Document:

exv10w1

 

Exhibit 10.1

 

CREDIT AGREEMENT

dated as of

October 18,
2006 

among

MGI PHARMA, INC.,

as a Borrower

MGI GP, INC.,

as a Borrower

MGI OM, INC.,

as a Borrower

The Other Loan Parties

The Lenders Party Hereto

and

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, Sole Bookrunner and Sole Lead Arranger

 

CHASE BUSINESS CREDIT

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	 	 
	 
	 	 	 	 
	 
	 	 	1	 
	Section 1.01 Defined Terms.
	 	 	 1	 
	Section 1.02 Classification of Loans and Borrowings.
	 	 	24	 
	Section 1.03 Terms Generally.
	 	 	24	 
	Section 1.04 Accounting Terms; GAAP.
	 	 	25	 
	 
	 	 	 	 
	ARTICLE II THE CREDITS
	 	 	25	 
	 
	 	 	 	 
	Section 2.01 Commitments.
	 	 	25	 
	Section 2.02 Loans and Borrowings.
	 	 	25	 
	Section 2.03 Requests for Revolving Borrowings.
	 	 	26	 
	Section 2.04 Protective Advances.
	 	 	26	 
	Section 2.05 Swingline Loans and Overadvances.
	 	 	27	 
	Section 2.06 Letters of Credit.
	 	 	29	 
	Section 2.07 Funding of Borrowings.
	 	 	33	 
	Section 2.08 Interest Elections.
	 	 	33	 
	Section 2.09 Termination, Reduction and Increase of Commitments.
	 	 	34	 
	Section 2.10 Repayment of Loans; Evidence of Debt.
	 	 	36	 
	Section 2.11 Prepayment of Loans.
	 	 	37	 
	Section 2.12 Fees.
	 	 	37	 
	Section 2.13 Interest.
	 	 	38	 
	Section 2.14 Alternate Rate of Interest.
	 	 	39	 
	Section 2.15 Increased Costs.
	 	 	39	 
	Section 2.16 Break Funding Payments.
	 	 	40	 
	Section 2.17 Taxes.
	 	 	41	 
	Section 2.18 Payments Generally; Allocation of Proceeds; Sharing of Set-offs.
	 	 	42	 
	Section 2.19 Mitigation Obligations; Replacement of Lenders.
	 	 	44	 
	Section 2.20 Returned Payments.
	 	 	45	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	45	 
	 
	 	 	 	 
	Section 3.01 Organization; Powers.
	 	 	45	 
	Section 3.02 Authorization; Enforceability.
	 	 	45	 
	Section 3.03 Governmental Approvals; No Conflicts.
	 	 	46	 
	Section 3.04 Financial Condition; No Material Adverse Change.
	 	 	46	 
	Section 3.05 Properties.
	 	 	46	 
	Section 3.06 Litigation and Environmental Matters.
	 	 	47	 
	Section 3.07 Compliance with Laws and Agreements.
	 	 	47	 
	Section 3.08 Investment Company Status.
	 	 	47	 
	Section 3.09 Taxes.
	 	 	47	 
	Section 3.10 ERISA.
	 	 	48	 
	Section 3.11 Disclosure.
	 	 	48	 
	Section 3.12 Material Agreements.
	 	 	48	 
	Section 3.13 Solvency.
	 	 	48	 
	Section 3.14 Insurance.
	 	 	49	 
	Section 3.15 Capitalization and Subsidiaries.
	 	 	49	 
	Section 3.16 Security Interest in Collateral.
	 	 	49	 
	Section 3.17 Employment Matters.
	 	 	49	 
	Section 3.18 Common Enterprise.
	 	 	49	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS
	 	 	50	 
	 
	 	 	 	 
	Section 4.01 Effective Date.
	 	 	50	 
	Section 4.02 Each Credit Event.
	 	 	52	 

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	 	 	Page
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	53	 
	 
	 	 	 	 
	Section 5.01 Financial Statements; Borrowing Base and Other Information.
	 	 	53	 
	Section 5.02 Notices of Material Events.
	 	 	56	 
	Section 5.03 Existence; Conduct of Business.
	 	 	57	 
	Section 5.04 Payment of Obligations.
	 	 	58	 
	Section 5.05 Maintenance of Properties.
	 	 	58	 
	Section 5.06 Books and Records; Inspection Rights.
	 	 	58	 
	Section 5.07 Compliance with Laws.
	 	 	58	 
	Section 5.08 Use of Proceeds.
	 	 	58	 
	Section 5.09 Insurance.
	 	 	59	 
	Section 5.10 Casualty and Condemnation.
	 	 	59	 
	Section 5.11 Appraisals.
	 	 	59	 
	Section 5.12 Depository Banks.
	 	 	59	 
	Section 5.13 Additional Collateral; Further Assurances.
	 	 	59	 
	 
	 	 	 	 
	ARTICLE VI NEGATIVE COVENANTS
	 	 	60	 
	 
	 	 	 	 
	Section 6.01 Indebtedness.
	 	 	61	 
	Section 6.02 Liens.
	 	 	62	 
	Section 6.03 Fundamental Changes.
	 	 	63	 
	Section 6.04 Investments, Loans, Advances, Guarantees and Acquisitions.
	 	 	64	 
	Section 6.05 Asset Sales.
	 	 	65	 
	Section 6.06 Sale and Leaseback Transactions.
	 	 	66	 
	Section 6.07 Swap Agreements.
	 	 	66	 
	Section 6.08 Restricted Payments; Certain Payments of Indebtedness.
	 	 	66	 
	Section 6.09 Transactions with Affiliates.
	 	 	68	 
	Section 6.10 Restrictive Agreements.
	 	 	68	 
	Section 6.11 Amendment of Material Documents.
	 	 	68	 
	Section 6.12 Financial Covenants.
	 	 	69	 
	 
	 	 	 	 
	ARTICLE VII EVENTS OF DEFAULT
	 	 	69	 
	 
	 	 	 	 
	ARTICLE VIII THE ADMINISTRATIVE AGENT
	 	 	72	 
	 
	 	 	 	 
	ARTICLE IX MISCELLANEOUS
	 	 	74	 
	 
	 	 	 	 
	Section 9.01 Notices.
	 	 	74	 
	Section 9.02 Waivers; Amendments.
	 	 	75	 
	Section 9.03 Expenses; Indemnity; Damage Waiver.
	 	 	77	 
	Section 9.04 Successors and Assigns.
	 	 	79	 
	Section 9.05 Survival.
	 	 	82	 
	Section 9.06 Counterparts; Integration; Effectiveness.
	 	 	82	 
	Section 9.07 Severability.
	 	 	82	 
	Section 9.08 Right of Setoff.
	 	 	83	 
	Section 9.09 Governing Law; Jurisdiction; Consent to Service of Process.
	 	 	83	 
	Section 9.10 WAIVER OF JURY TRIAL.
	 	 	83	 
	Section 9.11 Headings.
	 	 	84	 
	Section 9.12 Confidentiality.
	 	 	84	 
	Section 9.13 Several Obligations; Nonreliance; Violation of Law.
	 	 	85	 
	Section 9.14 USA PATRIOT Act.
	 	 	85	 
	Section 9.15 Disclosure.
	 	 	85	 
	Section 9.16 Appointment for Perfection.
	 	 	85	 
	Section 9.17 Interest Rate Limitation.
	 	 	85	 
	Section 9.18 Maximum Liability of Borrowers.
	 	 	86	 
	Section 9.19 Senior Obligations.
	 	 	86	 

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	 	 	Page
	ARTICLE X LOAN GUARANTY
	 	 	86	 
	 
	 	 	 	 
	Section 10.01 Guaranty.
	 	 	86	 
	Section 10.02 Guaranty of Payment.
	 	 	87	 
	Section 10.03 No Discharge or Diminishment of Loan Guaranty.
	 	 	87	 
	Section 10.04 Defenses Waived.
	 	 	88	 
	Section 10.05 Rights of Subrogation.
	 	 	88	 
	Section 10.06 Reinstatement; Stay of Acceleration.
	 	 	88	 
	Section 10.07 Information.
	 	 	88	 
	Section 10.08 Termination.
	 	 	89	 
	Section 10.09 Taxes.
	 	 	89	 
	Section 10.10 Maximum Liability.
	 	 	89	 
	Section 10.11 Contribution.
	 	 	89	 
	Section 10.12 Liability Cumulative.
	 	 	90	 
	Section 10.13 Borrower Guarantors.
	 	 	90	 
	 
	 	 	 	 
	ARTICLE XI THE BORROWER REPRESENTATIVE
	 	 	90	 
	 
	 	 	 	 
	Section 11.01 Appointment; Nature of Relationship.
	 	 	90	 
	Section 11.02 Powers.
	 	 	91	 
	Section 11.03 Employment of Agents.
	 	 	91	 
	Section 11.04 Notices.
	 	 	91	 
	Section 11.05 Successor Borrower Representative.
	 	 	91	 
	Section 11.06 Execution of Loan Documents; Borrowing Base Certificate.
	 	 	91	 

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	SCHEDULES:
	 	 	 	 
	 
	 	 	 	 
	Commitment Schedule
	 	 	 	 
	Schedule 3.05 — Properties
	 	 	 	 
	Schedule 3.06 — Disclosed Matters
	 	 	 	 
	Schedule 3.12 — Material Agreements
	 	 	 	 
	Schedule 3.14 — Insurance
	 	 	 	 
	Schedule 3.15 —Capitalization and Subsidiaries
	 	 	 	 
	Schedule 5.12 — Exempt Accounts
	 	 	 	 
	Schedule 6.01 — Existing Indebtedness
	 	 	 	 
	Schedule 6.02 — Existing Liens
	 	 	 	 
	Schedule 6.04 — Existing Investments
	 	 	 	 
	Schedule 6.10 — Existing Restrictions
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS:
	 	 	 	 
	 
	 	 	 	 
	Exhibit A — Form of Assignment and Assumption
	 	 	 	 
	Exhibit B — Form of Borrowing Base Certificate
	 	 	 	 
	Exhibit C — Form of Compliance Certificate
	 	 	 	 
	Exhibit D — Joinder Agreement
	 	 	 	 

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          CREDIT AGREEMENT dated as of October 18, 2006 (as it may be amended or modified from time to
time, this “Agreement”), among MGI PHARMA, INC., a Minnesota corporation, MGI GP, INC., a
Delaware corporation, and MGI OM, INC., a Delaware corporation, as Borrowers, the other Loan
Parties party thereto, the Lenders party hereto, and JPMORGAN CHASE BANK, N.A., as Administrative
Agent.

          The parties hereto agree as follows:

ARTICLE I

Definitions

          Section 1.01 Defined Terms.

          As used in this Agreement, the following terms have the meanings specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are bearing interest at a rate determined by reference to
the Alternate Base Rate.

          “Account” has the meaning assigned to such term in the Security Agreement.

          “Account Debtor” means any Person obligated on an Account.

          “Adjusted LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of 1%) equal to
(a) the LIBO Rate for such Interest Period multiplied by (b) the Statutory Reserve Rate.

          “Administrative Agent” means JPMorgan Chase Bank, N.A., in its capacity as
administrative agent for the Lenders hereunder.

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

          “Affiliate” means, with respect to a specified Person, another Person that directly,
or indirectly through one or more intermediaries, Controls or is Controlled by or is under common
Control with the Person specified.

          “Aggregate Credit Exposure” means, at any time, the aggregate Credit Exposure of all
the Lenders.

          “Alternate Base Rate” means, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1%. Any change in the Alternate Base Rate due to a change in the Prime Rate or the
Federal Funds Effective Rate shall be effective from and including the effective date of such
change in the Prime Rate or the Federal Funds Effective Rate, respectively.

          “Applicable Percentage” means, with respect to any Lender, (a) with respect to
Revolving Loans, LC Exposure, Swingline Loans or Overadvances, a percentage equal to a fraction the
numerator of which is such Lender’s Revolving Commitment and the denominator of which is the
aggregate Revolving Commitment of all Revolving Lenders (if the Revolving Commitments have
terminated or expired, the Applicable Percentages shall be determined based upon such Lender’s share of the aggregate
Revolving

 

 

Exposures at that time) and (b) with respect to Protective Advances or with respect to
the Aggregate Credit Exposure, a percentage based upon its share of the Aggregate Credit Exposure
and the unused Commitments.

          “Applicable Rate” means, for any day, with respect to any ABR Loan or Eurodollar
Revolving Loan, or with respect to the commitment fees payable hereunder, as the case may be, the
applicable rate per annum set forth below under the caption “ABR Spread”, “Eurodollar Spread” or
“Commitment Fee Rate”, as the case may be, based upon the Borrowers’ Average Liquidity as of the
most recent determination date, provided that until the delivery to the Administrative
Agent, pursuant to Section 5.01, of the Borrowers’ Compliance Certificate for the Company’s first
full fiscal quarter ending after the Effective Date, the “Applicable Rate” for (a) ABR Loans shall
be 0% and (b) Eurodollar Loans shall be 1.50% and the Commitment Fee Rate shall be 0.125%:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Revolver	 	 
	Average	 	Revolver	 	Eurodollar	 	Commitment
	Liquidity	 	ABR Spread	 	Spread	 	Fee Rate
	Category 1
3 $175,000,000
	 	 	0.00	%	 	 	0.75	%	 	 	0.125	%
	Category 2
< $175,000,000
but
3 $125,000,000
	 	 	0.00	%	 	 	1.25	%	 	 	0.125	%
	Category 3
< $125,000,000
	 	 	0.25	%	 	 	1.75	%	 	 	0.125	%

          For purposes of the foregoing, (a) the Applicable Rate shall be determined as of the end of
each fiscal quarter of the Borrowers based upon the determination of Average Liquidity during such
fiscal quarter of the Borrowers as set forth in the Borrowers’ Compliance Certificate delivered
pursuant to Section 5.01(d) and (b) each change in the Applicable Rate resulting from a change in
the Average Liquidity shall be effective during the period commencing five (5) Business Days after
delivery to the Administrative Agent of such Compliance Certificate indicating such change and
ending on the date immediately preceding the effective date of the next such change;
provided that if the Borrower Representative fails to deliver the Compliance Certificate to
the Administrative Agent at the time required pursuant to Section 5.01, then the Applicable Margin
and fees shall be deemed to be in Category 3 until such Compliance Certificate is delivered.

          “Approved Fund” has the meaning assigned to such term in Section 9.04.

          “Assignment and Assumption” means an assignment and assumption entered into by a
Lender and an assignee (with the consent of any party whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit A or any other form
approved by the Administrative Agent.

          “Availability” means, at any time, an amount equal to (a) the lesser of the aggregate
Revolving Commitments and the Borrowing Base minus (b) the aggregate Revolving Exposure.

          “Availability Period” means the period from and including the Effective Date to but
excluding the earlier of the Maturity Date and the date of termination of the Commitments.

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          “Available Revolving Commitment” means, at any time, the aggregate Revolving
Commitments of all Revolving Lenders then in effect minus the Revolving Exposure of all
Revolving Lenders at such time.

          “Average Liquidity” means, for any period, the average Liquidity of the Borrowers
during such period, calculated by averaging monthly Liquidity during such period, as of the first
and last day of each calendar month during such period.

          “Banking Services” means each and any of the following bank services provided to any
Loan Party by Chase or any of its Affiliates, if any: (a) commercial credit cards, (b) stored
value cards and (c) treasury management services (including, without limitation, controlled
disbursement, automated clearinghouse transactions, return items, overdrafts and interstate
depository network services).

          “Banking Services Obligations” of the Loan Parties means any and all obligations of
the Loan Parties, whether absolute or contingent and howsoever and whensoever created, arising,
evidenced or acquired (including all renewals, extensions and modifications thereof and
substitutions therefor) in connection with Banking Services, if any.

          “Banking Services Reserves” means all Reserves which the Administrative Agent from
time to time establishes in its Permitted Discretion for Banking Services then provided or
outstanding, if any.

          “Board” means the Board of Governors of the Federal Reserve System of the United
States of America or any successor thereto.

          “Borrower” or “Borrowers” means, individually or collectively, the Company,
MGI GP, MGI OM, Inc., a Delaware corporation, and any other Person that becomes a party hereto as a
borrower pursuant to a Joinder Agreement.

          “Borrower Representative” means the Company, in its capacity as contractual
representative of the Borrowers pursuant to Article XI.

          “Borrowing” means (a) Revolving Loans of the same Type, made, converted or continued
on the same date and, in the case of Eurodollar Loans, as to which a single Interest Period is in
effect, (b) a Swingline Loan, and (c) a Protective Advance and (e) an Overadvance.

          “Borrowing Base” means, at any time, the sum of (a) up to 85% of the aggregate face
amount of the Borrowers’ Eligible Accounts (net of the Chargeback Reserve and Core Distribution
Fee) at such time, minus (b) Reserves. The Administrative Agent may, in its Permitted
Discretion and with five (5) Business Days prior written notice, reduce the advance rate set forth
above or adjust Reserves.

          “Borrowing Base Certificate” means a certificate, signed and certified as accurate and
complete by a Financial Officer of the Borrower Representative, in substantially the form of
Exhibit B or another form which is acceptable to the Administrative Agent in its sole
discretion and which shall include a calculation of Liquidity as of the date of such Borrowing Base
Certificate as well as supporting deposit account and securities account statements.

          “Borrowing Request” means a request by the Borrower Representative for a Revolving
Borrowing in accordance with Section 2.03.

-3-

 

          “Business Day” means any day that is not a Saturday, Sunday or other day on which
commercial banks in New York City are authorized or required by law to remain closed;
provided that, when used in connection with a Eurodollar Loan, the term “Business
Day” shall also exclude any day on which banks are not open for dealings in dollar deposits in
the London interbank market.

          “Capital Expenditures” means, without duplication, any expenditure or commitment to
expend money for any purchase or other acquisition of any asset which would be classified as a
fixed or capital asset on a consolidated balance sheet of the Company and its Subsidiaries prepared
in accordance with GAAP.

          “Capital Lease Obligations” of any Person means the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

          “Change in Control” means (a) the acquisition of ownership, directly or indirectly,
beneficially or of record, by any Person or group (within the meaning of the Securities Exchange
Act of 1934 and the rules of the SEC thereunder as in effect on the date hereof), of Equity
Interests representing more than 20% of the aggregate ordinary voting power represented by the
issued and outstanding Equity Interests of the Company; or (b) occupation of a majority of the
seats (other than vacant seats) on the board of directors of the Company by Persons who were
neither (i) nominated by the board of directors of the Company nor (ii) appointed by directors so
nominated; or (c) the Company shall cease to own, directly or indirectly, free and clear of all
Liens or other encumbrances, 100% of the outstanding voting Equity Interests of each of the other
Loan Parties on a fully diluted basis other than pursuant to a Permitted Asset Sale.

          “Change in Law” means (a) the adoption of any law, rule or regulation after the date
of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15(b), by any lending
office of such Lender or by such Lender’s or the Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

          “Chargeback Reserve” means for any date of determination, Borrowers’ projected balance
of unprocessed chargebacks, as determined in a manner consistent with GAAP and subject in each case
to the reasonable satisfaction of the Administrative Agent.

          “Chase” means JPMorgan Chase Bank, N.A., a national banking association, in its
individual capacity, and its successors.

          “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Swingline Loans or Protective Advances
or Overadvances.

          “Code” means the Internal Revenue Code of 1986, as amended from time to time.

          “Collateral” means any and all property owned, leased or operated by a Person party to
the Collateral Documents and any and all other property of any Loan Party, now existing or
hereafter

-4-

 

acquired, that may at any time be or become subject to a security interest or Lien in favor of
the Administrative Agent, on behalf of itself and the Lenders, to secure the Secured Obligations.

          “Collateral Documents” means, collectively, the Security Agreement and any other
documents granting a Lien upon the Collateral as security for payment of the Secured Obligations.

          “Collection Account” has the meaning assigned to such term in the Security Agreement.

          “Commitment” means, with respect to each Lender, the sum of such Lender’s Revolving
Commitment, together with the commitment of such Lender to acquire participations in Protective
Advances hereunder. The initial amount of each Lender’s Commitment is set forth on the
Commitment Schedule, or in the Assignment and Assumption pursuant to which such Lender
shall have assumed its Commitment, as applicable.

          “Commitment Schedule” means the Schedule attached hereto identified as such.

          “Company” means MGI PHARMA, INC., a Minnesota corporation.

          “Company’s Rights Agreement” means that certain Rights Agreement between the Company
and Norwest Bank Minnesota, N.A., dated as of July 14, 1998, as amended on March 14, 2000.

          “Compliance Certificate” has the meaning assigned to such term in Section 5.01(d).

          “Control” means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to
exercise voting power, by contract or otherwise. “Controlling” and “Controlled”
have meanings correlative thereto.

          “Controlled Disbursement Account” means, collectively, certain accounts and any
replacement or additional accounts of the Borrowers, if any, that the Borrowers maintain with the
Administrative Agent as a zero balance, cash management account pursuant to and under any agreement
between a Borrower and the Administrative Agent, as modified and amended from time to time, and
through which all disbursements of a Borrower, any Loan Party and any designated Subsidiary of a
Borrower are made and settled on a daily basis with no uninvested balance remaining overnight.

          “Core Distribution Fee” means for any date of determination, Borrowers’ estimated
amount of the fees owing to certain distributors pursuant to the Borrowers’ payment arrangements
with such distributors, as determined in a manner consistent with GAAP and subject in each case to
the reasonable satisfaction of the Administrative Agent.

          “Credit Exposure” means, as to any Lender at any time, the sum of (a) such Lender’s
Revolving Exposure at such time, plus (b) an amount equal to its Applicable Percentage, if
any, of the aggregate principal amount of Protective Advances outstanding at such time.

          “Default” means any event or condition which upon notice, lapse of time or both would,
unless cured or waived, become an Event of Default.

          “Deposit Account Control Agreement” has the meaning assigned to such term in the
Security Agreement.

          “Disclosed Matters” means the actions, suits and proceedings and the environmental
matters disclosed in Schedule 3.06.

-5-

 

          “Document” has the meaning assigned to such term in the Security Agreement.

          “dollars” or “$” refers to lawful money of the United States of America.

          “Drug Product Candidates” means any and all drug product candidates or other potential
drugs being investigated, evaluated and/or tested by or on behalf of Borrowers or their
Subsidiaries, or any of them, at any time, whether pursuant to a license or other agreement with a
third party or otherwise, irrespective of the proposed or anticipated indications or uses of the
same (or whether such indications or uses may expand or contract), including but not limited to the
following or any other drug product candidates containing one or more of the active ingredients in
the following: SaforisTM Powder for Oral Suspension, Aquavan® injection, Aloxi® Oral
Capsule, Amolimogene (ZYC101a), Irofulven, MG98, ZYC300, GP1 5693, PARP Inhibitors, and other
Acylfulvene Analogs.

          “Drugs” means any and all drugs owned, manufactured, licensed, marketed, sold and/or
distributed by Borrowers or their Subsidiaries, or any of them, at any time, whether pursuant to a
license with a third party or otherwise, irrespective of the proposed or anticipated indications or
uses of the same (or whether such indications or uses may expand or contract), including but not
limited to the following or any drugs containing one or more of the active ingredient in the
following: Aloxi® Injection, Gliadel® Wafer, Salagen Tablets, Hexalen Capsules, and DacogenTM
Injection.

          “EBITDA” means, for any period, Net Income for such period plus (a) without
duplication and to the extent deducted in determining Net Income for such period, the sum of (i)
Interest Expense for such period, (ii) income tax expense for such period net of tax refunds, (iii)
all amounts attributable to depreciation and amortization expense for such period (including
expenses related to Milestone Payments), (iv) any extraordinary charges for such period, (v) any
amounts attributable to in process research and development acquired in connection with a Permitted
Acquisition, (vi) expenses relating to non-cash stock awards or benefit contributions and (vii) any
other non-cash charges for such period (but excluding any non-cash charge in respect of an item
that was included in Net Income in a prior period and any non-cash charge that relates to the
write-down or write-off of inventory), minus (b) without duplication and to the extent
included in Net Income, (i) any cash payments made during such period in respect of non-cash
charges described in clause (a)(v) taken in a prior period and (ii) any extraordinary gains and any
non-cash items of income for such period, all calculated for the Company and its Subsidiaries on a
consolidated basis in accordance with GAAP.

          “EDGAR” means SEC’s Electronic Data Gathering, Analysis and Retrieval System (EDGAR).

          “Effective Date” means the date on which the conditions specified in Section 4.01 are
satisfied (or waived in accordance with Section 9.02).

          “Eligible Accounts” means, at any time, the Accounts of a Borrower which the
Administrative Agent determines in its Permitted Discretion are eligible as the basis for the
extension of Revolving Loans, Swingline Loans and the issuance of Letters of Credit hereunder.
Without limiting the Administrative Agent’s discretion provided herein, Eligible Accounts shall not
include any Account:

     (a) which is not subject to a first priority perfected security interest in favor of
the Administrative Agent;

     (b) which is subject to any Lien other than (i) a Lien in favor of the Administrative
Agent and (ii) a Permitted Encumbrance which does not have priority over the Lien in favor
of the Administrative Agent;

-6-

 

     (c) which is (i) unpaid more than thirty (30) days after the original due date therefor
or (ii) has been written off the books of such Borrower or otherwise designated as
uncollectible;

     (d) which (i) is unpaid more than 180 days after the original invoice date therefor or
(ii) has a due date more than 94 days after the original invoice date therefor; provided
that no more than $2,500,000 of Accounts that have due dates in excess of 94 days after the
original invoice date owing by Account Debtors related to sales of Drugs in connection with
a product launch which would otherwise be Eligible Accounts but for the operation of this
clause (d) shall be deemed Eligible Accounts hereunder;

     (e) which is owing by an Account Debtor for which more than 25% of the Accounts owing
from such Account Debtor and its Affiliates are ineligible hereunder;

     (f) which is owing by an Account Debtor (other than Oncology Supply, Inc., McKesson
Drug OTN d/b/a McKesson Corporation, US Oncology, Inc. or Oncology Therapeutic Network) to
the extent the aggregate amount of Accounts owing from such Account Debtor and its
Affiliates to all Borrowers exceeds 25% of the aggregate amount of Eligible Accounts of all
Borrowers, then all Accounts owned by such Account Debtor in excess of such amount shall be
deemed ineligible;

     (g) with respect to which any covenant, representation, or warranty contained in this
Agreement or in the Security Agreement has been breached in any material respect or is not
true in any material respect;

     (h) which (i) does not arise from the sale of goods or performance of services in the
ordinary course of business, (ii) is not evidenced by an invoice or other documentation
satisfactory to the Administrative Agent which has been sent to the Account Debtor, (iii)
represents a progress billing, (iv) is contingent upon such Borrower’s completion of any
further performance, (v) represents a sale on a bill-and-hold, guaranteed sale,
sale-and-return, sale on approval, consignment, cash-on-delivery or any other repurchase or
return basis or (vi) relates to payments of interest;

     (i) for which the goods giving rise to such Account have not been shipped to the
Account Debtor or for which the services giving rise to such Account have not been performed
by such Borrower or if such Account was invoiced more than once;

     (j) with respect to which any check or other instrument of payment has been returned
uncollected for any reason;

     (k) which is owed by an Account Debtor which has (i) applied for, suffered, or
consented to the appointment of any receiver, custodian, trustee, or liquidator of its
assets, (ii) has had possession of all or a material part of its property taken by any
receiver, custodian, trustee or liquidator, (iii) filed, or had filed against it, any
request or petition for liquidation, reorganization, arrangement, adjustment of debts,
adjudication as bankrupt, winding-up, or voluntary or involuntary case under any State or
Federal bankruptcy laws, (iv) has admitted in writing its inability, or is generally unable
to, pay its debts as they become due, (v) become insolvent, or (vi) ceased operation of its
business;

     (l) which is owed by any Account Debtor which has sold all or a substantially all of
its assets unless the purchaser of such assets has assumed all of the Account Debtor’s
obligations with respect to such Account;

-7-

 

     (m) which is owed by an Account Debtor which (i) does not maintain its chief executive
office in any State or any province of Canada or (ii) is not organized under applicable law
of any State, Canada, or any province of Canada unless, in either case, such Account is
backed by a letter of credit reasonably acceptable to the Administrative Agent which is in
the possession of, has been assigned to and is directly drawable by the Administrative
Agent; provided, however, that (A) no more than $1,000,000 of Accounts owing
by Account Debtors with their chief executive office in Puerto Rico or organized under the
applicable law of Puerto Rico shall be Eligible Accounts at any time and (B) at any time up
to $500,000 of such Accounts which would otherwise be Eligible Accounts but for the
operation of this clause (m) shall be deemed Eligible Accounts hereunder;

     (n) which is owed in any currency other than U.S. dollars;

     (o) which is owed by (i) the government (or any department, agency, public corporation,
or instrumentality thereof) of any country other than the United States of America unless
such Account is backed by a letter of credit reasonably acceptable to the Administrative
Agent which is in the possession of the Administrative Agent, or (ii) the government of the
United States of America, or any department, agency, public corporation, or instrumentality
thereof, unless the Federal Assignment of Claims Act of 1940, as amended (31 U.S.C. § 3727
et seq. and 41 U.S.C. § 15 et seq.), and any other steps
necessary to perfect the Lien of the Administrative Agent in such Account have been complied
with to the Administrative Agent’s reasonable satisfaction;

     (p) which is owed by any Affiliate, employee or officer or director of any Loan Party
or any Subsidiary of any Loan Party;

     (q) which is owed by an Account Debtor or any Affiliate of such Account Debtor to which
any Loan Party or any Subsidiary of any Loan Party is indebted, but only to the extent of
such indebtedness or is subject to any security, deposit, progress payment, retainage or
other similar advance made by or for the benefit of an Account Debtor, in each case to the
extent thereof;

     (r) which is subject to any counterclaim, defense, setoff or dispute but only to the
extent of any such counterclaim, deduction, defense, setoff or dispute;

     (s) which is evidenced by any promissory note, chattel paper, or instrument;

     (t) which is owed by an Account Debtor located in any jurisdiction which requires
filing of a “Notice of Business Activities Report” or other similar report in order to
permit such Borrower to seek judicial enforcement in such jurisdiction of payment of such
Account, unless such Borrower has filed such report or qualified to do business in such
jurisdiction;

     (u) with respect to which such Borrower has made any agreement with the Account Debtor
for any reduction thereof, other than discounts, chargebacks and adjustments given in the
ordinary course of business and only to the extent of such reduction, or any Account which
was partially paid and such Borrower created a new receivable for the unpaid portion of such
Account;

     (v) which does not comply in all material respects with the requirements of all
applicable laws and regulations, whether Federal, State or local, including without
limitation the

-8-

 

Federal Consumer Credit Protection Act, the Federal Truth in Lending Act and Regulation
Z of the Board;

     (w) which is for goods that have been sold under a purchase order or pursuant to the
terms of a contract or other agreement or understanding (written or oral) that indicates or
purports that any Person other than such Borrower has an ownership interest in such goods,
or which indicates any party other than such Borrower as payee or remittance party;

     (x) which was created on cash on delivery terms;

     (y) to the extent the underlying goods have been returned to such Borrower; or

     (z) which the Administrative Agent determines, in the Administrative Agent’s Permitted
Discretion, may not be paid by reason of the Account Debtor’s inability to pay or which the
Administrative Agent otherwise determines in its Permitted Discretion is unacceptable for
any reason whatsoever.

          In the event that an Account which was previously an Eligible Account ceases to be an Eligible
Account hereunder, such Borrower or the Borrower Representative shall notify the Administrative
Agent thereof on and at the time of submission to the Administrative Agent of the next Borrowing
Base Certificate. In determining the amount of an Eligible Account, the face amount of an Account
may, in the Administrative Agent’s Permitted Discretion, be reduced by, without duplication, to the
extent not reflected in such face amount, (i) the amount of all accrued and actual discounts,
claims, credits or credits pending, promotional program allowances, price adjustments, finance
charges or other allowances (including any amount that such Borrower may be obligated to rebate to
an Account Debtor pursuant to the terms of any agreement or understanding (written or oral)) and
(ii) the aggregate amount of all cash received in respect of such Account but not yet applied by
such Borrower to reduce the amount of such Account; provided, however, that the
Administrative Agent shall provide the Borrower Representative with five (5) Business Days prior
written notice if the Administrative Agent changes the standards for eligibility pursuant to its
Permitted Discretion set forth in this definition.

          “Environmental Laws” means all applicable laws, rules, regulations, codes, ordinances,
orders, decrees, judgments, injunctions, notices or binding agreements issued, promulgated or
entered into by any Governmental Authority, relating in any way to the environment, preservation or
reclamation of natural resources, the management, release or threatened release of any Hazardous
Material or to occupational health and safety matters.

          “Environmental Liability” means any liability, contingent or otherwise (including any
liability for damages, costs of environmental remediation, fines, penalties or indemnities), of any
Borrower or any Subsidiary directly or indirectly resulting from or based upon (a) violation of any
Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or
disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to
any of the foregoing.

          “Equity Interests” means shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity ownership
interests in a Person, and any warrants, options or other rights entitling the holder thereof to
purchase or acquire any such equity interest.

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

          “ERISA Affiliate” means any trade or business (whether or not incorporated) that,
together with a Borrower, is treated as a single employer under Section 414(b) or (c) of the Code
or, solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single
employer under Section 414 of the Code.

          “ERISA Event” means (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder with respect to a Plan (other than an event for which the 30-day
notice period is waived); (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA), whether or not waived;
(c) the filing pursuant to Section 412(d) of the Code or Section 303(d) of ERISA of an application
for a waiver of the minimum funding standard with respect to any Plan; (d) the incurrence by any
Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA with respect to
the termination of any Plan; (e) the receipt by any Borrower or any ERISA Affiliate from the PBGC
or a plan administrator of any notice relating to an intention to terminate any Plan or Plans or to
appoint a trustee to administer any Plan; (f) the incurrence by any Borrower or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial withdrawal from any Plan or
Multiemployer Plan; or (g) the receipt by any Borrower or any ERISA Affiliate of any notice, or the
receipt by any Multiemployer Plan from any Borrower or any ERISA Affiliate of any notice,
concerning the imposition of Withdrawal Liability or a determination that a Multiemployer Plan is,
or is expected to be, insolvent or in reorganization, within the meaning of Title IV of ERISA.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

          “Event of Default” has the meaning assigned to such term in Article VII.

          “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
any Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income by
the United States of America, or by the jurisdiction under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable lending office is located, (b) any branch profits taxes imposed by the United States of
America or any similar tax imposed by any other jurisdiction in which any Borrower is located and
(c) in the case of a Foreign Lender (other than an assignee pursuant to a request by a Borrower
under Section 2.19(b)), any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new
lending office) or is attributable to such Foreign Lender’s failure to comply with Section 2.17(e),
except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at the time
of designation of a new lending office (or assignment), to receive additional amounts from the
Borrowers with respect to such withholding tax pursuant to Section 2.17(a).

          “Exempt Accounts” has the meaning assigned to such term in Section 5.12.

          “FDA Laws” means all laws, statutes, rules, regulations, codes, ordinances, orders,
decrees, judgments, injunctions, letters, notices or binding agreements issued, promulgated or
entered into, relating in any way to the contemplated or actual sale, distribution, manufacture,
commercialization, testing, evaluation or other use of drugs (whether prescription or
non-prescription and whether for investigational or any other use), drug candidates, foods, medical
devices, cosmetics, biologics, dietary

-10-

 

supplements, or any other substances regulated by a Federal, State, or local Governmental
Authority used, or intended to be used, in the treatment, diagnosis, or cure of any disease,
sickness, or condition or to improve or foster human health and welfare. FDA Laws includes, but is
not limited to, all laws, statutes, rules, regulations, codes, ordinances, orders, decrees,
judgments, injunctions, letters, notices or binding agreements issued, promulgated or entered into,
relating in any way to the contemplated or actual sale, distribution, manufacture,
commercialization, testing, evaluation or other use of Drugs and/or Drug Product Candidates, as
those terms are defined herein.

