Letters of Credit are several and are not joint or joint and several.
Unless the Administrative Agent shall have received notice from a Lender prior to a proposed
borrowing date that such Lender will not make available to the Administrative Agent such Lender’s
ratable portion of the amount to be borrowed on such date (which notice shall not release such
Lender of its obligations hereunder), the Administrative Agent may assume that such Lender has made
such portion available to the Administrative Agent on the proposed borrowing date in accordance
with Sections 2.3(b) and 4.2(b), and the Administrative Agent may, in reliance upon such
assumption, make available to the Borrower on such date a corresponding amount. If such amount is
made available to the Administrative Agent on a date after such borrowing date, such Lender shall
pay to the Administrative Agent on demand an amount,

40

 

until paid, equal to the product of (a) the amount not made available by such Lender in accordance
with the terms hereof multiplied by (b) the daily average Federal Funds Rate during such
period as determined by the Administrative Agent multiplied by (c) a fraction the numerator
of which is the number of days that elapse from and including such borrowing date to the date on
which such amount not made available by such Lender in accordance with the terms hereof shall have
become immediately available to the Administrative Agent and the denominator of which is 360. A
certificate of the Administrative Agent with respect to any amounts owing under this Section 5.7
shall be conclusive, absent manifest error. If such Lender’s ratable portion of such borrowing is
not made available to the Administrative Agent by such Lender within three (3) Business Days after
such borrowing date, the Administrative Agent shall be entitled to recover such amount made
available by the Administrative Agent with interest thereon at the rate per annum applicable to
Base Rate Loans hereunder, on demand, from the Borrower. The failure of any Lender to make
available its ratable portion of any Loan requested by the Borrower shall not relieve it or any
other Lender of its obligation, if any, hereunder to make its ratable portion of such Loan
available on the borrowing date, but no Lender shall be responsible for the failure of any other
Lender to make its ratable portion of such Loan available on the borrowing date. Notwithstanding
anything set forth herein to the contrary, any Lender that fails to make available its ratable
portion of any Loan shall not (a) have any voting or consent rights under or with respect to any
Loan Document or (b) constitute a “Lender” (or be included in the calculation of Required Lenders
hereunder) for any voting or consent rights under or with respect to any Loan Document.

     SECTION 5.8 Changed Circumstances.

     (a) Circumstances Affecting LIBOR Rate Availability. If with respect to any Interest
Period the Administrative Agent or any Lender (after consultation with the Administrative Agent)
shall determine that, by reason of circumstances affecting the foreign exchange and interbank
markets generally, deposits in eurodollars, in the applicable amounts are not being quoted via the
Dow Jones Market Screen 3750 or offered to the Administrative Agent or such Lender for such
Interest Period, then the Administrative Agent shall forthwith give notice thereof to the Borrower.
Thereafter, until the Administrative Agent notifies the Borrower that such circumstances no longer
exist, the obligation of the Lenders to make LIBOR Rate Loans and the right of the Borrower to
convert any Loan to or continue any Loan as a LIBOR Rate Loan shall be suspended, and the Borrower
shall repay in full (or cause to be repaid in full) the then outstanding principal amount of each
such LIBOR Rate Loan together with accrued interest thereon, on the last day of the then current
Interest Period applicable to such LIBOR Rate Loan or convert the then outstanding principal amount
of each such LIBOR Rate Loan to a Base Rate Loan as of the last day of such Interest Period.

     (b) Laws Affecting LIBOR Rate Availability. If, after the date hereof, the
introduction of, or any change in, any Applicable Law or any change in the interpretation or
administration thereof by any Governmental Authority, central bank or comparable agency charged
with the interpretation or administration thereof, or compliance by any of the Lenders (or any of
their respective Lending Offices) with any request or directive (whether or not having the force of
law) of any such Governmental Authority, central bank or comparable agency, shall make it unlawful
or impossible for any of the Lenders (or any of their respective Lending Offices) to honor its
obligations hereunder to make or maintain any LIBOR Rate Loan, such Lender shall promptly give
notice thereof to the Administrative Agent, and the Administrative Agent shall promptly give notice
to the Borrower and the other Lenders. Thereafter, until the Administrative Agent notifies the
Borrower that such circumstances no longer exist, (i) the obligations of the Lenders to make LIBOR
Rate Loans and the right of the Borrower to convert any Loan or continue any Loan as a LIBOR Rate
Loan shall be suspended and thereafter the Borrower may select only Base Rate Loans hereunder and
(ii) if any of the Lenders may not lawfully continue to maintain a LIBOR Rate Loan to the end of
the then current Interest Period applicable thereto as a LIBOR

41

 

Rate Loan, the applicable LIBOR Rate Loan shall immediately be converted to a Base Rate Loan
for the remainder of such Interest Period.

     (c) Increased Costs. If, after the date hereof, the introduction of, or any change
in, any Applicable Law, or in the interpretation or administration thereof by any Governmental
Authority, central bank or comparable agency charged with the interpretation or administration
thereof, or compliance by any of the Lenders (or any of their respective Lending Offices) with any
request or directive (whether or not having the force of law) of such Governmental Authority,
central bank or comparable agency:

          (i) shall (except as provided in Section 5.11(e)) subject any of the Lenders (or any of their
respective Lending Offices) to any tax, duty or other charge with respect to any Note, Letter of
Credit or Application or shall change the basis of taxation of payments to any of the Lenders (or
any of their respective Lending Offices) of the principal of or interest on any Note, Letter of
Credit or Application or any other amounts due under this Agreement in respect thereof (except for
changes in the rate of franchise tax or tax on the overall net income of any of the Lenders or any
of their respective Lending Offices imposed by the jurisdiction in which such Lender is organized
or is qualified to do business or such Lending Office is located); provided that the
Borrower shall not be obligated to pay any amounts pursuant to this Section 5.8(c)(i) to the extent
that such amounts are duplicative of any amounts paid by the Borrower pursuant to Section 5.11; or

          (ii) shall impose, modify or deem applicable any reserve (including, without limitation, any
reserve imposed by the Board of Governors of the Federal Reserve System), special deposit,
insurance or capital or similar requirement against assets of, deposits with or for the account of,
or credit extended by any of the Lenders (or any of their respective Lending Offices) or shall
impose on any of the Lenders (or any of their respective Lending Offices) or the foreign exchange
and interbank markets any other condition affecting any Note;

and the result of any of the foregoing events described in clause (i) or (ii) above is to increase
the costs to any of the Lenders of maintaining any LIBOR Rate Loan or issuing or participating in
Letters of Credit or to reduce the yield or amount of any sum received or receivable by any of the
Lenders under this Agreement or under the Notes in respect of a LIBOR Rate Loan or Letter of Credit
or Application, then such Lender shall promptly notify the Administrative Agent, and the
Administrative Agent shall promptly notify the Borrower of such fact and demand compensation
therefor and, within fifteen (15) days after such notice by the Administrative Agent, the Borrower
shall pay to such Lender such additional amount or amounts as will compensate such Lender or
Lenders for such increased cost or reduction. The Administrative Agent will promptly notify the
Borrower of any event of which it has knowledge which will entitle such Lender to compensation
pursuant to this Section 5.8(c); provided that the Administrative Agent shall incur no
liability whatsoever to the Lenders or the Borrower in the event it fails to do so. The amount of
such compensation shall be determined, in the applicable Lender’s reasonable discretion, based upon
the assumption that such Lender funded its Revolving Credit Commitment Percentage or Term Loan
Commitment Percentage, as applicable, of the LIBOR Rate Loans in the London interbank market and
using any reasonable attribution or averaging methods which such Lender reasonably deems
appropriate and practical. A certificate of such Lender setting forth, in reasonable detail, the
basis for determining such amount or amounts necessary to compensate such Lender shall be forwarded
to the Borrower through the Administrative Agent and shall, in the absence of manifest error, be
presumed to be correct and binding for all purposes.

     SECTION 5.9 Indemnity. The Borrower hereby indemnifies each of the Lenders against any
actual loss or expense, as certified by such Lender, which arises or is attributable to each
Lender’s obtaining, liquidating or employing deposits or other funds acquired to effect, fund or
maintain any Loan (a) as a consequence of any failure by the Borrower to make any payment when due
of any amount due

42

 

hereunder in connection with a LIBOR Rate Loan, (b) due to any failure of the Borrower to borrow or
continue any LIBOR Rate Loan or convert any Base Rate Loan to a LIBOR Rate Loan on a date specified
therefor in a Notice of Borrowing or Notice of Conversion/Continuation, or (c) due to any payment,
prepayment or conversion of any LIBOR Rate Loan on a date other than the last day of the Interest
Period therefor. The amount of such loss or expense shall be determined, in the applicable
Lender’s sole discretion, based upon the assumption that such Lender funded its Revolving Credit
Commitment Percentage or Term Loan Commitment Percentage, as applicable, of the LIBOR Rate Loans in
the London interbank market and using any reasonable attribution or averaging methods which such
Lender reasonably deems appropriate and practical. A certificate of such Lender setting forth, in
reasonable detail, the basis for determining such amount necessary to compensate such Lender shall
be forwarded to the Borrower through the Administrative Agent and shall, in the absence of manifest
error, be presumed to be correct and binding for all purposes.

     SECTION 5.10 Capital Requirements. If either (a) the introduction of, or any change in, or
in the interpretation of, any Applicable Law or (b) compliance with any guideline or request from
any central bank or comparable agency or other Governmental Authority (whether or not having the
force of law) has or would have the effect of reducing the rate of return on the capital of, or has
affected or would affect the amount of capital required to be maintained by, any Lender or any
corporation controlling such Lender as a consequence of its Commitments and other commitments of
this type or the LIBOR Rate Loans, below the rate which such Lender or such other corporation could
have achieved but for such introduction, change or compliance, then within five (5) Business Days
after written demand by any such Lender, the Borrower shall pay to such Lender from time to time as
specified by such Lender an additional amount sufficient to compensate such Lender or other
corporation for such reduction. A certificate of such Lender setting forth, in reasonable detail,
the basis for such amount shall be forwarded to the Borrower through the Administrative Agent and,
shall, in the absence of manifest error, be presumed to be correct and binding for all purposes.

     SECTION 5.11 Taxes.

     (a) Payments Free and Clear. Except as otherwise provided in Section 5.11(e), any and
all payments by the Borrower hereunder or under the Notes or in respect of the Letters of Credit
shall be made free and clear of and without deduction for any and all present or future taxes,
levies, imposts, deductions, charges or withholding, and all liabilities with respect thereto
excluding, (i) in the case of each Lender and the Administrative Agent, income and franchise taxes
imposed by the jurisdiction under the laws of which such Lender or the Administrative Agent (as the
case may be) is organized or is or should be qualified to do business or any political subdivision
thereof and (ii) in the case of each Lender, income and franchise taxes imposed by the jurisdiction
of such Lender’s Lending Office or any political subdivision thereof (all such non-excluded taxes,
levies, imposts, deductions, charges, withholdings and liabilities being hereinafter referred to as
“Taxes”). If the Borrower shall be required by law to deduct or withhold any Taxes from or
in respect of any sum payable hereunder or under any Note or in respect of any Letter of Credit to
any Lender or the Administrative Agent, (A) except as otherwise provided in Section 5.11(e), the
sum payable shall be increased as may be necessary so that after making all required deductions or
withholdings (including deductions or withholdings applicable to additional sums payable under this
Section 5.11) such Lender or the Administrative Agent (as the case may be) receives an amount equal
to the amount such party would have received had no such deductions or withholdings been made, (B)
the Borrower shall make such deductions or withholdings, (C) the Borrower shall pay the full amount
deducted to the relevant taxing authority or other authority in accordance with Applicable Law, and
(D) the Borrower shall deliver to the Administrative Agent and such Lender evidence of such payment
to the relevant taxing authority or other Governmental Authority in the manner provided in Section
5.11(d).

43

 

     (b) Stamp and Other Taxes. In addition, the Borrower shall pay any present or future
stamp, registration, recordation or documentary taxes or any other similar fees or charges or
excise or property taxes, levies of the United States or any state or political subdivision thereof
or any applicable foreign jurisdiction which arise from any payment made hereunder or from the
execution, delivery or registration of, or otherwise with respect to, this Agreement, the Loans,
the Letters of Credit or the other Loan Documents, or the perfection of any rights or security
interest in respect thereof (hereinafter referred to as “Other Taxes”).

     (c) Indemnity. Except as otherwise provided in Section 5.11(e), the Borrower shall
indemnify each Lender and the Administrative Agent for the full amount of Taxes and Other Taxes
(including, without limitation, any Taxes and Other Taxes imposed by any jurisdiction on amounts
payable under this Section 5.11) paid by such Lender or the Administrative Agent (as the case may
be) and any liability (including penalties, interest and expenses) arising therefrom or with
respect thereto, whether or not such Taxes or Other Taxes were correctly or legally asserted. Such
indemnification shall be made within thirty (30) days from the date such Lender or the
Administrative Agent (as the case may be) makes written demand therefor. A certificate of such
Lender setting forth, in reasonable detail, the basis for determining such amount or amounts
necessary to compensate such Lender shall be forwarded to the Borrower through the Administrative
Agent and shall, in the absence of manifest error, be presumed to be correct and binding for all
purposes.

     (d) Evidence of Payment. Within thirty (30) days after the date of any payment of
Taxes or Other Taxes, the Borrower shall furnish to the Administrative Agent and the applicable
Lender, at its address referred to in Section 14.1, the original or a certified copy of a receipt
evidencing payment thereof or other evidence of payment satisfactory to the Administrative Agent.

     (e) Delivery of Tax Forms. To the extent required by Applicable Law to reduce or
eliminate withholding or payment of taxes, each Lender and the Administrative Agent shall deliver
to the Borrower, with a copy to the Administrative Agent, on or before the Closing Date or
concurrently with the delivery of the relevant Assignment and Acceptance, as applicable, (i) two
United States Internal Revenue Service Forms W-9, Forms W-8ECI or Forms W-8BEN, as applicable (or
successor forms) properly completed and certifying in each case that such Lender is entitled to a
complete exemption from withholding or deduction for or on account of any United States federal
income taxes, and (ii) an Internal Revenue Service Form W-8BEN or W-8ECI or successor applicable
form, as the case may be, to establish an exemption from United States backup withholding taxes.
Each such Lender further agrees to deliver to the Borrower, with a copy to the Administrative
Agent, as applicable, two Form W-9, Form W-8BEN or W-8ECI, or successor applicable forms or manner
of certification, as the case may be, on or before the date that any such form expires or becomes
obsolete or after the occurrence of any event requiring a change in the most recent form previously
delivered by it to the Borrower, certifying in the case of a Form W-9, Form W-8BEN or W-8ECI (or
successor forms) that such Lender is entitled to receive payments under this Agreement without
deduction or withholding of any United States federal income taxes (unless in any such case an
event (including, without limitation, any change in treaty, law or regulation) has occurred prior
to the date on which any such delivery would otherwise be required which renders such forms
inapplicable or the exemption to which such forms relate unavailable and such Lender notifies the
Borrower and the Administrative Agent that it is not entitled to receive payments without deduction
or withholding of United States federal income taxes) and, in the case of a Form W-9, Form W-8BEN
or W-8ECI, establishing an exemption from United States backup withholding tax. Notwithstanding
anything in any Loan Document to the contrary, the Borrower shall not be required to pay additional
amounts to any Lender or the Administrative Agent under this Section 5.11 or Section 5.8(c), (i) if
such Lender or the Administrative Agent fails to comply with the requirements of this Section
5.11(e), other than to the extent that such failure is due to a change in treaty, law or regulation
occurring after the date on which such Lender or the Administrative Agent became a party to this
Agreement or (ii) that are the

44

 

result of such Lender’s or the Administrative Agent’s gross negligence or willful misconduct,
as applicable.

     (f) Survival. Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in this Section 5.11
shall survive the payment in full of the Obligations and the termination of the Commitments.

     SECTION 5.12 Security. The Obligations shall be secured as provided in the Security
Documents.

ARTICLE VI

CLOSING; CONDITIONS OF CLOSING AND BORROWING

     SECTION 6.1 Closing. The closing shall take place at 10:00 a.m. on January 24, 2007, or at
such other date and time as the parties hereto shall mutually agree.

     SECTION 6.2 Conditions to Closing. This Agreement shall become effective as of the date
hereof subject to the satisfaction or waiver of each of the following conditions:

     (a) Executed Loan Documents. This Agreement, the Revolving Credit Notes, the Term
Notes, the Swingline Note, the Security Documents (other than the Assignment Agreements), together
with any other applicable Loan Documents, shall have been duly authorized, executed and delivered
to the Administrative Agent by the parties thereto, shall be in full force and effect and no
Default or Event of Default shall exist thereunder (immediately before and immediately after giving
effect to the Acquisition), and the Borrower shall have delivered original counterparts thereof to
the Administrative Agent.

     (b) Closing Certificates; etc.

          (i) Officer’s Certificate of the Borrower. The Administrative Agent shall have
received a certificate from a Responsible Officer, in form and substance satisfactory to the
Administrative Agent, certifying that the conditions set forth in Section 6.2(h)(iii) are
satisfied; that the Borrower is not in violation of any of the covenants contained in this
Agreement and the other Loan Documents; that, after giving effect to the transactions contemplated
by this Agreement, no Default or Event of Default has occurred and is continuing; and that the
Borrower has satisfied each of the closing conditions.

          (ii) Certificate of Secretary of the Borrower and Guarantors. The Administrative
Agent shall have received a certificate of the secretary or assistant secretary of the Borrower and
each Guarantor certifying as to the incumbency and genuineness of the signature of each officer of
the Borrower and each Guarantor executing Loan Documents to which it is a party and certifying that
attached thereto is a true, correct and complete copy of (A) the articles of incorporation of the
Borrower and each Guarantor and all amendments thereto, certified as of a recent date by the
appropriate Governmental Authority in its jurisdiction of incorporation, (B) the bylaws of the
Borrower and each Guarantor as in effect on the date of such certifications, (C) resolutions duly
adopted by the Board of Directors of the Borrower and each Guarantor authorizing the borrowings
contemplated hereunder and the execution, delivery and performance of this Agreement and the other
Loan Documents to which it is a party, and (D) each certificate required to be delivered pursuant
to Section 6.2(b)(iii).

          (iii) Certificates of Good Standing. The Administrative Agent shall have received
certificates as of a recent date of the good standing of the Borrower and each Guarantor under the
laws of its jurisdiction of organization and, to the extent requested by the Administrative Agent,
each other

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jurisdiction where the Borrower is qualified to do business and a certificate of the relevant
taxing authorities of such jurisdictions certifying that such Person has filed required tax returns
and owes no delinquent taxes.

          (iv) Opinions of Counsel. The Administrative Agent shall have received favorable
opinions of counsel to the Borrower and the Guarantors addressed to the Administrative Agent and
the Lenders with respect to the Borrower, the Guarantors, the Loan Documents and such other matters
as the Lenders shall request, all in form and substance reasonably satisfactory to the
Administrative Agent.

          (v) Tax Forms. The Administrative Agent shall have received copies of the United
States Internal Revenue Service forms required by Section 5.11(e) hereof.

     (c) Existing Collateral.

          (i) [Reserved].

          (ii) Filings and Recordings. All filings and recordations that are necessary to
perfect the security interests of the Lenders in the collateral described in the Security Documents
(including, without limitation, Assignment Agreements executed by the Borrower or the applicable
Restricted Subsidiary, as the case may be, and Notices of Assignment executed by the Administrative
Agent, in each case, with respect to each Material Government Contract existing as of the Closing
Date but, for the avoidance of doubt, not including acknowledgments of any such Notices of
Assignment executed by the relevant Governmental Authorities) shall have been received by the
Administrative Agent, and the Administrative Agent shall have received evidence reasonably
satisfactory to it that upon such filings and recordations, such security interests constitute
valid and perfected first priority Liens therein.

          (iii) Pledged Collateral. The Administrative Agent shall have received (A) original
stock certificates or other certificates evidencing the capital stock or other ownership interests
pledged pursuant to the Collateral Agreement (to the extent such ownership interests are
certificated), but excluding any such certificates issued by any Subsidiary of the Borrower that
that does not individually have assets, operations or revenues that are material to the Borrower
and its Restricted Subsidiaries taken as a whole (each of which Subsidiaries is referred to herein
as an “Excluded Subsidiary”) so long as the aggregate value of the assets of all the
Excluded Subsidiaries does not exceed Two Million Dollars ($2,000,000) and the aggregate revenues
of all of the Excluded Subsidiaries for the period of twelve (12) months preceding the Closing Date
does not exceed One Million Dollars ($1,000,000), together with an undated stock power for each
such certificate so received, duly executed in blank by the registered owner thereof, and (B) each
original promissory note pledged pursuant to the Collateral Agreement.

          (iv) Lien Search. The Administrative Agent shall have received the results of a Lien
search (including a search as to judgments, pending litigation and tax matters) made against the
Borrower and each Restricted Domestic Subsidiary under the UCC (or applicable judicial docket) as
in effect in any state in which each such Person is organized, indicating among other things that
its assets are free and clear of any Lien except for (A) Liens permitted hereunder or assigned in
connection herewith and (B) Liens to be discharged on or prior to the Closing Date pursuant to
documentation satisfactory to the Administrative Agent.

          (v) Hazard and Liability Insurance. The Administrative Agent shall have received
certificates of insurance, evidence of payment of all insurance premiums for the current policy
year of each, and, if requested by the Administrative Agent, copies (certified by a Responsible
Officer) of insurance policies in the form required under the Security Documents and otherwise in
form and substance reasonably satisfactory to the Administrative Agent.

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          (vi) Title Insurance. The Administrative Agent shall have received appropriate
modification endorsements and datedowns with respect to the existing policies of title insurance on
the properties subject to the Mortgages existing on the Closing Date and recorded in connection
with the Existing Facility. Further, the Borrower agrees to provide or obtain any customary
affidavits and indemnities as may be required or necessary to obtain such title policies,
endorsements and datedowns satisfactory to the Administrative Agent.

          (vii) [Reserved]

          (viii) Matters Relating to Flood Hazard Properties. The Administrative Agent shall
have received a copy of a certification from the National Research Center, or any successor agency
thereto, regarding each parcel of real property subject to the Mortgages existing on the Closing
Date and recorded in connection with the Existing Facility, but only to the extent that the
Borrower or the Target Company, as the case may be, is in possession of any such certification.

          (ix) Surveys. The Administrative Agent shall have received, with respect to the
properties subject to the Mortgages existing on the Closing Date and recorded in connection with
the Existing Facility, with respect to existing surveys, an affidavit (a “Survey
Affidavit”) of an authorized signatory of the owner of such property stating that there have
been no improvements or encroachments to the property since the date of the respective survey such
that the existing survey is no longer accurate, in form acceptable to the Administrative Agent and
the title company in order to remove the standard survey exception.