          “Federal Funds Effective Rate” means, for any day, the weighted average (rounded
upwards, if necessary, to the next 1/100 of 1%) 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, the average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the quotations for such day for such transactions received
by the Administrative Agent from three Federal funds brokers of recognized standing selected by it.

          “Financial Officer” means the vice president of finance, principal financial officer,
principal accounting officer, treasurer or controller of the Company.

          “Fixed Charge Coverage Ratio” means, the ratio, determined as of the end of each of
fiscal quarter of the Company for the most-recently ended four fiscal quarters, of (a) EBITDA
minus the unfinanced portion of Capital Expenditures to (b) Fixed Charges, all calculated
for the Company and its Subsidiaries on a consolidated basis in accordance with GAAP.

          “Fixed Charges” means, with reference to any period, without duplication, cash
Interest Expense, plus prepayments and scheduled principal payments on Indebtedness made
during such period (excluding any prepayment, whether voluntary or mandatory, of Loans),
plus expense for taxes paid in cash, plus dividends or distributions paid in cash,
plus Capital Lease Obligation payments, plus cash contributions to any Plan,
plus Milestone Payments paid in cash (net of Milestone Payments received), all calculated
for the Company and its Subsidiaries on a consolidated basis.

          “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrowers are located. For purposes of this definition, the United
States of America and each State shall be deemed to constitute a single jurisdiction.

          “Funding Accounts” has the meaning assigned to such term in Section 4.01(g).

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

          “Governmental Authority” means the government of the United States of America, any
other nation or any political subdivision thereof, whether State or local, and any agency,
authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government.

          “Guarantee” of or by any Person (the “guarantor”) means any obligation,
contingent or otherwise, of the guarantor guaranteeing or having the economic effect of
guaranteeing any Indebtedness or other obligation of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation of the
guarantor, direct or indirect, (a) to purchase or pay (or advance or supply funds for the purchase
or payment of) such Indebtedness or other obligation or to purchase (or to advance or supply funds
for the purchase of) any security for the payment thereof, (b) to

-11-

 

purchase or lease property, securities or services for the purpose of assuring the owner of
such Indebtedness or other obligation of the payment thereof, (c) to maintain working capital,
equity capital or any other financial statement condition or liquidity of the primary obligor so as
to enable the primary obligor to pay such Indebtedness or other obligation or (d) as an account
party in respect of any letter of credit or letter of guaranty issued to support such Indebtedness
or obligation; provided, that the term Guarantee shall not include endorsements for
collection or deposit in the ordinary course of business.

          “Guaranteed Obligations” has the meaning assigned to such term in Section 10.01.

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

          “Helsinn Agreements” means the License Agreement, dated April 6, 2001, between the
Company and Helsinn Healthcare, S.A., the Supply and Purchase Agreement (Aloxi), dated April 6,
2001, between the Company and Helsinn Birex Pharmaceuticals Ltd. (in each case, as amended,
supplemented or otherwise modified from time to time) and any other agreement with Helsinn
Healthcare, S.A., Helsinn Birex Pharmaceuticals Ltd. or any of their Affiliates.

          “Inactive Subsidiary” means Canvas Informatics, Inc., a Delaware corporation, Zycos
Services Corporation Inc., a Delaware corporation, GPI Investments, LLC, a Delaware limited
liability company, Artery, LLC, a Delaware limited liability company, and MGI Pharma Limited, an
English limited company and any other Subsidiary created or acquired after the date hereof, in each
case so long as such entity has no current operations and does not contain assets valued in excess
of $500,000.

          “Increase Notice” has the meaning assigned to such term in Section 2.09(e).

          “Indebtedness” of any Person means, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property acquired by such
Person, (e) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding current accounts payable incurred in the ordinary course of business), (f) all
Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing
right, contingent or otherwise, to be secured by) any Lien on property owned or acquired by such
Person, whether or not the Indebtedness secured thereby has been assumed, (g) all Guarantees by
such Person of Indebtedness of others, (h) all Capital Lease Obligations of such Person, (i) all
obligations, contingent or otherwise, of such Person as an account party in respect of letters of
credit and letters of guaranty, (j) all obligations, contingent or otherwise, of such Person in
respect of bankers’ acceptances, (k) obligations under any liquidated earn-out and (l) any
Off-Balance Sheet Arrangement. Without limiting the generality of the foregoing, the Indebtedness
of any Person shall include the Indebtedness of any other entity (including any partnership in
which such Person is a general partner) to the extent such Person is liable therefor as a result of
such Person’s ownership interest in or other relationship with such entity, except to the extent
the terms of such Indebtedness provide that such Person is not liable therefor.

          “Indemnified Taxes” means Taxes other than Excluded Taxes.

          “Interest Election Request” means a request by the Borrower Representative to convert
or continue a Revolving Borrowing in accordance with Section 2.08.

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          “Interest Expense” means, with reference to any period, total interest expense
(including that attributable to Capital Lease Obligations) of the Company and its Subsidiaries for
such period with respect to all outstanding Indebtedness of the Company and its Subsidiaries
(including all commissions, discounts and other fees and charges owed with respect to letters of
credit and bankers’ acceptance financing and net costs under Swap Agreements in respect of interest
rates to the extent such net costs are allocable to such period in accordance with GAAP), all
calculated on a consolidated basis for the Company and its Subsidiaries for such period in
accordance with GAAP.

          “Interest Payment Date” means (a) with respect to any ABR Loan (other than a Swingline
Loan), the first Business Day of each calendar month and the Maturity Date, and (b) with respect to
any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of which such
Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of more than
three months’ duration, each day prior to the last day of such Interest Period that occurs at
intervals of three months’ duration after the first day of such Interest Period and the Maturity
Date and (c) with respect to any Swingline Loan, the day that such Loan is required to be repaid
and the Maturity Date.

          “Interest Period” means (a) with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is one, two, three or six months thereafter, as the Borrower Representative may
elect; provided, that (i) if any Interest Period would end on a day other than a Business
Day, such Interest Period shall be extended to the next succeeding Business Day unless, in the case
of a Eurodollar Borrowing only, such next succeeding Business Day would fall in the next calendar
month, in which case such Interest Period shall end on the next preceding Business Day and (ii) any
Interest Period pertaining to a Eurodollar Borrowing that commences on the last Business Day of a
calendar month (or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of the last calendar
month of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be the
date on which such Borrowing is made and, in the case of a Revolving Borrowing, thereafter shall be
the effective date of the most recent conversion or continuation of such Borrowing.

          “Inventory” has the meaning assigned to such term in the Security Agreement.

          “Issuing Bank” means Chase, in its capacity as the issuer of Letters of Credit
hereunder, and its successors in such capacity as provided in Section 2.06(i). The Issuing Bank
may, in its discretion, arrange for one or more Letters of Credit to be issued by Affiliates of the
Issuing Bank, in which case the term “Issuing Bank” shall include any such Affiliate with respect
to Letters of Credit issued by such Affiliate.

          “Joinder Agreement” has the meaning assigned to such term in Section 5.13(a).

          “LC Collateral Account” has the meaning assigned to such term in Section 2.06(j).

          “LC Disbursement” means a payment made by the Issuing Bank pursuant to a Letter of
Credit.

          “LC Exposure” means, at any time, the sum of (a) the aggregate undrawn amount of all
outstanding Letters of Credit at such time plus (b) the aggregate amount of all LC Disbursements
that have not yet been reimbursed by or on behalf of the Borrowers at such time. The LC Exposure
of any Revolving Lender at any time shall be its Applicable Percentage of the total LC Exposure at
such time.

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          “Lenders” means the Persons listed on the Commitment Schedule and any other
Person that shall have become a party hereto pursuant to an Assignment and Assumption, other than
any such Person that ceases to be a party hereto pursuant to an Assignment and Assumption. Unless
the context otherwise requires, the term “Lenders” includes the Swingline Lender.

          “Letter of Credit” means any letter of credit issued pursuant to this Agreement.

          “LIBO Rate” means, with respect to any Eurodollar Borrowing for any Interest Period,
the rate appearing on Page 3750 of the Dow Jones Market Service (or on any successor or substitute
page of such Service, or any successor to or substitute for such Service, providing rate quotations
comparable to those currently provided on such page of such Service, as determined by the
Administrative Agent from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately 11:00 a.m., London
time, two (2) Business Days prior to the commencement of such Interest Period, as the rate for
dollar deposits with a maturity comparable to such Interest Period. In the event that such rate is
not available at such time for any reason, then the “LIBO Rate” with respect to such
Eurodollar Borrowing for such Interest Period shall be the rate at which dollar deposits of
$5,000,000 and for a maturity comparable to such Interest Period are offered by the principal
London office of the Administrative Agent in immediately available funds in the London interbank
market at approximately 11:00 a.m., London time, two (2) Business Days prior to the commencement of
such Interest Period.

          “Lien” means, with respect to any asset, (a) any mortgage, deed of trust, lien,
pledge, hypothecation, encumbrance, charge or security interest in, on or of such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing lease having substantially the same economic effect as any of
the foregoing) relating to such asset and (c) in the case of securities, any purchase option, call
or similar right of a third party with respect to such securities.

          “Liquidity” means, as of any date of determination, the Borrowers’ Borrowing Base,
plus (i) cash and Permitted Investments held by Borrowers in a deposit account subject to a
Deposit Account Control Agreement or a securities account subject to a Securities Account Control
Agreement, as applicable minus (ii) the sum of Revolving Exposure and Protective Advances.

          “Liquidity Event” shall mean the date when Liquidity equals any amount less than (a)
$80,000,000, plus (b) an amount equal to 107% of any increase of the Commitments pursuant to
Section 2.09(e).

          “Loan Documents” means this Agreement, any promissory notes issued pursuant to the
Agreement, any Letter of Credit applications, the Collateral Documents, the Loan Guaranty and all
other agreements, instruments, documents and certificates identified in Section 4.01 executed and
delivered to, or in favor of, the Administrative Agent or any Lenders and including all other
pledges, powers of attorney, consents, assignments, contracts, notices, letter of credit agreements
and all other written matter whether heretofore, now or hereafter executed by or on behalf of any
Loan Party, or any employee of any Loan Party, and delivered to the Administrative Agent or any
Lender in connection with this Agreement or the transactions contemplated thereby. Any reference
in this Agreement or any other Loan Document to a Loan Document shall include all appendices,
exhibits or schedules thereto, and all amendments, restatements, supplements or other modifications
thereto, and shall refer to this Agreement or such Loan Document as the same may be in effect at
any and all times such reference becomes operative.

          “Loan Guarantor” each Loan Party (other than the Borrowers), including those Persons
who become parties hereto as guarantors pursuant to a Joinder Agreement.

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          “Loan Guaranty” means Article X of this Agreement.

          “Loan Parties” means the Borrowers, the Loan Guarantors and their successors and
assigns.

          “Loans” means the loans and advances made by the Lenders pursuant to this Agreement,
including Swingline Loans, Overadvances and Protective Advances.

          “Majority Lenders” means, at any time, Lenders having Credit Exposure and unused
Commitments representing at least 50.1% of the sum of the total Credit Exposure and unused
Commitments at such time.

          “Material Adverse Effect” means any event, development or circumstances that has had
or could have a material adverse effect on (a) the business, assets, operations or condition,
financial or otherwise, of the Company and its Subsidiaries taken as a whole, (b) the ability of
any Loan Party to perform any of its obligations under the Loan Documents to which it is a party,
(c) the Collateral, or the Administrative Agent’s Liens (on behalf of itself and the Lenders) on
the Collateral or the priority of such Liens, or (d) the rights of or benefits available to the
Administrative Agent, the Issuing Bank or the Lenders under the Loan Documents or with respect to
the Collateral.

          “Material Agreement” means any (a) Helsinn Agreement, (b) agreement or series of
related agreements between a licensor, supplier or any of its Affiliates and any Loan Party
pertaining to the sale of a Drug of any Loan Party if, during any six month period, the revenue of
Loan Parties from the sale of such Drug exceeds 10% of the aggregate revenue of Loan Parties and
(c) agreement or series of related agreements between a customer and its Affiliates and any Loan
Party that results in revenue, during any six month period, in excess of 10% of the aggregate
revenue of the Loan Parties.

          “Material Drug” means Aloxi® Injection, DacogenTM Injection and any other Drug that
results in revenue during any six month period, in excess of 15% of the aggregate revenue of the
Loan Parties.

          “Material Indebtedness” means Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Swap Agreements, of any one or more of the
Company and its Subsidiaries in an aggregate principal amount exceeding $3,750,000. For purposes
of determining Material Indebtedness, the “obligations” of any Borrower or any Subsidiary in
respect of any Swap Agreement at any time shall be the maximum aggregate amount (giving effect to
any netting agreements) that such Borrower or such Subsidiary would be required to pay if such Swap
Agreement were terminated at such time.

          “Maturity Date” means October 18, 2009 or any earlier date on which the Commitments
are reduced to zero or otherwise terminated pursuant to the terms hereof.

          “Maximum Liability” has the meaning assigned to such term in Section 9.18.

          “MGI Canada” means MGI Pharma Canada, Co., a Nova Scotia corporation.

          “MGI GP” means MGI GP, Inc., a Delaware corporation

          “Milestone Payments” means those payments made by or received by a Loan Party in
connection with Technology Transfer Transactions that are contingent on an event or series of
events occurring before they are earned or payable.

-15-

 

          “Monthly Delivery Period” means any period that is not a Weekly Delivery Period.

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

          “Multiemployer Plan” means a multiemployer plan as defined in Section 4001(a)(3) of
ERISA.

          “Net Income” means, for any period, the consolidated net income (or loss) of the
Company and its Subsidiaries, determined on a consolidated basis in accordance with GAAP;
provided that there shall be excluded (a) the income (or deficit) of any Person accrued
prior to the date it becomes a Subsidiary or is merged into or consolidated with the Company or any
of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary) in which
the Company or any of its Subsidiaries has an ownership interest, except to the extent that any
such income is actually received by the Company or such Subsidiary in the form of dividends or
similar distributions and (c) the undistributed earnings of any Subsidiary to the extent that the
declaration or payment of dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any contractual obligation (other than under any Loan Document) or
Requirement of Law applicable to such Subsidiary.

          “Net Proceeds” means, with respect to any event, (a) the cash proceeds received in
respect of such event including (i) any cash received in respect of any non-cash proceeds
(including any cash payments received by way of deferred payment of principal pursuant to a note or
installment receivable or purchase price adjustment receivable or otherwise, but excluding any
interest payments), but only as and when received, (ii) in the case of a casualty, insurance
proceeds and (iii) in the case of a condemnation or similar event, condemnation awards and similar
payments, net of (b) the sum of (i) all reasonable fees and out-of-pocket expenses paid to third
parties (other than Affiliates) in connection with such event, (ii) in the case of a sale, transfer
or other disposition of an asset (including pursuant to a sale and leaseback transaction or a
casualty or a condemnation or similar proceeding), the amount of all payments required to be made
as a result of such event to repay Indebtedness (other than Loans) secured by such asset or
otherwise subject to mandatory prepayment as a result of such event and (iii) the amount of all
taxes paid (or reasonably estimated to be payable) and the amount of any reserves established to
fund contingent liabilities reasonably estimated to be payable, in each case during the year that
such event occurred or the next succeeding year and that are directly attributable to such event
(as determined reasonably and in good faith by a Financial Officer).

          “Non-Consenting Lender” has the meaning assigned to such term in Section 9.02(d).

          “Non-Paying Guarantor” has the meaning assigned to such term in Section 10.11.

          “Obligated Party” has the meaning assigned to such term in Section 10.02.

          “Obligations” means all unpaid principal of and accrued and unpaid interest on the
Loans, all LC Exposure, all accrued and unpaid fees and all expenses, reimbursements, indemnities
and other obligations of the Loan Parties to the Lenders or to any Lender, the Administrative
Agent, the Issuing Bank or any indemnified party arising under the Loan Documents.

          “Off-Balance Sheet Arrangement” means any transaction, agreement or other contractual
arrangement to which an entity unconsolidated with the applicable Loan Party is a party, under
which such Loan Party has:

     (a) any obligation under a guarantee contract that has any of the characteristics
identified in paragraph 3 of FASB Interpretation No. 45, Guarantor’s Accounting and
Disclosure

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Requirements for Guarantees, Including Indirect Guarantees of Indebtedness of Others
(November 2002) (“FIN 45”), as may be modified or supplemented, and that is not excluded
from the initial recognition and measurement provisions of FIN 45 pursuant to paragraphs 6
or 7 of that Interpretation;

     (b) a retained or contingent interest in assets transferred to an unconsolidated entity
or similar arrangement that serves as credit, liquidity or market risk support to such
entity for such assets;

     (c) any obligation, including a contingent obligation, under a contract that would be
accounted for as a derivative instrument, except that it is both indexed to such Loan
Party’s own stock and classified in stockholders’ equity in such Loan Party’s statement of
financial position, and therefore excluded from the scope of FASB Statement of Financial
Accounting Standards No. 133, Accounting for Derivative Instruments and Hedging Activities
(June 1998), pursuant to paragraph 11(a) of that Statement, as may be modified or
supplemented;

     (d) any obligation, including a contingent obligation, arising out of a variable
interest (as referenced in FASB Interpretation No. 46, Consolidation of Variable Interest
Entities (January 2003), as may be modified or supplemented) in an unconsolidated entity
that is held by, and material to, such Loan Party, where such Loan Party provides financing,
liquidity, market risk or credit risk support to, or engages in leasing, hedging or research
and development services with, such Loan Party; or

     (e) any indebtedness, liability or obligation arising with respect to any other
transaction which is the functional equivalent of or takes the place of borrowing but which
does not constitute a liability on the balance sheets of such Person (other than operating
leases).

          “Other Taxes” means any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies arising from any payment made hereunder
or from the execution, delivery or enforcement of, or otherwise with respect to, this Agreement.

          “Overadvance” has the meaning assigned to such term in Section 2.05(c).

          “Participant” has the meaning set forth in Section 9.04.

          “Paying Guarantor” has the meaning assigned to such term in Section 10.11.

          “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA
and any successor entity performing similar functions.

          “Permitted Acquisition” means any acquisition after the Effective Date by any Borrower
or any Subsidiary formed by a Borrower for such purpose, by any means, of all or substantially all
of the assets or capital stock, an operating division or a business unit, of any Person that is a
going concern, that has been incorporated or organized under the laws of a State (other than Puerto
Rico) and that is in a similar or related field of business to the Borrowers as of the date hereof,
and so long as Administrative Agent and Lenders shall have received evidence at least three (3)
Business Days prior to the closing date of such acquisition that such acquisition satisfies the
following conditions:

     (a) no Default or Event of Default is in existence at the time of such acquisition or
would be caused thereby after giving effect thereto;

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     (b) the Board of Directors and/or owners of the entity whose business is to be acquired
have approved the proposed transaction;

     (c) Administrative Agent has received written notice at least ten (10) Business Days’
prior to the consummation of such acquisition, which notice shall include a reasonably
detailed description of the proposed terms of such acquisition, and, as soon as available,
copies of all agreements delivered in connection therewith;

     (d) Administrative Agent shall receive, not less than ten (10) Business Days’ prior to
the consummation of such acquisition, a due diligence package, including a description of
the business to be acquired, a description of the legal structure of the acquisition,
historical financial statements for the previous three (3) years, satisfactory projections,
a pro forma balance sheet, if any, summaries of sources and uses to purchase and/or finance
the acquisition, material contracts and such additional information as may be reasonably
requested by Administrative Agent;

     (e) Administrative Agent shall be granted a first priority perfected Lien (subject only
to Permitted Liens) on all personal property of the type comprising Collateral being
acquired pursuant to such acquisition;

     (f) immediately after completing such acquisition, Borrowers have Liquidity of at least
$80,000,000;

     (g) the aggregate consideration (excluding consideration consisting of the common stock
of the Company) paid in connection with all such acquisitions during any fiscal year of the
Company shall not exceed (i) $30,000,000 or (ii) $50,000,000 if immediately after completing
each acquisition during an applicable year, Liquidity is greater than $100,000,000; and

     (h) Administrative Agent has received a certificate from Borrower Representative’s
chief financial officer certifying that all of the applicable conditions contained herein to
treating such acquisition as a Permitted Acquisition have been satisfied.

          In no event shall any Accounts acquired in connection with a Permitted Acquisition be deemed
eligible for advance hereunder unless and until Administrative Agent has completed (at Borrowers’
expense) a field examination of such Accounts so acquired or to be acquired.

          “Permitted Asset Sales” means (i) any Technology Transfer Transactions concerning
intellectual property transfers related to the Material Drugs for use outside of North America,
(ii) any Technology Transfer Transactions concerning any Drug or Drug Product Candidate other than
a Material Drug, and (iii) sales, transfers, leases or other disposals of any Drug or Drug Product
that is not an Material Drug (including (A) in connection with the sale of all of the Equity
Interests of a Subsidiary that does not include a Material Drug or rights to a Material Drug among
its assets or (B) the Equity Interests owned by the Company in connection with SuperGen and
MethylGene).

          “Permitted Discretion” means a determination made in good faith and in the exercise of
reasonable (from the perspective of a secured asset-based lender) business judgment.

          “Permitted Encumbrances” means:

     (a) Liens imposed by law for taxes that are not yet due or are being contested in
compliance with Section 5.04;

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     (b) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like
Liens imposed by law, arising in the ordinary course of business and securing obligations
that are not overdue by more than thirty (30) days or are being contested in compliance with
Section 5.04;

     (c) pledges and deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security laws or regulations;

     (d) deposits to secure the performance of bids, trade contracts, leases, statutory
obligations, surety and appeal bonds, performance bonds and other obligations of a like
nature, in each case in the ordinary course of business;

     (e) judgment liens in respect of judgments that do not constitute an Event of Default
under clause (k) of Article VII; and

     (f) easements, zoning restrictions, rights-of-way and similar encumbrances on real
property imposed by law or arising in the ordinary course of business that do not secure any
monetary obligations and do not materially detract from the value of the affected property
or interfere with the ordinary conduct of business of any Borrower or any Subsidiary;

provided that the term “Permitted Encumbrances” shall not include any Lien securing Indebtedness.

          “Permitted 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);

     (b) (i) long term commercial bank or corporate Indebtedness having, at such date of
acquisition, a credit rating from S&P or Moody’s (or from both S&P and Moody’s, if
available) of at least A2 and/or A and (ii) short term commercial bank or corporate
Indebtedness having, at such date of acquisition, a credit rating from S&P or Moody’s (or
from both S&P and Moody’s, if available) of at least A1 or P1;

     (c) (i) fully collateralized long term repurchase agreements having, at such date of
acquisition, a credit rating from S&P or Moody’s (or from both S&P and Moody’s, if
available) of at least A2 and/or P1 and (ii) fully collateralized short term repurchase
agreements, having, at such date of acquisition, a credit rating from S&P or Moody’s (or
from both S&P and Moody’s, if available) of at least A2 and/or P1, in each case entered into
with a financial institution with a capital base of at least $100,000,000 that is designated
as a Primary Government Securities Dealer;

     (d) auction market notes, remarketed preferred stock and remarketed variable rate
preferred stock, in each case, having, at such date of acquisition, a credit rating from S&P
or Moody’s (or from both S&P and Moody’s, if available) of at least A2 or A;

     (e) (i) long term municipal securities having, at such date of acquisition, a credit
rating from S&P or Moody’s (or from both S&P and Moody’s, if available) of at least A2
and/or A and (ii) short term municipal securities having, at such date of acquisition, a
credit rating from S&P or Moody’s (or from both S&P and Moody’s, if available) of at least
A-1/SP-1 or MIG-1/P-1;

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     (f) (i) long term asset backed securities, having, at such date of acquisition, a
credit rating from S&P or Moody’s (or from both S&P and Moody’s, if available) of at least
A2 and/or Aa2 or AA or (ii) short term asset backed securities, having, at such date of
acquisition, a credit rating from S&P or Moody’s (or from both S&P and Moody’s, if
available) of at least A1 or P1; and

     (g) money market funds that (i) invest substantially in instruments described in
clauses (a) through (f) of this definition and (ii) have portfolio assets of at least
$5,000,000,000;

provided that for purposes of this definition, Investments that are “short term”
shall have maturity dates that are three hundred sixty-five (365) days or fewer from the
date of purchase and Investments that are “long term” shall have maturity dates that are
greater than three hundred sixty-five (365) days, but less than three years, from the date
of purchase.

          “Permitted Lien” means any Lien permitted by Section 6.02.

          “Person” means any natural person, corporation, limited liability company, trust,
joint venture, association, company, partnership, Governmental Authority or other entity.

          “Plan” means any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA,
and in respect of which any Borrower or any ERISA Affiliate is (or, if such plan were terminated,
would under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of
ERISA.

          “Prepayment Event” means:

     (a) any sale, transfer or other disposition (including pursuant to a sale and leaseback
transaction) of any Collateral of any Loan Party, other than dispositions described in
Section 6.05(a); or

     (b) any casualty or other insured damage to, or any taking under power of eminent
domain or by condemnation or similar proceeding of, any Collateral of any Loan Party; or

     (c) the issuance by the Company of any Equity Interests, or the receipt by the Company
of any capital contribution; or

     (d) the incurrence by any Loan Party of any Indebtedness, other than Indebtedness
permitted under Section 6.01.

          “Prepayment Fee” means a fee payable to the Administrative Agent, for the benefit of
the Lenders, in an amount equal to the sum of the aggregate Revolving Commitment as of the
Effective Date multiplied by (i) 0.75% if such termination of the Commitments occurs prior to the
first anniversary of the date of this Agreement, (ii) 0.50% if such termination of the Commitments
occurs on or after the first but prior to the second anniversary of the date of this Agreement, and
(iii) 0% if such termination of the Commitments occurs on or after the second anniversary of the
date of this Agreement.

          “Prime Rate” means the rate of interest per annum publicly announced from time to time
by Chase as its prime rate at its offices at 270 Park Avenue in New York City (which is not
necessarily the lowest rate charged to any customer); each change in the Prime Rate shall be
effective from and including the date such change is publicly announced as being effective.

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          “Projections” has the meaning assigned to such term in Section 5.01(f).

          “Protective Advance” has the meaning assigned to such term in Section 2.04.

          “Register” has the meaning set forth in Section 9.04.

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

          “Report” means reports prepared by the Administrative Agent or another Person showing
the results of appraisals, field examinations or audits pertaining to the Borrowers’ assets from
information furnished by or on behalf of the Borrowers, after the Administrative Agent has
exercised its rights of inspection pursuant to this Agreement, which Reports may be distributed to
the Lenders by the Administrative Agent.

          “Requested Revolver Increase” has the meaning assigned to such term in Section
2.09(e).

          “Required Lenders” means, at any time, Lenders having Credit Exposure and unused
Commitments representing at least 662/3% of the sum of the total Credit Exposure and
unused Commitments at such time; provided that if, at any time, there are fewer than three Lenders,
then Required Lenders shall mean all Lenders.

          “Requirement of Law” as to any Person, the Certificate of Incorporation and By-Laws or
other organizational or governing documents of such Person, and any law, treaty, rule or regulation
or determination of an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such Person or any of its property or to which such Person or any of
its property is subject.

          “Reserves” means any and all reserves, other than Chargeback Reserves, which the
Administrative Agent deems necessary, in its Permitted Discretion, to maintain (including, without
limitation, an availability reserve, reserves for accrued and unpaid interest on the Secured
Obligations, Banking Services Reserves, if any, reserves for dilution of Accounts, reserves for
Swap Obligations, reserves for contingent liabilities of any Loan Party, reserves for uninsured
losses of any Loan Party, reserves for uninsured, underinsured, un-indemnified or under-indemnified
liabilities or potential liabilities with respect to any litigation and reserves for taxes, fees,
assessments, and other governmental charges) with respect to the Collateral or any Loan Party.

          “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in the Company or any
Subsidiary, or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, retirement, acquisition,
cancellation or termination of any such Equity Interests in the Company or any option, warrant or
other right to acquire any such Equity Interests in the Company.

          “Revolving Commitment” means, with respect to each Lender, the commitment, if any, of
such Lender to make Revolving Loans and to acquire participations in Letters of Credit,
Overadvances and Swingline Loans hereunder, expressed as an amount representing the maximum
possible aggregate amount of such Lender’s Revolving Exposure hereunder, as such commitment may be
(a) reduced or increased from time to time pursuant to Section 2.09 and (b) reduced or increased
from time to time pursuant to assignments by or to such Lender pursuant to Section 9.04. The
initial amount of each Lender’s Revolving Commitment is set forth on the Commitment
Schedule, or in the Assignment and

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Assumption pursuant to which such Lender shall have assumed its Revolving Commitment, as
applicable. The initial aggregate amount of the Lenders’ Revolving Commitments is $75,000,000.

          “Revolving Exposure” means, with respect to any Lender at any time, the sum of the
outstanding principal amount of such Lender’s Revolving Loans and its LC Exposure plus an
amount equal to its Applicable Percentage of the aggregate principal amount of Swingline Loans at
such time, plus an amount equal to its Applicable Percentage of the aggregate principal
amount of Overadvances outstanding at such time.

          “Revolving Lender” means, as of any date of determination, a Lender with a Revolving
Commitment or, if the Revolving Commitments have terminated or expired, a Lender with Revolving
Exposure.

          “Revolving Loan” means a Loan made pursuant to Section 2.01(a).

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

          “SEC” means the Securities and Exchange Commission.

          “Secured Obligations” means all Obligations, together with all (i) Banking Services
Obligations and (ii) Swap Obligations owing to one or more Lenders or their respective Affiliates;
provided that at or prior to the time that any transaction relating to such Swap Obligation
is executed, the Lender party thereto (other than Chase) shall have delivered written notice to the
Administrative Agent that such a transaction has been entered into and that it constitutes a
Secured Obligation entitled to the benefits of the Collateral Documents.

          “Security Agreement” means that certain Pledge and Security Agreement, dated as of the
date hereof, between the Loan Parties and the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, and any other pledge or security agreement entered into,
after the date of this Agreement by any other Loan Party (as required by this Agreement or any
other Loan Document), or any other Person, as the same may be amended, restated or otherwise
modified from time to time.

          “Securities Account Control Agreement” has the meaning assigned to such term in the
Security Agreement.

          “Senior Officer” means the chief executive officer, chief operating officer, president
or any Financial Officer.

          “Settlement” has the meaning assigned to such term in Section 2.05(f).

          “Settlement Date” has the meaning assigned to such term in Section 2.05(f).

          “State” shall mean any state of the United States of America, the District of Columbia
and the Commonwealth of Puerto Rico.

          “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board to which the Administrative Agent is subject with
respect to the Adjusted LIBO Rate, for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities”

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in Regulation D of the Board). Such reserve percentages shall include those imposed pursuant
to such Regulation D. Eurodollar Loans shall be deemed to constitute eurocurrency funding and to
be subject to such reserve requirements without benefit of or credit for proration, exemptions or
offsets that may be available from time to time to any Lender under such Regulation D or any
comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the
effective date of any change in any reserve percentage.

          “Subordinated Indebtedness” of a Person means any Indebtedness of such Person the
payment of which is subordinated in writing to payment of the Secured Obligations to the reasonable
written satisfaction of the Administrative Agent.

          “Subordinated Notes” means those certain (a) Senior Subordinated Convertible Notes due
March 2, 2024 of the Company in the outstanding principal amount of $348,000,000 and (b) 5%
Convertible Subordinated Notes, due July 1, 2008 of MGI GP in the outstanding principal amount of
$1,500,000.

          “subsidiary” means, with respect to any Person (the “parent”) at any date, any
corporation, limited liability company, partnership, association or other entity the accounts of
which would be consolidated with those of the parent in the parent’s consolidated financial
statements if such financial statements were prepared in accordance with GAAP as of such date, as
well as any other corporation, limited liability company, partnership, association or other entity
(a) of which securities or other ownership interests representing more than 50% of the equity or
more than 50% of the ordinary voting power or, in the case of a partnership, more than 50% of the
general partnership interests are, as of such date, owned, Controlled or held, or (b) that is, as
of such date, otherwise Controlled, by the parent or one or more subsidiaries of the parent or by
the parent and one or more subsidiaries of the parent.

          “Subsidiary” means any direct or indirect subsidiary of the Company or a Loan Party,
as applicable.

          “Swap Agreement” means any agreement with respect to any swap, forward, future or
derivative transaction or option or similar agreement involving, or settled by reference to, one or
more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions; provided that no phantom
stock or similar plan providing for payments only on account of services provided by current or
former directors, officers, employees or consultants of the Borrowers or the Subsidiaries shall be
a Swap Agreement.

          “Swap Obligations” of a Person means any and all obligations of such Person, whether
absolute or contingent and howsoever and whensoever created, arising, evidenced or acquired
(including all renewals, extensions and modifications thereof and substitutions therefor), under
(a) any and all Swap Agreements, and (b) any and all cancellations, buy backs, reversals,
terminations or assignments of any Swap Agreement transaction.

          “Swingline Lender” means JPMorgan Chase Bank, N.A., in its capacity as lender of
Swingline Loans hereunder.

          “Swingline Loan” means a Loan made pursuant to Section 2.05(a).

          “Taxes” means any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings imposed by any Governmental Authority.

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          “Technology Transfer Transactions” means intellectual property transfer transactions
of any Loan Party, including outlicenses, partnership transactions, co-promotions, distributorships
or other similar transactions.

          “Transactions” means the execution, delivery and performance by the Borrowers of this
Agreement, the borrowing of Loans and other credit extensions, the use of the proceeds thereof and
the issuance of Letters of Credit hereunder.

          “Type”, when used in reference to any Loan or Borrowing, refers to whether the rate of
interest on such Loan, or on the Loans comprising such Borrowing, is determined by reference to the
Adjusted LIBO Rate or the Alternate Base Rate.

          “UCC” means the Uniform Commercial Code as in effect from time to time in the State of
New York or any other State the laws of which are required to be applied in connection with the
issue of perfection of security interests.

          “Unliquidated Obligations” means, at any time, any Secured Obligations (or portion
thereof) that are contingent in nature or unliquidated at such time, including any Secured
Obligation that is: (i) an obligation to reimburse a bank for drawings not yet made under a letter
of credit issued by it; (ii) any other obligation (including any guarantee) that is contingent in
nature at such time; or (iii) an obligation to provide collateral to secure any of the foregoing
types of obligations.

          “Weekly Delivery Period” means any period during which (a) Liquidity is less than
$80,000,000 or (b)(i) Borrowings are greater than $25,000,000 and (ii) Liquidity is less than
$125,000,000.

          “Withdrawal Liability” means liability to a Multiemployer Plan as a result of a
complete or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of
Subtitle E of Title IV of ERISA.

          Section 1.02 Classification of Loans and Borrowings.

          For purposes of this Agreement, Loans may be classified and referred to by Class
(e.g., a “Revolving Loan”) or by Type (e.g., a “Eurodollar Loan”) or by Class and
Type (e.g., a “Eurodollar Revolving Loan”). Borrowings also may be classified and referred
to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a “Eurodollar
Borrowing”) or by Class and Type (e.g., a “Eurodollar Revolving Borrowing”).

          Section 1.03 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

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Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and
Sections of, and Exhibits and Schedules to, this Agreement and (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
intangible assets and properties, including cash, securities, accounts and contract rights.

          Section 1.04 Accounting Terms; GAAP.