          (x) [Reserved]

          (xi) [Reserved]

          (xii) Other Real Property Information. The Administrative Agent shall have received
such other certificates, documents and information as are reasonably requested by the Lenders,
including, without limitation, engineering and structural reports, permanent certificates of
occupancy and evidence of zoning compliance, each in form and substance reasonably satisfactory to
the Administrative Agent.

     (d) Consents; Defaults.

          (i) Governmental and Third Party Approvals. The Borrower shall have obtained all
necessary approvals, authorizations and consents of any Person and of all Governmental Authorities
and courts having jurisdiction with respect to the transactions contemplated by this Agreement and
the other Loan Documents.

          (ii) No Injunction, Etc. No action, proceeding, investigation, regulation or
legislation shall have been instituted, threatened or proposed before any Governmental Authority to
enjoin, restrain, or prohibit, or to obtain substantial damages in respect of, or which is related
to or arises out of this Agreement or the other Loan Documents or the consummation of the
transactions contemplated hereby or thereby, or which, in the Administrative Agent’s sole
discretion, would make it inadvisable to consummate the transactions contemplated by this Agreement
and such other Loan Documents.

          (iii) No Event of Default. No Default or Event of Default shall have occurred and be
continuing.

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     (e) Financial Matters.

          (i) Financial Statements. The Administrative Agent shall have received a pro
forma balance sheet of the Borrower and its Subsidiaries as of the Closing Date giving
effect to the issuance of the Debt hereunder and, if the Acquisition Date occurs on or prior to the
Closing Date, the Acquisition, in form and substance reasonably satisfactory to the Administrative
Agent.

          (ii) Financial Condition Certificate. The Borrower shall have delivered to the
Administrative Agent a certificate, in form and substance satisfactory to the Administrative Agent,
and certified as accurate by a Responsible Officer, that (A) the Borrower and each of its
Subsidiaries are each Solvent, (B) the Borrower’s payables are current and not past due, (C)
attached thereto are calculations evidencing compliance on a pro forma basis with
the covenants contained in Article X hereof, (D) the financial projections previously delivered to
the Administrative Agent represent the good faith estimates (utilizing reasonable assumptions) of
the financial condition and operations of the Borrower and its Subsidiaries and (E) attached
thereto is a calculation of the Applicable Margin pursuant to Section 5.1(c).

          (iii) Payment at Closing; Fee Letters. The Borrower shall have paid to the
Administrative Agent and the Lenders the fees set forth or referenced in Section 5.3 and any other
accrued and unpaid fees or commissions due hereunder (including, without limitation, reasonable
legal fees and expenses) and to any other Person such amount as may be due thereto in connection
with the transactions contemplated hereby, including all taxes, fees and other charges in
connection with the execution, delivery, recording, filing and registration of any of the Loan
Documents.

     (f) Repayment of Existing Debt. The Administrative Agent shall have received evidence
reasonably satisfactory to it that the Existing Revolving Credit Loan and the Existing Swingline
Loan, all accrued and unpaid interest thereon, any associated breakage costs, and all accrued and
unpaid commitment fees and letter of credit commissions owing by the Borrower under the Existing
Facility have been paid in full.

     (g) Acquisition.

          (i) Consummation of Acquisition. The Acquisition shall have been consummated (or
shall be consummated substantially contemporaneously) for an aggregate purchase price (excluding
assumption of Debt) not exceeding the amount set forth on Schedule 6.2(g) under the heading
“Maximum Purchase Price of Target Company” pursuant to documentation satisfactory to the
Administrative Agent, no provision of the Merger Agreement shall have been waived, amended,
supplemented or otherwise modified in a manner that would have a Company Material Adverse Effect
(as defined in the Merger Agreement) or a material adverse effect on the properties, business,
operations, prospects or condition (financial or otherwise) of the Borrower and its Restricted
Subsidiaries taken as a whole or the ability of the Borrower or any of its Restricted Subsidiaries
to perform its obligations under the Loan Documents, the transaction fees and expenses for the
Acquisition together with the fees referenced in Section 6.2(e)(iii) shall not exceed the amount
set forth on Schedule 6.2(g) under the heading “Maximum Transaction Fees and Expenses of
Acquisition”, and the Administrative Agent shall have received (or shall receive substantially
contemporaneously) the following documents: (A) if counsel to the Target Company delivers an
opinion to the Borrower in connection with Acquisition, a copy of such opinion, accompanied by
reliance letters in favor of the Administrative Agent and the Lenders, (B) opinions from such
special and local counsel as may be required by the Administrative Agent, (C) documents and other
instruments as are customary for transactions of this type or as the Administrative Agent may
reasonably request (including, without limitation, the analogous documents required to be delivered
in Sections 6.2(b)(ii), (b)(iii), (b)(iv) and (d)(i) with respect to the Target Company, its
Subsidiaries and their respective authorization to execute, deliver and perform the Merger
Agreement and the transactions contemplated

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therein, as applicable) and (D) such evidence as the Administrative Agent may reasonably
request that the Acquisition does not violate the terms of the High-Yield Note Indenture.

          (ii) Target Company Recourse Debt. On the Acquisition Date, the principal of and
interest on, and all other amounts owing in respect of, the outstanding principal amount of Target
Company Recourse Debt shall not exceed Five Hundred Thousand Dollars ($500,000) after giving effect
to the repayment of the Target Company’s existing Debt on the Acquisition Date with proceeds of any
of the Loans.

          (iii) New Collateral. Each of the requirements under Section 9.11 has been satisfied
with respect to the Target Company and its Subsidiaries, and the Administrative Agent shall have
received one or more Mortgages covering the assets of the Target Company and its Subsidiaries
constituting real property; provided that this clause (iii) shall not apply to (x) any
facility or other asset sold to an unaffiliated third party within ninety (90) days of the
consummation of the Acquisition or (y) the Broward Transition Center, the Delaney Hall Facility,
the Mesa Verde Facility or the corporate headquarters of the Target Company. Each such Mortgage
shall be duly executed and delivered by the relevant Restricted Subsidiary in recordable form (in
such number of copies as the Administrative Agent shall have reasonably requested and, to the
extent necessary under Applicable Law, acknowledged by appropriate Persons) and shall be
appropriate for the jurisdiction in which such respective real property is situated, and pursuant
to which such Restricted Subsidiary will create a first priority Lien upon such real property (and
improvements) in favor of the Administrative Agent for the benefit of the Lenders and the
Administrative Agent as collateral security for the obligations of such Restricted Subsidiary under
the Loan Documents. In addition, the Administrative Agent shall have received the following
documents:

          (A) Filings and Recordings. All filings and recordations that are
necessary to perfect the security interests of the Lenders in the collateral
described in the Security Documents and acquired by the Borrower or any of its
Subsidiaries in connection with the Acquisition (including, without limitation,
Assignment Agreements executed by the Borrower or the applicable Restricted
Subsidiary, as the case may be, and Notices of Assignment executed by the
Administrative Agent, in each case, with respect to each Material Government
Contract existing as of the Acquisition Date but, for the avoidance of doubt, not
including acknowledgments of any such Notices of Assignment executed by the relevant
Governmental Authorities) shall have been received by the Administrative Agent, and
the Administrative Agent shall have received evidence reasonably satisfactory
thereto that upon such filings and recordations such security interests constitute
valid and perfected first priority Liens therein.

          (B) Pledged Collateral. The Administrative Agent shall have received
(1) original stock certificates or other certificates evidencing the capital stock
or other ownership interests pledged pursuant to the Collateral Agreement (to the
extent such ownership interests are certificated) in connection with the
Acquisition, but excluding any such certificates issued by any Excluded Subsidiary
so long as the aggregate value of the assets of all the Excluded Subsidiaries does
not exceed Two Million Dollars ($2,000,000) and the aggregate revenues of all of the
Excluded Subsidiaries for the period of twelve (12) months preceding the Acquisition
Date does not exceed One Million Dollars ($1,000,000), together with an undated
stock power for each such certificate so received, duly executed in blank by the
registered owner thereof, and (2) each original promissory note pledged pursuant to
the Collateral Agreement in connection with the Acquisition.

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          (C) Lien Search. The Administrative Agent shall have received the
results of a Lien search (including a search as to judgments, pending litigation and
tax matters) made against the each new Restricted Domestic Subsidiary under the UCC
(or applicable judicial docket) as in effect in any state in which each such Person
is organized, indicating among other things that its assets are free and clear of
any Lien except for (1) Liens permitted hereunder or assigned in connection herewith
and (2) Liens to be discharged on or prior to the Acquisition Date pursuant to
documentation satisfactory to the Administrative Agent.

          (D) Hazard and Liability Insurance. The Administrative Agent shall
have received certificates of insurance, evidence of payment of all insurance
premiums for the current policy year of each, and, if requested by the
Administrative Agent, copies (certified by a Responsible Officer) of insurance
policies in the form required under the Security Documents and otherwise in form and
substance reasonably satisfactory to the Administrative Agent.

          (E) Title Insurance. With respect to the assets of the Target Company
and its Subsidiaries constituting real property subject to the Mortgages referred to
in Section 6.2(g)(iii), the Administrative Agent shall have received ALTA Lender’s
Extended Coverage title insurance policies or irrevocable written commitments to
issue mortgage title policies or marked up unconditional binders for such insurance
in amounts and in form and substance, and with endorsements to the extent available,
reasonably acceptable to the Administrative Agent, insuring the Mortgages referred
to in Section 6.2(g)(iii) to be valid and subsisting first priority liens. Further,
the Borrower agrees to provide or obtain any customary affidavits and indemnities as
may be required or necessary to obtain such title policies and endorsements
satisfactory to the Administrative Agent.

          (F) Matters Relating to Flood Hazard Properties. The Administrative
Agent shall have received a copy of a certification from the National Research
Center, or any successor agency thereto, regarding each parcel of real property
subject to the Mortgages referred to in Section 6.2(g)(iii).

          (G) Surveys. The Administrative Agent shall have received, with
respect to the properties subject to the Mortgages referred to in Section
6.2(g)(iii), copies of as-built surveys of a date not more than nine (9) months
prior to the Acquisition Date of each parcel of real property subject to such
Mortgages certified to the Administrative Agent by a registered engineer or land
surveyor. Except as may be permitted by the Administrative Agent in its sole
discretion, all such surveys shall show the area of such property, all boundaries of
the land with courses and distances indicated, including chord bearings and arc and
chord distances for all curves, and shall show dimensions and locations of all
easements, private drives, roadways, and other facts materially affecting such
property, and shall show such other details as the Administrative Agent may
reasonably request, including, without limitation, any encroachment (and the extent
thereof in feet and inches) onto the property or by any of the improvements on the
property upon adjoining land or upon any easement burdening the property; any
improvements, to the extent constructed, and the relation of the improvements by
distances to the boundaries of the property, to any easements burdening the
property, and to the established building lines and the street lines; and if
improvements are existing, (1) a statement of the number of each type of parking
space required by applicable laws, ordinances, orders, rules, regulations,
restrictive covenants and easements affecting the improvement, and the

50

 

number of each such type of parking space provided and (2) the locations of all
utilities serving the improvement.

          (H) Environmental Assessments. The Administrative Agent shall have
received a Phase I environmental assessment and such other environmental report
reasonably requested by the Administrative Agent dated as of a date not more than
nine (9) months prior to the Acquisition Date regarding each parcel of real property
subject to the Mortgages referred to in Section 6.2(g)(iii) by an environmental
engineering firm acceptable to the Administrative Agent showing no environmental
conditions or liabilities in violation of Environmental Laws that could reasonably
be expected to have a Material Adverse Effect, together with a reliance letter
confirming that the Administrative Agent may rely thereon; provided,
however, if such environmental report, assessment and/or reliance letter is
not obtained prior to the Acquisition Date, the Borrower shall provide such report,
assessment and/or reliance letter within forty-five (45) days of the Acquisition
Date (which requirement may be waived by the Administrative Agent in its sole
discretion).

          (I) Appraisals. The Administrative Agent shall have received
appraisals dated as of a date not more than nine (9) months prior to the Acquisition
Date of each parcel of real property subject to the Mortgages referred to in Section
6.2(g)(iii), in form and substance satisfactory to the Administrative Agent,
together with a reliance letter confirming that the Administrative Agent may rely
thereon; provided, however, if such appraisal and/or reliance letter
is not obtained prior to the Acquisition Date, the Borrower shall provide such
appraisal and/or reliance letter within forty-five (45) days of the Acquisition Date
(which requirement may be waived by the Administrative Agent in its sole
discretion).

          (J) Other Real Property Information. The Administrative Agent shall
have received such other certificates, documents and information as are reasonably
requested by the Lenders, including, without limitation, engineering and structural
reports, permanent certificates of occupancy and evidence of zoning compliance, each
in form and substance reasonably satisfactory to the Administrative Agent.

          (iv) Consents; Defaults.

          (A) Governmental and Third Party Approvals. The Borrower and the
Target Company shall have obtained all necessary approvals, authorizations and
consents of any Person and of all Governmental Authorities (including without
limitation any approvals required under the Hart-Scott-Rodino Antitrust Improvements
Act of 1976, as amended) and courts having jurisdiction with respect to the
transactions contemplated by the Acquisition.

          (B) No Injunction, Etc. No action, proceeding, investigation,
regulation or legislation shall have been instituted, threatened or proposed before
any Governmental Authority to enjoin, restrain, or prohibit, or to obtain
substantial damages in respect of, or which is related to or arises out of the
Acquisition or the consummation of the transactions contemplated thereby, or which,
in the Administrative Agent’s sole discretion, would make it inadvisable to
consummate the transactions contemplated by the Acquisition.

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     (h) Miscellaneous.

          (i) Notice of Borrowing. The Administrative Agent shall have received a Notice of
Borrowing, as applicable, from the Borrower in accordance with Section 2.3(a) and Section 4.2(a),
and a Notice of Account Designation specifying the account or accounts to which the proceeds of any
Loans made after the Closing Date are to be disbursed.

          (ii) Rating of the Facility and the Borrower. The Borrower shall have received
ratings from S&P and Moody’s of, respectively, at least “BB-“ and “Ba3” on its senior secured debt.

          (iii) Representations and Warranties. The representations and warranties of the
Borrower and the Guarantors under the Loan Documents shall be true and correct immediately before
and immediately after giving effect to the Acquisition; provided that neither the Borrower
nor any Guarantor shall be required to make any such representation or warranty that is inaccurate
(and the accuracy of any such representation or warranty shall not constitute a condition
precedent) if both (a) the Borrower shall have notified the Administrative Agent at least three (3)
Business Days prior to the consummation of the Acquisition of which such representation or warranty
it cannot make, and describing the inaccuracy in reasonable detail, and (b) such inaccuracy is not
materially adverse with respect to (1) the properties, business, operations, prospects or condition
(financial or otherwise) of the Borrower and its Restricted Subsidiaries taken as a whole or (2)
the ability of the Borrower or any of its Restricted Subsidiaries to perform its payment and other
material obligations under the Loan Documents.

          (iv) No Material Adverse Effect. There shall not have occurred an event, change or
occurrence that, individually or in the aggregate, has had a Company Material Adverse Effect (as
defined in the Merger Agreement).

          (v) No Alternative Financing. The Borrower shall not have commenced, sponsored or
otherwise initiated any competing offering, placement or arrangement for any debt security or bank
financing by or on behalf of the Target Company.

          (vi) Other Documents. All opinions, certificates and other instruments and all
proceedings in connection with the transactions contemplated by this Agreement shall be
satisfactory in form and substance to the Administrative Agent. The Administrative Agent shall
have received copies of all other documents, certificates and instruments reasonably requested by
it, with respect to the transactions contemplated by this Agreement.

     SECTION 6.3 Conditions to All Extensions of Credit. The obligations of the Lenders to make
any Extensions of Credit (including the initial Extension of Credit), convert or continue any Loan
and/or the Issuing Lender to issue or extend any Letter of Credit and/or the Swingline Lender to
make any Swingline Loan are subject to the satisfaction of the following conditions precedent on
the relevant borrowing, continuation, conversion, issuance or extension date:

     (a) Continuation of Representations and Warranties. The representations and
warranties of the Borrower and the Guarantors under the Loan Documents shall be true and correct on
and as of such borrowing, continuation, conversion, issuance or extension date with the same effect
as if made on and as of such date, except for any representation and warranty made as of an earlier
date, which representation and warranty shall remain true and correct as of such earlier date and,
if the Acquisition Date occurs on or occurred prior to the relevant borrowing, continuation,
conversion, issuance or extension date, in each case, immediately before and immediately after
giving effect to the Acquisition, subject to the proviso in Section 6.2(h)(iii).

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     (b) No Existing Default. No Default or Event of Default shall have occurred and be
continuing (i) on the borrowing, continuation or conversion date with respect to such Loan or after
giving effect to the Loans to be made, continued or converted on such date or (ii) on the issuance
or extension date with respect to such Letter of Credit or after giving effect to the issuance or
extension of such Letter of Credit on such date.

     (c) Notices. The Administrative Agent shall have received a Notice of Borrowing or
Notice of Conversion/Continuation, as applicable, from the Borrower in accordance with Section
2.3(a), Section 4.2(a) or Section 5.2, as the case may be.

     (d) Additional Documents. The Administrative Agent shall have received each
additional document, instrument, legal opinion or other item reasonably requested by it.

ARTICLE VII

REPRESENTATIONS AND WARRANTIES OF THE BORROWER

     SECTION 7.1 Representations and Warranties. To induce the Administrative Agent and Lenders
to enter into this Agreement and to induce the Lenders to make Extensions of Credit, the Borrower
hereby represents and warrants to the Administrative Agent and Lenders both before and after giving
effect to the transactions contemplated hereunder that:

     (a) Organization; Power; Qualification. Each of the Borrower and its Subsidiaries is
duly organized, validly existing and in good standing (or its equivalent) under the laws of the
jurisdiction of its incorporation or formation, has the power and authority to own its properties
and to carry on its business as now being and hereafter proposed to be conducted and is duly
qualified and authorized to do business in each jurisdiction in which the character of its
properties or the nature of its business requires such qualification and authorization, except
where such failure to qualify could not reasonably be expected to result in a Material Adverse
Effect. The jurisdictions in which the Borrower and its Subsidiaries are organized and qualified
to do business as of the Closing Date are described on Schedule 7.1(a).

     (b) Ownership. Each Subsidiary of the Borrower as of the Closing Date is listed on
Schedule 7.1(b). As of the Closing Date, the capitalization of the Borrower and its Subsidiaries
consists of the number of shares, authorized, issued and outstanding, of such classes and series,
with or without par value, described on Schedule 7.1(b). All outstanding shares have been duly
authorized and validly issued and are fully paid and nonassessable, with no personal liability
attaching to the ownership thereof, and not subject to any preemptive or similar rights. The
shareholders of the Subsidiaries of the Borrower and the number of shares owned by each as of the
Closing Date are described on Schedule 7.1(b). As of the Closing Date, there are no outstanding
stock purchase warrants, subscriptions, options, securities, instruments or other rights of any
type or nature whatsoever, which are convertible into, exchangeable for or otherwise provide for or
permit the issuance of capital stock of the Borrower or its Subsidiaries, except as described on
Schedule 7.1(b).

     (c) Authorization of Agreement, Loan Documents and Borrowing. Each of the Borrower
and its Restricted Subsidiaries has the right, power and authority and has taken all necessary
corporate and other action to authorize the execution, delivery and performance of this Agreement
and each of the other Loan Documents to which it is a party in accordance with their respective
terms. This Agreement and each of the other Loan Documents have been duly executed and delivered
by the duly authorized officers of the Borrower and each of its Subsidiaries party thereto, and
each such document constitutes the legal, valid and binding obligation of the Borrower or its
Subsidiary party thereto, enforceable in accordance with its terms, except as such enforceability
may be limited by bankruptcy, insolvency,

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reorganization, moratorium or similar state or federal debtor relief laws from time to time in
effect which affect the enforcement of creditors’ rights in general and the availability of
equitable remedies.

     (d) Compliance of Agreement, Loan Documents and Borrowing with Laws, Etc. The
execution, delivery and performance by the Borrower and its Subsidiaries of the Loan Documents to
which each such Person is a party, in accordance with their respective terms, the Extensions of
Credit hereunder and the transactions contemplated hereby do not and will not, by the passage of
time, the giving of notice or otherwise, (i) require any Governmental Approval or violate any
Applicable Law relating to the Borrower or any of its Subsidiaries, (ii) conflict with, result in a
breach of or constitute a default under the articles of incorporation, bylaws or other
organizational documents of the Borrower or any of its Subsidiaries or, except as could not
reasonably be expected to result in a Material Adverse Effect, any indenture, agreement or other
instrument to which such Person is a party or by which any of its properties may be bound or any
Governmental Approval relating to such Person, (iii) result in or require the creation or
imposition of any Lien upon or with respect to any property now owned or hereafter acquired by such
Person other than Liens arising under the Loan Documents or (iv) require any consent or
authorization of, filing with, or other act in respect of, an arbitrator or Governmental Authority
and no consent of any other Person is required in connection with the execution, delivery,
performance, validity or enforceability of this Agreement except, in each case, (w) as may be
required by laws affecting the offering and sale of securities generally, (x) filings with the
United States Copyright Office and/or the United States Patent and Trademark Office, (y) filings
under the UCC and/or the Assignment of Claims Act (or analogous state Applicable Law) and (z) those
notices, consents and authorizations which have been obtained prior to the Closing Date.

     (e) Compliance with Law; Governmental Approvals. Each of the Borrower and its
Subsidiaries (i) has all Governmental Approvals required by any Applicable Law for it to conduct
its business, each of which is in full force and effect, is final and not subject to review on
appeal and is not the subject of any pending or, to the best of its knowledge, threatened attack by
direct or collateral proceeding, (ii) is in compliance with each Governmental Approval applicable
to it and in material compliance with all other Applicable Laws relating to it or any of its
respective properties and (iii) has timely filed all material reports, documents and other
materials required to be filed by it under all Applicable Laws with any Governmental Authority and
has retained all material records and documents required to be retained by it under Applicable Law
in each case, except as could not reasonably be expected to result in a Material Adverse Effect.

     (f) Tax Returns and Payments. Each of the Borrower and its Subsidiaries has duly
filed or caused to be filed all federal, state, local and other tax returns required by Applicable
Law to be filed, and has paid, or made adequate provision for the payment of, all federal, state,
local and other taxes, assessments and governmental charges or levies upon it and its property,
income, profits and assets which are due and payable except for such taxes, assessments, charges
and levies being contested in good faith by appropriate proceedings. Such returns accurately
reflect in all material respects all liability for taxes of the Borrower and its Subsidiaries for
the periods covered thereby. There is no ongoing audit or examination or, to the knowledge of the
Borrower, other investigation by any Governmental Authority of the tax liability of the Borrower
and its Subsidiaries that could reasonably be expected to result in a Material Adverse Effect. No
Governmental Authority has asserted any Lien or other claim against the Borrower or any Subsidiary
thereof with respect to unpaid taxes which has not been discharged or resolved other than any Lien
or claim being contested in good faith by appropriate proceedings. The charges, accruals and
reserves on the books of the Borrower and any of its Subsidiaries in respect of federal, state,
local and other taxes for all Fiscal Years and portions thereof since the organization of the
Borrower and any of its Subsidiaries are in the judgment of the Borrower adequate, and the Borrower
does not anticipate any additional taxes or assessments for any of such years.

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     (g) Intellectual Property Matters. Each of the Borrower and its Restricted
Subsidiaries owns or possesses rights to use all franchises, licenses, copyrights, copyright
applications, patents, patent rights or licenses, patent applications, trademarks, trademark
rights, service marks, service mark rights, trade names, trade name rights, copyrights and rights
with respect to the foregoing which are required to conduct its business. No event has occurred
which permits, or after notice or lapse of time or both would permit, the revocation or termination
of any such rights, and neither the Borrower nor any Restricted Subsidiary thereof is liable to any
Person for infringement under Applicable Law with respect to any such rights as a result of its
business operations.

     (h) Environmental Matters.

          (i) The properties owned, leased or operated by the Borrower and its Subsidiaries now or in
the past do not contain, and to their knowledge have not previously contained, any Hazardous
Materials in amounts or concentrations which (A) constitute or constituted a violation of
applicable Environmental Laws or (B) could give rise to liability under applicable Environmental
Laws, which have not been investigated or remediated as required by and in satisfaction with
applicable Environmental Laws, except, in each case above, for any such violation or liability that
could not reasonably be expected to have a Material Adverse Effect;

          (ii) The Borrower, each Subsidiary and such properties and all operations conducted in
connection therewith are in material compliance, and have been in material compliance, with all
applicable Environmental Laws, and there is no contamination at, under or about such properties or
such operations which could materially interfere with the continued operation of such properties
or, except to the extent disclosed in the Merger Agreement, impair the fair saleable value thereof;

          (iii) Neither the Borrower nor any Subsidiary thereof has received any written notification of
any notice of violation, alleged violation, non-compliance, liability or potential liability
regarding environmental matters, Hazardous Materials, or compliance with Environmental Laws, nor
does the Borrower or any Subsidiary thereof have knowledge or reason to believe that any such
notice will be received or is being threatened;

          (iv) Hazardous Materials have not been transported or disposed of to or from the properties
owned, leased or operated by the Borrower and its Subsidiaries in material violation of, or in a
manner or to a location which could give rise to material liability under, Environmental Laws, nor
have any Hazardous Materials been generated, treated, stored or disposed of at, on or under any of
such properties in material violation of, or in a manner that could give rise to material liability
under, any applicable Environmental Laws;

          (v) No judicial proceedings or governmental or administrative action is pending, or, to the
knowledge of the Borrower, threatened, under any Environmental Law to which the Borrower or any
Subsidiary thereof is or will be named as a potentially responsible party with respect to such
properties or operations conducted in connection therewith, 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, any
Subsidiary or such properties or such operations; and

          (vi) There has been no release, or to the best of the Borrower’s knowledge, material threat of
release, of Hazardous Materials at or from properties owned, leased or operated by the Borrower or
any Subsidiary, now or, to their knowledge, in the past, in violation of or in amounts or in a
manner that could give rise to liability under Environmental Laws, which has not been investigated
or remediated as required by and in satisfaction with applicable Environmental Laws, except, in
each case above, for

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any such release, material threat of release, violation, or liability that could not
reasonably be expected to have a Material Adverse Effect.

     (i) ERISA.

          (i) As of the Closing Date, neither the Borrower nor any ERISA Affiliate maintains or
contributes to, or has any obligation under, any Employee Benefit Plans other than those identified
on Schedule 7.1(i);

          (ii) The Borrower and each ERISA Affiliate is in material compliance with all applicable
provisions of ERISA and the regulations and published interpretations thereunder with respect to
all Employee Benefit Plans except for any required amendments for which the remedial amendment
period as described in Section 401(b) of the Code has not yet expired and except where a failure to
so comply could not reasonably be expected to have a Material Adverse Effect. Each Employee
Benefit Plan that is intended to be qualified under Section 401(a) of the Code has been determined
by the Internal Revenue Service to be so qualified, and each trust related to such plan has been
determined to be exempt under Section 501(a) of the Code except for such plans that have not yet
received determination letters but for which the remedial amendment period for submitting a
determination letter has not yet expired. No liability has been incurred by the Borrower or any
ERISA Affiliate which remains unsatisfied for any taxes or penalties with respect to any Employee
Benefit Plan or any Multiemployer Plan except for a liability that could not reasonably be expected
to have a Material Adverse Effect;

          (iii) As of the Closing Date, no Pension Plan has been terminated, nor has any accumulated
funding deficiency (as defined in Section 412 of the Code) been incurred (without regard to any
waiver granted under Section 412 of the Code), nor has any funding waiver from the Internal Revenue
Service been received or requested with respect to any Pension Plan, nor has the Borrower or any
ERISA Affiliate failed to make any contributions or to pay any amounts due and owing as required by
Section 412 of the Code, Section 302 of ERISA or the terms of any Pension Plan prior to the due
dates of such contributions under Section 412 of the Code or Section 302 of ERISA, nor has there
been any event requiring any disclosure under Section 4041(c)(3)(C) or 4063(a) of ERISA with
respect to any Pension Plan;

          (iv) Except where the failure of any of the following representations to be correct in all
material respects could not reasonably be expected to have a Material Adverse Effect, neither the
Borrower nor any ERISA Affiliate has: (A) engaged in a nonexempt prohibited transaction described
in Section 406 of the ERISA or Section 4975 of the Code, (B) incurred any liability to the PBGC
which remains outstanding other than the payment of premiums and there are no premium payments
which are due and unpaid, (C) failed to make a required contribution or payment to a Multiemployer
Plan, or (D) failed to make a required installment or other required payment under Section 412 of
the Code;

          (v) No Termination Event has occurred or is reasonably expected to occur; and

          (vi) Except where the failure of any of the following representations to be correct in all
material respects could not reasonably be expected to have a Material Adverse Effect, no
proceeding, claim (other than a benefits claim in the ordinary course of business), lawsuit and/or
investigation is existing or, to the best knowledge of the Borrower after due inquiry, threatened
concerning or involving any (A) employee welfare benefit plan (as defined in Section 3(1) of ERISA)
currently maintained or contributed to by the Borrower or any ERISA Affiliate, (B) Pension Plan or
(C) Multiemployer Plan.

     (j) Margin Stock. Neither the Borrower nor any Subsidiary thereof is engaged
principally or as one of its activities in the business of extending credit for the purpose of
“purchasing” or “carrying”

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any “margin stock” (as each such term is defined or used, directly or indirectly, in
Regulation U of the Board of Governors of the Federal Reserve System). No part of the proceeds of
any of the Loans or Letters of Credit will be used for purchasing or carrying margin stock in
violation of the provisions of Regulation T, U or X of such Board of Governors.

     (k) Government Regulation. Neither the Borrower nor any Subsidiary thereof is an
“investment company” or a company “controlled” by an “investment company” (as each such term is
defined or used in the Investment Company Act of 1940, as amended) and neither the Borrower nor any
Subsidiary thereof is, or after giving effect to any Extension of Credit will be, subject to
regulation under the Interstate Commerce Act, as amended, or any other Applicable Law which limits
its ability to incur or consummate the transactions contemplated hereby.

     (l) Material Contracts. Schedule 7.1(l) sets forth a complete and accurate list of
all Material Contracts of the Borrower and its Subsidiaries in effect as of the Closing Date.
Other than as set forth in Schedule 7.1(l), each such Material Contract is, and after giving effect
to the consummation of the transactions contemplated by the Loan Documents will be, in full force
and effect in accordance with the terms thereof. To the extent requested by the Administrative
Agent, the Borrower and its Subsidiaries have delivered to the Administrative Agent a true and
complete copy of each Material Contract required to be listed on Schedule 7.1(l) or any other
Schedule hereto. Neither the Borrower nor any Subsidiary (nor, to the knowledge of the Borrower,
any other party thereto) is in breach of or in default under any Material Contract in any material
respect. Notwithstanding anything to the contrary, in the event that any Material Contract has been
terminated (whether by notice, by non-renewal or otherwise) or any party thereto is in breach or
has defaulted, (i) the calculation of EBITDA for purposes of this Section 7.1(l) shall exclude such
portion of EBITDA reasonably attributable to such Material Contract for the four (4) consecutive
Fiscal Quarters ending on or immediately prior to such date and include on a pro
forma basis for the same four (4) Fiscal Quarter Period EBITDA reasonably attributable to
each Material Contract entered into after the Closing Date to the extent that such Material
Contract is on such date in full force and effect; and (ii) provided that the Borrower is
in compliance with Sections 10.1(a) and (b) after giving effect to the calculation in clause (i),
such Material Contract shall be disregarded for purposes of the representation and warranty in this
paragraph (l).

     (m) Employee Relations. Neither the Borrower nor any Restricted Subsidiary is, as of
the Closing Date, party to any collective bargaining agreement nor has any labor union been
recognized as the representative of its employees except as set forth on Schedule 7.1(m). The
Borrower knows of no pending, threatened or contemplated strikes, work stoppage or other collective
labor disputes involving its employees or those of its Restricted Subsidiaries.

     (n) Burdensome Provisions. Neither the Borrower nor any Subsidiary thereof is a party
to any indenture, agreement, lease or other instrument, or subject to any corporate or partnership
restriction, Governmental Approval or Applicable Law which in the foreseeable future could be
reasonably expected to have a Material Adverse Effect. The Borrower and its Subsidiaries do not
presently anticipate that future expenditures needed to meet the provisions of any statutes,
orders, rules or regulations of a Governmental Authority will be so burdensome as to have a
Material Adverse Effect. No Subsidiary (other than, with respect to any Non-Recourse Project
Financing Indebtedness, any Subsidiary that is an obligor under such Non-Recourse Project Financing
Indebtedness) is party to any agreement or instrument or otherwise subject to any restriction or
encumbrance that restricts or limits its ability to make dividend payments or other distributions
in respect of its capital stock to the Borrower or any Subsidiary or to transfer any of its assets
or properties to the Borrower or any other Subsidiary in each case other than existing under or by
reason of the Loan Documents or Applicable Law.

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     (o) Financial Statements.

          (i) The (A) audited Consolidated balance sheet of the Borrower and its Subsidiaries as of the
Fiscal Year ending on or nearest to December 31, 2005 and the related audited statements of income
and retained earnings and cash flows for the Fiscal Year then ended and (B) unaudited Consolidated
balance sheet of the Borrower and its Subsidiaries as of October 1, 2006 and related unaudited
interim statements of income and retained earnings, copies of which have been furnished to the
Administrative Agent, are complete and correct and fairly present on a Consolidated basis the
assets, liabilities and financial position of the Borrower and its Subsidiaries as at such dates,
and the results of the operations and changes of financial position for the periods then ended
(other than customary year-end adjustments for unaudited financial statements). All such financial
statements, including the related schedules and notes thereto, have been prepared in accordance
with GAAP. The Borrower and its Subsidiaries have no Debt, obligation or other unusual forward or
long-term commitment which is not fairly reflected in the foregoing financial statements or in the
notes thereto.

          (ii) The pro forma balance sheet of the Borrower and its Subsidiaries
delivered pursuant to Section 6.2(e)(i) represents, as of the Closing Date, the good faith estimate
of the Borrower and its senior management concerning the effect of the issuance of the Debt
hereunder.

     (p) No Material Adverse Change. Since the end of the Fiscal Year ending on or nearest
to December 31, 2005, there has been no material adverse change in the properties, business,
operations, prospects, or condition (financial or otherwise) of the Borrower, the Target Company
and their respective Subsidiaries taken as a whole and no event has occurred or condition arisen
that could reasonably be expected to have a Material Adverse Effect. For purposes of this Section
7.1(p), the definition of “Material Adverse Effect” means, with respect to the Borrower, the Target
Company and any of its respective Subsidiaries, a material adverse effect on the properties,
business, operations or condition (financial or otherwise) of the Borrower, the Target Company and
their respective Subsidiaries taken as a whole or the ability of the Borrower, the Target Company
and their respective Subsidiaries to perform their obligations under any Loan Document or the
Merger Agreement.

     (q) Solvency. As of the Closing Date and after giving effect to issuance of Debt
hereunder and the use of the proceeds of the Loans, the Borrower and each of its Subsidiaries will
be Solvent.

     (r) Title to Properties. Other than as set forth on Schedule 7.1(r), each of the
Borrower and its Subsidiaries has such title to the real property owned or leased by it as is
necessary or desirable to the conduct of its business and valid and legal title to all of its
personal property and assets, including, but not limited to, those reflected on the balance sheets
of the Borrower and its Subsidiaries delivered pursuant to Section 7.1(o), except (i) those which
have been disposed of by the Borrower or its Subsidiaries subsequent to such date which
dispositions have been in the ordinary course of business or as otherwise expressly permitted
hereunder and (ii) those that would not be reflected on such balance sheets but for the application
of FASB Interpretation No. 46, Consolidation of Variable Interest Entities (FIN 46), as revised.
On the date hereof, Schedule 7.1(r) is a complete and correct listing of real property owned by the
Borrower or any Restricted Domestic Subsidiary that has an appraised value in excess of One Million
Dollars ($1,000,000) and sets forth the Borrower’s good faith estimate of the fair market value of
each parcel of real property subject to the Mortgages.

     (s) Liens. None of the properties and assets of the Borrower or any Restricted
Subsidiary thereof is subject to any Lien, except Liens permitted pursuant to Section 11.2. No
financing statement under the UCC of any state which names the Borrower or any Restricted
Subsidiary thereof or any of their respective trade names or divisions as debtor and which has not
been terminated, has been filed in any state or other jurisdiction and neither the Borrower nor any
Restricted Subsidiary thereof has signed

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any such financing statement or any security agreement authorizing any secured party
thereunder to file any such financing statement, except to perfect those Liens permitted by Section
11.2 hereof and financing statements filed solely for notification purposes by lessors and/or
consignors.

     (t) Debt and Guaranty Obligations. Schedule 7.1(t) is a complete and correct listing
of all Debt and Guaranty Obligations of the Borrower and its Subsidiaries as of the Closing Date in
excess of One Million Dollars ($1,000,000). The Borrower and its Subsidiaries have performed and
are in compliance with all of the material terms of such Debt and Guaranty Obligations and all
instruments and agreements relating thereto, and no default or event of default, or event or
condition which with notice or lapse of time or both would constitute such a default or event of
default on the part of the Borrower or any of its Subsidiaries exists with respect to any such Debt
or Guaranty Obligation.

     (u) Litigation. Except for matters set forth on Schedule 7.1(u), there are no
actions, suits or proceedings pending nor, to the knowledge of the Borrower, threatened against or
in any other way relating adversely to or affecting the Borrower or any Subsidiary thereof or any
of their respective properties in any court or before any arbitrator of any kind or before or by
any Governmental Authority, in each case except as could not reasonably be expected to result in a
Material Adverse Effect.

     (v) Absence of Defaults. Other than with respect to any Non-Recourse Project
Financing Indebtedness, no event has occurred or is continuing which constitutes a Default or an
Event of Default, or which constitutes, or which with the passage of time or giving of notice or
both would constitute, a default or event of default by the Borrower or any Restricted Subsidiary
under any Material Contract or judgment, decree or order to which the Borrower or its Subsidiaries
is a party or by which the Borrower or its Subsidiaries or any of their respective properties may
be bound or which would require the Borrower or its Subsidiaries to make any payment thereunder
prior to the scheduled maturity date therefor.

     (w) Senior Debt Status. The Obligations of the Borrower and each of its Subsidiaries
under this Agreement and each of the other Loan Documents ranks and shall continue to rank senior
in priority of payment to all Subordinated Debt of each such Person and is designated as “Senior
Indebtedness” under all instruments and documents, now or in the future, relating to all
Subordinated Debt of such Person.

     (x) Accuracy and Completeness of Information. All written information, reports and
other papers and data produced by or on behalf of the Borrower or any Subsidiary thereof (other
than financial projections, which shall be subject to the standard set forth in Section 8.1(c)) and
furnished to the Lenders were, at the time the same were so furnished, complete and correct in all
material respects to the extent necessary to give the recipient a true and accurate knowledge of
the subject matter. No document furnished or written statement made to the Administrative Agent or
the Lenders by the Borrower or any Subsidiary thereof in connection with the negotiation,
preparation or execution of this Agreement or any of the Loan Documents contains or will contain
any untrue statement of a fact material to the creditworthiness of the Borrower or its Subsidiaries
or omits or will omit to state a fact necessary in order to make the statements contained therein
not misleading. The Borrower has disclosed in writing to the Administrative Agent all pending
claims or matters that could reasonably be expected to have a Material Adverse Effect.

     SECTION 7.2 Survival of Representations and Warranties, Etc All representations and
warranties set forth in this Article VII and all representations and warranties contained in any of
the Loan Documents (including, but not limited to, any such representation or warranty made in or
in connection with any amendment thereto or any certificate delivered by the Borrower or any
Restricted Subsidiary pursuant to any Loan Document) shall constitute representations and
warranties made under this

59

 

Agreement. All representations and warranties made under such Loan Document or certificate shall
be made or deemed to be made at and as of the date of such Loan Document or certificate, as the
case may be (except those that are expressly made as of a specific date which shall be deemed to be
made as of such other date), and all representations and warranties made at and as of the Closing
Date shall survive the Closing Date and shall not be waived by the execution and delivery of this
Agreement, and all representations and warranties made at and as of the Closing Date or any other
date shall not be waived by any investigation made by or on behalf of the Lenders or any borrowing
hereunder.

ARTICLE VIII

FINANCIAL INFORMATION AND NOTICES

     Until all the Obligations have been paid and satisfied in full and the Commitments terminated,
unless consent has been obtained in the manner set forth in Section 14.11, the Borrower will
furnish or cause to be furnished to the Administrative Agent at the Administrative Agent’s Office
at the address set forth in Section 14.1 and to the Lenders at their respective addresses as set
forth in the Register, or such other office as may be designated by the Administrative Agent and
Lenders from time to time:

     SECTION 8.1 Financial Statements and Projections.

     (a) Quarterly Financial Statements. As soon as practicable and in any event within
fifty (50) days after the end of each of the first three Fiscal Quarters of each Fiscal Year (or,
if either such date is earlier, on the date of any required public filing thereof, or five (5)
Business Days following any date on which the Borrower may be required to file such statements), an
unaudited Consolidated balance sheet of the Borrower and its Subsidiaries as of the close of such
Fiscal Quarter and unaudited Consolidated statements of income, retained earnings and cash flows
for the Fiscal Quarter then ended and that portion of the Fiscal Year then ended, including the
notes thereto, all in reasonable detail setting forth in comparative form the corresponding figures
as of the end of and for the corresponding period in the preceding Fiscal Year and prepared by the
Borrower in accordance with GAAP and, if applicable, containing disclosure of the effect on the
financial position or results of operations of any change in the application of accounting
principles and practices during the period, and certified by the chief financial officer or
treasurer of the Borrower to present fairly in all material respects the financial condition of the
Borrower and its Subsidiaries on a Consolidated basis as of their respective dates and the results
of operations of the Borrower and its Subsidiaries for the respective periods then ended, subject
to normal year end adjustments (it being understood and agreed that the Borrower’s filing of a Form
10-Q with the SEC with respect to a Fiscal Quarter within the period specified above shall be
deemed to satisfy the Borrower’s obligations under this Section 8.1(a) with respect to such Fiscal
Quarter).

     (b) Annual Financial Statements. As soon as practicable and in any event within
ninety-five (95) days after the end of each Fiscal Year (or, if either such date is earlier, on the
date of any required public filing thereof, or five (5) Business Days following any date on which
the Borrower may be required to file such statements), an audited Consolidated balance sheet of the
Borrower and its Subsidiaries as of the close of such Fiscal Year and audited Consolidated
statements of income, retained earnings and cash flows for the Fiscal Year then ended, including
the notes thereto, all in reasonable detail setting forth in comparative form the corresponding
figures as of the end of and for the preceding Fiscal Year and audited by an independent certified
public accounting firm acceptable to the Administrative Agent in accordance with GAAP and, if
applicable, containing disclosure of the effect on the financial position or results of operations
of any change in the application of accounting principles and practices during the year, and
accompanied by a report thereon by such certified public accountants that is not qualified with
respect to scope limitations imposed by the Borrower or any of its Subsidiaries or with respect to
accounting principles followed by the Borrower or any of its Subsidiaries not in accordance

60

 

with GAAP (it being understood and agreed that the Borrower’s filing of a Form 10-K with the
SEC with respect to a Fiscal Year within the period specified above shall be deemed to satisfy the
Borrower’s obligations under this Section 8.1(b) with respect to such Fiscal Year).

     (c) Annual Business Plan and Financial Projections. As soon as practicable and in any
event within fifteen (15) days prior to the beginning of each Fiscal Year commencing for Fiscal
Year 2007, a business plan or financial model of the Borrower and its Subsidiaries for the ensuing
Fiscal Year to include the following: an operating and capital budget, a projected income
statement, statement of cash flows and balance sheet (each, prepared in accordance with GAAP) and
management’s assumptions underlying such projections, accompanied by a certificate from the chief
financial officer or treasurer of the Borrower to the effect that, to the best of such officer’s
knowledge, such projections are good faith estimates (utilizing reasonable assumptions) of the
financial condition and operations of the Borrower and its Subsidiaries for such Fiscal Years.

     SECTION 8.2 Officer’s Compliance Certificate. Within five (5) Business Days following each
delivery of the financial statements required to be delivered pursuant to Section 8.1(a) or (b) and
at such other times as the Administrative Agent shall reasonably request, a certificate of the
chief financial officer or the treasurer of the Borrower in the form of Exhibit G attached hereto
(an “Officer’s Compliance Certificate”). Each such Officer’s Compliance Certificate shall
include, without limitation, the aggregate amount of Non-Recourse Project Financing Indebtedness
outstanding as of the last day of the relevant Fiscal Quarter or Fiscal Year, as the case may be,
and the aggregate amount of Non-Recourse Debt Service paid by the Borrower and its Restricted
Subsidiaries during the four (4) Fiscal Quarters immediately preceding such day.