          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 Representative notifies the Administrative Agent that the Borrowers request 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 Representative 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 herewith.

ARTICLE II

The Credits

          Section 2.01 Commitments.

          Subject to the terms and conditions set forth herein, each Lender severally agrees to make
Revolving Loans to the Borrowers from time to time during the Availability Period in an aggregate
principal amount that will not result in (i) such Lender’s Revolving Exposure exceeding such
Lender’s Revolving Commitment or (ii) the total Revolving Exposures exceeding the lesser of (x) the
sum of the total Revolving Commitments or (y) the Borrowing Base, subject to the Administrative
Agent’s authority, in its sole discretion, to make Protective Advances and Overadvances pursuant to
the terms of Section 2.04 and 2.05. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrowers may borrow, prepay and reborrow Revolving Loans.

          Section 2.02 Loans and Borrowings.

          (a) Each Loan (other than a Swingline Loan) shall be made as part of a Borrowing consisting of
Loans of the same Class and Type made by the Lenders ratably in accordance with their respective
Commitments of the applicable Class. Any Protective Advance, any Overadvance and any Swingline
Loan shall be made in accordance with the procedures set forth in Section 2.04 and 2.05.

          (b) Subject to Section 2.14, each Revolving Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrower Representative may request in accordance herewith,
provided that all Borrowings made on the Effective Date must be made as ABR Borrowings but
may be converted into Eurodollar Borrowings in accordance with Section 2.08. Each Swingline Loan
shall be an ABR Loan. Each Lender at its option may make any Eurodollar Loan by causing any
domestic or foreign branch or Affiliate of such Lender to make such Loan; provided that any
exercise of such option shall not affect the obligation of the Borrowers to repay such Loan in
accordance with the terms of this Agreement.

          (c) At the commencement of each Interest Period for any Eurodollar Revolving Borrowing, such
Borrowing shall be in an aggregate amount that is an integral multiple of $500,000 and not less
than $500,000. ABR Revolving Borrowings may be in any amount. Each Swingline Loan shall

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be in an amount that is an integral multiple of $500,000 and not less than $1,000,000.
Borrowings of more than one Type and Class may be outstanding at the same time; provided
that there shall not at any time be more than a total of five Eurodollar Borrowings outstanding.

          (d) Notwithstanding any other provision of this Agreement, the Borrower Representative shall
not be entitled to request, or to elect to convert or continue, any Borrowing if the Interest
Period requested with respect thereto would end after the Maturity Date.

          Section 2.03 Requests for Revolving Borrowings.

          To request a Revolving Borrowing, the Borrower Representative shall notify the Administrative
Agent of such request either in writing (delivered by hand or facsimile) in a form approved by the
Administrative Agent and signed by the Borrower Representative or by telephone (a) in the case of a
Eurodollar Borrowing, not later than 10:00 a.m., Chicago time, three (3) Business Days before the
date of the proposed Borrowing or (b) in the case of an ABR Borrowing, not later than noon, Chicago
time, on the date of the proposed Borrowing; provided that any such notice of an ABR
Revolving Borrowing to finance the reimbursement of an LC Disbursement as contemplated by Section
2.06(e) may be given not later than 9:00 a.m., Chicago time, on the date of the proposed Borrowing.
Each such telephonic Borrowing Request shall be irrevocable and shall be confirmed promptly by
hand delivery or facsimile to the Administrative Agent of a written Borrowing Request in a form
approved by the Administrative Agent and signed by the Borrower Representative. Each such
telephonic and written Borrowing Request shall specify the following information in compliance with
Section 2.01:

     (i) the name of the applicable Borrower;

     (ii) the aggregate amount of the requested Borrowing and a breakdown of the
separate wires comprising such Borrowing;

     (iii) the date of such Borrowing, which shall be a Business Day;

     (iv) whether such Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (v) in the case of a Eurodollar Borrowing, the initial Interest Period to be
applicable thereto, which shall be a period contemplated by the definition of the
term “Interest Period.”

If no election as to the Type of Revolving Borrowing is specified, then the requested Revolving
Borrowing shall be an ABR Borrowing. If no Interest Period is specified with respect to any
requested Eurodollar Revolving Borrowing, then the applicable Borrower(s) shall be deemed to have
selected an Interest Period of one month’s duration. Promptly following receipt of a Borrowing
Request in accordance with this Section, the Administrative Agent shall advise each Lender of the
details thereof and of the amount of such Lender’s Loan to be made as part of the requested
Borrowing.

          Section 2.04 Protective Advances.

          (a) Subject to the limitations set forth below, upon the occurrence and during the
continuation of any Default, the Administrative Agent is authorized by the Borrowers and the
Lenders, from time to time in the Administrative Agent’s sole discretion (but shall have absolutely
no obligation to), to make Loans to the Borrowers, on behalf of all Lenders, which the
Administrative Agent, in its

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Permitted Discretion, deems necessary or desirable (i) to preserve or protect the Collateral,
or any portion thereof, (ii) to enhance the likelihood of, or maximize the amount of, repayment of
the Loans and other Obligations, or (iii) to pay any other amount chargeable to or required to be
paid by the Borrowers pursuant to the terms of this Agreement, including payments of reimbursable
expenses (including costs, fees, and expenses as described in Section 9.03) and other sums payable
under the Loan Documents (any of such Loans are herein referred to as “Protective
Advances”); provided that, the aggregate amount of Protective Advances outstanding at
any time shall not at any time exceed 10% of then outstanding Revolving Commitments of the Lenders;
provided further that, the aggregate amount of outstanding Protective Advances plus
the aggregate Revolving Exposure shall not exceed the aggregate Commitments. Protective Advances
may be made even if the conditions precedent set forth in Section 4.02 have not been satisfied.
The Protective Advances shall be secured by the Liens in favor of the Administrative Agent in and
to the Collateral and shall constitute Obligations hereunder. All Protective Advances shall be ABR
Borrowings. The Administrative Agent’s authorization to make Protective Advances may be revoked at
any time by Required Lenders. Any such revocation must be in writing and shall become effective
prospectively upon the Administrative Agent’s receipt thereof. At any time that there is
sufficient Availability and the conditions precedent set forth in Section 4.02 have been satisfied,
the Administrative Agent may on a Business Day request the Revolving Lenders to make a Revolving
Loan to repay a Protective Advance. At any other time the Administrative Agent may require the
Lenders to fund their risk participations described in Section 2.04(b).

          (b) Upon the making of a Protective Advance by the Administrative Agent, each Lender shall be
deemed, without further action by any party hereto, to have unconditionally and irrevocably
purchased from the Administrative Agent without recourse or warranty, an undivided interest and
participation in such Protective Advance in proportion to its Applicable Percentage. From and
after the date, if any, on which any Lender is required to fund its participation in any Protective
Advance purchased hereunder, the Administrative Agent shall promptly distribute to such Lender,
such Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of
Collateral received by the Administrative Agent in respect of such Protective Advance.

          Section 2.05 Swingline Loans and Overadvances.

          (a) Subject to the terms and conditions set forth herein, the Swingline Lender agrees to make
Swingline Loans to the Borrowers, from time to time during the Availability Period, in an aggregate
principal amount at any time outstanding that will not result in (i) the aggregate principal amount
of outstanding Swingline Loans exceeding $10,000,000 or (ii) the sum of the total Revolving
Exposures exceeding the lesser of the total Revolving Commitments and the Borrowing Base;
provided that the Swingline Lender shall not be required to make a Swingline Loan to
refinance an outstanding Swingline Loan. Within the foregoing limits and subject to the terms and
conditions set forth herein, the Borrowers may borrow, prepay and reborrow Swingline Loans. To
request a Swingline Loan, the Borrower Representative shall notify the Administrative Agent of such
request by telephone (confirmed by facsimile), not later than noon, Chicago time, on the day of a
proposed Swingline Loan. Each such notice shall be irrevocable and shall specify the requested
date (which shall be a Business Day) and amount of the requested Swingline Loan. The
Administrative Agent will promptly advise the Swingline Lender of any such notice received from the
Borrower Representative. The Swingline Lender shall make each Swingline Loan available to the
Borrowers by means of a credit to the Funding Account(s) (or, in the case of a Swingline Loan made
to finance the reimbursement of an LC Disbursement as provided in Section 2.06(e), by remittance to
the Issuing Bank, and in the case of repayment of another Loan or fees or expenses as provided by
Section 2.18(c), by remittance to the Administrative Agent to be distributed to the Lenders) by
2:00 p.m., Chicago time, on the requested date of such Swingline Loan. At all times the Borrowers
maintain one or more Controlled Disbursement Accounts, the Borrowers hereby authorize the Swingline
Lender to, and the Swingline Lender shall, subject to the terms and conditions set forth herein

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(but without any further written notice required), not later than 1:00 p.m., Chicago time, on
each Business Day, make available to the Borrowers by means of a credit to the Funding Account(s),
the proceeds of a Swingline Loan to the extent necessary to pay items to be drawn on any Controlled
Disbursement Account that day (as determined based on notice from the Administrative Agent).

          (b) The Swingline Lender may by written notice given to the Administrative Agent not later
than 11:00 a.m., Chicago time, on any Business Day require the Revolving Lenders to acquire
participations on such Business Day in all or a portion of the Swingline Loans outstanding. Such
notice shall specify the aggregate amount of Swingline Loans in which Revolving Lenders will
participate. Promptly upon receipt of such notice, the Administrative Agent will give notice
thereof to each Revolving Lender, specifying in such notice such Lender’s Applicable Percentage of
such Swingline Loan or Loans. Each Revolving Lender hereby absolutely and unconditionally agrees,
upon receipt of notice as provided above, to pay to the Administrative Agent, for the account of
the Swingline Lender, such Lender’s Applicable Percentage of such Swingline Loan or Loans. Each
Revolving Lender acknowledges and agrees that its obligation to acquire participations in Swingline
Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default or reduction or
termination of the Commitments, and that each such payment shall be made without any offset,
abatement, withholding or reduction whatsoever. Each Revolving Lender shall comply with its
obligation under this paragraph by wire transfer of immediately available funds, in the same manner
as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07 shall
apply, mutatis mutandis, to the payment obligations of the Lenders), and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from
the Revolving Lenders. The Administrative Agent shall notify the Borrower Representative of any
participations in any Swingline Loan acquired pursuant to this paragraph, and thereafter payments
in respect of such Swingline Loan shall be made to the Administrative Agent and not to the
Swingline Lender. Any amounts received by the Swingline Lender from the Borrowers (or other party
on behalf of the Borrowers) in respect of a Swingline Loan after receipt by the Swingline Lender of
the proceeds of a sale of participations therein shall be promptly remitted to the Administrative
Agent; any such amounts received by the Administrative Agent shall be promptly remitted by the
Administrative Agent to the Revolving Lenders that shall have made their payments pursuant to this
paragraph and to the Swingline Lender, as their interests may appear; provided that any
such payment so remitted shall be repaid to the Swingline Lender or to the Administrative Agent, as
applicable, if and to the extent such payment is required to be refunded to the Borrowers for any
reason. The purchase of participations in a Swingline Loan pursuant to this paragraph shall not
relieve the Borrowers of any default in the payment thereof.

          (c) Any provision of this Agreement to the contrary notwithstanding, at the request of the
Borrower Representative, the Administrative Agent may in its sole discretion (but with absolutely
no obligation), make Revolving Loans to the Borrowers, on behalf of the Revolving Lenders, in
amounts that exceed Availability (any such excess Revolving Loans are herein referred to
collectively as “Overadvances”); provided that, no Overadvance shall result in a
Default due to the Borrowers’ failure to comply with Section 2.01 for so long as such Overadvance
remains outstanding in accordance with the terms of this paragraph, but solely with respect to the
amount of such Overadvance. In addition, Overadvances may be made even if the condition precedent
set forth in Section 4.02(c) has not been satisfied. All Overadvances shall constitute ABR
Borrowings. The authority of the Administrative Agent to make Overadvances is limited to an
aggregate amount not to exceed 10% of then outstanding Revolving Commitments of the Lenders at any
time, no Overadvance may remain outstanding for more than thirty (30) days and no Overadvance shall
cause any Revolving Lender’s Revolving Exposure to exceed its Revolving Commitment;
provided that, the Majority Lenders may at any time revoke the Administrative Agent’s
authorization to make Overadvances. Any such revocation must be in writing and shall become
effective prospectively upon the Administrative Agent’s receipt thereof.

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          (d) Upon the making of an Overadvance by the Administrative Agent, each Revolving Lender shall
be deemed, without further action by any party hereto, to have unconditionally and irrevocably
purchased from the Administrative Agent without recourse or warranty, an undivided interest and
participation in such Overadvance in proportion to its Applicable Percentage of the Revolving
Commitment. The Administrative Agent may, at any time, require the Revolving Lenders to fund their
participations. From and after the date, if any, on which any Revolving Lender is required to fund
its participation in any Overadvance purchased hereunder, the Administrative Agent shall promptly
distribute to such Lender, such Lender’s Applicable Percentage of all payments of principal and
interest and all proceeds of Collateral received by the Administrative Agent in respect of such
Loan.

          (e) Upon the making of a Swingline Loan or an Overadvance (whether before or after the
occurrence of a Default and regardless of whether a Settlement has been requested with respect to
such Swingline Loan or Overadvance), each Revolving Lender shall be deemed, without further action
by any party hereto, to have unconditionally and irrevocably purchased from the Swingline Lender or
the Administrative Agent, as the case may be, without recourse or warranty, an undivided interest
and participation in such Swingline Loan or Overadvance in proportion to its Applicable Percentage
of the Revolving Commitment. The Swingline Lender or the Administrative Agent may, at any time,
require the Revolving Lenders to fund their participations. From and after the date, if any, on
which any Revolving Lender is required to fund its participation in any Swingline Loan or
Overadvance purchased hereunder, the Administrative Agent shall promptly distribute to such Lender,
such Lender’s Applicable Percentage of all payments of principal and interest and all proceeds of
Collateral received by the Administrative Agent in respect of such Loan.

          (f) The Administrative Agent, on behalf of the Swingline Lender, shall request settlement of
outstanding Swingline Loans (a “Settlement”) with the Revolving Lenders on at least a
weekly basis or on any date that the Administrative Agent elects, by notifying the Revolving
Lenders of such requested Settlement by facsimile, telephone, or e-mail no later than 12:00 noon
Chicago time on the date of such requested Settlement (the “Settlement Date”). Each
Revolving Lender (other than the Swingline Lender, in the case of the Swingline Loans) shall
transfer the amount of such Revolving Lender’s Applicable Percentage of the outstanding principal
amount of the applicable Swingline Loan with respect to which Settlement is requested to the
Administrative Agent, to such account of the Administrative Agent as the Administrative Agent may
designate, not later than 2:00 p.m., Chicago time, on such Settlement Date. Settlements may occur
during the existence of a Default and whether or not the applicable conditions precedent set forth
in Section 4.02 have then been satisfied. Such amounts transferred to the Administrative Agent
shall be applied against the amounts of the Swingline Lender’s Swingline Loans and, together with
Swingline Lender’s Applicable Percentage of such Swingline Loan, shall constitute Revolving Loans
of such Revolving Lenders, respectively. If any such amount is not transferred to the
Administrative Agent by any Revolving Lender on such Settlement Date, the Swingline Lender shall be
entitled to recover such amount on demand from such Lender together with interest thereon as
specified in Section 2.07.

          Section 2.06 Letters of Credit.

          (a) General. Subject to the terms and conditions set forth herein, the Borrower
Representative may request the issuance of Letters of Credit for its own account or for the account
of another Borrower, in a form reasonably acceptable to the Administrative Agent and the Issuing
Bank, at any time and from time to time during the Availability Period. In the event of any
inconsistency between the terms and conditions of this Agreement and the terms and conditions of
any form of letter of credit application or other agreement submitted by the Borrowers to, or
entered into by the Borrowers with, the Issuing Bank relating to any Letter of Credit, the terms
and conditions of this Agreement shall control.

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          (b) Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. To request
the issuance of a Letter of Credit (or the amendment, renewal or extension of an outstanding Letter
of Credit), the Borrower Representative shall hand deliver or facsimile (or transmit by electronic
communication, if arrangements for doing so have been approved by the Issuing Bank) to the Issuing
Bank and the Administrative Agent (prior to 9:00 am, Chicago time, at least three (3) Business Days
prior to the requested date of issuance, amendment, renewal or extension) a notice requesting the
issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or
extended, and specifying the date of issuance, amendment, renewal or extension (which shall be a
Business Day), the date on which such Letter of Credit is to expire (which shall comply with
paragraph (c) of this Section), the amount of such Letter of Credit, the name and address of the
beneficiary thereof and such other information as shall be necessary to prepare, amend, renew or
extend such Letter of Credit. If requested by the Issuing Bank, the applicable Borrower also shall
submit a letter of credit application on the Issuing Bank’s standard form in connection with any
request for a Letter of Credit. A Letter of Credit shall be issued, amended, renewed or extended
only if (and upon issuance, amendment, renewal or extension of each Letter of Credit the Borrowers
shall be deemed to represent and warrant that), after giving effect to such issuance, amendment,
renewal or extension (i) the LC Exposure shall not exceed $10,000,000 and (ii) the total Revolving
Exposures shall not exceed the lesser of the total Revolving Commitments and the Borrowing Base.

          (c) Expiration Date. Each Letter of Credit shall expire at or prior to the close of
business on the earlier of (i) the date one year after the date of the issuance of such Letter of
Credit (or, in the case of any renewal or extension thereof, one year after such renewal or
extension) and (ii) the date that is five (5) Business Days prior to the Maturity Date.

          (d) Participations. By the issuance of a Letter of Credit (or an amendment to a
Letter of Credit increasing the amount thereof) and without any further action on the part of the
Issuing Bank or the Revolving Lenders, the Issuing Bank hereby grants to each Revolving Lender, and
each Revolving Lender hereby acquires from the Issuing Bank, a participation in such Letter of
Credit equal to such Lender’s Applicable Percentage of the aggregate amount available to be drawn
under such Letter of Credit. In consideration and in furtherance of the foregoing, each Revolving
Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the
account of the Issuing Bank, such Lender’s Applicable Percentage of each LC Disbursement made by
the Issuing Bank and not reimbursed by the Borrowers on the date due as provided in paragraph (e)
of this Section, or of any reimbursement payment required to be refunded to the Borrowers for any
reason. Each Revolving Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including any amendment,
renewal or extension of any Letter of Credit or the occurrence and continuance of a Default or
reduction or termination of the Commitments, and that each such payment shall be made without any
offset, abatement, withholding or reduction whatsoever.

          (e) Reimbursement. If the Issuing Bank shall make any LC Disbursement in respect of a
Letter of Credit, the Borrowers shall reimburse such LC Disbursement by paying to the
Administrative Agent an amount equal to such LC Disbursement not later than 11:00 a.m., Chicago
time, on the date that such LC Disbursement is made, if the Borrowers Representative shall have
received notice of such LC Disbursement prior to 9:00 a.m., Chicago time, on such date, or, if such
notice has not been received by the Borrower Representative prior to such time on such date, then
not later than 11:00 a.m., Chicago time, on (i) the Business Day that the Borrower Representative
receives such notice, if such notice is received prior to 9:00 a.m., Chicago time, or (ii) the
Business Day immediately following the day that the Borrower Representative receives such notice,
if such notice is not received prior to such time; provided that the Borrowers may, subject
to the conditions to borrowing set forth herein, request in accordance with Section 2.03 or 2.05
that such payment be financed with an ABR Revolving Borrowing

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or Swingline Loan in an equivalent amount and, to the extent so financed, the Borrowers’
obligation to make such payment shall be discharged and replaced by the resulting ABR Revolving
Borrowing or Swingline Loan. If the Borrowers fail to make such payment when due, the
Administrative Agent shall notify each Revolving Lender of the applicable LC Disbursement, the
payment then due from the Borrowers in respect thereof and such Lender’s Applicable Percentage
thereof. Promptly following receipt of such notice, each Revolving Lender shall pay to the
Administrative Agent its Applicable Percentage of the payment then due from the Borrowers, in the
same manner as provided in Section 2.07 with respect to Loans made by such Lender (and Section 2.07
shall apply, mutatis mutandis, to the payment obligations of the Revolving
Lenders), and the Administrative Agent shall promptly pay to the Issuing Bank the amounts so
received by it from the Revolving Lenders. Promptly following receipt by the Administrative Agent
of any payment from the Borrowers pursuant to this paragraph, the Administrative Agent shall
distribute such payment to the Issuing Bank or, to the extent that Revolving Lenders have made
payments pursuant to this paragraph to reimburse the Issuing Bank, then to such Lenders and the
Issuing Bank as their interests may appear. Any payment made by a Revolving Lender pursuant to
this paragraph to reimburse the Issuing Bank for any LC Disbursement (other than the funding of ABR
Revolving Loans or a Swingline Loan as contemplated above) shall not constitute a Loan and shall
not relieve the Borrowers of their obligation to reimburse such LC Disbursement.

          (f) Obligations Absolute. The Borrowers’ joint and several obligation to reimburse LC
Disbursements as provided in paragraph (e) of this Section shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Agreement under
any and all circumstances whatsoever and irrespective of (i) any lack of validity or enforceability
of any Letter of Credit or this Agreement, or any term or provision therein, (ii) any draft or
other document presented under a Letter of Credit proving to be forged, fraudulent or invalid in
any respect or any statement therein being untrue or inaccurate in any respect, (iii) payment by
the Issuing Bank under a Letter of Credit against presentation of a draft or other document that
does not comply with the terms of such Letter of Credit, or (iv) any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions of
this Section, constitute a legal or equitable discharge of, or provide a right of setoff against,
the Borrowers’ obligations hereunder. Neither the Administrative Agent, the Revolving Lenders nor
the Issuing Bank, nor any of their Related Parties, shall have any liability or responsibility by
reason of or in connection with the issuance or transfer of any Letter of Credit or any payment or
failure to make any payment thereunder (irrespective of any of the circumstances referred to in the
preceding sentence), or any error, omission, interruption, loss or delay in transmission or
delivery of any draft, notice or other communication under or relating to any Letter of Credit
(including any document required to make a drawing thereunder), any error in interpretation of
technical terms or any consequence arising from causes beyond the control of the Issuing Bank;
provided that the foregoing shall not be construed to excuse the Issuing Bank from
liability to the Borrowers to the extent of any direct damages (as opposed to consequential
damages, claims in respect of which are hereby waived by the Borrowers to the extent permitted by
applicable law) suffered by any Borrower that are caused by the Issuing Bank’s failure to exercise
care when determining whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that, in the absence of gross
negligence or willful misconduct on the part of the Issuing Bank (as finally determined by a court
of competent jurisdiction), the Issuing Bank shall be deemed to have exercised care in each such
determination. In furtherance of the foregoing and without limiting the generality thereof, the
parties agree that, with respect to documents presented which appear on their face to be in
substantial compliance with the terms of a Letter of Credit, the Issuing Bank may, in its sole
discretion, either accept and make payment upon such documents without responsibility for further
investigation, regardless of any notice or information to the contrary, or refuse to accept and
make payment upon such documents if such documents are not in strict compliance with the terms of
such Letter of Credit.

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          (g) Disbursement Procedures. The Issuing Bank shall, promptly following its receipt
thereof, examine all documents purporting to represent a demand for payment under a Letter of
Credit. The Issuing Bank shall promptly notify the Administrative Agent and the applicable
Borrower by telephone (confirmed by facsimile) of such demand for payment and whether the Issuing
Bank has made or will make an LC Disbursement thereunder; provided that any failure to give
or delay in giving such notice shall not relieve the Borrowers of their obligation to reimburse the
Issuing Bank and the Revolving Lenders with respect to any such LC Disbursement.

          (h) Interim Interest. If the Issuing Bank shall make any LC Disbursement, then,
unless the Borrowers shall reimburse such LC Disbursement in full on the date such LC Disbursement
is made, the unpaid amount thereof shall bear interest, for each day from and including the date
such LC Disbursement is made to but excluding the date that the Borrowers reimburse such LC
Disbursement, at the rate per annum then applicable to ABR Revolving Loans; provided that,
if the Borrowers fail to reimburse such LC Disbursement when due pursuant to paragraph (e) of this
Section, then Section 2.13(d) shall apply. Interest accrued pursuant to this paragraph shall be
for the account of the Issuing Bank, except that interest accrued on and after the date of payment
by any Revolving Lender pursuant to paragraph (e) of this Section to reimburse the Issuing Bank
shall be for the account of such Lender to the extent of such payment.

          (i) Replacement of the Issuing Bank. The Issuing Bank may be replaced at any time by
written agreement among the Borrower Representative, the Administrative Agent, the replaced Issuing
Bank and the successor Issuing Bank. The Administrative Agent shall notify the Revolving Lenders
of any such replacement of the Issuing Bank. At the time any such replacement shall become
effective, the Borrowers shall pay all unpaid fees accrued for the account of the replaced Issuing
Bank pursuant to Section 2.12(b). From and after the effective date of any such replacement, (i)
the successor Issuing Bank shall have all the rights and obligations of the Issuing Bank under this
Agreement with respect to Letters of Credit to be issued thereafter and (ii) references herein to
the term “Issuing Bank” shall be deemed to refer to such successor or to any previous Issuing Bank,
or to such successor and all previous Issuing Banks, as the context shall require. After the
replacement of an Issuing Bank hereunder, the replaced Issuing Bank shall remain a party hereto and
shall continue to have all the rights and obligations of an Issuing Bank under this Agreement with
respect to Letters of Credit issued by it prior to such replacement, but shall not be required to
issue additional Letters of Credit.

          (j) Cash Collateralization. If any Event of Default shall occur and be continuing, on
the Business Day that the Borrower Representative receives notice from the Administrative Agent or
the Required Lenders demanding the deposit of cash collateral pursuant to this paragraph, the
Borrowers shall deposit in an account with the Administrative Agent, in the name of the
Administrative Agent and for the benefit of the Revolving Lenders (the “LC Collateral
Account”), an amount in cash equal to 105% of the LC Exposure as of such date plus accrued and
unpaid interest thereon; provided that the obligation to deposit such cash collateral shall
become effective immediately, and such deposit shall become immediately due and payable, without
demand or other notice of any kind, upon the occurrence of any Event of Default with respect to any
Borrower described in clause (h) or (i) of Article VII. Such deposit shall be held by the
Administrative Agent as collateral for the payment and performance of the Secured Obligations. The
Administrative Agent shall have exclusive dominion and control, including the exclusive right of
withdrawal, over such account and the Borrowers hereby grant the Administrative Agent a security
interest in the LC Collateral Account. Other than any interest earned on the investment of such
deposits, which investments shall be made at the option and Permitted Discretion of the
Administrative Agent and at the Borrowers’ risk and expense, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account, including interest and profits, shall be applied by the Administrative Agent to reimburse
the Issuing Bank for LC Disbursements for which it has not been reimbursed and, to the extent not
so applied, shall be held

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for the satisfaction of the reimbursement obligations of the Borrowers for the LC Exposure at
such time or be applied to satisfy other outstanding Secured Obligations. If the Borrowers are
required to provide an amount of cash collateral hereunder as a result of the occurrence of an
Event of Default, such amount (to the extent not applied as aforesaid) shall be returned to the
Borrowers within three (3) Business Days after all such Defaults have been cured or waived.

          Section 2.07 Funding of Borrowings.

          (a) Each Lender shall make each Loan to be made by it hereunder on the proposed date thereof
by wire transfer of immediately available funds by 1:00 p.m., Chicago time, to the account of the
Administrative Agent most recently designated by it for such purpose by notice to the Lenders in an
amount equal to such Lender’s Applicable Percentage; provided that Swingline Loans shall be
made as provided in Section 2.05. The Administrative Agent will make such Loans available to the
Borrower Representative by promptly crediting the amounts so received, in like funds, to the
Funding Account(s); provided that ABR Revolving Loans made to finance the reimbursement of
(i) an LC Disbursement as provided in Section 2.06(e) shall be remitted by the Administrative Agent
to the Issuing Bank and (ii) a Protective Advance or an Overadvance shall be retained by the
Administrative Agent.

          (b) Unless the Administrative Agent shall have received notice from a Lender prior to the
proposed date of any Borrowing that such Lender will not make available to the Administrative Agent
such Lender’s share of such Borrowing, the Administrative Agent may assume that such Lender has
made such share available on such date in accordance with paragraph (a) of this Section and may, in
reliance upon such assumption, make available to the applicable Borrower a corresponding amount.
In such event, if a Lender has not in fact made its share of the applicable Borrowing available to
the Administrative Agent, then the applicable Lender and the Borrowers severally agree to pay to
the Administrative Agent forthwith on demand such corresponding amount with interest thereon, for
each day from and including the date such amount is made available to the applicable Borrower to
but excluding the date of payment to the Administrative Agent, at (i) in the case of such Lender,
the greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent
in accordance with banking industry rules on interbank compensation or (ii) in the case of the
Borrowers, the interest rate applicable to ABR Loans. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender’s Loan included in such
Borrowing.

          Section 2.08 Interest Elections.

          (a) Each Revolving Borrowing initially shall be of the Type specified in the applicable
Borrowing Request and, in the case of a Eurodollar Revolving Borrowing, shall have an initial
Interest Period as specified in such Borrowing Request. Thereafter, the Borrower Representative
may elect to convert such Borrowing to a different Type or to continue such Borrowing as a
Borrowing of the same type and, in the case of a Eurodollar Revolving Borrowing, may elect Interest
Periods therefor, all as provided in this Section. The Borrower Representative may elect different
options with respect to different portions of the affected Borrowing, in which case each such
portion shall be allocated ratably among the Lenders holding the Loans comprising such Borrowing,
and the Loans comprising each such portion shall be considered a separate Borrowing. This Section
shall not apply to Swingline Borrowings, Overadvances or Protective Advances, which may not be
converted or continued.

          (b) To make an election pursuant to this Section, the Borrower Representative shall notify the
Administrative Agent of such election by telephone by the time that a Borrowing Request would be
required under Section 2.03 if the Borrowers were requesting a Revolving Borrowing of the Type
resulting from such election to be made on the effective date of such election. Each such
telephonic Interest Election Request shall be irrevocable and shall be confirmed promptly by hand
delivery or

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facsimile to the Administrative Agent of a written Interest Election Request in a form
approved by the Administrative Agent and signed by the Borrower Representative.

(c) Each telephonic and written Interest Election Request shall specify the following
information in compliance with Section 2.02:

     (i) the Borrower and the Borrowing to which such Interest Election Request
applies and, if different options are being elected with respect to different
portions thereof, the portions thereof to be allocated to each resulting Borrowing
(in which case the information to be specified pursuant to clauses (iii) and (iv)
below shall be specified for each resulting Borrowing);

     (ii) the effective date of the election made pursuant to such Interest Election
Request, which shall be a Business Day;

     (iii) whether the resulting Borrowing is to be an ABR Borrowing or a Eurodollar
Borrowing; and

     (iv) if the resulting Borrowing is a Eurodollar Borrowing, the Interest Period
to be applicable thereto after giving effect to such election, which shall be a
period contemplated by the definition of the term “Interest Period”.

If any such Interest Election Request requests a Eurodollar Borrowing but does not specify an
Interest Period, then the Borrowers shall be deemed to have selected an Interest Period of one
month’s duration.

          (d) Promptly following receipt of an Interest Election Request, the Administrative Agent shall
advise each Lender of the details thereof and of such Lender’s portion of each resulting Borrowing.

          (e) If the Borrower Representative fails to deliver a timely Interest Election Request with
respect to a Eurodollar Revolving Borrowing prior to the end of the Interest Period applicable
thereto, then, unless such Borrowing is repaid as provided herein, at the end of such Interest
Period such Borrowing shall be converted to an ABR Borrowing. Notwithstanding any contrary
provision hereof, if an Event of Default has occurred and is continuing and the Administrative
Agent, at the request of the Required Lenders, so notifies the Borrower Representative, then, so
long as an Event of Default is continuing (i) no outstanding Revolving Borrowing may be converted
to or continued as a Eurodollar Borrowing and (ii) unless repaid, each Eurodollar Revolving
Borrowing shall be converted to an ABR Borrowing at the end of the Interest Period applicable
thereto.

          Section 2.09 Termination, Reduction and Increase of Commitments.

          (a) Unless previously terminated, all Commitments shall terminate on the Maturity Date.

          (b) The Borrowers may at any time terminate the Commitments upon (i) the payment in full of
all outstanding Loans, together with accrued and unpaid interest thereon and on any Letters of
Credit, (ii) the cancellation and return of all outstanding Letters of Credit (or alternatively,
with respect to each such Letter of Credit, the furnishing to the Administrative Agent of a cash
deposit (or at the discretion of the Administrative Agent a back up standby letter of credit
satisfactory to the Administrative Agent) equal to 105% of the LC Exposure as of such date), (iii)
the payment in full of all reimbursable expenses and other Obligations together with accrued and
unpaid interest thereon, and (iv) the payment in

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full of the accrued and unpaid fees, including applicable Prepayment Fee (if any);
provided that no Prepayment Fee shall be payable in the event this Agreement is terminated
in connection with (x) a refinancing of all of the then outstanding Obligations in a transaction in
which Chase or one of its Affiliates is the financial institution that provides or arranges a
replacement bank credit facility for the Borrowers or (y) a refinancing of all of the then
outstanding Obligations with the proceeds of the sale of Equity Interests of any Loan Party in
which Chase or one of its Affiliates is the underwriter in connection with such sale.

          (c) The Borrowers may from time to time reduce the Revolving Commitments; provided
that (i) each reduction of the Revolving Commitments shall be in an amount that is an integral
multiple of $5,000,000, (ii) the Revolving Commitments may not be reduced to an amount less than
$50,000,000, (iii) no more than three reductions of the Revolving Commitments may be made during
the Availability Period, (iv) subject to Section 2.09(e), any reduction pursuant to this Section
2.09(c) shall be permanent and (v) the Borrowers shall not reduce the Revolving Commitments if,
after giving effect to any concurrent prepayment of the Revolving Loans in accordance with Section
2.10, the sum of the Revolving Exposures would exceed the lesser of the total Revolving Commitments
and the Borrowing Base, Swingline Loans and LC Exposure.

          (d) The Borrower Representative shall notify the Administrative Agent in writing of any
election to terminate or reduce the Commitments under paragraph (b) or (c) of this Section at least
five (5) Business Days prior to the effective date of such termination or reduction, specifying
such election and the effective date thereof. Promptly following receipt of any notice, the
Administrative Agent shall advise the Lenders of the contents thereof. Each notice delivered by
the Borrower Representative pursuant to this Section shall be irrevocable; provided that a
notice of termination of the Commitments delivered by the Borrower Representative may state that
such notice is conditioned upon the effectiveness of other credit facilities, in which case such
notice may be revoked by the Borrower Representative (by notice to the Administrative Agent on or
prior to the specified effective date) if such condition is not satisfied. Subject to Section
2.09(e), any termination or reduction of the Commitments shall be permanent. Each reduction of the
Commitments shall be made ratably among the Lenders in accordance with their respective
Commitments.