     SECTION 8.3 Annual Accountants’ Certificate. At each time financial statements are
delivered pursuant to Section 8.1(b), a certificate of the independent public accountants
certifying such financial statements addressed to the Administrative Agent for the benefit of the
Lenders:

     (a) stating that in making the examination necessary for the certification of such financial
statements, they obtained no knowledge of any Default or Event of Default or, if such is not the
case, specifying such Default or Event of Default and its nature and period of existence; and

     (b) including the calculations reviewed by such accountants in connection with their audit of
the Consolidated financial statements required to establish whether or not the Borrower and its
Subsidiaries are in compliance with the financial covenants set forth in Article X hereof as at the
end of each respective period.

     SECTION 8.4 Other Reports.

     (a) Promptly upon receipt thereof, copies of all material reports, if any, submitted to the
Borrower or its Board of Directors by its independent public accountants in connection with their
auditing function, including, without limitation, any management report and any management
responses thereto; and

     (b) Such other information regarding the operations, business affairs and financial condition
of the Borrower or any of its Subsidiaries as the Administrative Agent or any Lender may reasonably
request.

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     SECTION 8.5 Notice of Litigation and Other Matters. Prompt (but in no event later than ten
(10) days after an officer of the Borrower obtains knowledge thereof) telephonic and written notice
of:

     (a) the commencement of all proceedings and investigations by or before any Governmental
Authority and all actions and proceedings in any court or before any arbitrator against or
involving the Borrower or any Subsidiary thereof or any of their respective properties, assets or
businesses which could reasonably be determined to result in a Material Adverse Effect;

     (b) any notice of any material violation received by the Borrower or any Subsidiary thereof
from any Governmental Authority including, without limitation, any notice of material violation of
Environmental Laws;

     (c) any labor controversy that has resulted in, or threatens to result in, a strike or other
work action against the Borrower or any Subsidiary thereof which could reasonably be determined to
result in a Material Adverse Effect;

     (d) any attachment, judgment, Lien, levy or order exceeding Two Million Dollars ($2,000,000)
that may be assessed against the Borrower or any Subsidiary thereof;

     (e) (i) any Default or Event of Default, or (ii) any event which constitutes or which with the
passage of time or giving of notice or both would constitute a default or event of default under
any Material Contract to which the Borrower or any of its Subsidiaries is a party or by which the
Borrower or any Subsidiary thereof or any of their respective properties may be bound;

     (f) (i) any unfavorable determination letter from the Internal Revenue Service regarding the
qualification of an Employee Benefit Plan under Section 401(a) of the Code (along with a copy
thereof), (ii) all notices received by the Borrower or any ERISA Affiliate of the PBGC’s intent to
terminate any Pension Plan or to have a trustee appointed to administer any Pension Plan, (iii) all
notices received by the Borrower or any ERISA Affiliate from a Multiemployer Plan sponsor
concerning the imposition or amount of withdrawal liability pursuant to Section 4202 of ERISA and
(iv) the Borrower obtaining knowledge or reason to know that the Borrower or any ERISA Affiliate
has filed or intends to file a notice of intent to terminate any Pension Plan under a distress
termination within the meaning of Section 4041(c) of ERISA;

     (g) contemporaneously with the delivery of the quarterly reports required herein, (and, upon
the occurrence and during the continuation of an Event of Default, on a more frequent basis if
requested by the Administrative Agent), a list of all Material Government Contracts which have (i)
been completed or have lapsed or terminated and not renewed or (ii) been entered into, in each
case, since the most recent list provided by the Borrower and signed by a Responsible Officer of
the Borrower as of the last Business Day of such Fiscal Quarter; and

     (h) any event which makes any of the representations set forth in Section 7.1 inaccurate in
any respect.

     SECTION 8.6 Accuracy of Information. All written information, reports, statements and
other papers and data furnished by or on behalf of the Borrower to the Administrative Agent or any
Lender whether pursuant to this Article VIII or any other provision of this Agreement, or any of
the Security Documents, shall, at the time the same is so furnished, comply with the
representations and warranties set forth in Section 7.1(x).

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ARTICLE IX

AFFIRMATIVE COVENANTS

     Until all of the Obligations have been paid and satisfied in full and the Commitments
terminated, unless consent has been obtained in the manner provided for in Section 14.11, the
Borrower will, and will cause each of its Restricted Subsidiaries to:

     SECTION 9.1 Preservation of Corporate Existence and Related Matters. Except as permitted
by Section 11.4, preserve and maintain its separate corporate existence and all rights, franchises,
licenses and privileges necessary to the conduct of its business, and qualify and remain qualified
as a foreign corporation and authorized to do business in each jurisdiction in which the failure to
so qualify could reasonably be expected to have a Material Adverse Effect.

     SECTION 9.2 Maintenance of Property. In addition to the requirements of any of the
Security Documents, protect and preserve all properties useful in and material to its business,
including copyrights, patents, trade names, service marks and trademarks; maintain in good working
order and condition all buildings, equipment and other tangible real and personal property; and
from time to time make or cause to be made all renewals, replacements and additions to such
property necessary for the conduct of its business, so that the business carried on in connection
therewith may be conducted in a commercially reasonable matter.

     SECTION 9.3 Insurance. Maintain insurance (including, without limitation, hazard and
business interruption) with financially sound and reputable insurance companies against such risks
and in such amounts as are customarily maintained by similar businesses and as may be required by
Applicable Law and as are required by any Security Documents, and on the Closing Date and from time
to time thereafter deliver to the Administrative Agent upon its request a detailed list of the
insurance then in effect, stating the names of the insurance companies, the amounts and rates of
the insurance, the dates of the expiration thereof and the properties and risks covered thereby.

     SECTION 9.4 Accounting Methods and Financial Records. Maintain a system of accounting, and
keep such books, records and accounts (which shall be true and complete in all material respects)
as may be required or as may be necessary to permit the preparation of financial statements in
accordance with GAAP and in compliance with the regulations of any Governmental Authority having
jurisdiction over it or any of its properties.

     SECTION 9.5 Payment and Performance of Obligations. Pay and perform all Obligations under
this Agreement and the other Loan Documents, and pay or perform (a) all taxes, assessments and
other governmental charges that may be levied or assessed upon it or any of its property, and (b)
all other indebtedness, obligations and liabilities in accordance with customary trade practices;
provided that the Borrower or such Restricted Subsidiary may contest any item described in
clauses (a) or (b) of this Section 9.5 in good faith so long as adequate reserves are maintained
with respect thereto in accordance with GAAP.

     SECTION 9.6 Compliance with Laws and Approvals. Observe and remain in compliance in all
material respects with all Applicable Laws and maintain in full force and effect all material
Governmental Approvals, in each case applicable to the conduct of its business.

     SECTION 9.7 Environmental Laws. In addition to and without limiting the generality of
Section 9.6, (a) materially comply with, and ensure such material compliance by all tenants and
subtenants with all applicable Environmental Laws and obtain and materially comply with and
maintain,

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and ensure that all tenants and subtenants, if any, obtain and materially comply with and maintain,
any and all licenses, approvals, notifications, registrations or permits required by applicable
Environmental Laws, (b) conduct and complete all investigations, studies, sampling and testing, and
all remedial, removal and other actions required under Environmental Laws, and promptly comply with
all lawful orders and directives of any Governmental Authority regarding Environmental Laws, and
(c) defend, indemnify and hold harmless the Administrative Agent and the Lenders, and their
respective parents, Subsidiaries, Affiliates, employees, agents, officers and directors, from and
against any claims, demands, penalties, fines, liabilities, settlements, damages, costs and
expenses of whatever kind or nature known or unknown, contingent or otherwise, arising out of, or
relating to the presence of Hazardous Materials, or the violation of, noncompliance with or
liability under any Environmental Laws applicable to the operations of the Borrower or any such
Restricted Subsidiary, or any orders, requirements or demands of Governmental Authorities related
thereto, including, without limitation, reasonable attorney’s and consultant’s fees, investigation
and laboratory fees, response costs, court costs and litigation expenses, except to the extent that
any of the foregoing directly result from the gross negligence or willful misconduct of the party
seeking indemnification therefor.

     SECTION 9.8 Compliance with ERISA. In addition to and without limiting the generality of
Section 9.6, (a) except where the failure to so comply could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect, (i) comply with all material applicable
provisions of ERISA and the regulations and published interpretations thereunder with respect to
all Employee Benefit Plans, (ii) not take any action or fail to take action the result of which
could be a liability to the PBGC or to a Multiemployer Plan, (iii) not participate in any
prohibited transaction that could result in any civil penalty under ERISA or tax under the Code and
(iv) operate each Employee Benefit Plan in such a manner that will not incur any tax liability
under Section 4980B of the Code or any liability to any qualified beneficiary as defined in Section
4980B of the Code and (b) furnish to the Administrative Agent upon the Administrative Agent’s
request such additional information about any Employee Benefit Plan as may be reasonably requested
by the Administrative Agent.

     SECTION 9.9 Compliance with Agreements. Comply in all respects with each material term,
condition and provision of all leases, agreements and other instruments entered into in the conduct
of its business including, without limitation, any Material Contract; provided that the
Borrower or any such Restricted Subsidiary may contest any such lease, agreement or other
instrument in good faith through applicable proceedings so long as adequate reserves are maintained
in accordance with GAAP.

     SECTION 9.10 Visits and Inspections. Permit representatives of the Administrative Agent or
any Lender, from time to time (during regular business hours upon advance notice, provided no
Default or Event of Default is continuing), to visit and inspect its properties; inspect, audit and
make extracts from its books, records and files, including, but not limited to, management letters
prepared by independent accountants; and discuss with its principal officers, and its independent
accountants, its business, assets, liabilities, financial condition, results of operations and
business prospects.

     SECTION 9.11 Additional Subsidiaries.

     (a) Additional Domestic Subsidiaries. Notify the Administrative Agent of (i) the
redesignation of an Unrestricted Subsidiary as a Restricted Subsidiary in accordance with Section
9.11(c) below or (ii) the creation or acquisition of any Domestic Subsidiary, and (unless such
Domestic Subsidiary has been designated as an Unrestricted Subsidiary pursuant to Section 9.11(d))
promptly thereafter (and in any event within thirty (30) days), cause such Person to (A) become a
Guarantor by executing and delivering to the Administrative Agent a supplement to the Guaranty
Agreement or such other document as the Administrative Agent shall deem appropriate for such
purpose, (B) deliver to the Administrative Agent a duly executed Joinder Agreement and comply with
the terms of each Security

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Document, (C) deliver to the Administrative Agent documents of the types referred to in
clauses (ii) and (iii) of Section 6.2(b) and favorable opinions of counsel to such Person (which
shall cover, among other things, the legality, validity, binding effect and enforceability of the
documentation referred to in clauses (A) and (B)) and (D) deliver to the Administrative Agent such
other documents and closing certificates as may be reasonably requested by the Administrative
Agent, all in form, content and scope reasonably satisfactory to the Administrative Agent.

     (b) Additional Foreign Subsidiaries. Notify the Administrative Agent at the time that
any Person becomes a first tier Foreign Subsidiary of the Borrower or any Restricted Subsidiary,
and at the request of the Administrative Agent, promptly thereafter (and in any event within
forty-five (45) days after such request), cause (i) the Borrower or applicable Restricted
Subsidiary to deliver to the Administrative Agent a supplement to the Security Documents pledging
sixty-five percent (65%) of the total outstanding ownership interest or capital stock of such new
Foreign Subsidiary and a consent thereto executed by such new Foreign Subsidiary (including,
without limitation, if applicable, original stock certificates (or the equivalent thereof pursuant
to the Applicable Laws and practices of any relevant foreign jurisdiction) evidencing the capital
stock of such new Foreign Subsidiary, together with an appropriate undated stock power for each
certificate duly executed in blank by the registered owner thereof), (ii) the Borrower or such
Restricted Subsidiary to deliver to the Administrative Agent a favorable opinion of counsel (which
shall cover, among other things, the legality, validity, binding effect and enforceability of such
pledge), and (iii) such Person to deliver to the Administrative Agent such other documents and
closing certificates as may be reasonably requested by the Administrative Agent, all in form,
content and scope reasonably satisfactory to the Administrative Agent.

     (c) Redesignation of Unrestricted Subsidiaries. The Borrower may, at any time and
upon written notice to the Administrative Agent, redesignate an Unrestricted Subsidiary as a
Restricted Subsidiary. Further, promptly after the date on which the Borrower or the
Administrative Agent determines that all Unrestricted Subsidiaries and their respective
Subsidiaries represent thirty percent (30%) or more of the Consolidated EBITDA of the Borrower and
its Subsidiaries (notwithstanding the definition thereof, calculated to include all Unrestricted
Subsidiaries, but excluding Non-Recourse Debt Service) for the four (4) consecutive Fiscal Quarters
most recently ended prior to such date, then the Borrower shall promptly identify in writing to the
Administrative Agent such Unrestricted Subsidiaries to be redesignated as Restricted Subsidiaries
to cause such remaining Unrestricted Subsidiaries and their Subsidiaries (after giving effect to
such redesignation) to represent less than thirty percent (30%) of the Consolidated EBITDA of the
Borrower and its Subsidiaries (notwithstanding the definition thereof, calculated to include all
Unrestricted Subsidiaries, but excluding Non-Recourse Debt Service) for the four (4) consecutive
Fiscal Quarters most recently ended prior to such date.

     (d) Designation of Restricted Subsidiaries. So long as no Default or Event of Default
has occurred and is continuing, the Borrower shall be permitted, on prior written notice to the
Administrative Agent, to redesignate any Restricted Subsidiary as an Unrestricted Subsidiary (or
designate any newly formed or acquired Subsidiary as an Unrestricted Subsidiary; provided
that such formation or acquisition is otherwise permitted hereunder), so long as the Administrative
Agent reasonably determines that at the time of such proposed designation (or redesignation, as
applicable), and after giving effect thereto, all Unrestricted Subsidiaries and their respective
Subsidiaries (including the Subsidiary and its respective Subsidiaries to be designated or
redesignated, as applicable, as an Unrestricted Subsidiary) represent no more than thirty percent
(30%) of the Consolidated EBITDA of the Borrower and its Subsidiaries (notwithstanding the
definition thereof, calculated to include all Unrestricted Subsidiaries, but excluding Non-Recourse
Debt Service) for the four (4) consecutive Fiscal Quarters most recently ended prior to such date.
Such designation (or redesignation, as applicable) shall have an effective date mutually acceptable
to the Administrative Agent and Borrower, but in no event earlier than five (5) Business Days
following receipt by the Administrative Agent of such written notice. Effective as of the
Acquisition

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Date, the CPT Acquisition Subsidiary and its Subsidiaries existing on the Closing Date shall
be Restricted Subsidiaries, subject to this Section 9.11(d).

     SECTION 9.12 Use of Proceeds. The Borrower shall use the proceeds of the Extensions of
Credit (a) to finance the Acquisition and pay the fees and expenses in connection with the closing
of the CentraCore Transactions, (b) to finance the acquisition of other Capital Assets, (c) to
refinance the Existing Facility, (d) to fund Restricted Payments permitted hereunder, and (e) for
working capital and general corporate requirements of the Borrower and its Subsidiaries and payment
of certain fees and expenses incurred in connection with the transactions contemplated hereby;
provided, however, that the proceeds of any Revolving Credit Loans or Swingline
Loans in excess of Five Million Dollars ($5,000,000) shall not be used for the purposes of
specified in clause (a) above.

     SECTION 9.13 Landlord Consents. Promptly after the Closing Date, the Borrower shall
diligently pursue and use all reasonable efforts to obtain landlord consents, estoppel letters or
consents and waivers, in form and substance reasonably acceptable to the Administrative Agent, in
respect of Collateral held on leased premises.

     SECTION 9.14 Notification of Additional Material Contracts. Promptly after entering into
any Material Contract after the date hereof, notify the Administrative Agent of each such Material
Contract and provide a copy thereof to the Administrative Agent if requested by the Administrative
Agent.

     SECTION 9.15 Post-Closing Real Estate. If the Borrower or any Restricted Subsidiary shall
(a) continue to own any of the Delaney Hall Facility, the Mesa Verde Facility or the corporate
headquarters of the Target Company on the date falling three (3) months following the Closing Date,
(b) continue to own the Broward Transition Center on the date falling five (5) days following the
Closing Date or (c) acquire any real property interest, including improvements, after the date
hereof that has a fair market value of Ten Million Dollars ($10,000,000) or more (or shall make
improvements upon any existing real property interest resulting in the fair market value of such
interest together with such improvements being equal to Ten Million Dollars ($10,000,000) or more),
then the Borrower will (or, as applicable, will cause the respective Restricted Subsidiary holding
such real property interest to), within ten (10) days of the acquisition of or improvements upon
such property interest by the Borrower or such Restricted Subsidiary (or, with respect to any of
the Delaney Hall Facility, the Mesa Verde Facility or the corporate headquarters of the Target
Company if the Borrower or any Restricted Subsidiary shall continue to own such property on the
date falling three (3) months following the Closing Date, within ten (10) days of such date, or,
with respect to the Broward Transition Center if the Borrower or any Restricted Subsidiary shall
continue to own such property on the date falling five (5) days following the Closing Date, on such
date) if the Administrative Agent elects to encumber such property as Collateral in Administrative
Agent’s sole and absolute discretion, (A) execute and deliver in favor of the Administrative Agent
a Mortgage appropriate for the jurisdiction in which such respective real property is situated,
pursuant to which the Borrower or such Restricted Subsidiary will create a first priority Lien upon
such real property (and improvements) in favor of the Administrative Agent for the benefit of the
Lenders and the Administrative Agent as collateral security for the obligations of the Borrower or
such Restricted Subsidiary under the Loan Documents, (B) obtain or deliver a current Phase I (with
respect to a property, a “current Phase I” means a Phase I prepared within three (3) years of the
acquisition of such property) for such property (other than for the corporate headquarters of the
Target Company) and (C) deliver such certificates of occupancy (or, if it is not the practice to
issue certificates of occupancy in the jurisdiction in which such real property is located, then
such other evidence reasonably satisfactory to the Administrative Agent that the fully functioning
operation and occupancy of such real property is permitted), opinions of counsel and title
insurance policies as the Administrative Agent shall reasonably request in connection therewith,
including payment for all such title insurance policies and recording and

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stamp taxes payable in connection with recording all Mortgages and Uniform Commercial Code fixture
filings, if applicable, in the appropriate county land offices.

     SECTION 9.16 Further Assurances. Make, execute and deliver all such additional and further
acts, things, deeds and instruments as the Administrative Agent or the Required Lenders (through
the Administrative Agent) may reasonably require to document and consummate the transactions
contemplated hereby and to vest completely in and insure the Administrative Agent and the Lenders
their respective rights under this Agreement, the Notes, the Letters of Credit and the other Loan
Documents. The Borrower shall on or prior to the Closing Date file an application with the
appropriate filing office in the State of Florida requesting a certificate of occupancy for its
property located in Fort Lauderdale, Broward County, Florida, and upon either receipt of such
certificate of occupancy or notice from such filing office that no certificate of occupancy exists
for such property, the Borrower shall promptly deliver a copy of such certificate of occupancy or
notice to the Administrative Agent. The Borrower shall deliver to the Administrative Agent not
later than thirty (30) days after the Closing Date original stock certificates or other
certificates evidencing the capital stock or other ownership interests in each Excluded Subsidiary
(as defined in Section 6.2(c)(iii)) pledged pursuant to the Collateral Agreement (to the extent
such ownership interests are certificated), together with an undated stock power for each such
certificate duly executed in blank by the registered owner thereof.

ARTICLE X

FINANCIAL COVENANTS

     Until all of the Obligations have been paid and satisfied in full and the Commitments
terminated, unless consent has been obtained in the manner set forth in Section 14.11, the Borrower
and its Restricted Subsidiaries on a Consolidated basis will not:

     SECTION 10.1 Leverage Ratios.

     (a) Total Leverage Ratio. As of any Fiscal Quarter end, permit the ratio (the
“Total Leverage Ratio”) of (i) the sum of (A) Debt of the Borrower and its Restricted
Subsidiaries on such date (other than any Non-Recourse Project Financing Indebtedness) less
(B) any undrawn Letters of Credit of the Borrower and its Restricted Subsidiaries less (C)
an amount (not less than zero) equal to all unrestricted cash on hand held by the Borrower and its
Restricted Subsidiaries minus (for any Fiscal Quarter end falling on or after December 31,
2006) Fifteen Million Dollars ($15,000,000) to (ii) EBITDA for the period of four (4)
consecutive Fiscal Quarters ending on or immediately prior to such date to be greater than the
corresponding ratio set forth below (provided that on or after the Acquisition Date, the
Total Leverage Ratio shall be calculated on a pro forma consolidated basis with
respect to the Borrower, the Target Company and their respective Subsidiaries (using for purposes
of this calculation the information set forth in the financial statements most recently delivered
in accordance with Section 8.1, with respect to the Borrower and its Subsidiaries, and the amounts
set forth on Schedule 10.1 for the relevant four (4) Fiscal Quarter period, with respect to the
Target Company and its Subsidiaries)):

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	Period	 	Maximum Ratio	 
	Closing Date through December 30, 2008
	 	 	5.50 to 1.0	 
	December 31, 2008 through December 30, 2009
	 	 	4.75 to 1.0	 
	December 31, 2009 through December 30, 2010
	 	 	4.25 to 1.0	 
	December 31, 2010 through December 30, 2011
	 	 	3.50 to 1.0	 
	December 31, 2011 and thereafter
	 	 	3.00 to 1.0	 

     (b) Senior Secured Leverage Ratio. As of any Fiscal Quarter end, permit the ratio
(the “Senior Secured Leverage Ratio”) of (i) the sum of (A) Debt of the Borrower incurred
under this Agreement and, without duplication, other secured Debt of the Borrower and the
Restricted Subsidiaries on such date (other than any Non-Recourse Project Financing Indebtedness)
less (B) any undrawn Letters of Credit of the Borrower and its Restricted Subsidiaries
less (C) an amount (not less than zero) equal to all unrestricted cash on hand held by the
Borrower and its Restricted Subsidiaries minus (for any Fiscal Quarter end falling on or
after December 31, 2006) Fifteen Million Dollars ($15,000,000) to (ii) EBITDA for the
period of four (4) consecutive Fiscal Quarters ending on or immediately prior to such date to be
greater than the corresponding ratio set forth below (provided that on or after the
Acquisition Date, the Senior Secured Leverage Ratio shall be calculated on a pro
forma consolidated basis with respect to the Borrower, the Target Company and their
respective Subsidiaries (using for purposes of this calculation the information set forth in the
financial statements most recently delivered in accordance with Section 8.1, with respect to the
Borrower and its Subsidiaries, and the amounts set forth on Schedule 10.1 for the relevant four (4)
Fiscal Quarter period, with respect to the Target Company and its Subsidiaries)).