          (e) Lenders agree that Borrower Representative may one time during the Availability Period, so
long as no Default or Event of Default has occurred and is continuing, deliver a written notice to
Administrative Agent and each Lender (an “Increase Notice”) requesting an increase in the
Revolving Commitments (the “Requested Revolver Increase”) not to exceed $25,000,000. The
Increase Notice shall be accompanied with a Compliance Certificate confirming that after giving
effect to the Requested Revolver Increase the financial covenants set for in Section 6.12 are in
compliance. If Borrower Representative delivers an Increase Notice, each Lender shall have the
option to participate in the Requested Revolver Increase upon terms and in amounts determined by
Administrative Agent by delivering a written notice to Administrative Agent and Borrower
Representative within ten (10) Business Days of such Lender’s receipt of the Increase Notice (it
being agreed and understood that such Lender shall be deemed to have elected not to participate in
the Requested Revolver Increase if it does not respond to the Increase Notice within fifteen (15)
Business Days of its receipt thereof). If one or more Lenders with Revolving Commitments elect not
to participate in the Requested Revolver Increase, or if such participation is for less than the
full amount of the Requested Revolver Increase, then Administrative Agent may, at its option and in
its separate capacities as a Lender, elect to participate in such remaining portion of the
Requested Revolver Increase. If there is less than full participation by existing Lenders with
Revolving Commitments in the Requested Revolver Increase after the foregoing procedures, then one
or more new Lenders acceptable to Administrative Agent and Borrower Representative may be added as
parties to this Agreement for purposes of participating in such remaining portion. After giving
effect to the procedures described in this paragraph, each Lender participating in the Requested
Revolver Increase

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shall have its Revolving Commitment increase to the extent of its participation as determined
by Administrative Agent and, upon the request of such Lender, Borrowers will execute a replacement
promissory note for such Lender reflecting the increased amount of its Revolving Commitment.
Borrowers agree to execute such amendments and supplements to the Loan Documents and make such
repayments and reborrowings of Loans as Administrative Agent reasonably deems necessary in
connection with a Requested Revolver Increase and further agree to pay to Administrative Agent an
arrangement fee in connection with the Requested Revolver Increase based upon the same percentage
used to calculate the arrangement fee payable by Borrowers to Administrative Agent on the Effective
Date; provided that Borrowers shall not be obligated to pay an arrangement fee with respect
to the Requested Revolver Increase if the aggregate amount of the Lenders’ Revolving Commitments
after giving effect to such increase and any prior reduction of the Commitments pursuant to Section
2.09(c) does not exceed $75,000,000.

          Section 2.10 Repayment of Loans; Evidence of Debt.

          (a) The Borrowers hereby unconditionally promise to pay (i) to the Administrative Agent for
the account of each Lender the then unpaid principal amount of each Revolving Loan on the Maturity
Date, (ii) to the Administrative Agent the then unpaid amount of each Protective Advance on the
earlier of the Maturity Date and demand by the Administrative Agent, (iii) to the Swingline Lender
the then unpaid principal amount of each Swingline Loan on the earlier of the Maturity Date and the
first date after such Swingline Loan is made that is the 15th or last day of a calendar month and
is at least two (2) Business Days after such Swingline Loan is made (provided that on each
date that a Revolving Loan is made, the Borrowers shall repay all Swingline Loans then
outstanding), and (iv) to the Administrative Agent the then unpaid principal amount of each
Overadvance on the earlier of the Maturity Date and demand by the Administrative Agent.

          (b) At all times that full cash dominion is in effect pursuant to Section 7.3 of the Security
Agreement, on each Business Day, the Administrative Agent shall apply all immediately available
funds credited to the Collection Account prior to 2:00 p.m., Chicago time on such Business Day plus
all immediately available funds credited after 2:00 p.m. on the previous Business Day,
first to prepay any Protective Advances and Overadvances that may be outstanding, pro rata,
and second to prepay the Revolving Loans (including Swingline Loans) and to cash
collateralize outstanding LC Exposure.

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

          (d) The Administrative Agent shall maintain accounts in which it shall record (i) the amount
of each Loan made hereunder, the Class and Type thereof and the Interest Period applicable thereto,
(ii) the amount of any principal or interest due and payable or to become due and payable from the
Borrowers to each Lender hereunder and (iii) the amount of any sum received by the Administrative
Agent hereunder for the account of the Lenders and each Lender’s share thereof.

          (e) The entries made in the accounts maintained pursuant to paragraph (c) or (d) of this
Section shall be prima facie evidence of the existence and amounts of the
obligations recorded therein; provided that the failure of any Lender or the Administrative
Agent to maintain such accounts or any error therein shall not in any manner affect the obligation
of the Borrowers to repay the Loans in accordance with the terms of this Agreement.

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          (f) Any Lender may request that Loans made by it be evidenced by a promissory note. In such
event, the Borrowers shall prepare, execute and deliver to such Lender a promissory note payable to
the order of such Lender (or, if requested by such Lender, to such Lender and its registered
assigns) and in a form approved by the Administrative Agent. Thereafter, the Loans evidenced by
such promissory note and interest thereon shall at all times (including after assignment pursuant
to Section 9.04) be represented by one or more promissory notes in such form payable to the order
of the payee named therein (or, if such promissory note is a registered note, to such payee and its
registered assigns).

          Section 2.11 Prepayment of Loans.

          (a) The Borrowers shall have the right at any time and from time to time to prepay any
Borrowing in whole or in part, subject to prior notice in accordance with paragraph (e) of this
Section.

          (b) Except for Overadvances permitted under Section 2.05, in the event and on such occasion
that the total Revolving Exposure exceeds the lesser of (A) the aggregate Revolving Commitments or
(B) the Borrowing Base, the Borrowers shall prepay the Revolving Loans, LC Exposure and/or
Swingline Loans in an aggregate amount equal to such excess.

          (c) In the event and on each occasion that any Net Proceeds are received by or on behalf of
any Loan Party in respect of any Prepayment Event, the Borrowers shall, immediately after such Net
Proceeds are received by such Loan Party, prepay the Obligations as set forth in Section 2.11(e)
below in an aggregate amount equal to 100% of such Net Proceeds.

          (d) All such amounts pursuant to Section 2.11(c) shall be applied, first to prepay any
Protective Advances and Overadvances that may be outstanding, pro rata, and second to
prepay the Revolving Loans (including Swingline Loans) without a corresponding reduction in the
Revolving Commitment and to cash collateralize outstanding LC Exposure.

          (e) The Borrower Representative shall notify the Administrative Agent (and, in the case of
prepayment of a Swingline Loan, the Swingline Lender) by written notice of any prepayment hereunder
(i) in the case of prepayment of a Eurodollar Revolving Borrowing, not later than 10:00 a.m.,
Chicago time, three (3) Business Days before the date of prepayment, (ii) in the case of prepayment
of an ABR Revolving Borrowing, not later than 10:00 a.m., Chicago time, one Business Day before the
date of prepayment or (iii) in the case of prepayment of a Swingline Loan, not later than 11:00
a.m., Chicago time, on the date of prepayment. Each such notice shall be irrevocable and shall
specify the prepayment date and the principal amount of each Borrowing or portion thereof to be
prepaid; provided that, if a notice of prepayment is given in connection with a conditional
notice of termination of the Commitments as contemplated by Section 2.09, then such notice of
prepayment may be revoked if such notice of termination is revoked in accordance with Section 2.09.
Promptly following receipt of any such notice relating to a Revolving Borrowing, the
Administrative Agent shall advise the Lenders of the contents thereof. Each partial prepayment of
any Revolving Borrowing shall be in an amount that would be permitted in the case of an advance of
a Revolving Borrowing of the same Type as provided in Section 2.02. Each prepayment of a Revolving
Borrowing shall be applied ratably to the Revolving Loans included in the prepaid Borrowing.
Prepayments shall be accompanied by accrued interest to the extent required by Section 2.13.

          Section 2.12 Fees.

          (a) The Borrowers agree to pay to the Administrative Agent for the account of each Lender a
commitment fee, which shall accrue at the Applicable Rate on the average daily amount of the

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Available Revolving Commitment during the period from and including the Effective Date to but
excluding the date on which the Lenders’ Revolving Commitments terminate. Accrued commitment fees
shall be payable in arrears on the last day of each calendar month and on the date on which the
Revolving Commitments terminate, commencing on the first such date to occur after the date hereof.
All commitment fees shall be computed on the basis of a year of three hundred sixty-five (365) days
(or three hundred sixty-six (366) days in a leap year) and shall be payable for the actual number
of days elapsed.

          (b) The Borrowers agree to pay (i) to the Administrative Agent for the account of each
Revolving Lender a participation fee with respect to its participations in Letters of Credit, which
shall accrue at the same Applicable Rate used to determine the interest rate applicable to
Eurodollar Revolving Loans on the average daily amount of such Lender’s LC Exposure (excluding any
portion thereof attributable to unreimbursed LC Disbursements) during the period from and including
the Effective Date to but excluding the later of the date on which such Lender’s Revolving
Commitment terminates and the date on which such Revolving Lender ceases to have any LC Exposure,
and (ii) to the Issuing Bank a fronting fee, which shall accrue at the rate of 0.125% per annum on
the average daily amount of the LC Exposure (excluding any portion thereof attributable to
unreimbursed LC Disbursements) during the period from and including the Effective Date to but
excluding the later of the date of termination of the Revolving Commitments and the date on which
there ceases to be any LC Exposure, as well as the Issuing Bank’s standard fees with respect to the
issuance, amendment, renewal or extension of any Letter of Credit or processing of drawings
thereunder. Participation fees and fronting fees accrued through and including the last day of
each calendar month shall be payable on the third Business Day following such last day, commencing
on the first such date to occur after the Effective Date; provided that all such fees shall
be payable on the date on which the Revolving Commitments terminate and any such fees accruing
after the date on which the Commitments terminate shall be payable on demand. Any other fees
payable to the Issuing Bank pursuant to this paragraph shall be payable within ten (10) days after
demand. All participation fees and fronting fees shall be computed on the basis of a year of three
hundred sixty-five (365) days (or three hundred sixty-six (366) days in a leap year) and shall be
payable for the actual number of days elapsed.

          (c) The Borrowers agree to pay to the Administrative Agent, for its own account, fees payable
in the amounts and at the times separately agreed upon between the Borrowers and the Administrative
Agent.

          (d) All fees payable hereunder shall be paid on the dates due, in immediately available funds,
to the Administrative Agent (or to the Issuing Bank, in the case of fees payable to it) for
distribution, in the case of commitment fees and participation fees, to the Lenders. Fees paid
shall not be refundable under any circumstances.

          Section 2.13 Interest.

          (a) The Loans comprising each ABR Borrowing (including each Swingline Loan) shall bear
interest at the Alternate Base Rate plus the Applicable Rate.

          (b) The Loans comprising each Eurodollar Borrowing shall bear interest at the Adjusted LIBO
Rate for the Interest Period in effect for such Borrowing plus the Applicable Rate.

          (c) Each Protective Advance and each Overadvance shall bear interest at the Alternate Base
Rate plus the Applicable Rate for Revolving Loans plus 2%.

          (d) Notwithstanding the foregoing, during the occurrence and continuance of an Event of
Default, the Administrative Agent or the Required Lenders may, at their option, by notice to the

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Borrower Representative (which notice may be revoked at the option of the Required
Lenders notwithstanding any provision of Section 9.02 requiring the consent of “each Lender
affected thereby” for reductions in interest rates), declare that (i) all Loans shall bear interest
at 2% plus the rate otherwise applicable to such Loans as provided in the preceding paragraphs of
this Section or (ii) in the case of any other amount outstanding hereunder, such amount shall
accrue at 2% plus the rate applicable to such fee or other obligation as provided hereunder.

          (e) Accrued interest on each Loan (for ABR Loans, accrued through the last day of the prior
calendar month) shall be payable in arrears on each Interest Payment Date for such Loan and upon
termination of the Commitments; provided that (i) interest accrued pursuant to paragraph
(d) of this Section shall be payable on demand, (ii) in the event of any repayment or prepayment of
any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Availability
Period), accrued interest on the principal amount repaid or prepaid shall be payable on the date of
such repayment or prepayment and (iii) in the event of any conversion of any Eurodollar Loan prior
to the end of the current Interest Period therefor, accrued interest on such Loan shall be payable
on the effective date of such conversion.

          (f) All interest hereunder shall be computed on the basis of a year of three hundred sixty
(360) days, except that interest computed by reference to the Alternate Base Rate at times when the
Alternate Base Rate is based on the Prime Rate shall be computed on the basis of a year of three
hundred sixty-five (365) days (or three hundred sixty-six (366) days in a leap year), and in each
case shall be payable for the actual number of days elapsed. The applicable Alternate Base Rate,
Adjusted LIBO Rate or LIBO Rate shall be determined by the Administrative Agent, and such
determination shall be conclusive absent manifest error.

          Section 2.14 Alternate Rate of Interest.

          If prior to the commencement of any Interest Period for a Eurodollar Borrowing:

          (a) the Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining the Adjusted LIBO
Rate or the LIBO Rate, as applicable, for such Interest Period; or

          (b) the Administrative Agent is advised by any Lender that the Adjusted LIBO Rate or the LIBO
Rate, as applicable, for such Interest Period will not adequately and fairly reflect the cost to
such Lender of making or maintaining its Loan included in such Borrowing for such Interest Period
or that it is illegal for such Lender to make its Eurodollar Loans;

then the Administrative Agent shall give notice thereof to the Borrower Representative and the
Lenders by telephone or facsimile as promptly as practicable thereafter and, until the
Administrative Agent notifies the Borrower Representative and the Lenders that the circumstances
giving rise to such notice no longer exist, (i) any Interest Election Request that requests the
conversion of any Revolving Borrowing to, or continuation of any Revolving Borrowing as, a
Eurodollar Borrowing shall be ineffective, and (ii) if any Borrowing Request requests a Eurodollar
Revolving Borrowing, such Borrowing shall be made as an ABR Borrowing.

          Section 2.15 Increased Costs.

          (a) If any Change in Law shall:

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     (i) impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Lender (except any such reserve requirement reflected in the
Adjusted LIBO Rate) or the Issuing Bank; or

     (ii) impose on any Lender or the Issuing Bank or the London interbank market
any other condition affecting this Agreement or Eurodollar Loans made by such Lender
or any Letter of Credit or participation therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of making or
maintaining any Eurodollar Loan (or of maintaining its obligation to make any such Loan) or to
increase the cost to such Lender or the Issuing Bank of participating in, issuing or maintaining
any Letter of Credit or to reduce the amount of any sum received or receivable by such Lender or
the Issuing Bank hereunder (whether of principal, interest or otherwise), then the Borrowers will
pay to such Lender or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender or the Issuing Bank, as the case may be, for such additional costs
incurred or reduction suffered.

          (b) If any Lender or the Issuing Bank determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such Lender’s or the
Issuing Bank’s capital or on the capital of such Lender’s or the Issuing Bank’s holding company, if
any, as a consequence of this Agreement or the Loans made by, or participations in Letters of
Credit held by, such Lender, or the Letters of Credit issued by the Issuing Bank, to a level below
that which such Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company
could have achieved but for such Change in Law (taking into consideration such Lender’s or the
Issuing Bank’s policies and the policies of such Lender’s or the Issuing Bank’s holding company
with respect to capital adequacy), then from time to time the Borrowers will pay to such Lender or
the Issuing Bank, as the case may be, such additional amount or amounts as will compensate such
Lender or the Issuing Bank or such Lender’s or the Issuing Bank’s holding company for any such
reduction suffered.

          (c) A certificate of a Lender or the Issuing Bank setting forth the amount or amounts
necessary to compensate such Lender or the Issuing Bank or its holding company, as the case may be,
as specified in paragraph (a) or (b) of this Section shall be delivered to the Borrower
Representative and shall be conclusive absent manifest error. The Borrowers shall pay such Lender
or the Issuing Bank, as the case may be, the amount shown as due on any such certificate within ten
(10) days after receipt thereof.

          (d) Failure or delay on the part of any Lender or the Issuing Bank to demand compensation
pursuant to this Section shall not constitute a waiver of such Lender’s or the Issuing Bank’s right
to demand such compensation; provided that the Borrowers shall not be required to
compensate a Lender or the Issuing Bank pursuant to this Section for any increased costs or
reductions incurred more than one hundred twenty (120) days prior to the date that such Lender or
the Issuing Bank, as the case may be, notifies the Borrower Representative of the Change in Law
giving rise to such increased costs or reductions and of such Lender’s or the Issuing Bank’s
intention to claim compensation therefor; provided further that, if the Change in
Law giving rise to such increased costs or reductions is retroactive, then the 120-day period
referred to above shall be extended to include the period of retroactive effect thereof.

          Section 2.16 Break Funding Payments.

          In the event of (a) the payment of any principal of any Eurodollar Loan other than on the last
day of an Interest Period applicable thereto (including as a result of an Event of Default), (b)
the conversion of any Eurodollar Loan other than on the last day of the Interest Period applicable
thereto,

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(c) the failure to borrow, convert, continue or prepay any Eurodollar Loan on the date
specified in any notice delivered pursuant hereto (regardless of whether such notice may be revoked
under Section 2.09(d) and is revoked in accordance therewith), or (d) the assignment of any
Eurodollar Loan other than on the last day of the Interest Period applicable thereto as a result of
a request by the Borrower Representative pursuant to Section 2.19, then, in any such event, the
Borrowers shall compensate each Lender for the loss, cost and expense attributable to such event.
In the case of a Eurodollar Loan, such loss, cost or expense to any Lender shall be deemed to
include an amount determined by such Lender to be the excess, if any, of (i) the amount of interest
which would have accrued on the principal amount of such Loan had such event not occurred, at the
Adjusted LIBO Rate that would have been applicable to such Loan, for the period from the date of
such event to the last day of the then current Interest Period therefor (or, in the case of a
failure to borrow, convert or continue, for the period that would have been the Interest Period for
such Loan), over (ii) the amount of interest which would accrue on such principal amount for such
period at the interest rate which such Lender would bid were it to bid, at the commencement of such
period, for dollar deposits of a comparable amount and period from other banks in the eurodollar
market. A certificate of any Lender setting forth any amount or amounts that such Lender is
entitled to receive pursuant to this Section shall be delivered to the Borrower Representative and
shall be conclusive absent manifest error. The Borrowers shall pay such Lender the amount shown as
due on any such certificate within ten (10) days after receipt thereof.

          Section 2.17 Taxes.

          (a) Any and all payments by or on account of any obligation of the Borrowers hereunder shall
be made free and clear of and without deduction for any Indemnified Taxes or Other Taxes;
provided that if the Borrowers shall be required to deduct any Indemnified Taxes or Other
Taxes from such payments, then (i) the sum payable shall be increased as necessary so that after
making all required deductions (including deductions applicable to additional sums payable under
this Section) the Administrative Agent, Lender or Issuing Bank (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made, (ii) the Borrowers
shall make such deductions and (iii) the Borrowers shall pay the full amount deducted to the
relevant Governmental Authority in accordance with applicable law.

          (b) In addition, the Borrowers shall pay any Other Taxes to the relevant Governmental
Authority in accordance with applicable law.

          (c) The Borrowers shall jointly and severally indemnify the Administrative Agent, each Lender
and the Issuing Bank, within ten (10) days after written demand therefor, for the full amount of
any Indemnified Taxes or Other Taxes paid by the Administrative Agent, such Lender or the Issuing
Bank, as the case may be, on or with respect to any payment by or on account of any obligation of
the Borrowers hereunder (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other
Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the Borrower Representative
by a Lender or the Issuing Bank, or by the Administrative Agent on its own behalf or on behalf of a
Lender or the Issuing Bank, shall be conclusive absent manifest error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrowers to a Governmental Authority, the Borrower Representative shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence of
such payment reasonably satisfactory to the Administrative Agent.

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          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which any Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower Representative (with a copy to the Administrative Agent), at the time or times prescribed
by applicable law, such properly completed and executed documentation prescribed by applicable law
or reasonably requested by the Borrower Representative as will permit such payments to be made
without withholding or at a reduced rate.

          (f) If the Administrative Agent or a Lender determines, in its sole discretion, that it has
received a refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrowers
or with respect to which the Borrowers have paid additional amounts pursuant to this Section 2.17,
it shall pay over such refund to the Borrowers (but only to the extent of indemnity payments made,
or additional amounts paid, by the Borrowers under this Section 2.17 with respect to the Taxes or
Other Taxes giving rise to such refund), net of all out-of-pocket expenses of the Administrative
Agent or such Lender and without interest (other than any interest paid by the relevant
Governmental Authority with respect to such refund); provided, that the Borrowers, upon the
request of the Administrative Agent or such Lender, agree to repay the amount paid over to the
Borrowers (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent or such Lender in the event the Administrative Agent or such
Lender is required to repay such refund to such Governmental Authority. This Section shall not be
construed to require the Administrative Agent or any Lender to make available its tax returns (or
any other information relating to its taxes which it deems confidential) to the Borrowers or any
other Person.

          Section 2.18 Payments Generally; Allocation of Proceeds; Sharing of Set-offs.

          (a) The Borrowers shall make each payment required to be made by them hereunder (whether of
principal, interest, fees or reimbursement of LC Disbursements, or of amounts payable under Section
2.15, 2.16 or 2.17, or otherwise) prior to 2:00 p.m., Chicago time, on the date when due, in
immediately available funds, without set-off or counterclaim. Any amounts received after such time
on any date may, in the discretion of the Administrative Agent, be deemed to have been received on
the next succeeding Business Day for purposes of calculating interest thereon. All such payments
shall be made to the Administrative Agent at its offices at 120 South LaSalle Street, Chicago,
Illinois, except payments to be made directly to the Issuing Bank or Swingline Lender as expressly
provided herein and except that payments pursuant to Sections 2.15, 2.16, 2.17 and 9.03 shall be
made directly to the Persons entitled thereto. The Administrative Agent shall distribute any such
payments received by it for the account of any other Person to the appropriate recipient promptly
following receipt thereof. If any payment hereunder shall be due on a day that is not a Business
Day, the date for payment shall be extended to the next succeeding Business Day, and, in the case
of any payment accruing interest, interest thereon shall be payable for the period of such
extension. All payments hereunder shall be made in dollars. At all times that full cash dominion
is in effect pursuant to Section 7.3 of the Security Agreement, solely for purposes of determining
the amount of Loans available for borrowing purposes, checks (in addition to immediately available
funds applied pursuant to Section 2.10(b)) from collections of items of payment and proceeds of any
Collateral shall be applied in whole or in part against the Obligations, on the Business Day after
receipt, subject to actual collection.

          (b) Any proceeds of Collateral received by the Administrative Agent (i) not constituting
either (A) a specific payment of principal, interest, fees or other sum payable under the Loan
Documents (which shall be applied as specified by the Borrowers), (B) a mandatory prepayment (which
shall be applied in accordance with Section 2.11) or (C) amounts to be applied from the Collection
Account when full cash dominion is in effect (which shall be applied in accordance with Section
2.10(b)) or (ii) after an Event of Default has occurred and is continuing and the Administrative
Agent so elects or

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the Required Lenders so direct, such funds shall be applied ratably first, to pay any
fees, indemnities, or expense reimbursements including amounts then due to the Administrative Agent
and the Issuing Bank from the Borrowers (other than in connection with Banking Services or Swap
Obligations), second, to pay any fees or expense reimbursements then due to the Lenders
from the Borrowers (other than in connection with Banking Services or Swap Obligations),
third, to pay interest due in respect of the Overadvances and Protective Advances,
fourth, to pay the principal of the Overadvances and Protective Advances, fifth, to
pay interest then due and payable on the Loans (other than the Overadvances and Protective
Advances) ratably, sixth, to prepay principal on the Loans (other than the Overadvances and
Protective Advances) and unreimbursed LC Disbursements ratably, seventh, to pay an amount
to the Administrative Agent equal to 105% of the aggregate undrawn face amount of all outstanding
Letters of Credit and the aggregate amount of any unpaid LC Disbursements, to be held as cash
collateral for such Obligations, eighth any amounts owing with respect to Banking Services
and Swap Obligations and ninth, to the payment of any other Secured Obligation due to the
Administrative Agent or any Lender by the Borrowers. Notwithstanding anything to the contrary
contained in this Agreement, unless so directed by the Borrower Representative, or unless an Event
of Default is in existence, neither the Administrative Agent nor any Lender shall apply any payment
which it receives to any Eurodollar Loan of a Class, except (a) on the expiration date of the
Interest Period applicable to any such Eurodollar Loan or (b) in the event, and only to the extent,
that there are no outstanding ABR Loans of the same Class and, in any such event, the Borrowers
shall pay the break funding payment required in accordance with Section 2.16. The Administrative
Agent and the Lenders shall have the continuing and exclusive right to apply and reverse and
reapply any and all such proceeds and payments to any portion of the Secured Obligations.

          (c) At the election of the Administrative Agent, all payments of principal, interest, LC
Disbursements, fees, premiums, reimbursable expenses (including, without limitation, all
reimbursement for fees and expenses pursuant to Section 9.03), and other sums payable under the
Loan Documents, may be paid from the proceeds of Borrowings made hereunder whether made following a
request by the Borrower Representative pursuant to Section 2.03 or a deemed request as provided in
this Section or may be deducted from any deposit account of any Borrower maintained with the
Administrative Agent; provided, that any such deduction shall first be made from deposit
accounts of the Borrower Representative before being deducted from deposit accounts of any other
Borrower. Each Borrower hereby irrevocably authorizes (i) the Administrative Agent to make a
Borrowing for the purpose of paying each payment of principal, interest, fees, premiums,
reimbursable expenses (including, without limitation, all reimbursement for fees and expenses
pursuant to Section 9.03), and other sums payable under the Loan Documents, as it becomes due
hereunder or any other amount due under the Loan Documents and agrees that all such amounts charged
shall constitute Loans (including Swingline Loans and Overadvances, but such a Borrowing may only
constitute a Protective Advance if it is to reimburse costs, fees and expenses as described in
Section 9.03) and that all such Borrowings shall be deemed to have been requested pursuant to
Sections 2.03, 2.04 or 2.05, as applicable (provided, however, that Administrative
Agent shall not make such a Borrowing for the purpose of paying any sum under the Loan Documents,
except principal, until the third (3rd) Business Day after such amount is due) and (ii)
the Administrative Agent to charge any deposit account of any Borrower maintained with the
Administrative Agent for each payment of principal, interest and fees as it becomes due hereunder
or any other amount due under the Loan Documents; provided, that such charge shall first be
made from deposit accounts of the Borrower Representative before being deducted from deposit
accounts of any other Borrower.

          (d) If any Lender shall, by exercising any right of set-off or counterclaim or otherwise,
obtain payment in respect of any principal of or interest on any of its Loans or participations in
LC Disbursements resulting in such Lender receiving payment of a greater proportion of the
aggregate amount of its Loans and participations in LC Disbursements and accrued interest thereon
than the proportion received by any other Lender, then the Lender receiving such greater proportion
shall purchase (for cash at face value) participations in the Loans and participations in LC
Disbursements of other

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Lenders to the extent necessary so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with the aggregate amount of principal of and accrued interest on
their respective Loans and participations in LC Disbursements; provided that (i) if any
such participations are purchased and all or any portion of the payment giving rise thereto is
recovered, such participations shall be rescinded and the purchase price restored to the extent of
such recovery, without interest, and (ii) the provisions of this paragraph shall not be construed
to apply to any payment made by the Borrowers pursuant to and in accordance with the express terms
of this Agreement or any payment obtained by a Lender as consideration for the assignment of or
sale of a participation in any of its Loans or participations in LC Disbursements to any assignee
or participant, other than to the Borrowers or any Subsidiary or Affiliate thereof (as to which the
provisions of this paragraph shall apply). Each Borrower consents to the foregoing and agrees, to
the extent it may effectively do so under applicable law, that any Lender acquiring a participation
pursuant to the foregoing arrangements may exercise against such Borrower rights of set-off and
counterclaim with respect to such participation as fully as if such Lender were a direct creditor
of such Borrower in the amount of such participation.

          (e) Unless the Administrative Agent shall have received notice from the Borrower
Representative prior to the date on which any payment is due to the Administrative Agent for the
account of the Lenders or the Issuing Bank hereunder that the Borrowers will not make such payment,
the Administrative Agent may assume that the Borrowers have made such payment on such date in
accordance herewith and may, in reliance upon such assumption, distribute to the Lenders or the
Issuing Bank, as the case may be, the amount due. In such event, if the Borrowers have not in fact
made such payment, then each of the Lenders or the Issuing Bank, as the case may be, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to such
Lender or Issuing Bank with interest thereon, for each day from and including the date such amount
is distributed to it to but excluding the date of payment to the Administrative Agent, at the
greater of the Federal Funds Effective Rate and a rate determined by the Administrative Agent in
accordance with banking industry rules on interbank compensation.

          (f) If any Lender shall fail to make any payment required to be made by it hereunder, then the
Administrative Agent may, in its discretion (notwithstanding any contrary provision hereof), apply
any amounts thereafter received by the Administrative Agent for the account of such Lender to
satisfy such Lender’s obligations hereunder until all such unsatisfied obligations are fully paid.

          Section 2.19 Mitigation Obligations; Replacement of Lenders.

          If any Lender requests compensation under Section 2.15, or if the Borrowers are required to
pay any additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 2.17, then:

          (a) such Lender shall use reasonable efforts to designate a different lending office for
funding or booking its Loans hereunder or to assign its rights and obligations hereunder to another
of its offices, branches or affiliates, if, in the judgment of such Lender, such designation or
assignment (i) would eliminate or reduce amounts payable pursuant to Sections 2.15 or 2.17, as the
case may be, in the future and (ii) would not subject such Lender to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Lender (and the Borrowers hereby agree
to pay all reasonable costs and expenses incurred by any Lender in connection with any such
designation or assignment); and

          (b) if such Lender does not promptly make a designation or assignment under the preceding
clause (a), the Borrowers may, at their sole expense and effort, require such Lender or any Lender
that defaults in its obligation to fund Loans hereunder (herein, a “Departing Lender”),
upon notice to the Departing Lender and the Administrative Agent, to assign and delegate, without
recourse (in

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accordance with and subject to the restrictions contained in Section 9.04), all its interests,
rights and obligations under this Agreement and any other Loan Document to an assignee that shall
assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment); provided that (i) the Borrowers shall have received the prior written consent
of the Administrative Agent, which consent shall not unreasonably be withheld, (ii) the Departing
Lender shall have received payment of an amount equal to the outstanding principal of its Loans and
participations in LC Disbursements and Swingline Loans, accrued interest thereon, accrued fees and
all other amounts payable to it hereunder, from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrowers (in the case of all other amounts) and
(iii) in the case of any such assignment resulting from a claim for compensation under Sections
2.14 or 2.15 or payments required to be made pursuant to Section 2.17, such assignment will result
in a reduction in such compensation or payments. A Departing Lender shall not be required to make
any such assignment and delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrowers to require such assignment and delegation
cease to apply.

          Section 2.20 Returned Payments.

          If after receipt of any payment which is applied to the payment of all or any part of the
Obligations, the Administrative Agent or any Lender is for any reason compelled to surrender such
payment or proceeds to any Person because such payment or application of proceeds is invalidated,
declared fraudulent, set aside, determined to be void or voidable as a preference, impermissible
setoff, or a diversion of trust funds, or for any other reason, then the Obligations or part
thereof intended to be satisfied shall be revived and continued and this Agreement shall continue
in full force as if such payment or proceeds had not been received by the Administrative Agent or
such Lender. The provisions of this Section 2.20 shall be and remain effective notwithstanding any
contrary action which may have been taken by the Administrative Agent or any Lender in reliance
upon such payment or application of proceeds. The provisions of this Section 2.20 shall survive
the termination of this Agreement.

ARTICLE III

Representations and Warranties

          Each Loan Party represents and warrants to the Lenders that:

          Section 3.01 Organization; Powers.

          Each of the Loan Parties and each of its Subsidiaries (other than the Inactive Subsidiaries,
as to which no representation is made) is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization, has all requisite power and authority to
carry on its business as now conducted and, except where the failure to do so could not be
reasonably expected to result in a Material Adverse Effect, is qualified to do business in, and is
in good standing in, every jurisdiction where such qualification is required.

          Section 3.02 Authorization; Enforceability.

          The Transactions are within each Loan Party’s corporate or limited liability company powers
and have been duly authorized by all necessary corporate or limited liability company and, if
required, stockholder action. The Loan Documents to which each Loan Party is a party have been
duly executed and delivered by such Loan Party and constitute a legal, valid and binding obligation
of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy,
insolvency,

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reorganization, moratorium or other laws affecting creditors’ rights generally and subject to
general principles of equity, regardless of whether considered in a proceeding in equity or at law.

          Section 3.03 Governmental Approvals; No Conflicts.

          The Transactions (a) do not require any consent or approval of, registration or filing with,
or any other action by, any Governmental Authority, except such as have been obtained or made and
are in full force and effect and except for filings necessary to perfect Liens created pursuant to
the Loan Documents, (b) will not violate any Requirement of Law applicable to any Loan Party or any
of its Subsidiaries, (c) will not violate or result in a default under any indenture, agreement or
other instrument binding upon any Loan Party or any of its Subsidiaries or its assets, or give rise
to a right thereunder to require any payment to be made by any Loan Party or any of its
Subsidiaries, and (d) will not result in the creation or imposition of any Lien on any asset of any
Loan Party or any of its Subsidiaries, except Liens created pursuant to the Loan Documents.

          Section 3.04 Financial Condition; No Material Adverse Change.

          (a) The Company has heretofore furnished to the Lenders its consolidated balance sheet and
statements of income, stockholders equity and cash flows (i) as of and for the fiscal year ended
December 31, 2005, audited by KPMG, independent public accountants, and (ii) for the fiscal quarter
and the portion of the fiscal year ended June 30, 2006, in each case certified by its chief
financial officer. Such financial statements present fairly, in all material respects, the
financial position and results of operations and cash flows of the Company and its consolidated
Subsidiaries as of such dates and for such periods in accordance with GAAP, subject to year-end
audit adjustments and the absence of footnotes in the case of the statements referred to in clause
(ii) above.

          (b) No Borrower nor any other Loan Party has any Off-Balance Sheet Arrangement in excess of
$1,000,000;

          (c) No event, change or condition has occurred that has had, or could reasonably be expected
to have, a Material Adverse Effect, since June 30, 2006.

          Section 3.05 Properties.

          (a) As of the date of this Agreement, Schedule 3.05 sets forth the address of each
parcel of real property that is owned or leased by each Loan Party. Each of such leases and
subleases is valid and enforceable in accordance with its terms and is in full force and effect,
and no default by any party to any such lease or sublease exists, except as could not reasonably be
expected to result in a Material Adverse Effect. Each of the Loan Parties and its Subsidiaries has
good and indefeasible title to, or valid leasehold interests in, all its real and personal
property, free of all Liens other than those permitted by Section 6.02.

          (b) Each Loan Party and its Subsidiaries owns, or is licensed to use, all trademarks,
tradenames, copyrights, patents and other intellectual property necessary to its business as
currently conducted, a correct and complete list of which, as of the date of this Agreement, is set
forth on Schedule 3.05, and the use thereof by the Loan Parties and its Subsidiaries does
not infringe in any material respect upon the rights of any other Person, and the Loan Parties’
rights thereto are not subject to any material licensing agreement or similar arrangement other
than the licensing agreements identified on Schedule 3.05 (as such Schedule may be updated
from time to time by Borrowers upon delivery of written notice to Administrative Agent;
provided that Borrowers need not update such Schedule to include any such agreements filed
on EDGAR or disclosed and described in a filing made with the SEC). Borrowers shall

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promptly upon request by the Administrative Agent deliver to the Administrative Agent copies
of any agreement listed on Schedule 3.05 or disclosed on EDGAR or in a filing with the SEC.

          Section 3.06 Litigation and Environmental Matters.

          (a) There are no actions, suits or proceedings by or before any mediator, arbitrator or
Governmental Authority pending against or, to the knowledge of any Loan Party, threatened against
or affecting the Loan Parties or any of their Subsidiaries (i) as to which there is a reasonable
possibility of an adverse determination and that, if adversely determined, could reasonably be
expected, individually or in the aggregate, to result in a Material Adverse Effect (other than the
Disclosed Matters) or (ii) that involve this Agreement or the Transactions.

          (b) Except for the Disclosed Matters (i) no Loan Party nor any of its Subsidiaries has
received notice of any claim with respect to any Environmental Liability in excess of $3,750,000 or
knows of any basis for any Environmental Liability in excess of $3,750,000 and (ii) except with
respect to any other matters that, individually or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect, no Loan Party nor any of its Subsidiaries (1) has
failed to comply with any Environmental Law or to obtain, maintain or comply with any permit,
license or other approval required under any Environmental Law or (2) has become subject to any
Environmental Liability.

          (c) Since the date of this Agreement, there has been no change in the status of the Disclosed
Matters that, individually or in the aggregate, has resulted in or could reasonably be expected to
result in a Material Adverse Effect.

          Section 3.07 Compliance with Laws and Agreements.

          (a) Each Loan Party and its Subsidiaries is in compliance with all Requirements of Law
applicable to it or its property and all indentures, agreements and other instruments binding upon
it or its property, except where the failure to do so, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect. No Default has occurred and is
continuing.

          (b) Each Loan Party and its Subsidiaries has been, is, and remains in material compliance with
all FDA Laws with respect to all of its Drugs and Drug Product Candidates; provided that for
purposes of this Section 3.07(b), any written notice of non-compliance with FDA Laws from the
United States Food and Drug Administration and any other Governmental Authority shall be considered
material non-compliance with FDA Laws. No Loan Party knows of any anticipated or otherwise
foreseeable non-compliance with any FDA Laws with respect to any Drugs or Drug Product Candidates.

          Section 3.08 Investment Company Status.

          No Loan Party nor any of its Subsidiaries is an “investment company” as defined in, or subject
to regulation under, the Investment Company Act of 1940.

          Section 3.09 Taxes.

          Each Loan Party and its Subsidiaries has timely filed or caused to be filed all Tax returns
and reports required to have been filed and has paid or caused to be paid all Taxes required to
have been paid by it, except Taxes that are being contested in good faith by appropriate
proceedings and for which such Loan Party or such Subsidiary, as applicable, has set aside on its
books adequate reserves. No tax liens have been filed and no claims are being asserted with
respect to any such taxes.

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          Section 3.10 ERISA.

          No ERISA Event has occurred or is reasonably expected to occur that, when taken together with
all other such ERISA Events for which liability is reasonably expected to occur, could reasonably
be expected to result in a Material Adverse Effect. The present value of all accumulated benefit
obligations under each Plan (based on the assumptions used for purposes of Statement of Financial
Accounting Standards No. 87) did not, as of the date of the most recent financial statements
reflecting such amounts, exceed the fair market value of the assets of such Plan.

          Section 3.11 Disclosure.

          Each Borrower has disclosed to the Lenders all agreements, instruments and corporate or other
restrictions to which it or any Subsidiary is subject, and all other matters known to it, that,
individually or in the aggregate, could reasonably be expected to result in a Material Adverse
Effect. None of the reports, financial statements, certificates or other information furnished by
or on behalf of the any Loan Party to the Administrative Agent or any Lender in connection with the
negotiation of this Agreement or any other Loan Document (as modified or supplemented by other
information so furnished) contains any material misstatement of fact or omits to state any material
fact necessary to make the statements therein, in the light of the circumstances under which they
were made, not misleading; provided that, with respect to projected financial information,
the Borrowers represent only that such information was prepared in good faith based upon
assumptions believed to be reasonable at the time delivered and, if such projected financial
information was delivered prior to the Effective Date, as of the Effective Date.

          Section 3.12 Material Agreements.

          All material agreements and contracts to which any Loan Party is a party or is bound as of the
date of this Agreement are listed on Schedule 3.12. No Loan Party is in default in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained
in (i) any material agreement to which it is a party or (ii) any agreement or instrument evidencing
or governing Indebtedness.

          Section 3.13 Solvency.

          (a) Immediately after the consummation of the Transactions to occur on the Effective Date, (i)
the fair value of the assets of each Loan Party, at a fair valuation, will exceed its debts and
liabilities, subordinated, contingent or otherwise; (ii) the present fair saleable value of the
property of each Loan Party will be greater than the amount that will be required to pay the
probable liability of its debts and other liabilities, subordinated, contingent or otherwise, as
such debts and other liabilities become absolute and matured; (iii) each Loan Party will be able to
pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities
become absolute and matured; and (iv) each Loan Party will not have unreasonably small capital with
which to conduct the business in which it is engaged as such business is now conducted and is
proposed to be conducted after the Effective Date.

          (b) No Loan Party intends to, or will permit any of its Subsidiaries to, and no Loan Party
believes that it or any of its Subsidiaries will, incur debts beyond its ability to pay such debts
as they mature, taking into account the timing of and amounts of cash to be received by it or any
such Subsidiary and the timing of the amounts of cash to be payable on or in respect of its
Indebtedness or the Indebtedness of any such Subsidiary.

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          Section 3.14 Insurance.

          Schedule 3.14 sets forth a description of all insurance maintained by or on behalf of
the Loan Parties and the Subsidiaries as of the Effective Date. As of the Effective Date, all
premiums in respect of such insurance have been paid. The Borrowers believe that the insurance
maintained by or on behalf of the Company and its Subsidiaries is adequate, including without
limitation, with respect to product liability insurance for approved Drugs as well as coverage for
all clinical studies, past, present and contemplated.

          Section 3.15 Capitalization and Subsidiaries.

          Schedule 3.15 (as updated from time to time pursuant to Section 6.03) sets forth (a) a
correct and complete list of the name and relationship to the Company of each and all of the
Company’s Subsidiaries, (b) a true and complete listing of each class of each of the Loan Parties’
authorized Equity Interests, of which all of such issued shares are validly issued, outstanding,
fully paid and non-assessable, and owned beneficially and of record by the Persons identified on
Schedule 3.15 (provided that Schedule 3.15 does not identify the Persons
owning the Equity Interests of the Company), and (c) the type of entity of the Company and each of
its Subsidiaries. All of the issued and outstanding Equity Interests owned by any Loan Party has
been (to the extent such concepts are relevant with respect to such ownership interests) duly
authorized and issued and is fully paid and non-assessable.

          Section 3.16 Security Interest in Collateral.

          The provisions of this Agreement and the other Loan Documents create legal and valid Liens on
all the Collateral in favor of the Administrative Agent, for the benefit of the Administrative
Agent and the Lenders, and such Liens constitute perfected and continuing Liens on the Collateral,
securing the Secured Obligations, enforceable against the applicable Loan Party and all third
parties, and having priority over all other Liens on the Collateral except in the case of (a)
Permitted Encumbrances, to the extent any such Permitted Encumbrances would have priority over the
Liens in favor of the Administrative Agent pursuant to any applicable law and (b) Liens perfected
only by possession or control (including possession of any certificate of title) to the extent the
Administrative Agent has not obtained or does not maintain possession or control of such
Collateral.

          Section 3.17 Employment Matters.

          The hours worked by and payments made to employees of the Loan Parties and the Subsidiaries
have not been in violation of the Fair Labor Standards Act or any other applicable Federal, State,
local or foreign law dealing with such matters, except for any such violations that, individually
or in the aggregate, could not reasonably be expected to result in a Material Adverse Effect. All
payments due from any Loan Party or any Subsidiary, or for which any claim may be made against any
Loan Party or any Subsidiary, on account of wages and employee health and welfare insurance and
other benefits, have been paid or accrued as a liability on the books of the Loan Party or such
Subsidiary.

          Section 3.18 Common Enterprise.

          The successful operation and condition of each of the Loan Parties is dependent on the
continued successful performance of the functions of the group of the Loan Parties as a whole and
the successful operation of each of the Loan Parties is dependent on the successful performance and
operation of each other Loan Party. Each Loan Party expects to derive benefit (and its board of
directors or other governing body has determined that it may reasonably be expected to derive
benefit), directly and indirectly, from (i) successful operations of each of the other Loan Parties
and (ii) the credit extended by

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the Lenders to the Borrowers hereunder, both in their separate capacities and as members of
the group of companies. Each Loan Party has determined that execution, delivery, and performance
of this Agreement and any other Loan Documents to be executed by such Loan Party is within its
purpose, will be of direct and indirect benefit to such Loan Party, and is in its best interest.

ARTICLE IV

Conditions

          Section 4.01 Effective Date.

          The obligations of the Lenders to make Loans and of the Issuing Bank to issue Letters of
Credit hereunder shall not become effective until the date on which each of the following
conditions is satisfied (or waived in accordance with Section 9.02):

          (a) Credit Agreement and Loan Documents. The Administrative Agent (or its counsel)
shall have received (i) from each party hereto either (A) a counterpart of this Agreement signed on
behalf of such party or (B) written evidence satisfactory to the Administrative Agent (which may
include facsimile or other electronic transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement and (ii) duly executed copies (which may
include copies delivered via facsimile or other electronic transmission) of the Loan Documents and
such other certificates, documents, instruments and agreements as the Administrative Agent shall
reasonably request in connection with the transactions contemplated by this Agreement and the other
Loan Documents, including any promissory notes requested by a Lender pursuant to Section 2.10
payable to the order of each such requesting Lender and a written opinion of the Loan Parties’
counsel, addressed to the Administrative Agent, the Issuing Bank and the Lenders satisfactory to
the Administrative Agent.

          (b) Financial Statements and Projections. The Lenders shall have received (i) audited
consolidated financial statements of Company and its subsidiaries for the December 31, 2004 and
2005 fiscal years and the unaudited consolidated financial statements of Company and its
subsidiaries for March 31, 2006 and June 30, 2006 fiscal quarters, (ii) unaudited interim
consolidated income statement and balance sheet of Company and its subsidiaries for each fiscal
month and quarter ended after the date of the latest applicable financial statements delivered
pursuant to clause (i) of this paragraph as to which such financial statements are available, and
such financial statements shall not, in the reasonable judgment of the Administrative Agent,
reflect any material adverse change in the consolidated financial condition of Company and its
subsidiaries, as reflected in the financial statements or projections delivered to the
Administrative Agent prior to the date hereof and (iii) satisfactory projections for the fiscal
year ended December 31, 2006 and December 31, 2007, on a quarterly basis for such fiscal years.

          (c) Closing Certificates; Certified Certificate of Incorporation; Good Standing
Certificates. The Administrative Agent shall have received (i) a certificate of each Loan
Party, dated the Effective Date and executed by its Secretary or Assistant Secretary, which shall
(A) certify the resolutions of its board of directors, members or other body authorizing the
execution, delivery and performance of the Loan Documents to which it is a party, (B) identify by
name and title and bear the signatures of the Financial Officers and any other officers of such
Loan Party authorized to sign the Loan Documents to which it is a party, and (C) contain
appropriate attachments, including the certificate or articles of incorporation or organization of
each Loan Party certified by the relevant authority of the jurisdiction of organization of such
Loan Party and a true and correct copy of its by-laws or operating, management or partnership
agreement, and (ii) a long form good standing certificate for each Loan Party from its jurisdiction
of organization.

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          (d) No Default Certificate. The Administrative Agent shall have received a
certificate, signed by the chief financial officer of Borrower Representative, on the initial
Borrowing date (i) stating that no Default or Event of Default has occurred and is continuing, (ii)
stating that the representations and warranties contained in Article III are true and correct as of
such date in all material respects (to the extent such representations and warranties are not
otherwise qualified by materiality or Material Adverse Effect), and (iii) certifying any other
factual matters as may be reasonably requested by the Administrative Agent.

          (e) Fees. The Lenders and the Administrative Agent shall have received all fees
required to be paid, and all expenses for which invoices have been presented (including the
reasonable fees and expenses of legal counsel), on or before the Effective Date. All such amounts
will be delivered to Administrative Agent by wire transfer of immediately available funds on the
Effective Date and will be reflected in the funding memorandum given by the Borrower Representative
to the Administrative Agent on or before the Effective Date.

          (f) Lien Searches. The Administrative Agent shall have received the results of a
recent lien search in each of the jurisdictions where assets of the Loan Parties are located, and
such search shall reveal no liens on any of the assets of the Loan Parties except for liens
permitted by Section 6.02 or discharged on or prior to the Effective Date pursuant to a pay-off
letter or other documentation satisfactory to the Administrative Agent.

          (g) Funding Accounts. The Administrative Agent shall have received a notice setting
forth the deposit account(s) of the Borrowers (the “Funding Accounts”) to which the Lender
is authorized by the Borrowers to transfer the proceeds of any Borrowings requested or authorized
pursuant to this Agreement.

          (h) Customer List. The Administrative Agent shall have received a true and complete
list of the Borrowers’ customers, which list shall state the customer’s name, mailing address and
phone number and shall be certified as true and correct by a Financial Officer of the Borrower
Representative.

          (i) Control Agreements. The Administrative Agent shall have received each Deposit
Account Control Agreement required to be provided pursuant to Section 4.13 of the Security
Agreement.

          (j) Solvency. The Administrative Agent shall have received a solvency certificate
from a Financial Officer of Borrower Representative.

          (k) Borrowing Base Certificate. The Administrative Agent shall have received a
Borrowing Base Certificate which calculates the Borrowing Base as of the end of the month
immediately preceding the Effective Date, with supporting documentation consisting of a detailed
aging of the Borrowers’ Accounts, reconciled to the internal financial statements provided to
Administrative Agent prior to the Effective Date in connection therewith.

          (l) Closing Liquidity. After payment of all fees and expenses due hereunder, and with
all of the Loan Parties’ indebtedness, liabilities, and obligations current, the Borrowers’
Liquidity shall not be less than $120,000,000.

          (m) Business Due Diligence. Administrative Agent shall have received satisfactory
results from its business due diligence investigation of the Company and its Subsidiaries,
including without limitation results from field examinations, and background searches and reviews
of the

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Company’s and its Subsidiaries’ insurance coverage, chargeback practices, existing Drugs, Drug
Product Candidates and product pipeline.

          (n) Legal Due Diligence. Administrative Agent and its legal counsel shall have
received satisfactory results from its legal due diligence investigation of the Company and its
Subsidiaries, including without limitation, a review of all legal (including tax implications) and
regulatory matters in connection with the consummation of the Transactions and a review of all
license and distribution agreements of the Company or any of its Subsidiaries.

          (o) Pledged Stock; Stock Powers; Pledged Notes. The Administrative Agent shall have
received (i) the certificates representing the shares of Capital Stock pledged pursuant to the
Security Agreement, together with an undated stock power for each such certificate executed in
blank by a duly authorized officer of the pledgor thereof and (ii) each promissory note (if any)
pledged to the Administrative Agent pursuant to the Security Agreement endorsed (without recourse)
in blank (or accompanied by an executed transfer form in blank) by the pledgor thereof.

          (p) Filings, Registrations, Recordings and Approvals. Each document (including any
Uniform Commercial Code financing statement) required by the Collateral Documents or under law or
reasonably requested by the Administrative Agent to be filed, registered or recorded in order to
create in favor of the Administrative Agent, for the benefit of the Lenders, a perfected Lien on
the Collateral described therein, prior and superior in right to any other Person (other than with
respect to Liens expressly permitted by Section 6.02), shall be in proper form for filing,
registration or recordation, and Administrative Agent shall have received satisfactory evidence of
the receipt of all consents and approvals of any Government Authority or other Person in connection
with the consummation of the Transactions.

          (q) Insurance. The Administrative Agent shall have received evidence of insurance
coverage in form, scope, and substance reasonably satisfactory to the Administrative Agent and
otherwise in compliance with the terms of Section 5.09 and Section 4.11 of the Security Agreement.

          (r) Letter of Credit Application. The Administrative Agent shall have received a
properly completed letter of credit application if the issuance of a Letter of Credit will be
required on the Effective Date. The Borrowers shall have executed the Issuing Bank’s master
agreement for the issuance of commercial Letters of Credit.

          (s) Other Documents. The Administrative Agent shall have received such other
documents as the Administrative Agent, the Issuing Bank, any Lender or their respective counsel may
have reasonably requested.

The Administrative Agent shall notify the Borrowers and the Lenders of the Effective Date, and such
notice shall be conclusive and binding. Notwithstanding the foregoing, the obligations of the
Lenders to make Loans and of the Issuing Bank to issue Letters of Credit hereunder shall not become
effective unless each of the foregoing conditions is satisfied (or waived pursuant to Section 9.02)
at or prior to 2:00 p.m., Chicago time, on October 31, 2006 (and, in the event such conditions are
not so satisfied or waived, the Commitments shall terminate at such time).

          Section 4.02 Each Credit Event.

          The obligation of each Lender to make a Loan on the occasion of any Borrowing, and of the
Issuing Bank to issue, amend, renew or extend any Letter of Credit, is subject to the satisfaction
of the following conditions:

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          (a) Each of the representations and warranties of the Borrowers set forth in the Loan
Documents shall be true and correct in all material respects (to the extent such representations
and warranties are not otherwise qualified by reference to materiality, Material Adverse Effect or
a dollar amount) on and as of the date of such Borrowing or the date of issuance, amendment,
renewal or extension of such Letter of Credit, as applicable, except to the extent any such
representation and warranty specifically relates to an earlier date, in which case such
representation and warranty shall have been true and correct in all material respects on and as of
such earlier date, and if they are not true and correct in all material respects (to the extent
such representations and warranties are not otherwise qualified by reference to materiality,
Material Adverse Effect or a dollar amount), the Administrative Agent or the Required Lenders shall
have determined not to make any Loan or instructed the Issuing Bank not to issue Letters of Credit
as a result of the fact that such representation or warranty is materially untrue or incorrect.

          (b) At the time of and immediately after giving effect to such Borrowing or the issuance,
amendment, renewal or extension of such Letter of Credit, as applicable, no Default shall have
occurred and be continuing and the Administrative Agent or the Required Lenders shall have
determined not to make such Borrowing or instructed the Issuing Bank not to issue such Letter of
Credit as a result of such Default.

          (c) After giving effect to any Borrowing or the issuance of any Letter of Credit, Availability
is not less than zero.

Each Borrowing and each issuance, amendment, renewal or extension of a Letter of Credit shall be
deemed to constitute a representation and warranty by the Borrowers on the date thereof as to the
matters specified in paragraphs (a), (b) and (c) of this Section.

ARTICLE V

Affirmative Covenants

          Until the Commitments have expired or been terminated and the principal of and interest on
each Loan and all fees payable hereunder shall have been paid in full and all Letters of Credit
shall have expired or terminated and all LC Disbursements shall have been reimbursed, each Loan
Party executing this Agreement covenants and agrees, jointly and severally with all of the Loan
Parties, with the Lenders that:

          Section 5.01 Financial Statements; Borrowing Base and Other Information.

          The Borrowers will furnish to the Administrative Agent:

          (a) within ninety (90) days after the end of each fiscal year of the Company, (i) the
Compliance Certificate referenced in clause (d) below, containing the EDGAR file number for its
annual report on Form 10-K that the Company has filed with the SEC, all reported on by independent
public accountants of recognized national standing (without a “going concern” or like qualification
or exception and without any qualification or exception as to the scope of such audit) to the
effect that such consolidated financial statements present fairly in all material respects the
financial condition and results of operations of the Company and its consolidated Subsidiaries on a
consolidated basis in accordance with GAAP consistently applied, accompanied by any management
letter prepared by said accountants and (ii) the Company’s unaudited consolidating balance sheet;

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          (b) within forty-five (45) days after the end of each of the first three fiscal quarters of
the Company, the Compliance Certificate referenced in clause (d) below, containing the EDGAR file
number for its quarterly reports on Form 10-Q that the Company has filed with the SEC;

          (c) within thirty (30) days after the end of February, April, May, July, August, October and
November, the Company’s unaudited consolidated balance sheet and related statements of operations,
stockholders’ equity and cash flows as of the end of and for such fiscal month and the then elapsed
portion of the fiscal year; within forty-five (45) days after the end of December, provide
unaudited financial statements for the month of December which may be preliminary statements
subject to future audit adjustment;

          (d) concurrently with any filing or delivery of financial statements under clause (a) or (b)
or (c) above, a certificate of a Financial Officer of the Borrower Representative (each a
“Compliance Certificate”) in substantially the form of Exhibit C (i) certifying, in
the case of the financial statements delivered under clause (b) or (c), as presenting fairly in all
material respects the financial condition and results of operations of the Company and its
consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of footnotes, (ii) certifying as to
whether a Default has occurred and, if a Default has occurred, specifying the details thereof and
any action taken or proposed to be taken with respect thereto, (iii) setting forth reasonably
detailed calculations demonstrating compliance with Sections 6.12 when Liquidity is less than
$80,000,000, (iv) in connection with financial statements delivered under clause (a) and (b),
setting forth the calculation of Applicable Rate and including supporting information of the
calculation of Liquidity and Average Liquidity, including deposit account and securities account
statements and any additional information as the Administrative Agent may reasonably request, and
(v) stating whether any change in GAAP or in the application thereof has occurred since the date of
the audited financial statements referred to in Section 3.04 and, if any such change has occurred,
specifying the effect of such change on the financial statements accompanying such certificate;

          (e) concurrently with any filing of financial statements under clause (a) above, a certificate
of the accounting firm that reported on such financial statements stating whether they obtained
knowledge during the course of their examination of such financial statements of any Default (which
certificate may be limited to the extent required by accounting rules or guidelines);

          (f) no later than January 31 of each fiscal year of the Company, a copy of the plan and
forecast (including a projected consolidated balance sheet, income statement and cash forecast) of
the Company for each quarter of such fiscal year (the “Projections”) in form consistent
with the projections delivered pursuant to Section 4.01(b) and otherwise reasonably satisfactory to
the Administrative Agent;

          (g) (a)(i) within thirty (30) days of the end of each calendar month during any Monthly
Delivery Period or Weekly Delivery Period during which no Borrowings have occurred or (ii) within
fifteen (15) days of the end of each calendar month during any Monthly Delivery Period or Weekly
Delivery Period during which Borrowings occurred, a Borrowing Base Certificate (provided that the
Company may update the chargeback amounts and core distribution fee amounts in any such Borrowing
Base Certificate delivered pursuant to this clause (ii) via electronic mail transmission on the
final Business Day of the calendar month in which such certificate was delivered), and at such
other times as may be requested by the Administrative Agent in its Permitted Discretion, as of the
period then ended, and (b) within three (3) Business Days of the end of each calendar week during
any Weekly Delivery Period, a schedule of sales and chargebacks journals, in each case together
with any additional reports with respect to the Borrowing Base or schedules of sales and
chargebacks as the Administrative Agent may request in its Permitted Discretion;

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          (h) within fifteen (15) days of the end of each calendar month, as of the period then ended,
all delivered electronically in the portable document format:

     (i) a detailed aging of the Borrowers’ Accounts (1) including all invoices aged
by due date (with an explanation of the terms offered) and (2) if applicable,
reconciled to the Borrowing Base Certificate delivered as of such date prepared in a
manner reasonably acceptable to the Administrative Agent, together with a summary
specifying the name, and balance due for each Account Debtor;

     (ii) a schedule detailing the Borrowers’ Inventory, in form satisfactory to the
Administrative Agent, by location (showing Inventory in transit, any Inventory
located with a third party under any consignment, bailee arrangement, or warehouse
agreement) and by Drug;

     (iii) a worksheet of calculations prepared by the Borrowers to determine
Eligible Accounts, such worksheets detailing the Accounts excluded from Eligible
Accounts and the reason for such exclusion;

          (i) within thirty (30) days of the end of each calendar month, as of the period then ended,
delivered electronically in the portable document format, a reconciliation of the Borrowers’
Accounts between the amounts shown in the Borrowers’ general ledger and financial statements and
the reports delivered pursuant to clause (h)(i) above; and

          (j) within thirty (30) days of the end of each calendar month during which a Borrowing has
occurred or Loans are outstanding, as of the period then ended, delivered electronically in the
portable document format, a reconciliation of the loan balance per the Borrowers’ general ledger to
the loan balance under this Agreement;

          (k) within fifteen (15) days of the end of each calendar month after the Liquidity Event, as
of the month then ended, a schedule and aging of the Borrowers’ accounts payable, delivered
electronically in the portable document format;

          (l) promptly upon the Administrative Agent’s request in its Permitted Discretion:

     (i) copies of invoices issued by the Borrowers in connection with any Accounts,
credit memos, shipping and delivery documents, and other information related
thereto;

     (ii) copies of purchase orders, invoices, and shipping and delivery documents
in connection with any Inventory purchased by any Loan Party;

     (iii) as available, a schedule detailing the balance of all intercompany
accounts of the Loan Parties; and

     (iv) as available, a schedule detailing the balance of all intercompany
accounts of each Inactive Subsidiary and MGI Canada;

          (m) within fifteen (15) days of the end of each calendar week during a Weekly Delivery Period
and at such other times as may be requested by the Administrative Agent in its Permitted
Discretion, as of the period then ended, the Borrowers’ sales journal, cash receipts journal
(identifying trade and non-trade cash receipts) and chargeback memo/credit memo journal;

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          (n) within fifteen (15) days of filing thereof, copies of all tax returns filed by any Loan
Party with the U.S. Internal Revenue Service;

          (o) within fifteen (15) days of each March 31 and September 30 if during the three (3) months
prior to such date, a Borrowing has occurred or Loans are outstanding, an updated customer list for
each Borrower and its Subsidiaries, which list shall state the customer’s name, mailing address and
phone number, delivered electronically in the portable document format;

          (p) to the extent not publicly filed on EDGAR, promptly after the same becomes available,
copies of all periodic and other reports, proxy statements and other materials filed by any
Borrower or any Subsidiary with the SEC, or any Governmental Authority succeeding to any or all of
the functions of said Commission, or with any national securities exchange, as the case may be;

          (q) an electronic mail communication detailing the current end of day balances for each
securities account and deposit account of the Loan Parties not at Chase, delivered (i) on the first
Business Day of each succeeding calendar month if there were no Loans outstanding during such
month, (ii) on the sixteenth (16th) day of each calendar month (or the Business Day immediately
following such date if the sixteenth (16th) day is not a Business Day) and on the first Business
Day of the succeeding calendar month if there are Loans during the thirty (30) day period prior to
such date which do not exceed $10,000,000 at any time during such period and (iii) on each Business
Day if there are outstanding Borrowings on such Business Day of at least $10,000,000; and

          (r) promptly following any request therefor, such other information regarding the operations,
business affairs and financial condition of any Borrower or any Subsidiary, or compliance with the
terms of this Agreement, as the Administrative Agent or any Lender may reasonably request.

          The Administrative Agent shall post items delivered by the Borrowers pursuant to clauses (a)
through (d), and clause (f) of this Section 5.01 as well as any Borrowing Base Certificate
delivered pursuant to clause (g) of this Section 5.01 on the Intralinks site established in
connection with this Agreement or otherwise deliver such items to Lender.

          Section 5.02 Notices of Material Events.

          The Borrowers will furnish to the Administrative Agent and each Lender prompt written notice
of the following:

          (a) the occurrence of any Default;

          (b) receipt of any notice of any governmental investigation or any litigation or proceeding
commenced or threatened against any Loan Party that (i) seeks damages in excess of $1,000,000, (ii)
seeks injunctive relief, (iii) is asserted or instituted against any Plan, its fiduciaries or its
assets, (iv) alleges criminal misconduct by any Loan Party, (v) alleges the violation of any law
regarding, or seeks remedies in connection with, any Environmental Laws, (vi) contests any tax,
fee, assessment, or other governmental charge, or (vii) involves any product recall;

          (c) any Lien (other than Permitted Liens) or claim made or asserted against any of the
Collateral;

          (d) any loss, damage, or destruction to the Collateral in the amount of $1,000,000 or more,
whether or not covered by insurance;

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          (e) any and all default notices received under or with respect to any leased location or
public warehouse where Collateral in excess of $1,000,000 or Collateral then included in the
Borrowing Base is located (which shall be delivered within five (5) Business Days after receipt
thereof);

          (f) all material amendments to any Material Agreement, together with a copy of each such
amendment;

          (g) the fact that a Loan Party has entered into a Swap Agreement or an amendment to a Swap
Agreement, together with copies of all agreements evidencing such Swap Agreement or amendments
thereto (which shall be delivered within five (5) Business Days);

          (h) the occurrence of any actual or alleged material violation of any FDA Law with respect to
the Drugs or the Drug Product Candidates;

          (i) any material communications from the United States Food and Drug Administration or any
other Governmental Authority, whether in the United States or elsewhere, including without
limitation, communications concerning the withdrawal or modification of any currently existing
approvals or permissions related to any of the Drugs;

          (j) any communications from the United States Food and Drug Administration or any other
Person, or the receipt of any other information, which has, or may have (i) a material adverse
impact upon the Borrowers’ ability to commercially sell and/or distribute any of the Drugs; or (ii)
a material adverse impact upon the Borrowers’ ability to have any of the Drug Product Candidates
approved for commercial sale and/or distribution in the United States or elsewhere;

          (k) any other material information relating to the Drugs or the Drug Product Candidates;

          (l) the occurrence of any ERISA Event that, alone or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Borrowers and their
Subsidiaries in an aggregate amount exceeding $1,000,000; and

          (m) any other development that results in, or could reasonably be expected to result in, a
Material Adverse Effect.

Each notice delivered under this Section shall be accompanied by a statement of a Financial Officer
or other executive officer of the Borrower Representative setting forth the details of the event or
development requiring such notice and any action taken or proposed to be taken with respect
thereto.

          Section 5.03 Existence; Conduct of Business.

          Each Loan Party will, and will cause each Subsidiary to, (a) do or cause to be done all things
necessary to preserve, renew and keep in full force and effect its legal existence and the rights,
qualifications, licenses, permits, franchises, governmental authorizations, intellectual property
rights, licenses and permits material to the conduct of its business, and maintain all requisite
authority to conduct its business in each jurisdiction in which its business is conducted;
provided that the foregoing shall not prohibit any merger, consolidation, liquidation or
dissolution permitted under Section 6.03 and (b) carry on and conduct a pharmaceutical business
relating to the acquisition, research, development and commercialization of differentiated
pharmaceutical prescription products for human consumption.

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          Section 5.04 Payment of Obligations.

          Each Loan Party will, and will cause each Subsidiary to, pay or discharge all Material
Indebtedness and all other material liabilities and obligations, including Taxes, before the same
shall become delinquent or in default, except where (a) the validity or amount thereof is being
contested in good faith by appropriate proceedings, (b) such Loan Party or such Subsidiary has set
aside on its books adequate reserves with respect thereto in accordance with GAAP and (c) the
failure to make payment pending such contest could not reasonably be expected to result in a
Material Adverse Effect.

          Section 5.05 Maintenance of Properties.

          Each Loan Party will, and will cause each Subsidiary to, keep and maintain all property
material to the conduct of its business in good working order and condition, ordinary wear and tear
excepted.

          Section 5.06 Books and Records; Inspection Rights.

          Each Loan Party will, and will cause each Subsidiary to, (i) keep proper books of record and
account in which full, true and correct entries are made of all dealings and transactions in
relation to its business and activities and (ii) permit any representatives designated by the
Administrative Agent (including employees of the Administrative Agent or any consultants,
accountants, lawyers and appraisers retained by the Administrative Agent), upon reasonable prior
notice and during normal business hours, to visit and inspect its properties, to examine and make
extracts from its books and records, to conduct field examinations, and to discuss its affairs,
finances and condition with its officers and independent accountants, all at such reasonable times
and as often as reasonably requested; provided, however, that any Lender that is
not the Administrative Agent may accompany Administrative Agent or any of its representatives on
such visit, inspection or examination whether or not an Event of Default is in existence, provided
that if no Event of Default has occurred or is continuing, any such visit, inspection or
examination by a Lender that is not the Administrative Agent shall be at the sole cost and expense
of such Lender. After the occurrence and during the continuance of any Event of Default, each Loan
Party shall provide the Administrative Agent and each Lender with access to its suppliers. The
Loan Parties acknowledge that the Administrative Agent, after exercising its rights of inspection,
may prepare and distribute to the Lenders certain Reports pertaining to the Loan Parties’ assets
for internal use by the Administrative Agent and the Lenders.

          Section 5.07 Compliance with Laws.

          Each Loan Party will, and will cause each Subsidiary to, comply with (a) all Requirements of
Law (other than Requirements of Law concerning FDA Laws) applicable to it or its property, except
where non-compliance could not reasonably be expected to have a Material Adverse Effect and (b) all
Requirements of Law concerning FDA Laws.

          Section 5.08 Use of Proceeds.

          The proceeds of the Loans will be used only to finance the working capital needs of the
Company and its Subsidiaries in the ordinary course of business. No part of the proceeds of any
Loan and no Letter of Credit will be used, whether directly or indirectly, for any purpose that
entails a violation of any of the Regulations of the Board, including Regulations T, U and X.

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          Section 5.09 Insurance.

          Each Loan Party will, and will cause each Subsidiary to, maintain with financially sound and
reputable carriers having a financial strength rating of at least A+ by A.M. Best Company (a)
insurance in such amounts and against such risks (including loss or damage by fire and loss in
transit; external criminal activities, including theft, burglary or larceny; business interruption;
product liability; and general liability) and such other hazards, as is customarily maintained by
companies of established repute engaged in the same or similar businesses operating in the same or
similar locations (but in no event shall the amount of the insurance be less than the value of the
assets of the Loan Parties) and (b) all insurance required pursuant to the Collateral Documents.
The Borrowers will furnish to the Lenders, upon the reasonable request of the Administrative Agent,
information in reasonable detail as to the insurance so maintained.

          Section 5.10 Casualty and Condemnation.

          The Borrowers (a) will furnish to the Administrative Agent and the Lenders prompt written
notice of any casualty or other insured damage to any material portion of the Collateral or the
commencement of any action or proceeding for the taking of any material portion of the Collateral
or interest therein under power of eminent domain or by condemnation or similar proceeding and (b)
will ensure that the Net Proceeds of any such event (whether in the form of insurance proceeds,
condemnation awards or otherwise) are collected and paid to the Administrative Agent, if
applicable, for application in accordance with the applicable provisions of this Agreement and the
Collateral Documents

          Section 5.11 Appraisals.

          At any time after an Event of Default has occurred and is continuing, that the Administrative
Agent requests, the Borrowers and the Subsidiaries will provide the Administrative Agent with
appraisals or updates thereof of their Inventory from an appraiser selected and engaged by the
Administrative Agent, and prepared on a basis satisfactory to the Administrative Agent, such
appraisals and updates to include, without limitation, information required by applicable law and
regulations; provided, however, that any such appraisals shall be at the expense of
the Administrative Agent.

          Section 5.12 Depository Banks.

          Within thirty (30) days after the Liquidity Event, the Borrowers and their Subsidiaries shall
close all deposit accounts not maintained at Chase, other than deposit accounts listed on
Schedule 5.12 (“Exempt Accounts”) and maintain Chase as its principal depository
bank, including for the maintenance of operating, administrative, cash management, collection
activity, and other deposit accounts for the conduct of its business, other than the Exempt
Accounts.

          Section 5.13 Additional Collateral; Further Assurances.

          (a) Subject to applicable law, each Borrower and each Subsidiary that is a Loan Party shall
cause each of its domestic Subsidiaries formed or acquired after the date of this Agreement in
accordance with the terms of this Agreement other than an Inactive Subsidiary to become a Loan
Party by executing the Joinder Agreement set forth as Exhibit D hereto (the “Joinder
Agreement”). Upon execution and delivery thereof, each such Person (i) shall automatically
become a Loan Guarantor or a Borrower hereunder, as specified by the Borrower Representative, and
thereupon shall have all of the rights, benefits, duties, and obligations in such capacity under
the Loan Documents and (ii) will grant Liens to the Administrative Agent, for the benefit of the
Administrative Agent and the Lenders, in any property of such Loan Party which constitutes
Collateral.