	 	 	 	 	 
	Period	 	Maximum Ratio	 
	Closing Date through December 30, 2008
	 	 	4.00 to 1.0	 
	December 31, 2008 through December 30, 2009
	 	 	3.25 to 1.0	 
	December 31, 2009 through December 30, 2010
	 	 	2.75 to 1.0	 
	December 31, 2010 through December 30, 2011
	 	 	2.25 to 1.0	 
	December 31, 2011 and thereafter
	 	 	2.00 to 1.0	 

     SECTION 10.2 Fixed Charge Coverage Ratio(a) . As of any Fiscal Quarter end, permit
the ratio of (a) the sum of (i) EBITDA for the period of four (4) consecutive Fiscal Quarters
ending on such date plus (ii) Rental Expense (other than Rental Expense related to
Synthetic Leases) and (iii) Non-Recourse Debt Service less (iv) Capital Expenditures
(excluding (x) the purchase of assets listed on Schedule 4.4(b)(iii), (y) any acquisitions
permitted under Section 11.3(a) and (z) with respect to Fiscal Year ending on or nearest to
December 31, 2007, any acquisitions purchased with the Net Cash Proceeds from any offering of
equity securities by the Borrower or any of its Restricted Subsidiaries) to (b) the sum of
(i) Interest Expense paid in cash, (ii) any federal, state or local income taxes paid in cash by
the Borrower and its Restricted Subsidiaries, (iii) scheduled principal payments required to be
made by the Borrower and its

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Restricted Subsidiaries with respect to Debt, (iv) Rental Expense (other than Rental Expense
related to Synthetic Leases), (v) Non-Recourse Debt Service and (vi) Restricted Payments, in each
case for the period of four (4) consecutive Fiscal Quarters ending on or immediately prior to such
date to be less than the corresponding ratio set forth below:

	 	 	 	 	 
	Period	 	Minimum Ratio	 
	June 30, 2008 through December 30, 2009
	 	 	1.00 to 1.00	 
	December 31, 2009 and thereafter
	 	 	1.10 to 1.00	 

     SECTION 10.3 Capital Expenditures. Permit Capital Expenditures to be greater than the
aggregate amounts set forth in the table below during the applicable Fiscal Year; provided,
however, that the maximum amount of Capital Expenditures permitted in any Fiscal Year
pursuant to the table below shall be increased by the amount of Capital Expenditures that were
permitted to be made pursuant to the table below in the immediately preceding Fiscal Year (without
giving effect to any carryover amount from prior Fiscal Years) over the amount of Capital
Expenditures actually made during such preceding Fiscal Year as permitted pursuant to the table
below (and for purposes hereof, the amount of such Capital Expenditures made during any Fiscal Year
shall be deemed to have been made first from the amount permitted in such Fiscal Year pursuant to
the table below without giving effect to any such carryover from the preceding Fiscal Year and last
from the carryover, if any, from the preceding Fiscal Year). Notwithstanding anything to the
contrary, Capital Expenditures in the aggregate amount of the sum of (a) Seventy-Five Million
Dollars ($75,000,000) plus (b) the Net Cash Proceeds from the offering of equity securities
of the Borrower or any of its Restricted Subsidiaries after the Acquisition Date not required to be
used for prepayments under Section 4.4(b)(ii), but only to the extent that such Net Cash Proceeds
are not used for Permitted Acquisitions or investments, loans, advances, extensions of credit or
acquisitions as permitted by Section 11.3(j) (collectively, the “Additional Capital
Expenditures Basket”), shall not be included in the calculation of Capital Expenditures for
purposes of the table below to the extent that such Capital Expenditures are used (x) in the
construction or equipping of a facility which either the Borrower or a Subsidiary of the Borrower
will construct, operate or manage or will be responsible for constructing, managing or operating
pursuant to a notice of award of a Government Contract, (y) in the construction or expansion of a
facility by or on behalf of the Borrower or a Subsidiary of the Borrower that is not covered by a
Government Contract (and for which a notice of award has not been issued), provided that in
the case of this clause (y) the aggregate amount of such Capital Expenditures (excluding any such
Capital Expenditures made in respect of facilities that subsequently become subject to Government
Contracts) does not exceed the sum of (1) Twenty-Five Million Dollars ($25,000,000) plus
(2) the Net Cash Proceeds from the offering after the Acquisition Date of equity securities of the
Borrower or any of its Restricted Subsidiaries not required to be used for prepayments under
Section 4.4(b)(ii), but only to the extent that such Net Cash Proceeds are not used for Permitted
Acquisitions or investments, loans, advances, extensions of credit or acquisitions as permitted by
Section 11.3(j) or (z) for the expansion of the Val Verde facility. In addition, (A) expenditures
made for any acquisition permitted under Section 11.3(a), (B) expenditures made with the proceeds
of Non-Recourse Project Financing Indebtedness and (C) expenditures not exceeding Six Million
Dollars ($6,000,000) in aggregate made in connection with the development and implementation of the
Borrower’s information technology project that is currently expected to be completed in 2008, shall
not be included in the calculation of Capital Expenditures.

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	 	 	Aggregate Annual Amount
	Period	 	(in millions)
	Closing Date through December 31, 2007
	 	$	55.0	 
	 
	 	 	 	 
	Each Fiscal Year thereafter commencing with
the Fiscal Year ending on or nearest to
December 31, 2008 and ending with the Fiscal
Year during which the Term Loan Maturity Date
occurs
	 	$	25.0	 

ARTICLE XI

NEGATIVE COVENANTS

     Until all of the Obligations have been paid and satisfied in full and the Commitments
terminated, unless consent has been obtained in the manner set forth in Section 14.11, the Borrower
has not and will not and will not permit any of its Restricted Subsidiaries to:

     SECTION 11.1 Limitations on Debt. Create, incur, assume or suffer to exist any Debt
except:

     (a) the Obligations (excluding Hedging Agreements permitted pursuant to Section 11.1(b));

     (b) Debt incurred in connection with a Hedging Agreement with a counterparty and upon terms
and conditions (including interest rate) reasonably satisfactory to the Administrative Agent
entered into as a bona fide hedge and not for speculative purposes; provided that
any counterparty that is a Lender shall be deemed satisfactory to the Administrative Agent;

     (c) (i) Debt existing on the Closing Date and not otherwise permitted under this Section 11.1,
as set forth on Schedule 7.1(t), and the renewal, refinancing, extension and replacement (but not
the increase in the aggregate principal amount) thereof and (ii) any Non-Recourse Project Financing
Indebtedness;

     (d) Debt of the Borrower and its Restricted Subsidiaries incurred in connection with Capital
Leases in an aggregate amount not to exceed Five Million Dollars ($5,000,000) on any date of
determination;

     (e) purchase money Debt of the Borrower and its Restricted Subsidiaries in an aggregate amount
not to exceed Five Million Dollars ($5,000,000) on any date of determination;

     (f) Guaranty Obligations in favor of the Administrative Agent for the benefit of the
Administrative Agent and the Lenders;

     (g) Debt in an aggregate principal amount not to exceed Five Million Dollars ($5,000,000) at
any time outstanding;

     (h) Debt arising from intercompany loans from the Borrower to any Restricted Subsidiary or
from any Restricted Subsidiary to the Borrower;

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     (i) Guaranty Obligations of the Borrower and its Restricted Subsidiaries with respect to (i)
Debt of the Borrower and its Restricted Subsidiaries permitted pursuant to this Section 11.1, (ii)
other obligations of the Borrower and its Restricted Subsidiaries not prohibited by this Agreement
or (iii) the assignment of rights under any Government Contract assigned by the Borrower or any of
its Restricted Subsidiaries to secure any Non-Recourse Project Financing Indebtedness related to
such Government Contract; and

     (j) Guaranty Obligations permitted by Section 11.3;

provided that no agreement or instrument with respect to Debt permitted to be incurred by
this Section (other than the High-Yield Note Indenture) shall restrict, limit or otherwise encumber
(by covenant or otherwise) the ability of any Subsidiary of the Borrower to make any payment to the
Borrower or any of its Subsidiaries (in the form of dividends, intercompany advances or otherwise)
for the purpose of enabling the Borrower to pay the Obligations.

     SECTION 11.2 Limitations on Liens. Create, incur, assume or suffer to exist, any Lien on
or with respect to any of its assets or properties (including, without limitation, shares of
capital stock or other ownership interests), real or personal, whether now owned or hereafter
acquired, except:

     (a) Liens for taxes, assessments and other governmental charges or levies (excluding any Lien
imposed pursuant to any of the provisions of ERISA or Environmental Laws) not yet due or as to
which the period of grace, if any, related thereto has not expired or which are being contested in
good faith and by appropriate proceedings if adequate reserves are maintained to the extent
required by GAAP;

     (b) the claims of materialmen, mechanics, carriers, warehousemen, processors or landlords for
labor, materials, supplies or rentals incurred in the ordinary course of business, (i) which are
not overdue for a period of more than thirty (30) days or (ii) which are being contested in good
faith and by appropriate proceedings;

     (c) Liens consisting of deposits or pledges made in the ordinary course of business in
connection with, or to secure payment of, obligations under workers’ compensation, unemployment
insurance or similar legislation;

     (d) Liens constituting encumbrances in the nature of zoning restrictions, easements and rights
or restrictions of record on the use of real property, which in the aggregate are not substantial
in amount and which do not, in any case, materially detract from the value of such property or
impair the use thereof in the ordinary conduct of business;

     (e) Liens of the Administrative Agent for the benefit of the Administrative Agent and the
Lenders;

     (f) Liens not otherwise permitted by this Section 11.2 and in existence on the Closing Date
and described on Schedule 11.2, and any renewals or extensions thereof, provided that the
property covered thereby is not increased and any renewal or extension of the obligations secured
or benefited thereby is permitted by Section 11.1(c)(i);

     (g) Liens securing Debt permitted under Sections 11.1(d) and (e); provided that (i)
such Liens shall be created substantially simultaneously with the acquisition or lease of the
related asset, (ii) such Liens do not at any time encumber any property other than the property
financed by such Debt, (iii) the amount of Debt secured thereby is not increased and (iv) the
principal amount of Debt secured by any

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such Lien shall at no time exceed one hundred percent (100%) of the original purchase price or
lease payment amount of such property at the time it was acquired;

     (h) other Liens securing Debt permitted by Section 11.1(g), not to exceed Three Million
Dollars ($3,000,000) in the aggregate;

     (i) Liens securing Non-Recourse Project Financing Indebtedness; and

     (j) following consummation of the Acquisition, Liens on the assets of the Target Company and
its Subsidiaries described on Schedule 11.2.

     SECTION 11.3 Limitations on Loans, Advances, Investments and Acquisitions. Purchase, own,
invest in or otherwise acquire, directly or indirectly, any capital stock, interests in any
partnership or joint venture (including, without limitation, the creation or capitalization of any
Restricted Subsidiary), evidence of Debt or other obligation or security, substantially all of the
business or assets of any other Person (for purposes of this Section 11.3, the acquisition of a
facility, the primary purpose of which is for the detention or housing of detainees, shall be
deemed to constitute the acquisition of substantially all of the business or assets of any such
Person), or any other investment or interest whatsoever in any other Person, or make or permit to
exist, directly or indirectly, any loans, advances or extensions of credit (which, for the
avoidance of doubt, shall include any Guaranty Obligations for purposes of this Section 11.3) to,
or any investment in cash or by delivery of property in, any Person except:

     (a) (i) investments in or loans, advances or extensions of credit to, Subsidiaries to the
extent that such investments, loans, advances or extension of credit are existing on the Closing
Date (or any refinancing thereof provided that the aggregate principal amount thereof is
not increased), (ii) investments in or loans, advances or extensions of credit to, Restricted
Subsidiaries so long as the Borrower and its Subsidiaries comply with the applicable provisions of
Section 9.11 with respect to Restricted Subsidiaries formed or acquired after the Closing Date,
(iii) Permitted Acquisitions after the Closing Date so long as the Borrower and its Subsidiaries
comply with the applicable provisions of Section 9.11; provided that any investment by the
Borrower or any Restricted Subsidiary in any Restricted Foreign Subsidiary must be in the form of a
loan to such Restricted Foreign Subsidiary which is pledged to the Administrative Agent pursuant to
the Collateral Agreement, (iv) the Acquisition (together with any investments, loan advances or
extensions of credit acquired as a result of the Acquisition) so long as the Borrower and its
Subsidiaries comply with the applicable provisions of this Agreement with respect thereto
including, without limitation, Section 9.11 and (v) the other loans, advances and investments
described on Schedule 11.3(a) existing on the Closing Date;

     (b) investments in (i) marketable direct obligations issued or unconditionally guaranteed by
the United States or any agency thereof maturing within one hundred twenty (120) days from the date
of acquisition thereof, (ii) commercial paper maturing no more than one hundred twenty (120) days
from the date of creation thereof and currently having an “A-1” or higher rating from S&P or a
“P-1” rating from Moody’s, (iii) certificates of deposit maturing no more than one hundred twenty
(120) days from the date of creation thereof issued by commercial banks incorporated under the laws
of the United States, each having combined capital, surplus and undivided profits of not less than
Five Hundred Million Dollars ($500,000,000) and having a rating of “A” or better by a nationally
recognized rating agency; provided that the aggregate amount invested in such certificates
of deposit shall not at any time exceed Five Million Dollars ($5,000,000) for any one such
certificate of deposit and Twenty Million Dollars ($20,000,000) for any one such bank, (iv) money
market accounts with any financial institution whose long-term credit rating is not less than “AAA”
by S&P and “Aaa” by Moody’s and whose short-term credit rating is not less than “P-1” by Moody’s
and “A-1” by S&P, (v) time deposits maturing no more than thirty (30) days from the date of
creation thereof with commercial banks or savings banks or savings

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and loan associations each having membership either in the FDIC or the deposits of which are
insured by the FDIC and in amounts not exceeding the maximum amounts of insurance thereunder, (vi)
municipal securities rated investment grade or better by either S&P or Moody’s or (vii) with
respect to any Foreign Subsidiary, deposit accounts held by such Foreign Subsidiary in local
currency at local commercial banks or savings banks or savings and loan associations in the
ordinary course of business;

     (c) Hedging Agreements permitted pursuant to Section 11.1;

     (d) purchases of assets in the ordinary course of business;

     (e) to the extent they constitute an investment, contributions to and payments of benefits
under any Employee Benefits Plan in existence as of the Closing Date as required by the benefit
commitment in such Employee Benefits Plan as of the Closing Date;

     (f) investments, loans, advances or extensions of credit in addition to those permitted
elsewhere in this Section 11.3 in an aggregate amount not to exceed Five Million Dollars
($5,000,000) in the aggregate at any time outstanding;

     (g) investments in or loans, advances or extensions of credit to Unrestricted Subsidiaries,
joint ventures and/or Other Consolidated Persons (but, in the case of Unrestricted Subsidiaries and
joint ventures, only if the outstanding capital stock or other ownership interests of such
Unrestricted Subsidiaries or joint ventures that are owned by the Borrower or any of its Restricted
Subsidiaries, are directly owned either by the Borrower or a Restricted Subsidiary) in an aggregate
amount not to exceed Ten Million Dollars ($10,000,000) for any Fiscal Year; provided that
if the aggregate amount of such investments, loans, advances and extensions of credit made in any
Fiscal Year shall be less than Ten Million Dollars ($10,000,000), the difference shall be added to
the amount of such investments, loans, advances and extensions of credit permitted pursuant to this
Section 11.3(g) for the immediately succeeding (but not any other) Fiscal Year, and for purposes
hereof, the amount of such investments, loans, advances and extensions of credit made during any
Fiscal Year shall be deemed to have been made first from the amount permitted in such Fiscal Year
pursuant to this Section 11.3(g) without giving effect to any such carryover from the preceding
Fiscal Year and last from the carryover, if any, from the preceding Fiscal Year; provided
further, that the aggregate amount of such investments, loans, advances and extensions of
credit permitted to be made pursuant to this Section 11.3(g) during the term of this Agreement
shall not exceed Twenty-Five Million Dollars ($25,000,000);

     (h) investments, loans, advances or extensions of credit resulting from Liens permitted under
Section 11.2(i) and Guaranty Obligations permitted by Section 11.1(i);

     (i) investments, loans, advances or extensions of credit made in connection with the facility
described on Schedule 11.3(i); and

     (j) investments in or loans, advances or extensions of credit to, or acquisitions of, any
Person or Persons (or all or substantially all of the assets of any Person or Persons) in an
aggregate amount (except to the extent made with Equity Consideration) not exceeding the Net Cash
Proceeds from the offering of equity securities of the Borrower or any of its Restricted
Subsidiaries after the Acquisition Date not required to be used for prepayments under Section
4.4(b)(ii), but only to the extent that such Net Cash Proceeds are not used for Permitted
Acquisitions and do not constitute a utilization of the Additional Capital Expenditure Basket in
excess of Seventy-Five Million Dollars ($75,000,000).

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     SECTION 11.4 Limitations on Mergers and Liquidation. Merge, consolidate or enter into any
similar combination with any other Person or liquidate, wind-up or dissolve itself (or suffer any
liquidation or dissolution) except:

     (a) any Subsidiary of the Borrower may merge with the Borrower or any Restricted Subsidiary;
provided that in any merger involving the Borrower or a Restricted Subsidiary, the Borrower
or such Restricted Subsidiary shall be the surviving entity;

     (b) any Restricted Subsidiary of the Borrower may merge into the Person such Restricted
Subsidiary was formed to acquire in connection with an acquisition permitted by Section 11.3(a);
provided that the Restricted Subsidiary shall be the continuing or surviving Person or the
survivor shall comply with the requirements of Section 9.11; and

     (c) any Restricted Subsidiary may wind-up into the Borrower or any other Restricted
Subsidiary.

     SECTION 11.5 Limitations on Sale of Assets. Convey, sell, lease, assign, transfer or
otherwise dispose of any of its property, business or assets (including, without limitation, the
sale of any receivables and leasehold interests and any sale-leaseback or similar transaction),
whether now owned or hereafter acquired except:

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

     (b) the sale of obsolete assets no longer used or usable in the business of the Borrower or
any of its Subsidiaries;

     (c) the transfer of assets to the Borrower or any Restricted Subsidiary;

     (d) the sale or discount without recourse of accounts receivable arising in the ordinary
course of business in connection with the compromise or collection thereof;

     (e) the disposition of any Hedging Agreement;

     (f) the sale or other disposition of assets by the Borrower or any Restricted Subsidiary not
otherwise permitted under this Section 11.5; provided that (i) as of the time of such sale
or other disposition, no Default or Event of Default shall be continuing or would result therefrom,
(ii) the aggregate book value of all assets sold or disposed of pursuant to this clause (f) in any
Fiscal Year shall not exceed Five Million Dollars ($5,000,000), and (iii) the Borrower shall have
complied with the requirements of Section 4.4(b);

     (g) the sale of any investments permitted under Section 11.3(b) hereof;

     (h) the sale of those assets listed on Schedule 4.4(b)(iii)(y) and Schedule 4.4(b)(iii)(z);

     (i) the sale of any facility built or acquired after the date hereof to the Governmental
Authority with which either the Borrower or a Subsidiary of the Borrower has entered into a
Government Contract pursuant to which the Borrower or such Subsidiary operates or is responsible
for the management or operation of such facility; provided that the Borrower or such
Subsidiary received fair market value of such facility in cash;

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     (j) the sale of any property, business or assets acquired in a Permitted Acquisition to the
extent that the same is not related to the construction, design, operation, development or
operation of any adult correctional, detention or mental health facilities; and

     (k) the sale of any facility or any real property interest (and related personal property) for
fair market value (as determined by an independent appraisal made by a Person acceptable to the
Administrative Agent) if no Default or Event of Default shall have occurred and be continuing and
so long as the aggregate amount of non-cash proceeds from all such sales does not exceed Five
Million Dollars ($5,000,000).

     For purposes of this Section 11.5, all determinations of fair market value of any facility
shall include consideration of rights under any Government Contract transferred in connection
therewith.

     SECTION 11.6 Restricted Payments. Declare, pay or make any Restricted Payment except each
Restricted Subsidiary may make Restricted Payments (i) to the Borrower and to Restricted
Subsidiaries, (ii) pursuant to any agreements governing acquisitions otherwise permitted
hereunder, (iii) in the case of non-wholly owned Restricted Subsidiaries, if made to all equity
owners thereof on a pro rata basis, (iv) resulting from the cashless exercise of
stock options and (v) in the case of any real estate investment trust that is a Restricted
Subsidiary, to the equity holders thereof pursuant to their equity interests therein in an
aggregate amount not to exceed Seventy-Five Thousand Dollars ($75,000) per calendar year.

     SECTION 11.7 Limitations on Exchange and Issuance of Capital Stock. Issue, sell or
otherwise dispose of any class or series of capital stock that, by its terms or by the terms of any
security into which it is convertible or exchangeable, is, or upon the happening of an event or
passage of time would be, (a) convertible or exchangeable into Debt or (b) required to be redeemed
or repurchased, including at the option of the holder, in whole or in part, or has, or upon the
happening of an event or passage of time would have, a redemption or similar payment due.

     SECTION 11.8 Transactions with Affiliates. Except for transactions permitted by Sections
11.1, 11.3, 11.4, 11.5, 11.6 and 11.7, directly or indirectly (a) make any loan or advance to, or
purchase or assume any note or other obligation to or from, any of its officers, directors,
shareholders or other Affiliates, or to or from any member of the immediate family of any of its
officers, directors, shareholders or other Affiliates, or subcontract any operations to any of its
Affiliates and (b) enter into, or be a party to, any other transaction not described in clause (a)
above with any of its Affiliates, except pursuant to the reasonable requirements of its business
and upon fair and reasonable terms that are no less favorable to it than it would obtain in a
comparable arm’s length transaction with a Person not its Affiliate.

     SECTION 11.9 Certain Accounting Changes; Organizational Documents. (a) Change its Fiscal
Year end, or make any change in its accounting treatment and reporting practices except as required
by GAAP or (b) amend, modify or change its articles of incorporation (or corporate charter or other
similar organizational documents) or amend, modify or change its bylaws (or other similar
documents) in any manner adverse in any respect to the rights or interests of the Lenders. For the
avoidance of doubt, the conversion or merger of a Restricted Subsidiary to or into a real estate
investment trust that is a Restricted Subsidiary shall not, by itself, be deemed to be adverse to
the rights or interests of the Lenders.

     SECTION 11.10 Payments and Prepayments of Certain Debt. Cancel or forgive, make any
voluntary or optional payment or prepayment on, or redeem or acquire for value (including, without
limitation, by way of depositing with any trustee with respect thereto money or securities before
due for the purpose of paying when due) any Subordinated Debt or the High-Yield Notes.

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     SECTION 11.11 Restrictive Agreements.