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          (b) Each Borrower and each Subsidiary that is a Loan Party will cause (i) 100% of the issued
and outstanding Equity Interests of each of its domestic Subsidiaries and (ii) 65% (or such greater
percentage that, due to a change in applicable law after the date hereof, (1) could not reasonably
be expected to cause the undistributed earnings of such foreign Subsidiary as determined for U.S.
Federal income tax purposes to be treated as a deemed dividend to such foreign Subsidiary’s U.S.
parent and (2) could not reasonably be expected to cause any material adverse tax consequences) of
the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg.
Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote
(within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each foreign Subsidiary that is not an
Inactive Subsidiary (or subject to clause (c) hereof, MGI Canada) directly owned by the Borrower or
any domestic Subsidiary to be subject at all times to a first priority, perfected Lien in favor of
the Administrative Agent pursuant to the terms and conditions of the Loan Documents or other
security documents as the Administrative Agent shall reasonably request.

          (c) Prior to any investment by any Loan Party in MGI Canada after the Effective Date, MGI
(Canada), Inc. shall cause 65% (or such greater percentage that, due to a change in applicable law
after the date hereof, (1) could not reasonably be expected to cause the undistributed earnings of
MGI Canada as determined for U.S. Federal income tax purposes to be treated as a deemed dividend to
such MGI (Canada), Inc. and (2) could not reasonably be expected to cause any material adverse tax
consequences) of the issued and outstanding Equity Interests entitled to vote (within the meaning
of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not
entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in MGI Canada to be
subject at all times to a first priority, perfected Lien in favor of the Administrative Agent
pursuant to the terms and conditions of the Loan Documents or other security documents as the
Administrative Agent shall reasonably request.

          (d) Without limiting the foregoing, each Loan Party will, and will cause each Subsidiary to,
execute and deliver, or cause to be executed and delivered, to the Administrative Agent such
documents, agreements and instruments, and will take or cause to be taken such further actions
(including the filing and recording of financing statements and other documents and such other
actions or deliveries of the type required by Section 4.01, as applicable), which may be required
by law or which the Administrative Agent may, from time to time, reasonably request to carry out
the terms and conditions of this Agreement and the other Loan Documents and to ensure perfection
and priority of the Liens created or intended to be created by the Collateral Documents, all at the
expense of the Loan Parties.

          (e) If any material assets of the type constituting Collateral are acquired by any Borrower or
any Subsidiary that is a Loan Party after the Effective Date (other than assets constituting
Collateral under the Security Agreement that become subject to the Lien in favor of the Security
Agreement upon acquisition thereof), the Borrower Representative will notify the Administrative
Agent and the Lenders thereof, and, if requested by the Administrative Agent or the Required
Lenders, the Borrowers will cause such assets to be subjected to a Lien securing the Secured
Obligations and will take, and cause the Subsidiary Loan Parties to take, such actions as shall be
necessary or reasonably requested by the Administrative Agent to grant and perfect such Liens,
including actions described in paragraph (c) of this Section, all at the expense of the Loan
Parties.

ARTICLE VI

Negative Covenants

          Until the Commitments have expired or terminated and the principal of and interest on each
Loan and all fees, expenses and other amounts payable under any Loan Document have been paid in

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full and all Letters of Credit have expired or terminated and all LC Disbursements shall have been
reimbursed, the Loan Parties covenant and agree, jointly and severally, with the Lenders that:

          Section 6.01 Indebtedness.

          No Loan Party will, nor will it permit any Subsidiary to, create, incur or suffer to exist any
Indebtedness, except:

          (a) the Secured Obligations;

          (b) Indebtedness existing on the date hereof and set forth in Schedule 6.01 and
extensions, renewals and replacements of any such Indebtedness in accordance with clause (f)
hereof;

          (c) Indebtedness of any Borrower to any Subsidiary and of any Subsidiary to any Borrower or
any other Subsidiary, provided that (i) Indebtedness of any Inactive Subsidiary or MGI
Canada to any Borrower or any Subsidiary that is a Loan Party shall be subject to Section 6.04 and
(ii) Indebtedness of any Borrower to any Subsidiary and Indebtedness of any Subsidiary that is a
Loan Party to any Inactive Subsidiary or MGI Canada shall be subordinated to the Secured
Obligations on terms reasonably satisfactory to the Administrative Agent;

          (d) Guarantees by any Borrower of Indebtedness of any Subsidiary and by any Subsidiary of
Indebtedness of any Borrower or any other Subsidiary, provided that (i) the Indebtedness so
Guaranteed is permitted by this Section 6.01, (ii) Guarantees by any Borrower or any Subsidiary
that is a Loan Party of Indebtedness of any Inactive Subsidiary or MGI Canada shall be subject to
Section 6.04 and (iii) Guarantees permitted under this clause (d) shall be subordinated to the
Secured Obligations of the applicable Subsidiary on the same terms as the Indebtedness so
Guaranteed is subordinated to the Secured Obligations;

          (e) Indebtedness of any Borrower or any Subsidiary incurred to finance the acquisition,
construction or improvement of any fixed or capital assets (whether or not constituting purchase
money Indebtedness), including Capital Lease Obligations and any Indebtedness assumed in connection
with the acquisition of any such assets or secured by a Lien on any such assets prior to the
acquisition thereof, and extensions, renewals and replacements of any such Indebtedness in
accordance with clause (f) hereof; provided that (i) such Indebtedness is incurred prior to
or within ninety (90) days after such acquisition or the completion of such construction or
improvement and (ii) the aggregate principal amount of Indebtedness permitted by this clause (e)
(together with outstanding Indebtedness permitted under clauses (b), (f), (j) and (k)) shall not
exceed $5,000,000 at any time outstanding;

          (f) Indebtedness which represents an extension, refinancing, or renewal of any of the
Indebtedness described in clauses (b) and (e) hereof; provided that, (i)
the principal amount of such Indebtedness is not increased and the interest rate does not exceed
the then market interest rate, (ii) any Liens securing such Indebtedness are not extended to any
additional property of any Loan Party, (iii) no Loan Party that is not originally obligated with
respect to repayment of such Indebtedness is required to become obligated with respect thereto,
(iv) such extension, refinancing or renewal does not result in a shortening of the average weighted
maturity of the Indebtedness so extended, refinanced or renewed, (v) the terms of any such
extension, refinancing, or renewal are not less favorable when taken as a whole to the obligor
thereunder than the original terms of such Indebtedness and (vi) if the Indebtedness that is
refinanced, renewed, or extended was subordinated in right of payment to the Secured Obligations,
then the terms and conditions of the refinancing, renewal, or extension Indebtedness must include
subordination terms and conditions that are at least as favorable to the Administrative Agent and
the Lenders as those that were applicable to the refinanced, renewed, or extended Indebtedness;

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          (g) Indebtedness owed to any person providing workers’ compensation, health, disability or
other employee benefits or property, casualty or liability insurance, pursuant to reimbursement or
indemnification obligations to such person, in each case incurred in the ordinary course of
business;

          (h) Indebtedness of any Borrower or any Subsidiary in respect of performance bonds, bid bonds,
appeal bonds, surety bonds and similar obligations, in each case provided in the ordinary course of
business;

          (i) Indebtedness of the Company and MGI GP in respect of the Subordinated Notes;

          (j) Indebtedness not to exceed (together with outstanding Indebtedness permitted under clauses
(b), (e), (f) and (k)) $5,000,000 of any Person that becomes a Subsidiary after the date hereof;
provided, that such Subsidiary is not and is not required to become a Loan Party hereto;

          (k) Indebtedness not to exceed (together with outstanding Indebtedness permitted under clauses
(b), (e), (f) and (j)) $5,000,000 owed to any bank pursuant to the hedge of any foreign currency
pursuant to any agreement entered into from time to time in the ordinary course of business;

          (l) unsecured Subordinated Indebtedness in an aggregate principal amount not exceeding
$10,000,000;

          (m) unsecured Indebtedness in an aggregate principal amount not exceeding $3,750,000 at any
time outstanding; provided that the aggregate principal amount of Indebtedness of the
Borrowers’ Subsidiaries permitted by this clause (m) shall not exceed $2,500,000 at any time
outstanding; and

          (n) Indebtedness not to exceed $10,000,000 incurred by the Company in connection with the
purchase of its corporate headquarters (provided that no such Indebtedness may be incurred unless
Liquidity is at least $100,000,000 at the time of, and after giving effect to, such purchase).

          Section 6.02 Liens.

          No Loan Party will, nor will it permit any Subsidiary to, create, incur, assume or permit to
exist any Lien on any property or asset now owned or hereafter acquired by it, or assign or sell
any income or revenues (including accounts receivable) or rights in respect of any thereof, except:

          (a) Liens created pursuant to any Loan Document;

          (b) Permitted Encumbrances;

          (c) any Lien on any property or asset of any Borrower or any Subsidiary existing on the date
hereof and set forth in Schedule 6.02; provided that (i) such Lien shall not apply
to any other property or asset of such Borrower or Subsidiary and (ii) such Lien shall secure only
those obligations which it secures on the date hereof and extensions, renewals and replacements
thereof that do not increase the outstanding principal amount thereof;

          (d) Liens on fixed or capital assets acquired, leased, constructed or improved by any Borrower
or any Subsidiary; provided that (i) such security interests secure Indebtedness permitted
by clause (e) of Section 6.01, (ii) such security interests and the Indebtedness secured thereby
are incurred prior to or within ninety (90) days after such acquisition or lease or the completion
of such construction or

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improvement, (iii) the Indebtedness secured thereby does not exceed 90% of
the cost of acquiring, constructing or improving such fixed or capital assets and (iv) such
security interests shall not apply to any other property or assets of such Borrower or Subsidiary
or any other Borrower or Subsidiary;

          (e) Liens of a collecting bank arising in the ordinary course of business under Section 4-208
of the Uniform Commercial Code in effect in the relevant jurisdiction covering only the items being
collected upon;

          (f) Liens arising out of sale and leaseback transactions permitted by Section 6.06 and
covering the property subject to such transaction;

          (g) Liens encumbering the assets of any Person that becomes a Subsidiary after the date
hereof; provided, that such Subsidiary is not and is not required to become a Loan Party
hereto;

          (h) Precautionary financing statements filed in connection with operating leases with respect
to a lessor’s rights in and to personal property leased to any Borrower or any Subsidiary in the
ordinary course of business;

          (i) Liens granted by an Inactive Subsidiary or MGI Canada in favor of any Borrower or another
Loan Party in respect of Indebtedness owed by such Subsidiary; and

          (j) Liens covering the real estate, buildings and fixtures comprising the Company’s
headquarters and granted by the Company to secure Indebtedness permitted by Section 6.01(n).

Notwithstanding the foregoing, none of the Liens permitted pursuant to this Section 6.02 may at any
time attach to any Loan Party’s Accounts, other than those permitted under clause (a) of the
definition of Permitted Encumbrance and clause (a) above.

          Section 6.03 Fundamental Changes.

          (a) No Loan Party will, nor will it permit any Subsidiary to, merge into or consolidate with
any other Person, or permit any other Person to merge into or consolidate with it, or liquidate or
dissolve, except that, if at the time thereof and immediately after giving effect thereto no Event
of Default shall have occurred and be continuing (i) any Subsidiary of any Borrower may merge into
a Borrower in a transaction in which the Borrower is the surviving corporation, (ii) any Loan Party
(other than a Borrower) may merge into any Loan Party in a transaction in which the surviving
entity is a Loan Party, (iii) any Inactive Subsidiary or MGI Canada may liquidate or dissolve if
the Loan Party which owns such Subsidiary determines in good faith that such liquidation or
dissolution is in the best interests of such Loan Party and is not materially disadvantageous to
the Lenders, and (iv) any Subsidiary of any Loan Party may merge into or consolidate with a Person
in connection with a Permitted Acquisition (provided that any such merger involving a
Person that is not a wholly owned Subsidiary immediately prior to such merger shall not be
permitted unless also permitted by Section 6.04); provided further that in
connection with any merger, consolidation, liquidation or dissolution permitted by this Section
6.03, Borrowers shall promptly provide Administrative Agent with a written update to Schedule
3.15.

          (b) No Loan Party will, nor will it permit any of its Subsidiaries to, carry on and conduct in
any business other than the pharmaceutical business relating to the acquisition, research,
development and commercialization of differentiated pharmaceutical prescription products for human
consumption.

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          (c) No Loan Party will, nor will it permit any of its Subsidiaries to form, or otherwise
acquire any Subsidiary except in compliance with Section 5.13; provided, that in connection
with the formation or acquisition of any new Subsidiary, Borrowers shall promptly provide
Administrative Agent with a written update to Schedule 3.15.

          (d) No Inactive Subsidiary nor MGI Canada shall engage in any business or activity other than
(i) paying taxes, (ii) preparing reports to Governmental Authorities and to its shareholder or sole
member and (iii) holding directors and shareholders or member meetings (or actions by written
consent in the alternative), preparing and maintaining corporate or limited liability company
records and other corporate or limited liability company activities required to maintain its
separate corporate or limited liability company structure, unless such Inactive Subsidiary becomes
a Loan Party by execution of a Joinder Agreement pursuant to Section 5.13(a) or MGI (Canada) Inc.
grants a Lien on the Equity Interests of MGI Canada pursuant to Section 5.13(c).

          (e) No Loan Party will, nor will it permit any of its Subsidiaries to, change its fiscal year;
provided that Subsidiaries acquired in a Permitted Acquisition may change their fiscal year to
match the fiscal year of the Company.

          Section 6.04 Investments, Loans, Advances, Guarantees and Acquisitions.

          No Loan Party will, nor will it permit any Subsidiary to, purchase, hold or acquire (including
pursuant to any merger with any Person that was not a Loan Party and a wholly owned Subsidiary
prior to such merger) any capital stock, evidences of indebtedness or other securities (including
any option, warrant or other right to acquire any of the foregoing) of, make or permit to exist any
loans or advances to, Guarantee any obligations of, or make or permit to exist any investment or
any other interest in, any other Person, or purchase or otherwise acquire (in one transaction or a
series of transactions) any assets of any other Person constituting a business unit (whether
through purchase of assets, merger or otherwise), except:

          (a) Permitted Investments (subject to control agreements in favor of the Administrative Agent
for the benefit of the Lenders or otherwise subject to a perfected security interest in favor of
the Administrative Agent for the benefit of the Lenders);

          (b) investments in existence on the date of this Agreement and described in Schedule
6.04;

          (c) investments by the Borrowers and the Subsidiaries in Equity Interests in their respective
Subsidiaries, provided that (A) any such Equity Interests held by a Loan Party shall be
pledged pursuant to the Security Agreement (subject to the limitations applicable to common stock
of a foreign Subsidiary referred to in Section 5.13) and (B) the aggregate amount of investments
after the Effective Date by Loan Parties in Inactive Subsidiaries or MGI Canada (together with
outstanding intercompany loans permitted under clause (B) to the proviso to Section 6.04(d) and
outstanding Guarantees permitted under the proviso to Section 6.04(e)) shall not exceed, in each
case determined without regard to any write-downs or write-offs, (x) $3,750,000 at any time
outstanding with respect to all domestic Inactive Subsidiaries, (y) $0.00 at any time outstanding
with respect to all foreign Subsidiaries other than MGI Canada, and (z) $7,000,000 in any fiscal
year of the Company (which unused amount, if applicable, shall roll over and be available into
subsequent fiscal years) up to a maximum of $21,000,000 at any time outstanding with respect to MGI
Canada (provided that (1) MGI Canada has complied with Section 5.13 and (2) Liquidity is at least
$100,000,000 at the time of, and after giving effect to such investment);

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          (d) loans or advances made by any Borrower to any domestic Subsidiary or MGI Canada or made by
any Loan Party to any other Loan Party, provided that (A) any such loans and advances made
by a Loan Party shall be evidenced by a promissory note pledged pursuant to the Security Agreement
and (B) the amount of such loans and advances made by Loan Parties to Inactive Subsidiaries or MGI
Canada (together with outstanding investments permitted under clause (B) to the proviso to Section
6.04(c) and outstanding Guarantees permitted under the proviso to Section 6.04(e)) shall not exceed
$3,750,000 at any time outstanding (in each case determined without regard to any write-downs or
write-offs);

          (e) Guarantees constituting Indebtedness permitted by Section 6.01, provided that the
aggregate principal amount of Indebtedness of Inactive Subsidiaries or MGI Canada that is
Guaranteed by any Loan Party shall and (together with outstanding investments permitted under
clause (B) to the proviso to Section 6.04(c) and outstanding intercompany loans permitted under
clause (B) to the proviso to Section 6.04(d)) shall not exceed $3,750,000 at any time outstanding
(in each case determined without regard to any write-downs or write-offs);

          (f) loans or advances made by a Loan Party to its employees on an arms-length basis in the
ordinary course of business consistent with past practices for travel and entertainment expenses,
relocation costs and similar purposes up to a maximum of $500,000 in the aggregate at any one time
outstanding;

          (g) subject to Sections 4.2(a) and 4.4 of the Security Agreement, notes payable, or stock or
other securities issued by Account Debtors to a Loan Party pursuant to negotiated agreements with
respect to settlement of such Account Debtor’s Accounts in the ordinary course of business,
consistent with past practices;

          (h) investments in the form of Swap Agreements permitted by Section 6.07;

          (i) investments of any Person existing at the time such Person becomes a Subsidiary of a
Borrower or consolidates or merges with a Borrower or any of the Subsidiaries (including in
connection with a Permitted Acquisition) so long as such investments were not made in contemplation
of such Person becoming a Subsidiary or of such merger;

          (j) Permitted Acquisitions;

          (k) investments received in connection with the dispositions of assets permitted by Section
6.05; and

          (l) investments constituting deposits described in clauses (c) and (d) of the definition of
the term “Permitted Encumbrances.”

          Section 6.05 Asset Sales.

          No Loan Party will, nor will it permit any Subsidiary to, sell, transfer, lease or otherwise
dispose of any asset, including any Equity Interest owned by it, nor will any Borrower permit any
Subsidiary to issue any additional Equity Interest in such Subsidiary (other than to another
Borrower or another Subsidiary in compliance with Section 6.04), except:

          (a) sales, transfers and dispositions of (i) inventory in the ordinary course of business and
(ii) used, obsolete, worn out or surplus equipment or property in the ordinary course of business;

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          (b) sales, transfers and dispositions to any Borrower or any Subsidiary, provided that
any such sales, transfers or dispositions involving an Inactive Subsidiary or MGI Canada shall be
made in compliance with Section 6.09;

          (c) sales, transfers and dispositions of accounts receivable in connection with the
compromise, settlement or collection thereof in the ordinary course of business;

          (d) sales, transfers and dispositions of investments permitted by clauses (i) and (k) of
Section 6.04;

          (e) sale and leaseback transactions permitted by Section 6.06;

          (f) dispositions resulting from any casualty or other insured damage to, or any taking under
power of eminent domain or by condemnation or similar proceeding of, any property or asset of any
Borrower or any Subsidiary; and

          (g) Permitted Asset Sales.

provided that all sales, transfers, leases and other dispositions permitted hereby (other
than those permitted by paragraphs (b) and (f) above) shall be made for fair value and for at least
(i) 75% cash consideration at all times Liquidity is less than $100,000,000 or (ii) 50% cash
consideration at all times Liquidity is at least $100,000,000, in each case, at the time of, and
after giving effect to, such sale, transfer, lease or disposition.

          Section 6.06 Sale and Leaseback Transactions.

          No Loan Party will, nor will it permit any Subsidiary to, enter into any arrangement, directly
or indirectly, whereby it shall sell or transfer any property, real or personal, used or useful in
its business, whether now owned or hereafter acquired, and thereafter rent or lease such property
or other property that it intends to use for substantially the same purpose or purposes as the
property sold or transferred, except for any such sale of any fixed or capital assets by any
Borrower or any Subsidiary that is made for cash consideration in an amount not less than the fair
value of such fixed or capital asset and is consummated within ninety (90) days after such Borrower
or such Subsidiary acquires or completes the construction of such fixed or capital asset.

          Section 6.07 Swap Agreements.

          No Loan Party will, nor will it permit any Subsidiary to, enter into any Swap Agreement,
except (a) Swap Agreements entered into to hedge or mitigate risks to which any Borrower or any
Subsidiary has actual exposure (other than those in respect of Equity Interests of any Borrower or
any of its Subsidiaries), and (b) Swap Agreements entered into in order to effectively cap, collar
or exchange interest rates (from fixed to floating rates, from one floating rate to another
floating rate or otherwise) with respect to any interest-bearing liability or investment of any
Borrower or any Subsidiary.

          Section 6.08 Restricted Payments; Certain Payments of Indebtedness.

          (a) No Loan Party will, nor will it permit any Subsidiary to, declare or make, or agree to pay
or make, directly or indirectly, any Restricted Payment, or incur any obligation (contingent or
otherwise) to do so, except:

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     (i) the Company may declare and pay dividends with respect to its common stock
payable solely in additional shares of its common stock, and, with respect to its
preferred stock, payable solely in additional shares of such preferred stock or in
            shares of its common stock;

     (ii) the Company may declare and pay cash dividends with respect to or
repurchase any portion of its Equity Interests for cash so long as (w) immediately
prior to and after giving effect to such cash dividend or repurchase, no Event of
Default shall exist, (x) there are no outstanding Borrowings on the date of the
payment of such cash dividend or repurchase, (y) Average Liquidity exceeds
$80,000,000 for the fiscal quarter immediately prior to the payment date of such
dividend or repurchase and (z) Liquidity exceeds $80,000,000 on each of the five (5)
Business Days immediately prior to the payment date of such dividend or repurchase;

     (iii) pursuant to the Company’s Rights Agreement in effect on the date hereof,
the Company may pay dividends with respect to its common stock payable solely in
preferred share purchase rights that provide the holder of each share of common
stock of the Company the right to purchase one one-hundredth of a share of preferred
stock of the Company for $200 subject to adjustment from time to time as provided
therein;

     (iv) the Company and any of its Subsidiaries may pay cash not to exceed $25,000
in lieu of fractional shares of Equity Interests in connection with a merger,
consolidation, or Permitted Acquisition permitted by this Agreement;

     (v) the Company and MGI GP may make regularly scheduled payments of cash
interest on the Subordinated Notes so long as (x) immediately prior to and after
giving effect to such payments, no Event of Default shall exist and (y) no cash
payments may be made with respect to the Senior Subordinated Convertible Notes due
March 2, 2024 prior to September 1, 2007; and

     (vi) Subsidiaries may declare and pay dividends ratably with respect to their
Equity Interests.

          (b) No Loan Party will, nor will it permit any Subsidiary to, make or agree to pay or make,
directly or indirectly, any payment or other distribution (whether in cash, securities or other
property) of or in respect of principal of or interest on any Indebtedness, or any payment or other
distribution (whether in cash, securities or other property), including any sinking fund or similar
deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or
termination of any Indebtedness, except:

     (i) payment of Indebtedness created under the Loan Documents;

     (ii) payment of regularly scheduled interest and principal payments as and when
due in respect of any Indebtedness permitted hereunder, other than payments in
respect of the Subordinated Indebtedness prohibited by the subordination provisions
thereof;

     (iii) refinancings of Indebtedness to the extent permitted by Section 6.01;

     (iv) payment of secured Indebtedness that becomes due as a result of the
voluntary sale or transfer of the property or assets securing such Indebtedness; and

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     (v) prepayment of Indebtedness permitted under the Loan Documents not to exceed
$3,750,000 in the aggregate during the term of this Agreement; provided that any
such prepayment is approved in writing by Administrative Agent in its sole
discretion prior to such prepayment.

          Section 6.09 Transactions with Affiliates.

          No Loan Party will, nor will it permit any Subsidiary to, sell, lease or otherwise transfer
any property or assets to, or purchase, lease or otherwise acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates, except (a) transactions
that (i) are in the ordinary course of business and (ii) are at prices and on terms and conditions
not less favorable to such Borrower or such Subsidiary than could be obtained on an arm’s-length
basis from unrelated third parties, (b) transactions between or among any Borrower and any
Subsidiary that is a Loan Party not involving any other Affiliate, (c) any investment permitted by
Sections 6.04(c) or 6.04(d), (d) any Indebtedness permitted under Section 6.01(c), (e) any
Restricted Payment permitted by Section 6.08, (f) loans or advances to employees permitted under
Section 6.04, (g) the payment of reasonable fees to directors of any Borrower or any Subsidiary who
are not employees of such Borrower or Subsidiary, and compensation and employee benefit
arrangements paid to, and indemnities provided for the benefit of, directors, officers or employees
of the Borrowers or their Subsidiaries in the ordinary course of business and (h) any issuances of
securities or other payments, awards or grants in cash, securities or otherwise pursuant to, or the
funding of, employment agreements, stock options issued to employees, directors or vendors and
stock ownership plans provided to employees, directors or vendors approved by a Borrower’s board of
directors and maintained in the ordinary course of business.

          Section 6.10 Restrictive Agreements.

          No Loan Party will, nor will it permit any Subsidiary to, directly or indirectly, enter into,
incur or permit to exist any agreement or other arrangement that prohibits, restricts or imposes
any condition upon (a) the ability of such Loan Party or any of its Subsidiaries to create, incur
or permit to exist any Lien upon any of its property or assets, or (b) the ability of any
Subsidiary to pay dividends or other distributions with respect to any shares of its capital stock
or to make or repay loans or advances to any Borrower or any other Subsidiary or to Guarantee
Indebtedness of any Borrower or any other Subsidiary; provided that (i) the foregoing shall
not apply to restrictions and conditions imposed by law or by any Loan Document, (ii) the foregoing
shall not apply to restrictions and conditions existing on the date hereof identified on
Schedule 6.10 (but shall apply to any extension or renewal of, or any amendment or
modification expanding the scope of, any such restriction or condition), (iii) the foregoing shall
not apply to customary restrictions and conditions contained in agreements relating to the sale of
a Subsidiary pending such sale, provided such restrictions and conditions apply only to the
Subsidiary that is to be sold and such sale is permitted hereunder, (iv) clause (a) of the
foregoing shall not apply to restrictions or conditions imposed by any agreement relating to
secured Indebtedness permitted by this Agreement if such restrictions or conditions apply only to
the property or assets securing such Indebtedness and (v) clause (a) of the foregoing shall not
apply to customary provisions in leases and other contracts restricting the assignment thereof.

          Section 6.11 Amendment of Material Documents.

          No Loan Party will, nor will it permit any Subsidiary to, amend, modify or waive any of its
rights under (a) agreement relating to any Subordinated Indebtedness, (b) its certificate of
incorporation, by-laws, operating, management or partnership agreement or other organizational
documents or (c) any Material Agreement, in each case to the extent any such amendment,
modification or waiver would be materially adverse to the Lenders.

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          Section 6.12 Financial Covenants.

          (a) Fixed Charge Coverage Ratio. At all times after Liquidity is less than
$80,000,000, the Borrowers will not permit the Fixed Charge Coverage Ratio, determined for any
trailing twelve month period ending on the last day of each fiscal month of the Company (beginning
on the fiscal month end immediately prior to the date on which Liquidity is less than $80,000,000),
to be less than 1.1 to 1.0.

          (b) Minimum Liquidity. The Borrowers shall maintain, at all times, Liquidity of not
less than $50,000,000.

ARTICLE VII

Events of Default

          If any of the following events (“Events of Default”) shall occur:

          (a) the Borrowers shall fail to pay any principal of any Loan or any reimbursement obligation
in respect of any LC Disbursement when and as the same shall become due and payable, whether at the
due date thereof or at a date fixed for prepayment thereof or otherwise;

          (b) the Borrowers shall fail to pay any interest on any Loan or any fee or any other amount
(other than an amount referred to in clause (a) of this Article) payable under this Agreement,
within five (5) Business Days after the same shall become due;

          (c) any representation or warranty made or deemed made by or on behalf of any Loan Party or
any Subsidiary in or in connection with this Agreement or any Loan Document or any amendment or
modification thereof or waiver thereunder, or in any report, certificate, financial statement or
other document furnished pursuant to or in connection with this Agreement or any Loan Document or
any amendment or modification thereof or waiver thereunder, shall prove to have been materially
incorrect when made or deemed made;

          (d) any Loan Party shall fail to observe or perform any covenant, condition or agreement
contained in Section 5.01(g) and (h), 5.02(a), 5.06 (except as provided in paragraph (e) below),
5.08 or 5.09 or in Article VI;

          (e) any Loan Party shall fail to observe or perform any covenant, condition or agreement
contained in this Agreement (other than those which constitute a default under another Section of
this Article), and such failure shall continue unremedied for a period of (i) five (5) days after
knowledge of any Senior Officer of any Loan Party of such breach or notice thereof from the
Administrative Agent (which notice will be given at the request of any Lender) if such breach
relates to terms or provisions of Section 5.01 (other than Sections 5.01(g) and (h)), (ii) fifteen
(15) days after the knowledge of any Senior Officer of any Loan Party of such breach or notice
thereof from the Administrative Agent (which notice will be given at the request of any Lender) if
such breach relates to terms or provisions of Section 5.02 (other than Section 5.02(a)), 5.03,
5.04, 5.05, 5.06 (as it relates to keeping of books and records), 5.07, 5.10 or 5.12 or (iii)
thirty (30) days after the earlier of the knowledge of any Senior Officer of any Loan Party of such
breach or notice thereof from the Administrative Agent (which notice will be given at the request
of any Lender) of such breach if such breach relates to terms or provisions of any other Section of
this Agreement; provided, however, that so long as such breaching party is
diligently seeking a remedy of such breach, Administrative Agent may in its sole discretion

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extend,
as applicable, any five (5) day period to ten (10) days, any fifteen (15) day period to thirty (30)
days and any thirty (30) day period to sixty (60) days.

          (f) any Loan Party or any Subsidiary shall fail to make any payment (whether of principal or
interest and regardless of amount) in respect of any Material Indebtedness, when and as the same
shall become due and payable, beyond the grace period, if any, provided therefor;

          (g) any event or condition occurs that results in any Material Indebtedness becoming due prior
to its scheduled maturity or that enables or permits (with or without the giving of notice, the
lapse of time or both) the holder or holders of any Material Indebtedness or any trustee or agent
on its or their behalf to cause any Material Indebtedness to become due, or to require the
prepayment, repurchase, redemption or defeasance thereof, prior to its scheduled maturity;
provided that this clause (g) shall not apply to secured Indebtedness that becomes due as a
result of the voluntary sale or transfer of the property or assets securing such Indebtedness;

          (h) an involuntary proceeding shall be commenced or an involuntary petition shall be filed
seeking (i) liquidation, reorganization or other relief in respect of a Loan Party or any
Subsidiary of any Loan Party or its debts, or of a substantial part of its assets, under any
Federal, State or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for any Loan Party or any Subsidiary of any Loan Party or for a substantial part
of its assets, and, in any such case, such proceeding or petition shall continue undismissed for
sixty (60) days or an order or decree approving or ordering any of the foregoing shall be entered;

          (i) any Loan Party or any Subsidiary of any Loan Party shall (i) voluntarily commence any
proceeding or file any petition seeking liquidation, reorganization or other relief under any
Federal, State or foreign bankruptcy, insolvency, receivership or similar law now or hereafter in
effect, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner,
any proceeding or petition described in clause (h) of this Article, (iii) apply for or consent to
the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for such Loan Party or Subsidiary of any Loan Party or for a substantial part of its assets, (iv)
file an answer admitting the material allegations of a petition filed against it in any such
proceeding, (v) make a general assignment for the benefit of creditors or (vi) take any action for
the purpose of effecting any of the foregoing;

          (j) any Loan Party or any Subsidiary of any Loan Party shall become unable, admit in writing
its inability or fail generally to pay its debts as they become due;

          (k) one or more judgments for the payment of money in an aggregate amount in excess of
$3,750,000 shall be rendered against any Loan Party, any Subsidiary of any Loan Party or any
combination thereof and the same shall remain undischarged for a period of thirty (30) consecutive
days during which execution shall not be effectively stayed, or any action shall be legally taken
by a judgment creditor to attach or levy upon any assets of any Loan Party or any Subsidiary of any
Loan Party to enforce any such judgment or any Loan Party or any Subsidiary of any Loan Party shall
fail within thirty (30) days to discharge one or more non-monetary judgments or orders which,
individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect,
which judgments or orders, in any such case, are not stayed on appeal or otherwise being
appropriately contested in good faith by proper proceedings diligently pursued;

          (l) an ERISA Event shall have occurred that, in the opinion of the Required Lenders, when
taken together with all other ERISA Events that have occurred, could reasonably be expected to
result in a Material Adverse Effect;

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          (m) a Change in Control shall occur;

          (n) the occurrence of any “default”, as defined in any Loan Document (other than this
Agreement) or the breach of any of the terms or provisions of any Loan Document (other than this
Agreement), which default or breach continues beyond any period of grace therein provided;

          (o) the Loan Guaranty shall fail to remain in full force or effect or any action shall be
taken to discontinue or to assert the invalidity or unenforceability of the Loan Guaranty, or any
Loan Guarantor shall fail to comply with any of the terms or provisions of the Loan Guaranty to
which it is a party, or any Loan Guarantor shall deny that it has any further liability under the
Loan Guaranty to which it is a party, or shall give notice to such effect;

          (p) any Collateral Document shall for any reason fail to create a valid and perfected first
priority security interest in any Collateral purported to be covered thereby, except for Permitted
Liens as permitted by the terms of any Collateral Document, or any Collateral Document shall fail
to remain in full force or effect or any action shall be taken to discontinue or to assert the
invalidity or unenforceability of any Collateral Document, or any Loan Party shall fail to comply
with any of the terms or provisions of any Collateral Document; or

          (q) any material provision of any Loan Document for any reason ceases to be valid, binding and
enforceable in accordance with its terms (or any Loan Party shall challenge the enforceability of
any Loan Document or shall assert in writing, or engage in any action or inaction based on any such
assertion, that any provision of any of the Loan Documents has ceased to be or otherwise is not
valid, binding and enforceable in accordance with its terms);

          (r) any Loan Party or any Subsidiary is in breach of any Material Agreement;

          (s) any Loan Party loses the right to sell or distribute any Drug comprising in excess of 15%
of the aggregate revenue of the Loan Parties during the twelve months prior to such loss, by way of
loss of intellectual property rights to sell such Drug, violation of any FDA Laws, revocation or
withdrawal of required governmental approvals, or otherwise;

          (t) any Loan Party is criminally indicted or convicted under any law that may reasonably be
expected to lead to a forfeiture of any property of such Loan Party having a fair market value in
excess of $3,750,000;

          (u) it becomes illegal to sell, use, or distribute any of the Drugs in the United States or
elsewhere for any presently approved indications or for any indications approved hereafter; or

          (v) any Loan Party or any Subsidiary is requested or required by the United States Food and
Drug Administration to issue, or issues or agrees to issue, any recalls for any of the Drugs and
the financial impact of such recall could reasonably be expected to be in excess of $5,000,000,
including without limitation the costs of such recall, the adverse impact of the loss of applicable
Accounts and any reasonably anticipated litigation;

then, and in every such event (other than an event with respect to the Borrowers described in
clause (h) or (i) of this Article), and at any time thereafter during the continuance of such
event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to
the Borrower Representative, take either or both of the following actions, at the same or different
times: (i) terminate the Commitments, and thereupon the Commitments shall terminate immediately,
and (ii) declare the Loans then outstanding to be due and payable in whole (or in part, in which
case any principal not so declared to

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be due and payable may thereafter be declared to be due and
payable), and thereupon the principal of the Loans so declared to be due and payable, together with
accrued interest thereon and all fees and other obligations of the Borrowers accrued hereunder,
shall become due and payable immediately, without presentment, demand, protest or other notice of
any kind, all of which are hereby waived by the Borrowers; and in case of any event with respect to
the Borrowers described in clause (h) or (i) of this Article, the Commitments shall automatically
terminate and the principal of the Loans then outstanding, together with accrued interest thereon
and all fees and other obligations of the Borrowers accrued hereunder, shall automatically become
due and payable, without presentment, demand, protest or other notice of any kind, all of which are
hereby waived by the Borrowers. Upon the occurrence and the continuance of an Event of Default,
the Administrative Agent may, and at the request of the Required Lenders shall, exercise any rights
and remedies provided to the Administrative Agent under the Loan Documents or at law or equity,
including all remedies provided under the UCC.

ARTICLE VIII

The Administrative Agent

          Each of the Lenders and the Issuing Bank hereby irrevocably appoints the Administrative Agent
as its agent and authorizes the Administrative Agent to take such actions on its behalf, including
execution of the Loan Documents (other than this Agreement), and to exercise such powers as are
delegated to the Administrative Agent by the terms of the Loan Documents, together with such
actions and powers as are reasonably incidental thereto.

          The bank serving as the Administrative Agent hereunder shall have the same rights and powers
in its capacity as a Lender as any other Lender and may exercise the same as though it were not the
Administrative Agent, and such bank and its Affiliates may accept deposits from, lend money to and
generally engage in any kind of business with the Loan Parties or any Subsidiary of a Loan Party or
other Affiliate thereof as if it were not the Administrative Agent hereunder.

          The Administrative Agent shall not have any duties or obligations except those expressly set
forth in the Loan Documents. Without limiting the generality of the foregoing, (a) the
Administrative Agent shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing, (b) the Administrative Agent shall not have any
duty to take any discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated by the Loan Documents that the Administrative Agent is
required to exercise in writing as directed by the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section 9.02
or specifically provided in this Agreement), and (c) except as expressly set forth in the Loan
Documents, the Administrative Agent shall not have any duty to disclose, and shall not be liable
for the failure to disclose, any information relating to any Loan Party or any of its Subsidiaries
that is communicated to or obtained by the bank serving as Administrative Agent or any of its
Affiliates in any capacity. The Administrative Agent shall not be liable for any action taken or
not taken by it with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
9.02) or in the absence of its own gross negligence or willful misconduct. The Administrative
Agent shall be deemed not to have knowledge of any Default unless and until written notice thereof
is given to the Administrative Agent by the Borrower Representative or a Lender, and the
Administrative Agent shall not be responsible for or have any duty to ascertain or inquire into (i)
any statement, warranty or representation made in or in connection with any Loan Document, (ii) the
contents of any certificate, report or other document delivered hereunder or in connection with any
Loan Document, (iii) the performance or observance of any of the covenants, agreements or other
terms or conditions set forth in any Loan Document, (iv) the validity, enforceability,
effectiveness or genuineness of any Loan Document

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or any other agreement, instrument or document,
(v) the creation, perfection or priority of Liens on the Collateral or the existence of the
Collateral, or (vi) the satisfaction of any condition set forth in Article IV or elsewhere in any
Loan Document, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent.

          The Administrative Agent shall be entitled to rely upon, and shall not incur any liability for
relying upon, any notice, request, certificate, consent, statement, instrument, document or other
writing believed by it to be genuine and to have been signed or sent by the proper Person. The
Administrative Agent also may rely upon any statement made to it orally or by telephone and
believed by it to be made by the proper Person, and shall not incur any liability for relying
thereon. The Administrative Agent may consult with legal counsel (who may be counsel for the
Borrowers), independent accountants and other experts selected by it, and shall not be liable for
any action taken or not taken by it in accordance with the advice of any such counsel, accountants
or experts.

          The Administrative Agent may perform any and all its duties and exercise its rights and powers
by or through any one or more sub-agents appointed by the Administrative Agent. The Administrative
Agent and any such sub-agent may perform any and all its duties and exercise its rights and powers
through their respective Related Parties. The exculpatory provisions of the preceding paragraphs
shall apply to any such sub-agent and to the Related Parties of the Administrative Agent and any
such sub-agent, and shall apply to their respective activities in connection with the syndication
of the credit facilities provided for herein as well as activities as Administrative Agent.

          Subject to the appointment and acceptance of a successor Administrative Agent as provided in
this paragraph, the Administrative Agent may resign at any time by notifying the Lenders, the
Issuing Bank and the Borrower Representative. Upon any such resignation, the Required Lenders
shall have the right, with the Borrower Representative’s prior written consent so long as no Event
of Default has occurred and is continuing, such consent not be unreasonably withheld, to appoint a
successor. If no successor shall have been so appointed by the Required Lenders and shall have
accepted such appointment within thirty (30) days after the retiring Administrative Agent gives
notice of its resignation, then the retiring Administrative Agent may, on behalf of the Lenders and
the Issuing Bank, appoint a successor Administrative Agent which shall be a commercial bank or an
Affiliate of any such commercial bank with assets in surplus of $500,000,000. Upon the acceptance
of its appointment as Administrative Agent hereunder by a successor, such successor shall succeed
to and become vested with all the rights, powers, privileges and duties of the retiring
Administrative Agent, and the retiring Administrative Agent shall be discharged from its duties and
obligations hereunder. The fees payable by the Borrowers to a successor Administrative Agent shall
be the same as those payable to its predecessor unless otherwise agreed between the Borrowers and
such successor. After the Administrative Agent’s resignation hereunder, the provisions of this
Article and Section 9.03 shall continue in effect for the benefit of such retiring Administrative
Agent, its sub-agents and their respective Related Parties in respect of any actions taken or
omitted to be taken by any of them while it was acting as Administrative Agent.

          Each Lender acknowledges 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 credit analysis and decision to enter into this Agreement. Each
Lender also acknowledges 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 from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or related agreement or any document furnished
hereunder or thereunder.

          Each Lender hereby agrees that (a) it has requested a copy of each Report prepared by or on
behalf of the Administrative Agent; (b) the Administrative Agent (i) makes no representation or

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warranty, express or implied, as to the completeness or accuracy of any Report or any of the
information contained therein or any inaccuracy or omission contained in or relating to a Report
and (ii) shall not be liable for any information contained in any Report; (c) the Reports are not
comprehensive audits or examinations, and that any Person performing any field examination will
inspect only specific information regarding the Loan Parties and will rely significantly upon the
Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel and
that the Administrative Agent undertakes no obligation to update, correct or supplement the
Reports; (d) it will keep all Reports confidential and strictly for its internal use, not share the
Report with any Loan Party or any other Person except as otherwise permitted pursuant to this
Agreement; and (e) without limiting the generality of any other indemnification provision contained
in this Agreement, it will pay and protect, and indemnify, defend, and hold the Administrative
Agent and any such other Person preparing a Report harmless from and against, the claims, actions,
proceedings, damages, costs, expenses, and other amounts (including reasonable attorney fees)
incurred by as the direct or indirect result of any third parties who might obtain all or part of
any Report through the indemnifying Lender.

ARTICLE IX

Miscellaneous

          Section 9.01 Notices.

          (a) Except in the case of notices and other communications expressly permitted to be given by
telephone (and subject to paragraph (b) below), all notices and other communications provided for
herein shall be in writing and shall be delivered by hand or overnight courier service, mailed by
certified or registered mail or sent by facsimile, as follows:

     (i) if to any Loan Party, to the Borrower Representative at:

MGI PHARMA, INC.

5775 West Old Shakopee Road, Suite 100

Bloomington, MN 55437

Attention: VP Finance

Facsimile No: (952) 346-4898

     with copies to:

MGI PHARMA, INC.

5775 West Old Shakopee Road, Suite 100

Bloomington, MN 55437

Attention: Chief Financial Officer

Facsimile No: (952) 346-4898

     and

MGI PHARMA, INC.

5775 West Old Shakopee Road, Suite 100

Bloomington, MN 55437

Attention: General Counsel

Facsimile No: (952) 346-4898

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     and

Hogan & Hartson L.L.P.

111 S. Calvert Street, Suite 1600

Baltimore, MD 21202-6191

Attention: Asher M. Rubin

Facsimile No: (410) 539-6981

     (ii) if to the Administrative Agent, the Issuing Bank or the Swingline Lender,
to JPMorgan Chase Bank, N.A. at:

JP Morgan Chase Bank, N.A.

120 South LaSalle Street

Chicago, IL 60603

Attention: Account Manager – MGI PHARMA

Facsimile No: (312) 661-6929

     (iii) if to any other Lender, to it at its address or facsimile number set
forth in its Administrative Questionnaire.

All such notices and other communications (i) sent by hand or overnight courier service, or mailed
by certified or registered mail, shall be deemed to have been given when received or (ii) sent by
facsimile shall be deemed to have been given when sent, provided that if not given during
normal business hours for the recipient, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient.

          (b) Notices and other communications to the Lenders hereunder may be delivered or furnished by
electronic communications (including e-mail and internet or intranet websites) pursuant to
procedures approved by the Administrative Agent; provided that the foregoing shall not
apply to notices pursuant to Article II unless otherwise agreed by the Administrative Agent and the
applicable Lender. The Administrative Agent or the Borrower Representative (on behalf of the Loan
Parties) may, in its discretion, agree to accept notices and other communications to it hereunder
by electronic communications pursuant to procedures approved by it; provided that approval
of such procedures may be limited to particular notices or communications. All such notices and
other communications (i) sent to an e-mail address shall be deemed received upon the sender’s
receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement),
provided that if not given during the normal business hours of the recipient, such notice
or communication shall be deemed to have been given at the opening of business on the next Business
Day for the recipient, and (ii) posted to an Internet or intranet website shall be deemed received
upon the deemed receipt by the intended recipient at its e-mail address as described in the
foregoing clause (b)(i) of notification that such notice or communication is available and
identifying the website address therefor.

          (c) Any party hereto may change its address or facsimile number for notices and other
communications hereunder by notice to the other parties hereto.

          Section 9.02 Waivers; Amendments.

          (a) No failure or delay by the Administrative Agent, the Issuing Bank or any Lender in
exercising any right or power hereunder or under any other Loan Document shall operate as a waiver
thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or
discontinuance of steps to enforce such a right or power, preclude any other or further exercise
thereof or the exercise of any other right or power. The rights and remedies of the Administrative
Agent, the Issuing

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Bank and the Lenders hereunder and under any other Loan Document are cumulative
and are not exclusive of any rights or remedies that they would otherwise have. No waiver of any
provision of any Loan Document or consent to any departure by any Loan Party therefrom shall in any
event be effective unless the same shall be permitted by paragraph (b) of this Section, and then
such waiver or consent shall be effective only in the specific instance and for the purpose for
which given. Without limiting the generality of the foregoing, the making of a Loan or issuance of
a Letter of Credit shall not be construed as a waiver of any Default, regardless of whether the
Administrative Agent, any Lender or the Issuing Bank may have had notice or knowledge of such
Default at the time.

          (b) Neither this Agreement nor any other Loan Document nor any provision hereof or thereof may
be waived, amended or modified except (i) in the case of this Agreement, pursuant to an agreement
or agreements in writing entered into by the Borrowers and the Required Lenders or, (ii) in the
case of any other Loan Document, pursuant to an agreement or agreements in writing entered into by
the Administrative Agent and the Loan Party or Loan Parties that are parties thereto, with the
consent of the Required Lenders; provided that no such agreement shall (i) increase the
Commitment of any Lender without the written consent of such Lender (provided that the
Administrative Agent may make Protective Advances as set forth in Section 2.04), (ii) reduce or
forgive the principal amount of any Loan or LC Disbursement or reduce the rate of interest thereon,
or reduce or forgive any interest or fees payable hereunder, without the written consent of each
Lender directly affected thereby, (iii) postpone any scheduled date of payment of the principal
amount of any Loan or LC Disbursement, or any date for the payment of any interest, fees or other
Obligations payable hereunder, or reduce the amount of, waive or excuse any such payment, or
postpone the scheduled date of expiration of any Commitment, without the written consent of each
Lender directly affected thereby, (iv) change Section 2.18(b) or (d) in a manner that would alter
the manner in which payments are shared, without the written consent of each Lender, (v) increase
the advance rates set forth in the definition of Borrowing Base without the written consent of all
Lenders, (vi) or add new categories of eligible assets, without the written consent of Required
Lenders, (vii) change any of the provisions of this Section or the definition of “Required Lenders”
or any other provision of any Loan Document specifying the number or percentage of Lenders (or
Lenders of any Class) required to waive, amend or modify any rights thereunder or make any
determination or grant any consent thereunder, without the written consent of each Lender, (viii)
release any Loan Guarantor from its obligation under its Loan Guaranty (except as otherwise
permitted herein or in the other Loan Documents), without the written consent of each Lender, or
(ix) except as provided in clauses (c) and (d) of this Section or in any Collateral Document,
release all of the Collateral or any portion in excess of $10,000,000 of the Collateral during any
calendar year, without the written consent of each Lender; provided further that no
such agreement shall amend, modify or otherwise affect the rights or duties of the Administrative
Agent, the Issuing Bank or the Swingline Lender hereunder without the prior written consent of the
Administrative Agent, the Issuing Bank or the Swingline Lender, as the case may be. The
Administrative Agent may also amend the Commitment Schedule to reflect assignments entered
into pursuant to Section 9.04.

          (c) The Lenders hereby irrevocably authorize the Administrative Agent, at its option and in
its sole discretion, to release any Liens granted to the Administrative Agent by the Loan Parties
on any Collateral (i) upon the termination of the all Commitments, payment and satisfaction in full
in cash of all Secured Obligations (other than Unliquidated Obligations), and the cash
collateralization of all Unliquidated Obligations in a manner satisfactory to each affected Lender,
(ii) constituting property being sold or disposed of if the Loan Party disposing of such property
certifies to the Administrative Agent that the sale or disposition is made in compliance with the
terms of this Agreement (and the Administrative Agent may rely conclusively on any such
certificate, without further inquiry), (iii) constituting property leased to a Loan Party under a
lease which has expired or been terminated in a transaction permitted under this Agreement, or (iv)
as required to effect any sale or other disposition of such Collateral in connection with any
exercise of remedies of the Administrative Agent and the Lenders pursuant to Article

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VII. Except
as provided in the preceding sentence, the Administrative Agent will not release any Liens on
Collateral without the prior written authorization of the each Lender; provided that, the
Administrative Agent may in its discretion, release its Liens on Collateral valued in the aggregate
not in excess of $10,000,000 during any calendar year without the prior written authorization of
each Lender. Any such release shall not in any manner discharge, affect, or impair the Obligations
or any Liens (other than those expressly being released) upon (or obligations of the Loan Parties
in respect of) all interests retained by the Loan Parties, including the proceeds of any sale, all
of which shall continue to constitute part of the Collateral.

          (d) If, in connection with any proposed amendment, waiver or consent requiring the consent of
“each Lender” or “each Lender affected thereby,” the consent of the Required Lenders is obtained,
but the consent of other necessary Lenders is not obtained (any such Lender whose consent is
necessary but not obtained being referred to herein as a “Non-Consenting Lender”), then the
Borrowers may elect to replace a Non-Consenting Lender as a Lender party to this Agreement,
provided that, concurrently with such replacement, (i) another bank or other entity which
is reasonably satisfactory to the Borrowers and the Administrative Agent shall agree, as of such
date, to purchase for cash the Loans and other Obligations due to the Non-Consenting Lender
pursuant to an Assignment and Assumption and to become a Lender for all purposes under this
Agreement and to assume all obligations of the Non-Consenting Lender to be terminated as of such
date and to comply with the requirements of clause (b) of Section 9.04, and (ii) the Borrowers
shall pay to such Non-Consenting Lender in same day funds on the day of such replacement (1) all
interest, fees and other amounts then accrued but unpaid to such Non-Consenting Lender by the
Borrowers hereunder to and including the date of termination, including without limitation payments
due to such Non-Consenting Lender under Sections 2.15 and 2.17, and (2) an amount, if any, equal to
the payment which would have been due to such Lender on the day of such replacement under Section
2.16 had the Loans of such Non-Consenting Lender been prepaid on such date rather than sold to the
replacement Lender.

          Section 9.03 Expenses; Indemnity; Damage Waiver.

          (a) The Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by the
Administrative Agent and its Affiliates, including the reasonable fees, charges and disbursements
of counsel for the Administrative Agent and other advisors and professionals engaged by
Administrative Agent, in connection with the syndication and distribution (including, without
limitation, via the internet or through a service such as Intralinks) of the credit facilities
provided for herein, the preparation, execution, delivery and administration of the Loan Documents
or any amendments, modifications or waivers of the provisions of the Loan Documents (whether or not
the transactions contemplated hereby or thereby shall be consummated), (ii) all reasonable
out-of-pocket expenses incurred by the Issuing Bank in connection with the issuance, amendment,
renewal or extension of any Letter of Credit or any demand for payment thereunder and (iii) all
out-of-pocket expenses incurred by the Administrative Agent, the Issuing Bank or any Lender,
including the fees, charges and disbursements of any counsel for the Administrative Agent, the
Issuing Bank or any Lender, in connection with the enforcement, collection or protection of its
rights in connection with the Loan Documents, including its rights under this Section, or in
connection with the Loans made or Letters of Credit issued hereunder, including all such
out-of-pocket expenses incurred during any workout, restructuring or negotiations in respect of
such Loans or Letters of Credit. Expenses being reimbursed by the Borrowers under this Section
include, without limiting the generality of the foregoing, costs and expenses incurred in
connection with:

     (i) appraisals (subject to Section 5.11) and insurance reviews
(provided that Borrower shall not be obligated to reimburse Administrative
Agent or any Lender for any insurance reviews after the Effective Date in absence of
the occurrence and continuation of an Event of Default);

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     (ii) field examinations and the preparation of Reports based on the fees
charged by a third party retained by the Administrative Agent or the internally
allocated fees for each Person employed by the Administrative Agent with respect to
each field examination (for which the Administrative Agent shall charge its standard
rate in effect from time to time, which rate is currently equal to $850 per day per
examiner, plus out of pocket expenses) (provided that in absence of the
occurrence and continuance of an Event of Default, Borrowers shall not be obligated
to reimburse Administrative Agent for more than (x) two field examinations in any
fiscal year in which aggregate Borrowings equaled or exceeded $1,000,000 at any time
during such fiscal year or (y) one field examination in any fiscal year in which
aggregate Borrowings failed to exceed $1,000,000 at any time during such fiscal
year);

     (iii) background checks regarding senior management and/or key investors, as
deemed necessary or appropriate in the sole discretion of the Administrative Agent;

     (iv) taxes, fees and other charges for (A) lien searches and (B) filing
financing statements and continuations, and other actions to perfect, protect, and
continue the Administrative Agent’s Liens;

     (v) sums paid or incurred to take any action required of any Loan Party under
the Loan Documents that such Loan Party fails to pay or take; and

     (vi) forwarding loan proceeds, collecting checks and other items of payment,
and establishing and maintaining the accounts and lock boxes, and costs and expenses
of preserving and protecting the Collateral.

All of the foregoing costs and expenses may be charged to the Borrowers as Revolving Loans or to
another deposit account, all as described in Section 2.18(c).

          (b) The Borrowers shall, jointly and severally, indemnify the Administrative Agent, the
Issuing Bank and each Lender, and each Related Party of any of the foregoing Persons (each such
Person being called an “Indemnitee”) against, and hold each Indemnitee harmless from, any
and all losses, claims, damages, penalties, liabilities and related expenses, including the fees,
charges and disbursements of any counsel for any Indemnitee, incurred by or asserted against any
Indemnitee arising out of, in connection with, or as a result of (i) the execution or delivery of
the Loan Documents or any agreement or instrument contemplated thereby, the performance by the
parties hereto of their respective obligations thereunder or the consummation of the Transactions
or any other transactions contemplated hereby, (ii) any Loan or Letter of Credit or the use of the
proceeds therefrom (including any refusal by the Issuing Bank to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do not strictly comply
with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of
Hazardous Materials on or from any property owned or operated by any Borrower or any of their
Subsidiaries, or any Environmental Liability related in any way to any Borrower or any of their
Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation or proceeding
relating to any of the foregoing, whether based on contract, tort or any other theory and
regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages, penalties,
liabilities or related expenses are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the gross negligence or willful misconduct of such
Indemnitee.

          (c) To the extent that the Borrowers fail to pay any amount required to be paid by it to the
Administrative Agent, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this

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Section, each Lender severally agrees to pay to the Administrative Agent, the Issuing Bank or the
Swingline Lender, as the case may be, such Lender’s Applicable Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount; provided that the unreimbursed expense or indemnified loss, claim, damage, penalty,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent, the Issuing Bank or the Swingline Lender in its capacity as such.

          (d) To the extent permitted by applicable law, no Loan Party shall assert, and each hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

          (e) All amounts due under this Section shall be payable promptly after written demand
therefor.

          Section 9.04 Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby (including any
Affiliate of the Issuing Bank that issues any Letter of Credit), except that (i) the Borrowers may
not assign or otherwise transfer any of its rights or obligations hereunder without the prior
written consent of each Lender (and any attempted assignment or transfer by the Borrowers without
such consent shall be null and void) and (ii) no Lender may assign or otherwise transfer its rights
or obligations hereunder except in accordance with this Section. Nothing in this Agreement,
expressed or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby (including any Affiliate of the Issuing
Bank that issues any Letter of Credit), Participants (to the extent provided in paragraph (c) of
this Section) and, to the extent expressly provided hereby, the Related Parties of each of the
Administrative Agent, the Issuing Bank and the Lenders) any legal or equitable right, remedy or
claim under or by reason of this Agreement.

          (b) (i) Subject to the conditions set forth in paragraph (b)(ii) below, any Lender may assign
to one or more assignees all or a portion of its rights and obligations under this Agreement
(including all or a portion of its Commitment and the Loans at the time owing to it) with the prior
written consent (such consent not to be unreasonably withheld) of:

          (A) the Borrower Representative, provided that no consent of the
Borrower Representative shall be required for an assignment to a Lender, an
Affiliate of a Lender, an Approved Fund or, if an Event of Default has occurred and
is continuing, any other assignee;

          (B) the Administrative Agent, provided that no consent of the
Administrative Agent shall be required for an assignment to a Lender, an Affiliate
of a Lender or an Approved Fund; and

          (C) the Issuing Bank, provided that no consent of the Issuing Bank
shall be required for an assignment to a Lender, an Affiliate of a Lender or an
Approved Fund.

     (ii) Assignments shall be subject to the following additional conditions:

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          (A) except in the case of an assignment to a Lender, an Affiliate of a Lender
or an Approved Fund or an assignment of the entire remaining amount of the assigning
Lender’s Commitment or Loans of any Class, the amount of the Commitment or Loans of
the assigning Lender subject to each such assignment (determined as of the date the
Assignment and Assumption with respect to such assignment is delivered to the
Administrative Agent) shall not be less than $5,000,000 unless each of the Borrower
Representative and the Administrative Agent otherwise consent, provided that
no such consent of the Borrower Representative shall be required if an Event of
Default has occurred and is continuing;

          (B) each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender’s rights and obligations under this Agreement;

          (C) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and
recordation fee of $3,500;

          (D) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire in which the assignee
designates one or more Credit Contacts to whom all syndicate-level information
(which may contain material non-public information about the Company, the Loan
Parties and their Related Parties or their respective securities) will be made
available and who may receive such information in accordance with the assignee’s
compliance procedures and applicable laws, including Federal and State securities
laws; and

          (E) except in the case where an Event of Default has occurred and is
continuing, Chase shall not assign its Revolving Commitment such that after giving
effect to such assignment, Chase, its Affiliates or an Approved Fund administered or
managed by Chase or an Affiliate of Chase will maintain an aggregate Revolving
Commitment of less than $10,000,000.

          For the purposes of this Section 9.04(b), the term “Approved Fund” has the following
meaning:

          “Approved Fund” means any Person (other than a natural person) that is engaged in
making, purchasing, holding or investing in bank loans and similar extensions of credit in the
ordinary course of its business and that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     (iii) Subject to acceptance and recording thereof pursuant to paragraph (b)(iv)
of this Section, from and after the effective date specified in each Assignment and
Assumption the assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Assumption, have the rights and obligations
of a Lender under this Agreement, and the assigning Lender thereunder shall, to the
extent of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under this
Agreement, such Lender shall cease to be a party hereto but shall continue to be
entitled to the benefits of Sections 2.15, 2.16, 2.17 and 9.03). Any assignment or
transfer by a Lender of rights or obligations under this Agreement that does not
comply with this Section 9.04 shall be

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treated for purposes of this Agreement as a
sale by such Lender of a participation in such rights and obligations in accordance
with paragraph (c) of this Section.

     (iv) The Administrative Agent, acting for this purpose as an agent of the
Borrowers, shall maintain at one of its offices a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and
addresses of the Lenders, and the Commitment of, and principal amount of the Loans
and LC Disbursements owing to, each Lender pursuant to the terms hereof from time to
time (the “Register”). The entries in the Register shall be conclusive,
absent manifest error, and the Borrowers, the Administrative Agent, the Issuing Bank
and the Lenders may treat each Person whose name is recorded in the Register
pursuant to the terms hereof as a Lender hereunder for all purposes of this
Agreement, notwithstanding notice to the contrary. The Register shall be available
for inspection by the Borrowers, the Issuing Bank and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

     (v) Upon its receipt of a duly completed Assignment and Assumption executed by
an assigning Lender and an assignee, the assignee’s completed Administrative
Questionnaire (unless the assignee shall already be a Lender hereunder), the
processing and recordation fee referred to in paragraph (b) of this Section and any
written consent to such assignment required by paragraph (b) of this Section, the
Administrative Agent shall accept such Assignment and Assumption and record the
information contained therein in the Register; provided that if either the
assigning Lender or the assignee shall have failed to make any payment required to
be made by it pursuant to Section 2.05, 2.06(d) or (e), 2.07(b), 2.18(d) or 9.03(c),
the Administrative Agent shall have no obligation to accept such Assignment and
Assumption and record the information therein in the Register unless and until such
payment shall have been made in full, together with all accrued interest thereon.
No assignment shall be effective for purposes of this Agreement unless it has been
recorded in the Register as provided in this paragraph.

          (c) (i) Any Lender may, without the consent of the Borrowers, the Administrative Agent, the
Issuing Bank or the Swingline Lender, sell participations to one or more banks or other entities (a
“Participant”) in all or a portion of such Lender’s rights and obligations under this
Agreement (including all or a portion of its Commitment and the Loans owing to it);
provided that (A) such Lender’s obligations under this Agreement shall remain unchanged,
(B) such Lender shall remain solely responsible to the other parties hereto for the performance of
such obligations and (C) the Borrowers, the Administrative Agent, the Issuing Bank 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. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in the first proviso to Section 9.02(b) that affects such Participant. Subject
to paragraph (c)(ii) of this Section, the Borrowers agree that each Participant shall be entitled
to the benefits of Sections 2.15, 2.16 and 2.17 to the same extent as if it were a Lender and had
acquired its interest by assignment pursuant to paragraph (b) of this Section. To the extent
permitted by law, each Participant also shall be entitled to the benefits of Section 9.08 as though
it were a Lender, provided such Participant agrees to be subject to Section 2.18(c) as though it
were a Lender.

     (ii) A Participant shall not be entitled to receive any greater payment under
Section 2.15 or 2.17 than the applicable Lender would have been entitled to receive
with

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respect to the participation sold to such Participant. A Participant that
would be a Foreign Lender if it were a Lender shall not be entitled to the benefits
of Section 2.17 unless the Borrower Representative is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of the
Borrowers, to comply with Section 2.17(e) as though it were a Lender.

          (d) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such
pledge or assignment of a security interest shall release a Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party hereto.

          Section 9.05 Survival.

          All covenants, agreements, representations and warranties made by the Loan Parties in the Loan
Documents and in the certificates or other instruments delivered in connection with or pursuant to
this Agreement or any other Loan Document shall be considered to have been relied upon by the other
parties hereto and shall survive the execution and delivery of the Loan Documents and the making of
any Loans and issuance of any Letters of Credit, regardless of any investigation made by any such
other party or on its behalf and notwithstanding that the Administrative Agent, the Issuing Bank or
any Lender may have had notice or knowledge of any Default or incorrect representation or warranty
at the time any credit is extended hereunder, and shall continue in full force and effect as long
as the principal of or any accrued interest on any Loan or any fee or any other amount payable
under this Agreement is outstanding and unpaid or any Letter of Credit is outstanding and so long
as the Commitments have not expired or terminated. The provisions of Sections 2.15, 2.16, 2.17 and
9.03 and Article VIII shall survive and remain in full force and effect regardless of the
consummation of the transactions contemplated hereby, the repayment of the Loans and other
Obligations, the expiration or termination of the Letters of Credit and the Commitments or the
termination of this Agreement or any provision hereof.

          Section 9.06 Counterparts; Integration; Effectiveness.

          This Agreement may be executed in counterparts (and by different parties hereto on different
counterparts), each of which shall constitute an original, but all of which when taken together
shall constitute a single contract. This Agreement, the other Loan Documents and any separate
letter agreements with respect to fees payable to the Administrative Agent constitute the entire
contract among the parties relating to the subject matter hereof and supersede any and all previous
agreements and understandings, oral or written, relating to the subject matter hereof, including
without limitation any confidentiality agreement among the parties. Except as provided in Section
4.01, this Agreement shall become effective when it shall have been executed by the Administrative
Agent and when the Administrative Agent shall have received counterparts hereof which, when taken
together, bear the signatures of each of the other parties hereto, and thereafter shall be binding
upon and inure to the benefit of the parties hereto and their respective successors and assigns.
Delivery of an executed counterpart of a signature page of this Agreement by facsimile or other
electronic transmission shall be effective as delivery of a manually executed counterpart of this
Agreement.

          Section 9.07 Severability.

          Any provision of any Loan Document held to be invalid, illegal or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity,
illegality or unenforceability without affecting the validity, legality and enforceability of the
remaining provisions

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thereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

          Section 9.08 Right of Setoff.

          If an Event of Default shall have occurred and be continuing, each Lender and each of its
Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted
by law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held and other obligations at any time owing by such Lender or Affiliate to
or for the credit or the account of the Borrowers or such Loan Guarantor against any of and all the
Secured Obligations held by such Lender, irrespective of whether or not such Lender shall have made
any demand under the Loan Documents and although such obligations may be unmatured. The applicable
Lender shall notify the Borrower Representative and the Administrative Agent of such set-off or
application, provided that any failure to give or any delay in giving such notice shall not
affect the validity of any such set-off or application under this Section. The rights of each
Lender under this Section are in addition to other rights and remedies (including other rights of
setoff) which such Lender may have.

          Section 9.09 Governing Law; Jurisdiction; Consent to Service of Process.

          (a) The Loan Documents (other than those containing a contrary express choice of law
provision) shall be governed by and construed in accordance with the laws of the State of New York,
but giving effect to Federal laws applicable to national banks.

          (b) Each Loan Party hereby irrevocably and unconditionally submits, for itself and its
property, to the nonexclusive jurisdiction of any U.S. Federal or New York State court sitting in
New York, New York in any action or proceeding arising out of or relating to any Loan Documents, or
for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law, in such Federal court.
Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement or any other Loan Document shall affect any
right that the Administrative Agent, the Issuing Bank or any Lender may otherwise have to bring any
action or proceeding relating to this Agreement or any other Loan Document against any Loan Party
or its properties in the courts of any jurisdiction.

          (c) Each Loan Party hereby irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection which it may now or hereafter have to the laying
of venue of any suit, action or proceeding arising out of or relating to this Agreement or any
other Loan Document in any court referred to in paragraph (b) of this Section. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

          (d) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement or any other Loan Document will
affect the right of any party to this Agreement to serve process in any other manner permitted by
law.

          Section 9.10 WAIVER OF JURY TRIAL.

          EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN

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ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR
RELATING TO THIS AGREEMENT, ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS CONTEMPLATED THEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT
SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS
AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          Section 9.11 Headings.

          Article and Section headings and the Table of Contents used herein are for convenience of
reference only, are not part of this Agreement and shall not affect the construction of, or be
taken into consideration in interpreting, this Agreement.

          Section 9.12 Confidentiality.

          Each of the Administrative Agent, the Issuing Bank and the Lenders agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its and its Affiliates’ directors, officers, employees and agents, including accountants, legal
counsel and other advisors (it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such Information and instructed to keep such
Information confidential), (b) to the extent requested by any regulatory authority, (c) to the
extent required by Requirement of Laws or by any subpoena or similar legal process, (d) to any
other party to this Agreement, (e) in connection with the exercise of any remedies hereunder or any
suit, action or proceeding relating to this Agreement or any other Loan Document or the enforcement
of rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially
the same as those of this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating
to the Loan Parties and their obligations, (g) with the consent of the Borrower Representative or
(h) to the extent such Information (i) becomes publicly available other than as a result of a
breach of this Section or (ii) becomes available to the Administrative Agent, the Issuing Bank or
any Lender on a non-confidential basis from a source other than the Borrowers. For the purposes of
this Section, “Information” means all information received from the Borrowers relating to
the Borrowers or their business, other than any such information that is available to the
Administrative Agent, the Issuing Bank or any Lender on a non-confidential basis prior to
disclosure by the Borrowers; provided that, in the case of information received from the
Borrowers after the date hereof, such information is clearly identified at the time of delivery as
confidential. Any Person required to maintain the confidentiality of Information as provided in
this Section shall be considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such Information as such
Person would accord to its own confidential information.

          EACH LENDER ACKNOWLEDGES THAT INFORMATION AS DEFINED IN SECTION 9.12 FURNISHED TO IT PURSUANT
TO THIS AGREEMENT MAY INCLUDE MATERIAL NON-PUBLIC INFORMATION CONCERNING THE COMPANY AND ITS
AFFILIATES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES, AND CONFIRMS THAT IT HAS
DEVELOPED COMPLIANCE PROCEDURES REGARDING THE USE OF MATERIAL NON-PUBLIC INFORMATION AND THAT IT
WILL HANDLE SUCH MATERIAL NON-PUBLIC INFORMATION IN ACCORDANCE WITH THOSE PROCEDURES AND APPLICABLE
LAW, INCLUDING FEDERAL AND STATE SECURITIES LAWS.

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          ALL INFORMATION, INCLUDING REQUESTS FOR WAIVERS AND AMENDMENTS, FURNISHED BY THE BORROWERS OR
THE ADMINISTRATIVE AGENT PURSUANT TO, OR IN THE COURSE OF ADMINISTERING, THIS AGREEMENT WILL BE
SYNDICATE-LEVEL INFORMATION, WHICH MAY CONTAIN MATERIAL NON-PUBLIC INFORMATION ABOUT THE COMPANY,
THE LOAN PARTIES AND THEIR RELATED PARTIES OR THEIR RESPECTIVE SECURITIES. ACCORDINGLY, EACH
LENDER REPRESENTS TO THE BORROWERS AND THE ADMINISTRATIVE AGENT THAT IT HAS IDENTIFIED IN ITS
ADMINISTRATIVE QUESTIONNAIRE A CREDIT CONTACT WHO MAY RECEIVE INFORMATION THAT MAY CONTAIN MATERIAL
NON-PUBLIC INFORMATION IN ACCORDANCE WITH ITS COMPLIANCE PROCEDURES AND APPLICABLE LAW, INCLUDING
FEDERAL AND STATE SECURITIES LAWS.

          Section 9.13 Several Obligations; Nonreliance; Violation of Law.