     (a) Enter into any Debt which contains any negative pledge on assets or any covenants more
restrictive than the provisions of Articles IX, X and XI hereof, or which restricts, limits or
otherwise encumbers its ability to incur Liens (except for restrictions on Liens pursuant to the
High-Yield Note Indenture) on or with respect to any of its assets or properties other than the
assets or properties securing such Debt.

     (b) Enter into or permit to exist any agreement which impairs or limits the ability of any
Restricted Subsidiary of the Borrower to pay dividends to the Borrower.

     SECTION 11.12 Nature of Business. Engage in any business other than a Permitted Business.

     SECTION 11.13 Impairment of Security Interests. Take or omit to take any action, which
might or would have the result of materially impairing the security interests in favor of the
Administrative Agent with respect to the Collateral or grant to any Person (other than the
Administrative Agent for the benefit of itself and the Lenders pursuant to the Security Documents)
any interest whatsoever in the Collateral, except for Liens permitted under Section 11.2 and asset
sales permitted under Section 11.5.

     SECTION 11.14 Amendments of Certain Agreements. Waive, amend, supplement or modify (or
permit the waiver, modification, supplement or amendment of) any of the terms or provisions of (a)
the Merger Agreement in a manner that could have a material adverse effect on the interests of the
Lenders or the Borrower or (b) any Subordinated Debt.

ARTICLE XII

DEFAULT AND REMEDIES

     SECTION 12.1 Events of Default. Each of the following shall constitute an Event of
Default, whatever the reason for such event and whether it shall be voluntary or involuntary or be
effected by operation of law or pursuant to any judgment or order of any court or any order, rule
or regulation of any Governmental Authority or otherwise:

     (a) Default in Payment of Principal of Loans and Reimbursement Obligations. The
Borrower shall default in any payment of principal of any Loan, Note or Reimbursement Obligation
when and as due (whether at maturity, by reason of acceleration or otherwise).

     (b) Other Payment Default. The Borrower shall default in the payment when and as due
(whether at maturity, by reason of acceleration or otherwise) of interest on any Loan, Note or
Reimbursement Obligation or the payment of any other Obligation, and such default shall continue
for a period of three (3) Business Days.

     (c) Misrepresentation. Any representation, warranty, certification or statement of
fact made or deemed to be made by or on behalf of the Borrower or any Restricted Subsidiary under
this Agreement, any other Loan Document, or in any document delivered in connection herewith or
therewith that is subject to materiality or Material Adverse Effect qualifications, shall be
incorrect or misleading in any respect when made or deemed made; any representation, warranty,
certification or statement of fact made or deemed to be made by or on behalf of the Borrower or any
Restricted Subsidiary herein, any other Loan Document, or in any document delivered in connection
herewith or therewith that is not subject to materiality or Material Adverse Effect qualifications,
shall be incorrect or misleading in any material respect when made or deemed made; or any
representation, warranty, certification or statement

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of fact made by or on behalf of the Target Company or any of its subsidiaries under the Merger
Agreement or any other document delivered in connection therewith shall be incorrect or misleading
in any respect when made or deemed to be made to the extent material to the business, assets,
property, condition (financial or otherwise) or prospects of the Borrower, the Target Company and
their respective Subsidiaries taken as a whole.

     (d) Default in Performance of Certain Covenants. The Borrower shall default in the
performance or observance of any covenant or agreement contained in Section 8.1, 8.2, 8.5(e)(i),
9.10, 9.11 or 9.13 or Article X or XI of this Agreement.

     (e) Default in Performance of Other Covenants and Conditions. The Borrower or any
Subsidiary thereof shall default in the performance or observance of any term, covenant, condition
or agreement contained in this Agreement (other than as specifically provided for otherwise in this
Section 12.1) or any other Loan Document and such default shall continue for a period of thirty
(30) days after written notice thereof has been given to the Borrower by the Administrative Agent.

     (f) Hedging Agreement. The Borrower or any of its Subsidiaries shall default in the
performance or observance of any terms, covenant, condition or agreement (after giving effect to
any applicable grace or cure period) under any Hedging Agreement, such default causes the
termination of such Hedging Agreement or permits any counterparty to such Hedging Agreement to
terminate any such Hedging Agreement and such termination results in a requirement that the
Borrower or any of its Subsidiaries pay an amount in excess of Four Million Dollars ($4,000,000).

     (g) Debt Cross-Default. Other than with respect to any Non-Recourse Project Financing
Indebtedness, the Borrower or any of its Subsidiaries shall (i) default in the payment of any Debt
(other than the Notes or any Reimbursement Obligation) the aggregate outstanding amount of which
Debt is in excess of Four Million Dollars ($4,000,000) beyond the period of grace if any, provided
in the instrument or agreement under which such Debt was created, or (ii) default in the observance
or performance of any other agreement or condition relating to any Debt (other than the Notes or
any Reimbursement Obligation) the aggregate outstanding amount of which Debt is in excess of Four
Million Dollars ($4,000,000) or contained in any instrument or agreement evidencing, securing or
relating thereto or any other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to permit the holder or holders of such Debt (or a trustee
or agent on behalf of such holder or holders) to cause, with the giving of notice if required, any
such Debt to become due prior to its stated maturity (provided that any applicable grace
period shall have expired).

     (h) Change in Control. Any Person or group of Persons (within the meaning of Section
13(d) of the Securities Exchange Act of 1934, as amended) shall obtain ownership or control in one
or more series of transactions of more than thirty percent (30%) of the common stock or thirty
percent (30%) of the voting power of the Borrower entitled to vote in the election of members of
the board of directors of the Borrower or there shall have occurred under any indenture or other
instrument evidencing any Debt in excess of Four Million Dollars ($4,000,000) any “change in
control” (as defined in such indenture or other evidence of Debt) obligating the Borrower to
repurchase, redeem or repay all or any part of the Debt or capital stock provided for therein (any
such event, a “Change in Control”).

     (i) Voluntary Bankruptcy Proceeding. The Borrower or any Subsidiary thereof shall (i)
commence a voluntary case under the federal bankruptcy laws (as now or hereafter in effect), (ii)
file a petition seeking to take advantage of any other laws, domestic or foreign, relating to
bankruptcy, insolvency, reorganization, winding up or composition for adjustment of debts, (iii)
consent to or fail to contest in a timely and appropriate manner any petition filed against it in
an involuntary case under such bankruptcy laws or other laws, (iv) apply for or consent to, or fail
to contest in a timely and appropriate

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manner, the appointment of, or the taking of possession by, a receiver, custodian, trustee, or
liquidator of itself or of a substantial part of its property, domestic or foreign, (v) admit in
writing its inability to pay its debts as they become due, (vi) make a general assignment for the
benefit of creditors, or (vii) take any corporate action for the purpose of authorizing any of the
foregoing.

     (j) Involuntary Bankruptcy Proceeding. A case or other proceeding shall be commenced
against the Borrower or any Subsidiary thereof in any court of competent jurisdiction seeking (i)
relief under the federal bankruptcy laws (as now or hereafter in effect) or under any other laws,
domestic or foreign, relating to bankruptcy, insolvency, reorganization, winding up or adjustment
of debts, or (ii) the appointment of a trustee, receiver, custodian, liquidator or the like for the
Borrower or any Subsidiary thereof or for all or any substantial part of their respective assets,
domestic or foreign, and such case or proceeding shall continue without dismissal or stay for a
period of sixty (60) consecutive days, or an order granting the relief requested in such case or
proceeding (including, but not limited to, an order for relief under such federal bankruptcy laws)
shall be entered.

     (k) Failure of Agreements. Any provision of this Agreement or any provision of any
other Loan Document shall for any reason cease to be valid and binding on the Borrower or
Subsidiary party thereto or any such Person shall so state in writing, or any Loan Document shall
for any reason cease to create a valid and perfected first priority Lien on, or security interest
in, any of the collateral purported to be covered thereby, in each case other than in accordance
with the express terms hereof or thereof.

     (l) Termination Event. The occurrence of any of the following events: (i) the
Borrower or any ERISA Affiliate fails to make full payment when due of all amounts which, under the
provisions of any Pension Plan or Section 412 of the Code, the Borrower or any ERISA Affiliate is
required to pay as contributions thereto, (ii) an accumulated funding deficiency in excess of Two
Million Dollars ($2,000,000) occurs or exists, whether or not waived, with respect to any Pension
Plan, (iii) a Termination Event or (iv) the Borrower or any ERISA Affiliate as employers under one
or more Multiemployer Plans makes a complete or partial withdrawal from any such Multiemployer Plan
and the plan sponsor of such Multiemployer Plans notifies such withdrawing employer that such
employer has incurred a withdrawal liability requiring payments in an amount exceeding Two Million
Dollars ($2,000,000).

     (m) Judgment. A judgment or order for the payment of money which causes the aggregate
amount of all such judgments (excluding any portion thereof covered by insurance issued by a
creditworthy company that has admitted liability in respect thereof) to exceed Six Million Dollars
($6,000,000) in any Fiscal Year shall be entered against the Borrower and/or any of its
Subsidiaries by any court and such judgment or order shall continue without discharge or stay or
shall not be bonded for a period of thirty (30) days.

     (n) Settlement. A settlement of any shareholder litigation or shareholder derivative
action shall occur requiring the Borrower and/or any of its Subsidiaries to make an aggregate
payment of money with respect to such shareholder litigation or such shareholder derivative action
(excluding any portion thereof covered by insurance issued by a creditworthy company that has
admitted liability in respect thereof) in excess of Ten Million Dollars ($10,000,000).

     (o) Environmental. Any one or more Environmental Claims shall have been asserted
against the Borrower or any of its Subsidiaries; the Borrower and its Subsidiaries would be
reasonably likely to incur liability as a result thereof; and such liability could be reasonably
expected, individually or in the aggregate, to have a Material Adverse Effect.

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     SECTION 12.2 Remedies. Upon the occurrence of an Event of Default, with the consent of the
Required Lenders, the Administrative Agent may, or upon the request of the Required Lenders, the
Administrative Agent shall, by notice to the Borrower:

     (a) Acceleration; Termination of Facilities. Declare the principal of and interest on
the Loans, the Notes and the Reimbursement Obligations at the time outstanding, and all other
amounts owed to the Lenders and to the Administrative Agent under this Agreement or any of the
other Loan Documents (including, without limitation, all L/C Obligations, whether or not the
beneficiaries of the then outstanding Letters of Credit shall have presented or shall be entitled
to present the documents required thereunder) and all other Obligations (other than Hedging
Obligations), to be forthwith due and payable, whereupon the same shall immediately become due and
payable without presentment, demand, protest or other notice of any kind, all of which are
expressly waived, anything in this Agreement or the other Loan Documents to the contrary
notwithstanding, and terminate the Credit Facility and any right of the Borrower to request
borrowings or Letters of Credit thereunder; provided that upon the occurrence of an Event
of Default specified in Section 12.1(i) or (j), the Credit Facility shall be automatically
terminated and all Obligations (other than Hedging Obligations) shall automatically become due and
payable without presentment, demand, protest or other notice of any kind, all of which are
expressly waived, anything in this Agreement or in any other Loan Document to the contrary
notwithstanding.

     (b) Letters of Credit. With respect to all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of an acceleration pursuant to the
preceding paragraph, the Borrower shall at such time deposit in a cash collateral account opened by
the Administrative Agent an amount equal to the aggregate then undrawn and unexpired amount of such
Letters of Credit (which such cash collateral shall be deposited in Dollars); provided that
with respect to any Alternative Currency Letter of Credit, the amount required to be deposited
pursuant to this Section 12.2(b) shall be equal to one hundred and five percent (105%) of the
equivalent amount in Dollars of the aggregate then undrawn and unexpired amount of such Alternative
Currency Letter of Credit as determined by the Administrative Agent on the day of acceleration;
provided further, that if at anytime the Administrative Agent determines that the
amount deposited pursuant to this Section 12.2(b) with respect to any such Alternative Currency
Letter of Credit is less than one hundred and three percent (103%) of the equivalent amount in
Dollars of the undrawn and unexpired amount of such Alternative Currency Letter of Credit, the
Borrower shall immediately upon demand by the Administrative Agent deposit additional amounts (in
Dollars) in the cash collateral account sufficient to cause the aggregate amount of cash collateral
deposited pursuant to this Section 12.2(b) with respect to such Alternative Currency Letter of
Credit to be at least equal to one hundred and five percent (105%) of the equivalent amount in
Dollars of the aggregate then undrawn and unexpired amount of such Alternative Currency Letter of
Credit as determined by the Administrative Agent on the date of such demand. Amounts held in such
cash collateral account shall be applied by the Administrative Agent to the payment of drafts drawn
under such Letters of Credit, and the unused portion thereof after all such Letters of Credit shall
have expired or been fully drawn upon, if any, shall be applied to repay the other Obligations on a
pro rata basis. After all such Letters of Credit shall have expired or been fully drawn upon, the
Reimbursement Obligation shall have been satisfied and all other Obligations shall have been paid
in full, the balance, if any, in such cash collateral account shall be returned to the Borrower.

     (c) Rights of Collection. Exercise on behalf of the Lenders all of its other rights
and remedies under this Agreement, the other Loan Documents and Applicable Law, in order to satisfy
all of the Borrower’s Obligations.

     SECTION 12.3 Rights and Remedies Cumulative; Non-Waiver; etc. The enumeration of the
rights and remedies of the Administrative Agent and the Lenders set forth in this Agreement is not
intended to be exhaustive and the exercise by the Administrative Agent and the Lenders of any right
or

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remedy shall not preclude the exercise of any other rights or remedies, all of which shall be
cumulative, and shall be in addition to any other right or remedy given hereunder or under the
other Loan Documents or that may now or hereafter exist at law or in equity or by suit or
otherwise. No delay or failure to take action on the part of the Administrative Agent or any
Lender in exercising any right, power or privilege shall operate as a waiver thereof, nor shall any
single or partial exercise of any such right, power or privilege preclude any other or further
exercise thereof or the exercise of any other right, power or privilege or shall be construed to be
a waiver of any Event of Default. No course of dealing between the Borrower, the Administrative
Agent and the Lenders or their respective agents or employees shall be effective to change, modify
or discharge any provision of this Agreement or any of the other Loan Documents or to constitute a
waiver of any Event of Default.

     SECTION 12.4 Judgment Currency. The obligation of the Borrower to make payments of any
amounts payable hereunder or pursuant to any other Loan Document in the currency specified for such
payment shall not be discharged or satisfied by any tender, or any recovery pursuant to any
judgment, which is expressed in or converted into any other currency, except to the extent that
such tender or recovery shall result in the actual receipt by each of the Administrative Agent and
Lenders of the full amount of the particular Permitted Currency expressed to be payable pursuant to
the applicable Loan Document. The Administrative Agent shall, using all amounts obtained or
received from the Borrower pursuant to any such tender or recovery in payment of principal of and
interest on the Obligations, promptly purchase the applicable currency at the most favorable spot
exchange rate determined by the Administrative Agent to be available to it. The obligation of the
Borrower to make payments in the applicable currency shall be enforceable as an alternative or
additional cause of action solely for the purpose of recovering in the applicable currency the
amount, if any, by which such actual receipt shall fall short of the full amount of the currency
expressed to be payable pursuant to the applicable Loan Document.

ARTICLE XIII

THE ADMINISTRATIVE AGENT 

     SECTION 13.1 Appointment. Each of the Lenders hereby irrevocably designates and appoints
BNP Paribas as Administrative Agent of such Lender under this Agreement and the other Loan
Documents for the term hereof and each such Lender irrevocably authorizes BNP Paribas, as
Administrative Agent for such Lender, to take such action on its behalf under the provisions of
this Agreement and the other Loan Documents and to exercise such powers and perform such duties as
are expressly delegated to the Administrative Agent by the terms of this Agreement and such other
Loan Documents, together with such other powers as are reasonably incidental thereto. The
Administrative Agent agrees to act as such contractual representative upon the express conditions
contained in this Article XIII. Notwithstanding any provision to the contrary elsewhere in this
Agreement or such other Loan Documents, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein and therein, or any fiduciary
relationship with any Lender, and no implied covenants, functions, responsibilities, duties,
obligations or liabilities shall be read into this Agreement or the other Loan Documents or
otherwise exist against the Administrative Agent. Any reference to the Administrative Agent in
this Article XIII shall be deemed to refer to the Administrative Agent solely in its capacity as
Administrative Agent and not in its capacity as a Lender.

     SECTION 13.2 Delegation of Duties. The Administrative Agent may execute any of its duties
under this Agreement and the other Loan Documents by or through agents or attorneys-in-fact and
shall be entitled to advice of counsel concerning all matters pertaining to such duties. The
Administrative Agent shall not be responsible for the negligence or misconduct of any agents or
attorneys-in-fact selected by the Administrative Agent with reasonable care.

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     SECTION 13.3 Exculpatory Provisions. Neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact, Subsidiaries or Affiliates shall be (a)
liable for any action lawfully taken or omitted to be taken by it or such Person under or in
connection with this Agreement or the other Loan Documents (except for actions occasioned solely by
its or such Person’s own gross negligence or willful misconduct), or (b) responsible in any manner
to any of the Lenders for any recitals, statements, representations or warranties made by the
Borrower or any of its Subsidiaries or any officer thereof contained in this Agreement or the other
Loan Documents or in any certificate, report, statement or other document referred to or provided
for in, or received by the Administrative Agent under or in connection with, this Agreement or the
other Loan Documents or for the value, validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or the other Loan Documents or for any failure of the Borrower or any
of its Subsidiaries to perform its obligations hereunder or thereunder. The Administrative Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this Agreement, or to inspect
the properties, books or records of the Borrower or any of its Subsidiaries.

     SECTION 13.4 Reliance by the Administrative Agent. The Administrative Agent shall be
entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution,
notice, consent, certificate, affidavit, letter, cablegram, telegram, telecopy, telex or teletype
message, statement, order or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons and upon advice and
statements of legal counsel (including, without limitation, counsel to the Borrower), independent
accountants and other experts selected by it. The Administrative Agent may deem and treat the
payee of any Note as the owner thereof for all purposes unless such Note shall have been
transferred in accordance with Section 14.10. The Administrative Agent shall be fully justified in
failing or refusing to take any action under this Agreement and the other Loan Documents unless it
shall first receive such advice or concurrence of the Required Lenders (or, when expressly required
hereby or by the relevant other Loan Documents, all the Lenders) as it deems appropriate or it
shall first be indemnified to its satisfaction by the Lenders against any and all liability and
expense which may be incurred by it by reason of taking or continuing to take any such action
except for its own gross negligence or willful misconduct. The Administrative Agent shall in all
cases be fully protected in acting, or in refraining from acting, under this Agreement and the
Notes in accordance with a request of the Required Lenders (or, when expressly required hereby, all
the Lenders), and such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Notes.

     SECTION 13.5 Notice of Default. The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Default or Event of Default (except with respect to
defaults in the payment of principal, interest and fees required to be paid to the Administrative
Agent for the account of the Lenders) unless it has received notice from a Lender or the Borrower
referring to this Agreement, describing such Default or Event of Default and stating that such
notice is a “notice of default”. In the event that the Administrative Agent receives such a
notice, it shall promptly give notice thereof to the Lenders. The Administrative Agent shall take
such action with respect to such Default or Event of Default as shall be reasonably directed by the
Required Lenders (or, when expressly required hereby, all the Lenders); provided that
unless and until the Administrative Agent shall have received such directions, the Administrative
Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default or Event of Default as it shall deem advisable in the best interests
of the Lenders, except to the extent that other provisions of this Agreement expressly require that
any such action be taken or not be taken only with the consent and authorization or the request of
the Lenders or Required Lenders, as applicable.

     SECTION 13.6 Non-Reliance on the Administrative Agent and Other Lenders. Each Lender
expressly acknowledges that neither the Administrative Agent nor any of its respective officers,
directors,

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employees, agents, attorneys-in-fact, Subsidiaries or Affiliates has made any representations or
warranties to it and that no act by the Administrative Agent hereafter taken, including any review
of the affairs of the Borrower or any of its Subsidiaries, shall be deemed to constitute any
representation or warranty by the Administrative Agent to any Lender. Each Lender represents to
the Administrative Agent that it has, independently and without reliance upon the Administrative
Agent or any other Lender, and based on such documents and information as it has deemed
appropriate, made its own appraisal of and investigation into the business, operations, property,
financial and other condition and creditworthiness of the Borrower and its Subsidiaries and made
its own decision to make its Loans and issue or participate in Letters of Credit hereunder and
enter into this Agreement. Each Lender also represents that it will, independently and without
reliance upon the Administrative Agent or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit analysis,
appraisals and decisions in taking or not taking action under this Agreement and the other Loan
Documents, and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and creditworthiness of the Borrower
and its Subsidiaries. Except for notices, reports and other documents expressly required to be
furnished to the Lenders by the Administrative Agent hereunder or by the other Loan Documents, the
Administrative Agent shall not have any duty or responsibility to provide any Lender with any
credit or other information concerning the business, operations, property, financial and other
condition or creditworthiness of the Borrower or any of its Subsidiaries which may come into the
possession of the Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact, Subsidiaries or Affiliates.

     SECTION 13.7 Indemnification. The Lenders agree to indemnify the Administrative Agent in
its capacity as such and (to the extent not reimbursed by the Borrower and without limiting the
obligation of the Borrower to do so), ratably according to the respective amounts of their
Revolving Credit Commitment Percentages or Term Loan Percentages, as applicable, from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind whatsoever which may at any time (including, without
limitation, at any time following the payment of the Notes or any Reimbursement Obligation) be
imposed on, incurred by or asserted against the Administrative Agent in any way relating to or
arising out of this Agreement or the other Loan Documents, or any documents, reports or other
information provided to the Administrative Agent or any Lender or contemplated by or referred to
herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted
by the Administrative Agent under or in connection with any of the foregoing; provided that
no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting solely
from the Administrative Agent’s bad faith, gross negligence or willful misconduct. The agreements
in this Section 13.7 shall survive the payment of the Notes, any Reimbursement Obligation and all
other amounts payable hereunder and the termination of this Agreement.

     SECTION 13.8 The Administrative Agent in its Individual Capacity. The Administrative Agent
and its Subsidiaries and Affiliates may make loans to, accept deposits from and generally engage in
any kind of business with the Borrower as though the Administrative Agent was not the
Administrative Agent hereunder. With respect to any Loans made or renewed by it and any Note
issued to it and with respect to any Letter of Credit issued by it or participated in by it, the
Administrative Agent shall have the same rights and powers under this Agreement and the other Loan
Documents as any Lender and may exercise the same as though it were not the Administrative Agent,
and the terms “Lender” and “Lenders” shall include the Administrative Agent in its individual
capacity.

     SECTION 13.9 Resignation of the Administrative Agent; Successor Administrative Agent.
Subject to the appointment and acceptance of a successor as provided below, the Administrative
Agent may resign at any time by giving notice thereof to the Lenders and the Borrower. Upon any
such

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resignation, the Required Lenders shall have the right to appoint a successor Administrative Agent,
which successor shall have minimum capital and surplus of at least Five Hundred Million Dollars
($500,000,000). If no successor Administrative Agent shall have been so appointed by the Required
Lenders and shall have accepted such appointment within thirty (30) days after the Administrative
Agent’s giving of notice of resignation, then the Administrative Agent may, on behalf of the
Lenders, appoint a successor Administrative Agent, which successor shall have minimum capital and
surplus of at least Five Hundred Million Dollars ($500,000,000). Upon the acceptance of any
appointment as Administrative Agent hereunder by a successor Administrative Agent, such successor
Administrative Agent shall thereupon succeed to and become vested with all rights, powers,
privileges and duties of the retiring Administrative Agent, and the retiring Administrative Agent
shall be discharged from its duties and obligations hereunder. After any retiring Administrative
Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 13.9 shall
continue in effect for its benefit in respect of any actions taken or omitted to be taken by it
while it was acting as Administrative Agent.

ARTICLE XIV

MISCELLANEOUS

     SECTION 14.1 Notices.

     (a) Method of Communication. Except as otherwise provided in this Agreement, all
notices and communications hereunder shall be in writing (for purposes hereof, the term “writing”
shall include information in electronic format such as electronic mail and internet web pages), or
by telephone subsequently confirmed in writing. Any notice shall be effective if delivered by hand
delivery or sent via electronic mail, posting on an internet web page, telecopy, recognized
overnight courier service or certified mail, return receipt requested, and shall be presumed to be
received by a party hereto (i) on the date of delivery if delivered by hand or sent by electronic
mail, posting on an internet web page (provided that the recipients of such notice have
been made specifically aware of the posting of such notice by any other method permitted by this
Section 14.1(a)), or telecopy, (ii) on the next Business Day if sent by recognized overnight
courier service and (iii) on the third Business Day following the date sent by certified mail,
return receipt requested. Notwithstanding the foregoing, notices to any Lender under any of
Articles II, III and IV may not be made in electronic format such as electronic mail and internet
web pages if such Lender has notified the Administrative Agent that it is incapable of receiving
such notices in such format. A telephonic notice to the Administrative Agent as understood by the
Administrative Agent will be deemed to be the controlling and proper notice in the event of a
discrepancy with or failure to receive a confirming written notice.

     (b) Addresses for Notices. Notices to any party shall be sent to it at the following
addresses, or any other address as to which all the other parties are notified in writing.

	 	 	 
	If to the Borrower:
	 	The GEO Group, Inc.

	 	 	One Park Place

	 	 	621 NW 53rd Street

	 	 	Suite 700

	 	 	Boca Raton, Florida 33487

	 	 	Attention: John O’Rourke

	 	 	Telephone No.: 561-999-7401

	 	 	Telecopy No.: 561-999-7742

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	With copies to:
	 	Akerman Senterfitt

	 	 	One Southeast Third Avenue

	 	 	28th Floor

	 	 	Miami, Florida 33131-1714

	 	 	Attention: Stephen K. Roddenberry, Esq. and Jose Gordo, Esq.

	 	 	Telephone No.: 305-374-5600

	 	 	Telecopy No.: 305-374-5095

	 
	 	 

	And
	 	The GEO Group, Inc.

	 	 	One Park Place

	 	 	621 NW 53rd Street

	 	 	Suite 700

	 	 	Boca Raton, Florida 33487

	 	 	Attention: John Bulfin, General Counsel

	 	 	Telephone No.: 591-622-5656

	 	 	Telecopy No.: 561-691-6777

	 
	 	 

	If to BNP Paribas as

Administrative Agent:
	 	in the case of any Notice of Borrowing, Notice of
Continuation/Conversion, Notice or Prepayment or other routine
administrative notice, to:

	 
	 	 

	 	 	BNP Paribas

	 	 	787 Seventh Avenue

	 	 	New York, New York 10019

	 	 	Attention: James Broadus

	 	 	Telephone No.: 212-471-6630

	 	 	Telecopy No.: 212-471-6603

	 
	 	 

	 	 	in all other cases, to:

	 
	 	 

	 	 	BNP Paribas

	 	 	31st Floor

	 	 	787 Seventh Avenue

	 	 	New York, New York 10019

	 	 	Attention: Shayn March

	 	 	Telephone No.: 212-841-3938

	 	 	Telecopy No.: 212-841-3830

	 
	 	 

	With copies to:
	 	BNP Paribas

	 	 	31st Floor

	 	 	787 Seventh Avenue

	 	 	New York, New York 10019

	 	 	Attention: Duane Helkowski

	 	 	Telephone No.: 212-841-2940

	 	 	Telecopy No.: 212-841-3830

	 
	 	 

	If to any Lender:
	 	To the address referred to on the Register.

     (c) Administrative Agent’s Office. The Administrative Agent hereby designates its
office located at the address set forth above, or any subsequent office which shall have been
specified for such purpose by written notice to the Borrower and Lenders, as the Administrative
Agent’s Office referred to

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herein, to which payments due are to be made and at which Loans will be disbursed and Letters
of Credit issued.

     SECTION 14.2 Expenses; Indemnity. The Borrower will (a) pay all reasonable out-of-pocket
expenses (including, without limitation, all costs of electronic or internet distribution of any
information hereunder) of the Administrative Agent in connection with (i) the preparation,
execution and delivery of this Agreement and each other Loan Document, whenever the same shall be
executed and delivered, including, without limitation, all reasonable out-of-pocket syndication and
due diligence expenses and reasonable fees and disbursements of counsel for the Administrative
Agent and (ii) the preparation, execution and delivery of any waiver, amendment or consent by the
Administrative Agent or the Lenders relating to this Agreement or any other Loan Document,
including, without limitation, reasonable fees and disbursements of counsel for the Administrative
Agent, (b) pay all reasonable out-of-pocket expenses of the Administrative Agent and each Lender
actually incurred in connection with the administration and enforcement of any rights and remedies
of the Administrative Agent and Lenders under the Credit Facility, including, without limitation,
in connection with any workout, restructuring, bankruptcy or other similar proceeding, creating and
perfecting Liens in favor of the Administrative Agent on behalf of Lenders pursuant to any Security
Document, enforcing any Obligations of, or collecting any payments due from, the Borrower or any
Guarantor by reason of an Event of Default (including in connection with the sale of, collection
from, or other realization upon any of the Collateral or the enforcement of the Guaranty
Agreement); consulting with appraisers, accountants, engineers, attorneys and other Persons
concerning the nature, scope or value of any right or remedy of the Administrative Agent or any
Lender hereunder or under any other Loan Document or any factual matters in connection therewith,
which expenses shall include without limitation the reasonable fees and disbursements of such
Persons, and (c) defend, indemnify and hold harmless the Administrative Agent and the Lenders, and
their respective parents, Subsidiaries, Affiliates, employees, agents, trustees, officers and
directors, from and against any losses, penalties, fines, liabilities, settlements, damages, costs
and expenses, suffered by any such Person in connection with any claim (including, without
limitation, any Environmental Claims), investigation, litigation or other proceeding (whether or
not the Administrative Agent or any Lender is a party thereto) and the prosecution and defense
thereof, arising out of or in any way connected with the Loans, this Agreement, any other Loan
Document, or any documents, reports or other information provided to the Administrative Agent or
any Lender or contemplated by or referred to herein or therein or the transactions contemplated
hereby or thereby, including, without limitation, reasonable attorney’s and consultant’s fees,
except to the extent that any of the foregoing directly result from the gross negligence or willful
misconduct of the party seeking indemnification therefor.

     SECTION 14.3 Set-off.

     (a) In addition to any rights now or hereafter granted under Applicable Law and not by way of
limitation of any such rights, upon and after the occurrence of any Event of Default and during the
continuance thereof, the Lenders and any assignee or participant of a Lender in accordance with
Section 14.10 are hereby authorized by the Borrower at any time or from time to time, without
notice to the Borrower or to any other Person, any such notice being hereby expressly waived, to
set off and to appropriate and to apply any and all deposits (general or special, time or demand,
including, but not limited to, indebtedness evidenced by certificates of deposit, whether matured
or unmatured) and any other indebtedness at any time held or owing by the Lenders, or any such
assignee or participant to or for the credit or the account of the Borrower against and on account
of the Obligations irrespective of whether or not (a) the Lenders shall have made any demand under
this Agreement or any of the other Loan Documents or (b) the Administrative Agent shall have
declared any or all of the Obligations to be due and payable as permitted by Section 12.2 and
although such Obligations shall be contingent or unmatured. Notwithstanding the preceding
sentence, each Lender agrees to notify the Borrower and the

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Administrative Agent after any such set-off and application, provided that the failure
to give such notice shall not affect the validity of such set-off and application.

     (b) Any amount to be set-off pursuant to Section 14.3(a) shall be denominated in Dollars and
any amount denominated in an Alternative Currency shall be in an amount equal to the Dollar Amount
of such amount as determined by the Administrative Agent on the day of such proposed set-off.

     (c) Each Lender and any assignee or participant of such Lender in accordance with Section
14.10 are hereby authorized by the Borrower to combine currencies, as deemed necessary by such
Person, in order to effect any set-off pursuant to Section 14.3(a).

     SECTION 14.4 Governing Law. This Agreement, the Notes and the other Loan Documents, unless
otherwise expressly set forth therein, shall be governed by, construed and enforced in accordance
with the laws of the State of New York (including Section 5-1401 and Section 5-1402 of the General
Obligations Law of the State of New York), without regard to the conflicts of law provisions of
such state.

     SECTION 14.5 Jurisdiction and Venue.

     (a) Jurisdiction. The Borrower hereby irrevocably consents to the personal
jurisdiction of the state and federal courts located in New York, New York (and any courts from
which an appeal from any of such courts must or may be taken), in any action, claim or other
proceeding arising out of any dispute in connection with this Agreement, the Notes and the other
Loan Documents, any rights or obligations hereunder or thereunder, or the performance of such
rights and obligations. The Borrower hereby irrevocably consents to the service of a summons and
complaint and other process in any action, claim or proceeding brought by the Administrative Agent
or any Lender in connection with this Agreement, the Notes or the other Loan Documents, any rights
or obligations hereunder or thereunder, or the performance of such rights and obligations, on
behalf of itself or its property, in the manner specified in Section 14.1 (other than by posting on
an internet web page). Nothing in this Section 14.5 shall affect the right of the Administrative
Agent or any Lender to serve legal process in any other manner permitted by Applicable Law or
affect the right of the Administrative Agent or any Lender to bring any action or proceeding
against the Borrower or its properties in the courts of any other jurisdictions.

     (b) Venue. The Borrower hereby irrevocably waives any objection it may have now or in
the future to the laying of venue in the aforesaid jurisdiction in any action, claim or other
proceeding arising out of or in connection with this Agreement, any other Loan Document or the
rights and obligations of the parties hereunder or thereunder. The Borrower irrevocably waives, in
connection with such action, claim or proceeding, any plea or claim that the action, claim or other
proceeding has been brought in an inconvenient forum.

     SECTION 14.6 Waiver of Jury Trial. THE ADMINISTRATIVE AGENT, EACH LENDER AND THE BORROWER
HEREBY IRREVOCABLY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM
OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE, JUDICIAL PROCEEDING, CLAIM OR CONTROVERSY IN
CONNECTION WITH THIS AGREEMENT (“DISPUTES”), THE NOTES OR THE OTHER LOAN DOCUMENTS, ANY RIGHTS OR
OBLIGATIONS HEREUNDER OR THEREUNDER, OR THE PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS.

     SECTION 14.7 Reversal of Payments. To the extent the Borrower makes a payment or payments
to the Administrative Agent for the ratable benefit of the Lenders or the Administrative Agent
receives any payment or proceeds of the collateral which payments or proceeds or any part thereof
are

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subsequently invalidated, declared to be fraudulent or preferential, set aside and/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 repaid, the
Obligations or part 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 the Administrative Agent.

     SECTION 14.8 Injunctive Relief; Punitive Damages.

     (a) The Borrower recognizes that, in the event the Borrower fails to perform, observe or
discharge any of its obligations or liabilities under this Agreement, any remedy of law may prove
to be inadequate relief to the Lenders. Therefore, the Borrower agrees that the Lenders, at the
Lenders’ option, shall be entitled to temporary and permanent injunctive relief in any such case
without the necessity of proving actual damages.

     (b) The Administrative Agent, the Lenders and the Borrower (on behalf of itself and its
Subsidiaries) hereby agree that no such Person shall have a remedy of punitive or exemplary damages
against any other party to a Loan Document and each such Person hereby waives any right or claim to
punitive or exemplary damages that they may now have or may arise in the future in connection with
any Dispute, whether such Dispute is resolved through arbitration or judicially.

     SECTION 14.9 Accounting Matters. Except as otherwise expressly provided herein, all terms
of an accounting or financial nature shall be construed in accordance with GAAP, as in effect from
time to time, provided that, if the Borrower notifies the Administrative Agent that the
Borrower requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such
provision (or if the Administrative Agent notifies the Borrower that the Required Lenders request
an amendment to any provision hereof for such purpose), regardless of whether any such notice is
given before or after such change in GAAP or in the application thereof, then such provision shall
be interpreted on the basis of GAAP as in effect and applied immediately before such change shall
have become effective until such notice shall have been withdrawn or such provision amended in
accordance therewith; provided further that, until four (4) complete Fiscal
Quarters have elapsed after the consummation by the Borrower of the acquisition of any business
(including but not limited to the Acquisition), the calculation of all income statement and cash
flow items shall be determined on a pro forma basis as if such acquisition had taken place
on the first day of the period for which such calculation is made, using reasonable estimates
agreed to by the Administrative Agent and based upon assumptions as to cost savings and synergies
furnished by the Borrower in reasonable detail (provided that adjustments to EBITDA
attributable to such assumptions shall in no event exceed ten percent (10%) of EBITDA (as
calculated before giving effect to such adjustments)).

     SECTION 14.10 Successors and Assigns; Participations.

     (a) Benefit of Agreement. This Agreement shall be binding upon and inure to the
benefit of the Borrower, the Administrative Agent and the Lenders, all future holders of the Notes,
and their respective successors and assigns, except that the Borrower shall not assign or transfer
any of its rights or obligations under this Agreement without the prior written consent of each
Lender.

     (b) Assignment by Lenders. Each Lender may, in the ordinary course of its business
and in accordance with Applicable Law, sell or assign to any Lender, any Affiliate of a Lender or
in the case of the Term Loans any Approved Fund and with the consent of the Borrower (so long as no
Default or Event of Default has occurred and is continuing) and the consent of the Administrative
Agent, which consents shall not be unreasonably withheld or delayed, assign to one or more other
Eligible Assignees (any of the foregoing assignees or purchasers, a “Purchasing Lender”)
all or a portion of its interests, rights and

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obligations under this Agreement and the other Loan Documents (including, without limitation,
all or a portion of the Extensions of Credit at the time owing to it and the Notes held by it);
provided that:

          (i) each such assignment shall be of a constant, and not a varying, percentage of the
Revolving Credit Commitment and/or the Term Loan Commitment, as applicable, of the assigning
Lender’s rights and obligations under this Agreement;

          (ii) if less than all of the assigning Lender’s Revolving Credit Commitment or Term Loan
Commitment, as applicable, is to be assigned, the Commitment so assigned shall not be less than
Five Million Dollars ($5,000,000) with respect to the Revolving Credit Facility and One Million
Dollars ($1,000,000) (or otherwise agreed by the Administrative Agent and Borrower) with respect to
the Term Loan Facility, unless such sale or assignment is made to an existing Lender, to an
Affiliate thereof, or (with respect to any Term Loan) to an Approved Fund, in which case no minimum
amount shall apply;

          (iii) the Purchasing Lender shall have delivered to the Administrative Agent all United States
Internal Revenue Service Forms required pursuant to Section 5.11(e) and all of the parties to each
such assignment shall execute and deliver to the Administrative Agent, for its acceptance and
recording in the Register, an Assignment and Acceptance substantially in the form of Exhibit H
attached hereto (an “Assignment and Acceptance”), together with (to the extent requested by
any Purchasing Lender) any Note or Notes subject to such assignment;

          (iv) no assignment of a Revolving Credit Commitment, or participation in L/C Obligations or
Swingline Loans shall be made without the prior written consent of the Swingline Lender and the
Issuing Lender and (so long as no Default or Event of Default has occurred and is continuing) the
Borrower (which consents shall not be unreasonably withheld or delayed);

          (v) where consent of the Borrower to an assignment to a Purchasing Lender is required
hereunder (including consent to an assignment to an Approved Fund), the Borrower shall be deemed to
have given its consent five (5) Business Days after the date written notice thereof has been
delivered by the assigning Lender (through the Administrative Agent) unless such consent is
expressly refused by the Borrower prior to such fifth Business Day;

          (vi) such assignment shall not, without the consent of the Borrower, require the Borrower to
file a registration statement with the Securities and Exchange Commission or apply to or qualify
the Loans or the Notes under the blue sky laws of any state; and

          (vii) unless otherwise agreed to by the Administrative Agent, the assigning Lender shall pay
to the Administrative Agent an assignment fee of Three Thousand Five Hundred Dollars ($3,500) upon
the execution by such Lender of the Assignment and Acceptance; provided that no such fee
shall be payable upon any assignment by a Lender to an Affiliate thereof; and provided
further that, in any case of contemporaneous assignments by a Lender (including a group of
affiliated Lenders that are funds managed by the same investment advisor) to a single assignee or
more than one fund managed by the same investment advisor (which funds are not then Lenders
hereunder), only a single Three Thousand Five Hundred Dollars ($3,500) fee shall be payable for all
such contemporaneous assignments.

Upon such execution, delivery, acceptance and recording, from and after the effective date
specified in each Assignment and Acceptance, which effective date shall be at least five (5)
Business Days after the execution thereof (unless otherwise agreed to by the Administrative Agent),
(A) the Purchasing Lender thereunder shall be a party hereto and, to the extent provided in such
Assignment and Acceptance, have the rights and obligations of a Lender hereby and (B) the Lender
thereunder shall, to the extent provided in such assignment, be released from its obligations under
this Agreement.

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     (c) Rights and Duties Upon Assignment. By executing and delivering an Assignment and
Acceptance, the assigning Lender thereunder and the Purchasing Lender thereunder confirm to and
agree with each other and the other parties hereto as set forth in such Assignment and Acceptance.

     (d) Register. The Administrative Agent shall maintain a copy of each Assignment and
Acceptance delivered to it and a register for the recordation of the names and addresses of the
Lenders and the amount of the Extensions of Credit with respect to each Lender from time to time
(the “Register”). The entries in the Register shall be conclusive, in the absence of
manifest error, and the Borrower, the Administrative 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.
The Register shall be available for inspection by the Borrower at any reasonable time and from time
to time upon reasonable prior notice. No Lender shall be entitled to inspect or require the
Administrative Agent to furnish to it any information contained in the Register, including without
limitation the identity of any other Lender; provided that the Administrative Agent shall,
at the request of any Lender, furnish to such Lender information (including extracts) from the
Register to the extent necessary to enable such Lender to verify or establish (including as proof
in any legal proceeding) amounts due and owing by the Borrower to such Lender.

     (e) Issuance of New Notes. Upon its receipt of an Assignment and Acceptance executed
by an assigning Lender and a Purchasing Lender together with any Note or Notes (if applicable)
subject to such assignment and (if applicable) the written consent to such assignment, the
Administrative Agent shall, if such Assignment and Acceptance has been completed and is
substantially in the form of Exhibit H:

          (i) accept such Assignment and Acceptance;

          (ii) record the information contained therein in the Register;

          (iii) give prompt notice thereof to the applicable Lenders and the Borrower; and

          (iv) promptly deliver a copy of such Assignment and Acceptance to the Borrower.

Within five (5) Business Days after receipt of notice, the Borrower shall execute and deliver to
the Administrative Agent, in exchange for the surrendered Note or Notes, a new Note or Notes to the
order of such Purchasing Lender (to the extent requested thereby) in amounts equal to the Revolving
Credit Commitment and/or Term Loan Commitment assumed by it pursuant to such Assignment and
Acceptance and a new Note or Notes to the order of the assigning Lender (to the extent requested
thereby) in an amount equal to the Revolving Credit Commitment and/or Term Loan Commitment retained
by it hereunder. Such new Note or Notes shall be in an aggregate principal amount equal to the
aggregate principal amount of such surrendered Note or Notes, shall be dated the effective date of
such Assignment and Acceptance and shall otherwise be in substantially the form of the assigned
Notes delivered to the assigning Lender. Each surrendered Note or Notes shall be canceled and
returned to the Borrower. Notwithstanding anything in this Agreement to the contrary, any Lender
which has not been issued a Note or Notes hereunder may at any time deliver a written request for a
Note or Notes to the Administrative Agent and the Borrower. Within five (5) Business Days after
receipt of notice, the Borrower shall execute and deliver to the Administrative Agent, a Note or
Notes (as applicable) to the order of such Lender in amounts equal to the Revolving Credit
Commitment and/or Term Loan Commitment of such Lender. Upon receipt thereby, the Administrative
Agent shall promptly deliver such Note or Notes to such Lender.

     (f) Participations. Each Lender may, without notice to or the consent of the Borrower
or the Administrative Agent, in the ordinary course of its commercial banking business and in
accordance with

88

 

Applicable Law, sell participations to one or more banks or other entities (any such bank or
other entity, a “Participant”) in all or a portion of its rights and obligations under this
Agreement (including, without limitation, all or a portion of its Extensions of Credit and the
Notes held by it); provided that:

          (i) each such participation shall be in an amount not less than Five Million Dollars
($5,000,000) with respect to the Revolving Credit Facility and One Million Dollars ($1,000,000)
with respect to the Term Loan Facility;

          (ii) such Lender’s obligations under this Agreement (including, without limitation, its
Revolving Credit Commitment and/or Term Loan Commitment, as applicable) shall remain unchanged;

          (iii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations;

          (iv) such Lender shall remain the holder of the Notes held by it for all purposes of this
Agreement;

          (v) the Borrower, the Administrative 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;

          (vi) such Lender shall not permit such Participant the right to approve any waivers,
amendments or other modifications to this Agreement or any other Loan Document other than waivers,
amendments or modifications which would reduce the principal of or the interest rate on any Loan or
Reimbursement Obligation, extend the term or increase the amount of the Revolving Credit Commitment
and/or Term Loan Commitment of such Lender, reduce the amount of any fees to which such Participant
is entitled, extend any scheduled payment date for principal of any Loan or, except as expressly
contemplated hereby or thereby, release substantially all of the Collateral; and

          (vii) any such disposition shall not, without the consent of the Borrower, require the
Borrower to file a registration statement with the Securities and Exchange Commission to apply to
qualify the Loans or the Notes under the blue sky law of any state.

     The Borrower agrees that each Participant shall be entitled to the benefits of Section 5.7,
Section 5.8, Section 5.9, Section 5.10, Section 5.11 and Section 14.3 to the same extent as if it
were a Lender and had acquired its interest by assignment pursuant to paragraph (b) of this Section
14.10; provided that a Participant shall not be entitled to receive any greater payment
under Section 5.7, Section 5.8, Section 5.9, Section 5.10, and Section 5.11 than the applicable
Lender would have been entitled to receive with respect to the participation sold to such
Participant, unless the sale of the participation to such Participant is made with the Borrower’s
prior written consent and, with respect to any payment under Section 5.11, such Participant shall
have delivered to the Administrative Agent all United States Internal Revenue Service Forms
required pursuant to Section 5.11(e).

     (g) Disclosure of Information; Confidentiality. The Administrative Agent and the
Lenders shall hold all non-public information with respect to the Borrower obtained pursuant to the
Loan Documents (or any Hedging Agreement with a Lender or the Administrative Agent) in accordance
with their customary procedures for handling confidential information; provided that the
Administrative Agent may disclose information relating to this Agreement to Gold Sheets and
other similar bank trade publications, such information to consist of deal terms and other
information customarily found in such publications and provided further, that the
Administrative Agent or any Lender may disclose any such

89

 

information to the extent such disclosure is (i) required by law or requested or required
pursuant to any legal process, (ii) requested by, or required to be disclosed to, any rating
agency, or regulatory or similar authority (including, without limitation, the National Association
of Insurance Commissioners) or (iii) used in any suit, action or proceeding for the purpose of
defending itself, reducing its liability or protecting any of its claims, rights, remedies or
interests under or in connection with the Loan Documents (or any Hedging Agreement with a Lender or
the Administrative Agent). Any Lender may, in connection with any assignment, proposed assignment,
participation or proposed participation pursuant to this Section 14.10, disclose to the Purchasing
Lender, proposed Purchasing Lender, Participant, proposed Participant, or to any pledge referred to
in Section 14.10(h), or to any direct or indirect contractual counterparty in swap agreements or
such contractual counterparty’s professional advisor any information relating to the Borrower
furnished to such Lender by or on behalf of the Borrower; provided that prior to any such
disclosure, each such Purchasing Lender, proposed Purchasing Lender, Participant or proposed
Participant, pledge, contractual counterparty or professional advisor shall agree to be bound by
the provisions of this Section 14.10(g). Notwithstanding any other provision in this Agreement,
each of the parties hereto (and each employee, representative or other agent of any such party) may
disclose to any and all Persons, without limitation of any kind, the U.S. tax treatment and U.S.
tax structure of the transaction contemplated hereby and all materials of any kind (including
opinions of other tax analyses) that are provided to such party relating to such U.S. tax treatment
and U.S. tax structure, other than any information for which nondisclosure is reasonably necessary
in order to comply with applicable securities laws.

     (h) Certain Pledges or Assignments. Any Lender may, without the consent of the
Borrower or the Administrative Agent, at any time pledge or assign a security interest in all or
any portion of its rights under this Agreement or any other Loan Document to secure obligations of
such Lender, including without limitation any pledge or assignment to secure obligations to a
Federal Reserve Bank; provided that no such pledge or assignment of a security interest
shall release a Lender from any of its obligations hereunder or substitute such pledgee or assignee
for such Lender as a party hereto. In the case of any Lender that is a fund that invests in bank
loans, such Lender may, without the consent of the Borrower or Administrative Agent, assign or
pledge all or any portion of its rights under this Agreement, including the Loans and Notes or any
other instrument evidencing its rights as a Lender under this Agreement, to any holder or, trustee
for, or any other representative of holders of, obligations owed or securities issued, by such
fund, as security for such obligations or securities; provided that any foreclosure or
similar action by such trustee or representative shall be subject to the provisions of Section
14.10(b) concerning assignments.

     SECTION 14.11 Amendments, Waivers and Consents. Except as set forth below or as
specifically provided in Section 14.22 or in any Loan Document, any term, covenant, agreement or
condition of this Agreement or any of the other Loan Documents may be amended or waived by the
Lenders, and any consent given by the Lenders, if, but only if, such amendment, waiver or consent
is in writing signed by the Required Lenders (or by the Administrative Agent with the consent of
the Required Lenders) and delivered to the Administrative Agent and, in the case of an amendment,
signed by the Borrower; provided that no amendment, waiver or consent shall (a) increase or
extend the Revolving Credit Commitment or Term Loan Commitment of any Lender or increase the amount
of the Loans without the prior written consent of each Lender affected thereby, (b) reduce the rate
of interest or amount of fees payable on any Loan or Reimbursement Obligation without the prior
written consent of each Lender affected thereby, (c) reduce or forgive the principal amount of any
Loan or Reimbursement Obligation without the prior written consent of each Lender affected thereby,
(d) extend the scheduled time or times of payment of the principal of any Loan or Reimbursement
Obligation (including, without limitation, the date of any principal amortization payment set forth
in Section 4.3 or the final maturity date) or the time or times of payment of interest on any Loan
or Reimbursement Obligation or any fee or commission with respect thereto or the duration of any
Interest Period beyond six (6) months without the

90

 

prior written consent of each Lender affected thereby, (e) permit any subordination of the
principal or interest on any Loan or Reimbursement Obligation without the prior written consent of
each Lender, (f) release the Borrower from any of the Obligations (other than Hedging Obligations)
hereunder without the prior written consent of each Lender directly affected thereby, (g) permit
any assignment (other than as specifically permitted or contemplated in this Agreement) of any of
the Borrower’s rights and obligations hereunder without the prior written consent of each Lender,
(h) release any material portion of the Collateral or release any Security Document (other than
disposition of assets permitted pursuant to Section 11.5 and as otherwise specifically permitted or
contemplated in this Agreement or the applicable Security Document) without the prior written
consent of each Lender, (i) release any Guarantor from its obligations under the Guaranty Agreement
without the prior written consent of each Lender, (j) amend the provisions of this Section 14.11 or
the definition of Required Lenders without the prior written consent of each Lender, (k) extend the
time of the obligation of the Lenders holding Revolving Credit Commitments to make or issue or
participate in Letters of Credit, in each case, without the prior written consent of each Lender
holding Revolving Credit Loans or a Revolving Credit Commitment or (l) amend the provisions of
Section 4.6(b) without the prior written consent of each Lender.

In addition, no amendment, waiver or consent to the provisions of (A) Section 4.4(b)(vii) with
respect to the order of application of amounts prepaid, Section 5.4 with respect to the pro
rata treatment of payments to the Lenders, any Section with respect to the pro
rata nature of disbursements from the Lenders, or Section 5.5 with respect to the order of
application of proceeds shall be made without the written consent of each Lender adversely affected
thereby, (B) Article XIII shall be made without the written consent of the Administrative Agent and
(C) Article III shall be made without the written consent of the Issuing Lender.

Notwithstanding anything to the contrary contained in this Agreement, if any Lender does not
consent to any amendment, waiver or consent requested by the Borrower, and such amendment, waiver
or consent is approved by the Required Lenders, then the Borrower may, at its sole expense and
effort, upon notice to such Lender and the Administrative Agent given not more than forty-five (45)
days after such approval, require such Lender to assign and delegate, without recourse and in
accordance with the provisions of Section 14.10(b), all of its interests, rights and obligations
under this Agreement and the other Loan Documents to an assignee that shall assume such obligations
(which assignee may be another Lender, if a Lender accepts such assignment), provided that
such Lender shall have received payment of an amount equal to the outstanding principal amount of
its Loans, accrued interest thereon, accrued fees and all other amounts owing to it hereunder from
the assignee (to the extent of such outstanding principal and accrued interest and fees) or from
the Borrower (in the case of all other amounts).

     SECTION 14.12 Performance of Duties. The Borrower’s obligations under this Agreement and
each of the other Loan Documents shall be performed by the Borrower at its sole cost and expense.

     SECTION 14.13 All Powers Coupled with Interest. All powers of attorney and other
authorizations granted to the Lenders, the Administrative Agent and any Persons designated by the
Administrative Agent or any Lender pursuant to any provisions of this Agreement or any of the other
Loan Documents shall be deemed coupled with an interest and shall be irrevocable so long as any of
the Obligations remain unpaid or unsatisfied, any of the Commitments remain in effect or the Credit
Facility has not been terminated.

     SECTION 14.14 Survival of Indemnities. Notwithstanding any termination of this Agreement,
the indemnities to which the Administrative Agent and the Lenders are entitled under the provisions
of this Article XIV and any other provision of this Agreement and the other Loan Documents shall
continue in full force and effect and shall protect the Administrative Agent and the Lenders
against events arising after such termination as well as before.

91

 

     SECTION 14.15 Titles and Captions. Titles and captions of Articles, Sections and
subsections in, and the table of contents of, this Agreement are for convenience only, and neither
limit nor amplify the provisions of this Agreement.

     SECTION 14.16 Severability of Provisions. Any provision of this Agreement or any other
Loan Document which is prohibited or unenforceable in any jurisdiction shall, as to such
jurisdiction, be ineffective only to the extent of such prohibition or unenforceability without
invalidating the remainder of such provision or the remaining provisions hereof or thereof or
affecting the validity or enforceability of such provision in any other jurisdiction.

     SECTION 14.17 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 shall be binding upon all parties, their successors and assigns, and
all of which taken together shall constitute one and the same agreement. Delivery of an executed
counterpart of a signature page of this Agreement by telecopy or other electronic means shall be as
effective as delivery of a manually executed counterpart of this Agreement.

     SECTION 14.18 Term of Agreement. This Agreement shall remain in effect from the Closing
Date through and including the date upon which all Obligations arising hereunder or under any other
Loan Document shall have been indefeasibly and irrevocably paid and satisfied in full and all
Commitments have been terminated. The Administrative Agent is hereby permitted to release all
Liens on the Collateral in favor of the Administrative Agent, for the ratable benefit of itself and
the Lenders, upon repayment of the outstanding principal of and all accrued interest on the Loans,
payment of all outstanding fees and expenses hereunder and the termination of the Lender’s
Commitments. No termination of this Agreement shall affect the rights and obligations of the
parties hereto arising prior to such termination or in respect of any provision of this Agreement
which survives such termination.

     SECTION 14.19 Advice of Counsel. Each of the parties represents to each other party hereto
that it has discussed this Agreement with its counsel.

     SECTION 14.20 No Strict Construction. The parties hereto have participated jointly in the
negotiation and drafting of this Agreement. In the event an ambiguity or question of intent or
interpretation arises, this Agreement shall be construed as if drafted jointly by the parties
hereto and no presumption or burden of proof shall arise favoring or disfavoring any party by
virtue of the authorship of any provisions of this Agreement.

     SECTION 14.21 Inconsistencies with Other Documents; Independent Effect of Covenants.

     (a) In the event there is a conflict or inconsistency between this Agreement and any other
Loan Document, the terms of this Agreement shall control; provided that any provision of
the Security Documents which imposes additional burdens on the Borrower or its Subsidiaries or
further restricts the rights of the Borrower or its Subsidiaries or gives the Administrative Agent
or Lenders additional rights shall not be deemed to be in conflict or inconsistent with this
Agreement and shall be given full force and effect.

     (b) The Borrower expressly acknowledges and agrees that each covenant contained in Article IX,
X, or XI hereof shall be given independent effect. Accordingly, the Borrower shall not engage in
any transaction or other act otherwise permitted under any covenant contained in Article IX, X, or
XI if, before or after giving effect to such transaction or act, the Borrower shall or would be in
breach of any other covenant contained in Article IX, X, or XI.

92

 

     SECTION 14.22 Increase of Revolving Credit Commitments. Notwithstanding anything to the
contrary contained in this Agreement, the Administrative Agent, the Borrower and one or more
financial institutions (including any existing Lender) may from time to time enter into an
amendment to this Agreement solely for the purpose of adding such financial institution as a Lender
with a Revolving Credit Commitment under this Agreement (or, if such financial institution is
already a Lender, increasing its Revolving Credit Commitment); provided that (a) after
giving effect to such amendment, (i) the aggregate Revolving Credit Commitments of all of the
Lenders (including any new Lender) will not exceed Two Hundred Twenty-Five Million Dollars
($225,000,000) and (ii) the sum of (A) the aggregate amount of increases in the Revolving Credit
Commitments made pursuant to this Section 14.22 plus (B) the aggregate amount of
Incremental Term Loans shall not exceed One Hundred Fifty Million Dollars ($150,000,000), (b) on
the effective date of such amendment the outstanding Revolving Credit Loans will be deemed to be
reallocated among the Lenders (including any new Lender) so that such Revolving Credit Loans are
pro rata to the Revolving Credit Commitments of all of the Lenders after giving
effect to such amendment, and the new Lender (or the existing Lender whose Commitment is being
increased) will pay to the Administrative Agent for the account of the other Lenders such amount as
is necessary to accomplish such result, (c) the Borrower shall simultaneously pay to each existing
Lender any funding losses to be incurred by such lender in connection with the payment to be
received by such Lender pursuant to clause (b) above, (d) on the effective date of such amendment
such financial institution enters into a Lender Addendum accepted and agreed to by the Borrower and
the Administrative Agent with respect to the such Revolving Credit Commitment (or increase in its
Revolving Credit Commitment, as the case may be) and (e) no Lender shall be obligated to enter into
any such amendment or increase its Revolving Credit Commitment. Any such amendment shall be in
form and substance satisfactory to the Administrative Agent who shall promptly provide a copy
thereof to each Lender.

     SECTION 14.23 Incremental Term Loans. In addition to borrowings of the Initial Term Loans
pursuant to Article IV, at any time and from time to time prior to the Term Loan Maturity Date, the
Borrower may request that one or more Persons (which may include any or all of the Lenders) offer
to enter into commitments to make term loans (each such loan being herein called an
“Incremental Term Loan”); provided that (a) no Default would exist after giving pro
forma effect to the borrowing or the intended use of proceeds of such Incremental Term Loan, (b) if
such offer is to be made by any Person that is not already a Lender hereunder, the Administrative
Agent shall have consented (such consent not to be unreasonably withheld or delayed) to such Person
being a Lender hereunder and (c) no Lender shall be obligated to make any such offer or participate
in any Incremental Term Loans. In the event that one or more of such Persons offer, in their sole
discretion, to enter into such commitments, and such Persons and the Borrower agree as to the
amount of such commitments that shall be allocated to the respective Persons making such offers and
the fees (if any) to be payable by the Borrower in connection therewith and the interest rate,
amortization, maturity date and loan call protection to be applicable thereto, the Borrower, such
Persons and the Administrative Agent shall execute and deliver an Incremental Term Loan Addendum
with respect thereto, and such Persons shall become obligated to make Incremental Term Loans under
this Agreement in an amount equal to the amount of their respective Incremental Term Loan
Commitments as specified in such Incremental Term Loan Addendum. The Incremental Term Loans to be
made pursuant to any such Incremental Term Loan Addendum in response to any such request by the
Borrower shall be deemed to be a separate “Series” of Incremental Term Loans for all purposes of
this Agreement.

     Anything herein to the contrary notwithstanding, (a) the minimum aggregate principal amount of
Incremental Term Loan Commitments entered into pursuant to any such request (and, accordingly, the
minimum aggregate principal amount of any Series of Incremental Term Loans) shall be Ten Million
Dollars ($10,000,000), (b) the aggregate principal amount of all Term Loan Commitments shall not
exceed Five Hundred Fifteen Million Dollars ($515,000,000), (c) the sum of (i) the aggregate amount
of increases in the Revolving Credit Commitments made pursuant to Section 14.22 plus (ii)
the aggregate

93

 

amount of all Incremental Term Loans shall not exceed One Hundred Fifty Million Dollars
($150,000,000), (d) the final maturity for the Incremental Term Loans of any Series shall not be
earlier than the Term Loan Maturity Date, (e) the weighted average life to maturity (determined in
a manner satisfactory to the Administrative Agent) of the Incremental Term Loans of any Series at
the time of the making thereof shall not be shorter than the then-remaining weighted average life
to maturity (so determined) of the Initial Term Loans and (f) except for the amortization, maturity
date, interest rate and loan call protection to be applicable thereto, and any fees to be paid in
connection therewith, the Incremental Term Loans of any Series shall have the same terms as the
Initial Term Loans.

     SECTION 14.24 USA PATRIOT Act. Each Lender hereby notifies the Borrower that pursuant to
the requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into law October 26,
2001)), it is required to obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information that will allow
such Lender to identify the Borrower in accordance with said Act.

     SECTION 14.25 Transition Provisions. Notwithstanding anything to the contrary in the
Existing Facility or this Agreement, this Agreement shall constitute an amendment and restatement,
and not a novation, of the Existing Facility and:

     (a) the L/C Participants shall, without any further act by any party, automatically acquire
participations pursuant to Section 3.4 in all letters of credit issued pursuant to the Existing
Facility by the issuing lender thereunder and outstanding on the Closing Date as if such letters of
credit had been issued pursuant to this Agreement (all such letters of credit shall be considered
Letters of Credit for purposes of this Agreement);

     (b) the Existing Swingline Loan shall be paid in full by the Borrower on the Closing Date
pursuant to Sections 2.3 and 4.2 of this Agreement;

     (c) the Existing Revolving Credit Loan, all accrued and unpaid interest thereon, any
associated breakage costs, and all accrued and unpaid commitment fees and letter of credit
commissions owing by the Borrower under the Existing Facility shall be paid in full by the Borrower
on the Closing Date pursuant to Sections 2.3 and 4.2 of this Agreement.

[Signature pages to follow]

94

 

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

	 	 	 	 	 
	 	THE GEO GROUP, INC. (formerly known as Wackenhut

Corrections Corporation),

as Borrower

 	 
	 	By:  	/s/
John G. O’Rourke
 	 
	 	 	Name:  	John G. O’Rourke 	 
	 	 	Title:  	Senior Vice President and Chief Financial Officer 	 
	 
	 	BNP PARIBAS,

as Administrative Agent and Lender

 	 
	 	By:  	/s/
Duane Helkowski
 	 
	 	 	Name:  	Duane Helkowski 	 
	 	 	Title:  	Managing Director 	 
	 
	 	 	 
	 	By:  	
/s/ Tilcia Toledo
 	 
	 	 	Name:  	Tilcia Toledo 	 
	 	 	Title:  	Director 	 
	 

95Exhibit 10.1

                               INDEMNITY AGREEMENT

         THIS INDEMNITY AGREEMENT ("Agreement") is entered into on the 12th day
of January, 2007 between QUEST MINERALS & MINING CORP., a Utah corporation (the
"Company"), and Eugene Chiaramonte, Jr. ("Indemnitee").

                                  R E C I T A L
                                  -------------

         A.       On January 3, 2006, the Company entered into a Loan Agreement
(the "Loan Agreement") with Tarun Mendiratta (the "Lender"), pursuant to which
the Lender agreed to loan up to $300,000.00 to the Company on terms set forth in
the Loan Agreement.

         B.       As a condition of entering into the Loan Agreement, the
Indemnitee delivered a Guarantee (the "Guarantee") to the Lender guaranteeing
repayment of the amounts loaned under the Loan Agreement.

         C.       As a further condition of entering into the Loan Agreement,
the Indemnitee pledged 2,000,000 shares of common stock of the Company currently
owned by Indemnitee (the "Shares") to the Lender as collateral for the amounts
loaned under the Loan Agreement, all pursuant to a Stock Pledge Agreement (the
"Pledge Agreement").

         D.       On April 3, 2006, the Company defaulted under the Loan
Agreement and the Lender foreclosed on the Shares pursuant to the Pledge
Agreement. On the date of the foreclosure, the Shares had a market value of
approximately $260,000.

         E.       The Indemnitee delivered the Guarantee and pledged the Shares
in the course and scope of his employment with the Company, as a director for
the Company, and for the benefit of the Company. The Indemnitee's conduct was in
good faith, and he reasonably believed that his conduct was in, or not opposed
to, the corporation's best interests;

         F.       The Company wishes to provide for indemnification of the
Indemnitee upon the terms and conditions set forth below.

                                A G R E E M E N T
                                -----------------

         It is agreed as follows:

         1.       The Company agrees to indemnify Indemnitee and to hold
Indemnitee harmless with respect to the foreclosure on the Shares and the
Indemnitee's personal loss therefrom in the amount of $260,000 (the "Loss").

         2.       In lieu of indemnification in the form of a cash payment for
the Loss, the Company agrees to issue, and the Indemnitee agrees to accept as
payment of indemnification for the Loss, 260,000 shares of the Company's Series
C Convertible Preferred Stock (the "Preferred Shares").
<PAGE>

         3.       Notwithstanding anything contained herein to the contrary, the
parties hereby agree and stipulate as follows:

                  (a)      The issuance of the Preferred Shares (the
"Indemnification Payment") is not indemnification for any loss, cost or expense
of Indemnitee resulting from his willful or negligent violation of Section 16(b)
of the Securities Exchange Act of 1934 or the Foreign Corrupt Practices Act of
1977.

                  (b)      The Indemnification Payment is not indemnification
for any loss, cost or expense of Indemnitee as the direct result of a final
judgment for money damages payable to the Company or any affiliate for or on
account of loss, cost or expense directly or indirectly resulting form the
Indemnitee's negligence or misconduct within the meaning of the Utah Business
Corporation Act.

                  (c)      The Indemnification Payment is not indemnification
for any advances which may have been made of, expenses of investigation, defense
or appeal of any matter the judgment of which is excluded under subsection 4(b)
next above.

                  (d)      The Indemnification Payment is not indemnification
for any liability arising under the Securities Act of 1933 (the "Securities
Act").

         4.       Nothing contained herein shall be deemed to diminish or
otherwise restrict the Indemnitee's right to indemnification under any provision
of the articles of incorporation or bylaws of the Company, under Utah law, or
under any other agreement between the Indemnity and the Company.

         5.       This Agreement shall be governed by and construed in
accordance with the laws of the State of Utah.

         6.       This Agreement shall be binding upon all successors and
assigns of the Company (including any transferee of all or substantially all of
its assets and any successor by merger or operation of law) and shall inure to
the benefit of the heirs, personal representatives and estate of Indemnitee.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       2
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and signed as of the day and year first above written.

                                               "COMPANY"

                                               QUEST MINERALS & MINING CORP.,
                                               a Utah corporation

                                               /s/ EUGENE CHIARAMONTE, JR.
                                               ---------------------------------
                                               Eugene Chiaramonte, Jr.,
                                               Chief Executive Officer

                                               "INDEMNITEE"

                                               /s/ EUGENE CHIARAMONTE, JR.
                                               ---------------------------------
                                               Eugene Chiaramonte, Jr.

                                       3

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