          The respective obligations of the Lenders hereunder are several and not joint and the failure
of any Lender to make any Loan or perform any of its obligations hereunder shall not relieve any
other Lender from any of its obligations hereunder. Each Lender hereby represents that it is not
relying on or looking to any margin stock for the repayment of the Borrowings provided for herein.
Anything contained in this Agreement to the contrary notwithstanding, neither the Issuing Bank nor
any Lender shall be obligated to extend credit to the Borrowers in violation of any Requirement of
Law.

          Section 9.14 USA PATRIOT Act.

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

          Section 9.15 Disclosure.

          Each Loan Party and each Lender hereby acknowledges and agrees that the Administrative Agent
and/or its Affiliates from time to time may hold investments in, make other loans to or have other
relationships with any of the Loan Parties and their respective Affiliates.

          Section 9.16 Appointment for Perfection.

          Each Lender hereby appoints each other Lender as its agent for the purpose of perfecting
Liens, for the benefit of the Administrative Agent and the Lenders, in assets which, in accordance
with Article 9 of the UCC or any other applicable law can be perfected only by possession. Should
any Lender (other than the Administrative Agent) obtain possession of any such Collateral, such
Lender shall notify the Administrative Agent thereof, and, promptly upon the Administrative Agent’s
request therefor shall deliver such Collateral to the Administrative Agent or otherwise deal with
such Collateral in accordance with the Administrative Agent’s instructions.

          Section 9.17 Interest Rate Limitation.

          Notwithstanding anything herein to the contrary, if at any time the interest rate applicable
to any Loan, together with all fees, charges and other amounts which are treated as interest on
such Loan under applicable law (collectively the “Charges”), shall exceed the maximum
lawful rate (the “Maximum Rate”) which may be contracted for, charged, taken, received or
reserved by the Lender holding such

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Loan in accordance with applicable law, the rate of interest
payable in respect of such Loan hereunder, together with all Charges payable in respect thereof,
shall be limited to the Maximum Rate and, to the extent lawful, the interest and Charges that would
have been payable in respect of such Loan but were not payable as a result of the operation of this
Section shall be cumulated and the interest and Charges payable to such Lender in respect of other
Loans or periods shall be increased (but not above the Maximum Rate therefor) until such cumulated
amount, together with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

          Section 9.18  Maximum Liability of Borrowers.

          The provisions of this Agreement are severable, and in any action or proceeding involving any
State corporate law, or any State, Federal or foreign bankruptcy, insolvency, reorganization or
other law affecting the rights of creditors generally, if the obligations of any Borrower under
this Agreement would otherwise be held or determined to be avoidable, invalid or unenforceable on
account of the amount of such Borrower’s liability under this Agreement, then, notwithstanding any
other provision of this Agreement to the contrary, the amount of such liability shall, without any
further action by the Borrowers or the Lenders, be automatically limited and reduced to the highest
amount that is valid and enforceable as determined in such action or proceeding (such highest
amount determined hereunder being the relevant Borrower’s “Maximum Liability”). This
Section with respect to the Maximum Liability of each Borrower is intended solely to preserve the
rights of the Lenders to the maximum extent not subject to avoidance under applicable law, and no
Borrower nor any other Person shall have any right or claim under this Section with respect to such
Maximum Liability, except to the extent necessary so that the obligations of any Borrower hereunder
shall not be rendered voidable under applicable law. Each Borrower agrees that the Secured
Obligations may at any time and from time to time exceed the Maximum Liability of each Borrower
without impairing this Agreement or affecting the rights and remedies of the Lenders hereunder,
provided that, nothing in this sentence shall be construed to increase any Borrower’s
obligations hereunder beyond its Maximum Liability.

          Section 9.19 Senior Obligations.

          Each Loan Party hereby represents and warrants and acknowledges and agrees that the Secured
Obligations are and shall be considered “Senior Debt,” “Senior Indebtedness,” “Designated Senior
Debt” and “Designated Senior Indebtedness” or any similar term for all purposes related to the
Subordinated Notes and that the Secured Obligations shall be prior in right and time of payment and
performance with respect to the obligations set forth in the Subordinated Notes except as otherwise
permitted under Section 6.08.

ARTICLE X

Loan Guaranty

          Section 10.01 Guaranty.

          Each Loan Guarantor (other than those that have delivered a separate Guaranty) hereby agrees
that it is jointly and severally liable for, and, as primary obligor and not merely as surety,
absolutely and unconditionally guarantees to the Lenders the prompt payment when due, whether at
stated maturity, upon acceleration or otherwise, and at all times thereafter, of the Secured
Obligations and all costs and expenses including, without limitation, all court costs and
attorneys’ and paralegals’ fees (including allocated costs of in-house counsel and paralegals) and
expenses paid or incurred by the Administrative Agent, the Issuing Bank and the Lenders in
endeavoring to collect all or any part of the Secured Obligations from, or in prosecuting any
action against, any Borrower, any Loan Guarantor or any

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other guarantor of all or any part of the
Secured Obligations (such costs and expenses, together with the Secured Obligations, collectively
the “Guaranteed Obligations”). Each Loan Guarantor further agrees that the Guaranteed
Obligations may be extended or renewed in whole or in part without notice to or further assent from
it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal.
All terms of this Loan Guaranty apply to and may be enforced by or on behalf of any domestic or
foreign branch or Affiliate of any Lender that extended any portion of the Guaranteed Obligations.

          Section 10.02 Guaranty of Payment.

          This Loan Guaranty is a guaranty of payment and not of collection. Each Loan Guarantor waives
any right to require the Administrative Agent, the Issuing Bank or any Lender to sue any Borrower,
any Loan Guarantor, any other guarantor, or any other person obligated for all or any part of the
Guaranteed Obligations (each, an “Obligated Party”), or otherwise to enforce its payment
against any collateral securing all or any part of the Guaranteed Obligations.

          Section 10.03 No Discharge or Diminishment of Loan Guaranty.

          (a) Except as otherwise provided for herein, the obligations of each Loan Guarantor hereunder
are unconditional and absolute and not subject to any reduction, limitation, impairment or
termination for any reason (other than the indefeasible payment in full in cash of the Guaranteed
Obligations), including: (i) any claim of waiver, release, extension, renewal, settlement,
surrender, alteration, or compromise of any of the Guaranteed Obligations, by operation of law or
otherwise; (ii) any change in the corporate existence, structure or ownership of any Borrower or
any other guarantor of or other person liable for any of the Guaranteed Obligations; (iii) any
insolvency, bankruptcy, reorganization or other similar proceeding affecting any Obligated Party,
or their assets or any resulting release or discharge of any obligation of any Obligated Party; or
(iv) the existence of any claim, setoff or other rights which any Loan Guarantor may have at any
time against any Obligated Party, the Administrative Agent, the Issuing Bank, any Lender, or any
other person, whether in connection herewith or in any unrelated transactions.

          (b) The obligations of each Loan Guarantor hereunder are not subject to any defense or setoff,
counterclaim, recoupment, or termination whatsoever by reason of the invalidity, illegality, or
unenforceability of any of the Guaranteed Obligations or otherwise, or any provision of applicable
law or regulation purporting to prohibit payment by any Obligated Party, of the Guaranteed
Obligations or any part thereof.

          (c) Further, the obligations of any Loan Guarantor hereunder are not discharged or impaired or
otherwise affected by: (i) the failure of the Administrative Agent, the Issuing Bank or any Lender
to assert any claim or demand or to enforce any remedy with respect to all or any part of the
Guaranteed Obligations; (ii) any waiver or modification of or supplement to any provision of any
agreement relating to the Guaranteed Obligations; (iii) any release, non-perfection, or invalidity
of any indirect or direct security for the obligations of any Borrower for all or any part of the
Guaranteed Obligations or any obligations of any other guarantor of or other person liable for any
of the Guaranteed Obligations; (iv) any action or failure to act by the Administrative Agent, the
Issuing Bank or any Lender with respect to any collateral securing any part of the Guaranteed
Obligations; or (v) any default, failure or delay, willful or otherwise, in the payment or
performance of any of the Guaranteed Obligations, or any other circumstance, act, omission or delay
that might in any manner or to any extent vary the risk of such Loan Guarantor or that would
otherwise operate as a discharge of any Loan Guarantor as a matter of law or equity (other than the
indefeasible payment in full in cash of the Guaranteed Obligations).

-87-

 

          Section 10.04 Defenses Waived.

          To the fullest extent permitted by applicable law, each Loan Guarantor hereby waives any
defense based on or arising out of any defense of any Borrower or any Loan Guarantor or the
unenforceability of all or any part of the Guaranteed Obligations from any cause, or the cessation
from any cause of the liability of any Borrower or any Loan Guarantor, other than the indefeasible
payment in full in cash of the Guaranteed Obligations. Without limiting the generality of the
foregoing, each Loan Guarantor irrevocably waives acceptance hereof, presentment, demand, protest
and, to the fullest extent permitted by law, any notice not provided for herein, as well as any
requirement that at any time any action be taken by any person against any Obligated Party, or any
other person. The Administrative Agent may, at its election, foreclose on any Collateral held by
it by one or more judicial or nonjudicial sales, accept an assignment of any such Collateral in
lieu of foreclosure or otherwise act or fail to act with respect to any collateral securing all or
a part of the Guaranteed Obligations, compromise or adjust any part of the Guaranteed Obligations,
make any other accommodation with any Obligated Party or exercise any other right or remedy
available to it against any Obligated Party, without affecting or impairing in any way the
liability of such Loan Guarantor under this Loan Guaranty except to the extent the Guaranteed
Obligations have been fully and indefeasibly paid in cash. To the fullest extent permitted by
applicable law, each Loan Guarantor waives any defense arising out of any such election even though
that election may operate, pursuant to applicable law, to impair or extinguish any right of
reimbursement or subrogation or other right or remedy of any Loan Guarantor against any Obligated
Party or any security.

          Section 10.05 Rights of Subrogation.

          No Loan Guarantor will assert any right, claim or cause of action, including, without
limitation, a claim of subrogation, contribution or indemnification that it has against any
Obligated Party, or any collateral, until the Loan Parties and the Loan Guarantors have fully
performed all their obligations to the Administrative Agent, the Issuing Bank and the Lenders and
the Commitments shall have expired or been terminated.

          Section 10.06 Reinstatement; Stay of Acceleration.

          If at any time any payment of any portion of the Guaranteed Obligations is rescinded or must
otherwise be restored or returned upon the insolvency, bankruptcy, or reorganization of any
Borrower or otherwise, each Loan Guarantor’s obligations under this Loan Guaranty with respect to
that payment shall be reinstated at such time as though the payment had not been made and whether
or not the Administrative Agent, the Issuing Bank and the Lenders are in possession of this Loan
Guaranty. If acceleration of the time for payment of any of the Guaranteed Obligations is stayed
upon the insolvency, bankruptcy or reorganization of any Borrower, all such amounts otherwise
subject to acceleration under the terms of any agreement relating to the Guaranteed Obligations
shall nonetheless be payable by the Loan Guarantors forthwith on demand by the Lender.

          Section 10.07 Information.

          Each Loan Guarantor assumes all responsibility for being and keeping itself informed of the
Borrowers’ financial condition and assets, and of all other circumstances bearing upon the risk of
nonpayment of the Guaranteed Obligations and the nature, scope and extent of the risks that each
Loan Guarantor assumes and incurs under this Loan Guaranty, and agrees that neither the
Administrative Agent, the Issuing Bank nor any Lender shall have any duty to advise any Loan
Guarantor of information known to it regarding those circumstances or risks.

-88-

 

          Section 10.08 Termination.

          The Lenders may continue to make loans or extend credit to the Borrowers based on this Loan
Guaranty until five (5) days after it receives written notice of termination or revocation of this
Loan Guaranty from any Loan Guarantor. Notwithstanding receipt of any such notice, each Loan
Guarantor will continue to be liable to the Lenders for any Guaranteed Obligations created, assumed
or committed to prior to the fifth day after receipt of the notice, and all subsequent renewals,
extensions, modifications and amendments with respect to, or substitutions for, all or any part of
that Guaranteed Obligations.

          Section 10.09 Taxes.

          All payments of the Guaranteed Obligations will be made by each Loan Guarantor free and clear
of and without deduction for any Indemnified Taxes or Other Taxes; provided that if any
Loan Guarantor shall be required to deduct any Indemnified Taxes or Other Taxes from such payments,
then (i) the sum payable shall be increased as necessary so that after making all required
deductions (including deductions applicable to additional sums payable under this Section) the
Administrative Agent, Lender or Issuing Bank (as the case may be) receives an amount equal to the
sum it would have received had no such deductions been made, (ii) such Loan Guarantor shall make
such deductions and (iii) such Loan Guarantor shall pay the full amount deducted to the relevant
Governmental Authority in accordance with applicable law.

          Section 10.10 Maximum Liability.

          The provisions of this Loan Guaranty are severable, and in any action or proceeding involving
any State corporate law, or any State, Federal or foreign bankruptcy, insolvency, reorganization or
other law affecting the rights of creditors generally, if the obligations of any Loan Guarantor
under this Loan Guaranty would otherwise be held or determined to be avoidable, invalid or
unenforceable on account of the amount of such Loan Guarantor’s liability under this Loan Guaranty,
then, notwithstanding any other provision of this Loan Guaranty to the contrary, the amount of such
liability shall, without any further action by the Loan Guarantors or the Lenders, be automatically
limited and reduced to the Maximum Liability. This Section with respect to the Maximum Liability
of each Loan Guarantor is intended solely to preserve the rights of the Lenders to the maximum
extent not subject to avoidance under applicable law, and no Loan Guarantor nor any other Person
shall have any right or claim under this Section with respect to such Maximum Liability, except to
the extent necessary so that the obligations of any Loan Guarantor hereunder shall not be rendered
voidable under applicable law. Each Loan Guarantor agrees that the Guaranteed Obligations may at
any time and from time to time exceed the Maximum Liability of each Loan Guarantor without
impairing this Loan Guaranty or affecting the rights and remedies of the Lenders hereunder,
provided that, nothing in this sentence shall be construed to increase any Loan Guarantor’s
obligations hereunder beyond its Maximum Liability.

          Section 10.11 Contribution.

          In the event any Loan Guarantor (a “Paying Guarantor”) shall make any payment or
payments under this Loan Guaranty or shall suffer any loss as a result of any realization upon any
collateral granted by it to secure its obligations under this Loan Guaranty, each other Loan
Guarantor (each a “Non-Paying Guarantor”) shall contribute to such Paying Guarantor an
amount equal to such Non-Paying Guarantor’s “Applicable Percentage” of such payment or payments
made, or losses suffered, by such Paying Guarantor. For purposes of this Article X, each
Non-Paying Guarantor’s “Applicable Percentage” with respect to any such payment or loss by
a Paying Guarantor shall be determined as of the date on which such payment or loss was made by
reference to the ratio of (i) such Non-Paying Guarantor’s Maximum Liability as of such date
(without giving effect to any right to receive, or obligation

-89-

 

to make, any contribution hereunder) or, if such Non-Paying Guarantor’s Maximum Liability has not been determined, the aggregate amount
of all monies received by such Non-Paying Guarantor from the Borrowers after the date hereof
(whether by loan, capital infusion or by other means) to (ii) the aggregate Maximum Liability of
all Loan Guarantors hereunder (including such Paying Guarantor) as of such date (without giving
effect to any right to receive, or obligation to make, any contribution hereunder), or to the
extent that a Maximum Liability has not been determined for any Loan Guarantor, the aggregate
amount of all monies received by such Loan Guarantors from the Borrowers after the date hereof
(whether by loan, capital infusion or by other means). Nothing in this provision shall affect any
Loan Guarantor’s several liability for the entire amount of the Guaranteed Obligations (up to such
Loan Guarantor’s Maximum Liability). Each of the Loan Guarantors covenants and agrees that its
right to receive any contribution under this Loan Guaranty from a Non-Paying Guarantor shall be
subordinate and junior in right of payment to the payment in full in cash of the Guaranteed
Obligations. This provision is for the benefit of both the Administrative Agent, the Issuing Bank,
the Lenders and the Loan Guarantors and may be enforced by any one, or more, or all of them in
accordance with the terms hereof.

          Section 10.12 Liability Cumulative.

          The liability of each Loan Party as a Loan Guarantor under this Article X is in addition to
and shall be cumulative with all liabilities of each Loan Party to the Administrative Agent, the
Issuing Bank and the Lenders under this Agreement and the other Loan Documents to which such Loan
Party is a party or in respect of any obligations or liabilities of the other Loan Parties, without
any limitation as to amount, unless the instrument or agreement evidencing or creating such other
liability specifically provides to the contrary.

          Section 10.13 Borrower Guarantors.

          Each Borrower shall be jointly and severally liable for the Obligations; provided, however in
the event that any Borrower is deemed by any Person (including any court of competent jurisdiction)
to be a guarantor (and not a co-obligor or co-borrower) of the Secured Obligations of any other
Borrower, the Loan Parties agree that such Borrower shall be considered a Loan Guarantor with
respect to such Secured Obligations and such guaranty shall be governed by the terms of this
Article X, mutatis mutandis.

ARTICLE XI

The Borrower Representative

          Section 11.01 Appointment; Nature of Relationship.

          The Company is hereby appointed by each of the Borrowers as its contractual representative
(herein referred to as the “Borrower Representative”) hereunder and under each other Loan
Document, and each of the Borrowers irrevocably authorizes the Borrower Representative to act as
the contractual representative of such Borrower with the rights and duties expressly set forth
herein and in the other Loan Documents. The Borrower Representative agrees to act as such
contractual representative upon the express conditions contained in this Article XI. Additionally,
the Borrowers hereby appoint the Borrower Representative as their agent to receive all of the
proceeds of the Loans in the Funding Account(s), at which time the Borrower Representative shall
promptly disburse such Loans to the appropriate Borrower. The Administrative Agent and the
Lenders, and their respective officers, directors, agents or employees, shall not be liable to the
Borrower Representative or any Borrower for any action taken or omitted to be taken by the Borrower
Representative or the Borrowers pursuant to this Section 11.01.

-90-

 

          Section 11.02 Powers.

          The Borrower Representative shall have and may exercise such powers under the Loan Documents
as are specifically delegated to the Borrower Representative by the terms of each thereof, together
with such powers as are reasonably incidental thereto. The Borrower Representative shall have no
implied duties to the Borrowers, or any obligation to the Lenders to take any action thereunder
except any action specifically provided by the Loan Documents to be taken by the Borrower
Representative.

          Section 11.03 Employment of Agents.

          The Borrower Representative may execute any of its duties as the Borrower Representative
hereunder and under any other Loan Document by or through authorized officers.

          Section 11.04 Notices.

          Each Borrower shall immediately notify the Borrower Representative of the occurrence of any
Default or Event of Default hereunder 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 Borrower
Representative receives such a notice, the Borrower Representative shall give prompt notice thereof
to the Administrative Agent and the Lenders. Any notice provided to the Borrower Representative
hereunder shall constitute notice to each Borrower on the date received by the Borrower
Representative.

          Section 11.05 Successor Borrower Representative.

          Upon the prior written consent of the Administrative Agent, the Borrower Representative may
resign at any time, such resignation to be effective upon the appointment of a successor Borrower
Representative. The Administrative Agent shall give prompt written notice of such resignation to
the Lenders.

          Section 11.06 Execution of Loan Documents; Borrowing Base Certificate.

          The Borrowers hereby empower and authorize the Borrower Representative, on behalf of the
Borrowers, to execute and deliver to the Administrative Agent and the Lenders the Loan Documents
and all related agreements, certificates, documents, or instruments as shall be necessary or
appropriate to effect the purposes of the Loan Documents, including without limitation, each
Borrowing Base Certificate and Compliance Certificate. Each Borrower agrees that any action taken
by the Borrower Representative or the Borrowers in accordance with the terms of this Agreement or
the other Loan Documents, and the exercise by the Borrower Representative of its powers set forth
therein or herein, together with such other powers that are reasonably incidental thereto, shall be
binding upon all of the Borrowers.

-91-

 

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

	 	 	 	 	 	 	 
	 	 	BORROWERS:
	 
	 	 	 	 	 	 
	 	 	MGI PHARMA, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Executive Vice President and Chief
	 	 
	 
	 	 	 	           Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	MGI GP, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	MGI OM, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	OTHER LOAN PARTIES:
	 
	 	 	 	 	 	 
	 	 	MGI PHARMA BIOLOGICS, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	PROQUEST PHARMACEUTICALS, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	MGI PRODUCTS, INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MGI MSL, LLC
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	MGI (CANADA) INC.
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 	 	GPI IP, LLC
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: William F. Spengler	 	 
	 

	 	 	 	 Title: Treasurer and Chief Financial Officer	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., individually,
as Administrative Agent, Issuing Bank and
Swingline Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ James Gurgone	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: James Gurgone	 	 
	 

	 	 	 	 Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ Terry Jackson	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: Terry Jackson	 	 
	 

	 	 	 	 Title: Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	CITICAPITAL COMMERCIAL CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By
	 	 /s/ James P. Shunney	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	 Name: James P. Shunney	 	 
	 

	 	 	 	 Title: Senior Vice President	 	 

Signature Page to Credit Agreement

 

 

COMMITMENT SCHEDULE

	 	 	 	 	 	 	 	 	 
	 	 	Revolving	 	 
	Lender	 	Commitment	 	Commitment
	JPMorgan Chase Bank, N.A.
	 	$	30,000,000	 	 	$	30,000,000	 
	Wells Fargo Bank, National
Association
	 	$	22,500,000	 	 	$	22,500,000	 
	CitiCapital Commercial
Corporation
	 	$	22,500,000	 	 	$	22,500,000	 
	 	 	 	 	 
	Total
	 	$	75,000,000	 	 	$	75,000,000	 
	 	 	 	 	 

Commitment Schedule

 

 

EXHIBIT A

ASSIGNMENT AND ASSUMPTION

          This Assignment and Assumption (the “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [Insert name of Assignor] (the
“Assignor”) and [Insert name of Assignee] (the “Assignee”). Capitalized terms used
but not defined herein shall have the meanings given to them in the Credit Agreement identified
below (as amended, the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

          For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes from the Assignor, subject to
and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the
Effective Date inserted by the Administrative Agent as contemplated below (i) all of the Assignor’s
rights and obligations in its capacity as a Lender under the Credit Agreement and any other
documents or instruments delivered pursuant thereto to the extent related to the amount and
percentage interest identified below of all of such outstanding rights and obligations of the
Assignor under the respective facilities identified below (including any letters of credit,
guarantees, and swingline loans included in such facilities) and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any other right of the
Assignor (in its capacity as a Lender) against any Person, whether known or unknown, arising under
or in connection with the Credit Agreement, any other documents or instruments delivered pursuant
thereto or the loan transactions governed thereby or in any way based on or related to any of the
foregoing, including contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and assigned pursuant
to clause (i) above (the rights and obligations sold and assigned pursuant to clauses (i) and (ii)
above being referred to herein collectively as the “Assigned Interest”). Such sale and
assignment is without recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

	 	 	 	 	 
	1.

	 	Assignor:
	 	                                                            
	 

	 	 	 	 
	2.

	 	Assignee:
	 	                                                            
	 	 	[and is an Affiliate/Approved Fund of [identify Lender]1]
	 

	 	 	 	 
	3.

	 	Borrowers:
	 	                                                            
	 

	 	 	 	 
	4.

	 	Administrative Agent:
	 	                    , as the administrative agent under the Credit Agreement
	 

	 	 	 	 
	5.	 	Credit Agreement: The Credit Agreement dated as of October ___, 2006 among MGI PHARMA, INC.,
MGI GP, Inc., MGI OM, Inc., the Lenders party thereto, JPMorgan Chase Bank
N.A., as Administrative Agent, and the other parties thereto

 

			
	1	 	Select as applicable

Exhibit A — Page 1 

 

	6.	 	Assigned Interest:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Aggregate Amount of	 	 	Amount of	 	 	 	 
	 	 	Commitment/Loans	 	 	Commitment/Loans	 	 	Percentage Assigned of	 
	Facility Assigned2	 	for all Lenders	 	 	Assigned	 	 	Commitment/Loans3	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 
	 
	 	$	 	 	 	$	 	 	 	 	%	 

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

The Assignee agrees to deliver to the Administrative Agent a completed Administrative Questionnaire
in which the Assignee designates on or more credit contacts to whom all syndicate-level information
(which may contain material non-public information about the Company, the Loan Parties and their
Related Parties or their respective securities) will be made available and who may receive such
information in accordance with the Assignee’s compliance procedures and applicable laws, including
Federal and State securities laws.

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

	 	 	 	 	 	 	 
	 	 	ASSIGNOR
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNOR]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	ASSIGNEE
	 
	 	 	 	 	 	 
	 	 	[NAME OF ASSIGNEE]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 

[Consented to and]4 Accepted:

[NAME OF ADMINISTRATIVE AGENT], as

Administrative Agent

By                                        

 

			
	2	 	Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g. “Revolving Commitment” “Swingline Loan,” etc.)
	 
	3	 	Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.
	 
	4	 	To be added only if the consent of the Administrative Agent is required by the terms of the Credit Agreement.

Exhibit A — Page 2 

 

     Title:

[Consented to:]5

[NAME OF RELEVANT PARTY]

By                                         

     Title:

 

			
	5	 	To be added only if the consent of the Borrower and/or other parties (e.g. Swingline Lender, Issuing Bank) is required by the terms of the Credit Agreement.

Exhibit A — Page 3 

 

ANNEX 1

CREDIT AGREEMENT

DATED AS OF OCTOBER __, 2006

AMONG MGI PHARMA, INC., MGI GP, INC., MGI OM, INC.,

THE LENDERS PARTY THERETO, JP MORGAN CHASE BANK, N.A.,

AND THE OTHER PARTIES THERETO

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

          1. Representations and Warranties.

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

          1.2. Assignee. The Assignee (a) represents and warrants that (i) it has full power
and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it satisfies the requirements, if any, specified in the Credit Agreement
that are required to be satisfied by it in order to acquire the Assigned Interest and become a
Lender, (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Lender thereunder and, to the extent of the Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it has received a copy of the Credit Agreement, together
with copies of the most recent financial statements delivered pursuant to Section 5.01 thereof, as
applicable, and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into this Assignment and Assumption and to purchase the
Assigned Interest on the basis of which it has made such analysis and decision independently and
without reliance on the Administrative Agent or any other Lender, and (v) if it is a Foreign
Lender, attached to the Assignment and Assumption is any documentation required to be delivered by
it pursuant to the terms of the Credit Agreement, duly completed and executed by the Assignee; and
(b) agrees that (i) it will, independently and without reliance on the Administrative Agent, the
Assignor or any other Lender, and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under the Loan Documents, and (ii) it will perform in accordance with their terms all of the
obligations which by the terms of the Loan Documents are required to be performed by it as a
Lender.

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

Exhibit A — Page 4 

 

          3. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument.

Delivery of an executed counterpart of a signature page of this Assignment and Assumption by
facsimile shall be effective as delivery of a manually executed counterpart of this Assignment and
Assumption. This Assignment and Assumption shall be governed by, and construed in accordance with,
the law of the State of New York.

Exhibit A — Page 5 

 

EXHIBIT B

BORROWING BASE CERTIFICATE

See Attached

Exhibit B

 

 

EXHIBIT C

COMPLIANCE CERTIFICATE

To: The Lenders parties to the Credit Agreement Described Below

     This Compliance Certificate is furnished pursuant to that certain Credit Agreement dated as of
October ___, 2006 (as amended, modified, renewed or extended from time to time, the “Agreement”)
among MGI PHARMA, INC., MGI GP, Inc. and MGI OM, Inc. (the “Borrowers”), the other Loan Parties,
the Lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the Lenders
and as the Issuing Bank. Unless otherwise defined herein, capitalized terms used in this
Compliance Certificate have the meanings ascribed thereto in the Agreement.

     THE UNDERSIGNED HEREBY CERTIFIES, ON BEHALF OF THE BORROWERS, THAT:

     1. I am the duly elected                      of the Borrower Representative;

     2. I have reviewed the terms of the Agreement and I have made, or have caused to be made under
my supervision, a detailed review of the transactions and conditions of the Company and its
Subsidiaries during the accounting period covered by the attached financial statements [for
quarterly or monthly financial statements add: and such financial statements present fairly in all
material respects the financial condition and results of operations of the Borrowers and their
consolidated Subsidiaries on a consolidated basis in accordance with GAAP consistently applied,
subject to normal year-end audit adjustments and the absence of footnotes];

     3. The examinations described in paragraph 2 did not disclose, except as set forth below, and
I have no knowledge of (i) the existence of any condition or event which constitutes a Default
during or at the end of the accounting period covered by the attached financial statements or as of
the date of this Certificate or (ii) any change in GAAP or in the application thereof that has
occurred since the date of the audited financial statements referred to in Section 3.04 of the
Agreement;

     4. I hereby certify that no Loan Party has changed (i) its name, (ii) its chief executive
office, (iii) principal place of business, (iv) the type of entity it is or (v) its State of
incorporation or organization without having given the Agent the notice required by Section 4.14 of
the Security Agreement;

     5. Schedule I attached hereto sets forth financial data and computations evidencing
the Borrowers’ compliance with certain covenants of the Agreement, all of which data and
computations are true, complete and correct; and

     6. Schedule II hereto sets forth the computations necessary to determine the
Applicable Rate commencing on the Business Day this certificate is delivered.

     Described below are the exceptions, if any, to paragraph 3 by listing, in detail, the (i)
nature of the condition or event, the period during which it has existed and the action which the
Borrowers have taken, are taking, or propose to take with respect to each such condition or event
or (i) the change in GAAP or the application thereof and the effect of such change on the attached
financial statements:

	 	 	 	 

	 
	 	 	 	 

	 
	 	 	 	 

Exhibit C — Page 1

  

 

     The foregoing certifications, together with the computations set forth in Schedule I and
Schedule II hereto and the financial statements delivered with this Certificate in support hereof,
are made and delivered this ___ day of                     , ___.

	 	 	 	 	 	 	 	 	 
	 	 	 	,	 
	 	 	as Borrower Representative	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

Exhibit C — Page 2 

 

SCHEDULE I

Compliance as of                     , ____ with

Provisions of 6.12(a) and 6.12(b) of

the Agreement

Exhibit C — Page 3 

 

SCHEDULE II

Borrowers’ Applicable Rate Calculation

Exhibit C — Page 4 

 

EXHIBIT D

JOINDER AGREEMENT

     THIS JOINDER AGREEMENT (this “Agreement”), dated as of                     , ___, 200_, is
entered into between                                                             , a               
                           (the “New
Subsidiary”) and JPMORGAN CHASE BANK, N.A., in its capacity as administrative agent (the
“Administrative Agent”) under that certain Credit Agreement, dated as of October ___, 2006
among MGI PHARMA, INC., MGI GP, Inc. and MGI OM, Inc. (the “Borrowers”), the Loan Parties
party thereto, the Lenders party thereto and the Administrative Agent (as the same may be amended,
modified, extended or restated from time to time, the “Credit Agreement”). All capitalized
terms used herein and not otherwise defined shall have the meanings set forth in the Credit
Agreement.

     The New Subsidiary and the Administrative Agent, for the benefit of the Lenders, hereby agree
as follows:

     1. The New Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this
Agreement, the New Subsidiary will be deemed to be a Loan Party under the Credit Agreement and a
[“Loan Guarantor”/“Borrower”] for all purposes of the Credit Agreement and shall have all of the
obligations of a Loan Party and a [Loan Guarantor/Borrower] thereunder as if it had executed the
Credit Agreement. The New Subsidiary hereby ratifies, as of the date hereof, and agrees to be
bound by, all of the terms, provisions and conditions contained in the Credit Agreement, including
without limitation (a) all of the representations and warranties of the Loan Parties set forth in
Article III of the Credit Agreement, *[and]* (b) all of the covenants set forth in Articles V and
VI of the Credit Agreement *[and (c) all of the guaranty obligations set forth in Article X of the
Credit Agreement. Without limiting the generality of the foregoing terms of this paragraph 1, the
New Subsidiary, subject to the limitations set forth in Section 10.10 of the Credit Agreement,
hereby guarantees, jointly and severally with the other Loan Guarantors, to the Administrative
Agent and the Lenders, as provided in Article X of the Credit Agreement, the prompt payment and
performance of the Guaranteed Obligations in full when due (whether at stated maturity, as a
mandatory prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof
and agrees that if any of the Guaranteed Obligations are not paid or performed in full when due
(whether at stated maturity, as a mandatory prepayment, by acceleration or otherwise), the New
Subsidiary will, jointly and severally together with the other Loan Guarantors, promptly pay and
perform the same, without any demand or notice whatsoever, and that in the case of any extension of
time of payment or renewal of any of the Guaranteed Obligations, the same will be promptly paid in
full when due (whether at extended maturity, as a mandatory prepayment, by acceleration or
otherwise) in accordance with the terms of such extension or renewal.]*

     2. If required, the New Subsidiary is, simultaneously with the execution of this Agreement,
executing and delivering such Collateral Documents (and such other documents and instruments) as
requested by the Administrative Agent in accordance with the Credit Agreement.

     3. The address of the New Subsidiary for purposes of Section 9.01 of the Credit Agreement is
as follows:

	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 
	 
	 	 	 	 
	 

Exhibit D — Page 1 

 

     [4. The New Subsidiary hereby waives acceptance by the Administrative Agent and the Lenders of
the guaranty by the New Subsidiary upon the execution of this Agreement by the New Subsidiary.]

     5. This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be an original, but all of which shall constitute one and the same
instrument.

     6. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF ILLINOIS.

     IN WITNESS WHEREOF, the New Subsidiary has caused this Agreement to be duly executed by its
authorized officer, and the Administrative Agent, for the benefit of the Lenders, has caused the
same to be accepted by its authorized officer, as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	[NEW SUBSIDIARY]
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Acknowledged and accepted:
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as
	 	 	Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit D — Page 2exv10w2

 

Exhibit 10.2

PLEDGE AND SECURITY AGREEMENT

          THIS PLEDGE AND SECURITY AGREEMENT (as it may be amended or modified from time to time, the
“Security Agreement”) is entered into as of October 18, 2006 by and between MGI PHARMA,
INC., a Minnesota corporation (the “Company”), MGI GP, Inc., a Delaware corporation
(“MGI GP”), MGI OM, Inc., a Delaware corporation (“MGI OM”), MGI PHARMA Biologics,
Inc., a Delaware corporation, ProQuest Pharmaceuticals, Inc., a Delaware corporation, MGI Products,
Inc., a Maryland corporation, MGI MSL, LLC, a Maryland corporation, and MGI (Canada), Inc., a
Delaware corporation and GPI IP, LLC, a Delaware limited liability company (each a
“Grantor”, and collectively, the “Grantors”), and JPMorgan Chase Bank, N.A., in its
capacity as administrative agent (the “Administrative Agent”) for the lenders party to the
Credit Agreement referred to below.

PRELIMINARY STATEMENT

          The Grantorsd, the Administrative Agent and the Lenders are entering into a Credit Agreement
dated as of the date hereof (as it may be amended or modified from time to time, the “Credit
Agreement”). Each Grantor is entering into this Security Agreement in order to induce the
Lenders to enter into and extend credit to the Company, MGI GP and MGI OM (collectively, the
“Borrowers” and each a “Borrower”) under the Credit Agreement and to secure either
the Obligations or the Secured Obligations guaranteed pursuant to Article X of the Credit
Agreement.

          ACCORDINGLY, the Grantors and the Administrative Agent, on behalf of the Lenders, hereby agree
as follows:

ARTICLE I.

DEFINITIONS

          1.1. Terms Defined in Credit Agreement. All capitalized terms used herein and not
otherwise defined shall have the meanings assigned to such terms in the Credit Agreement.

          1.2. Terms Defined in UCC. Terms defined in the UCC which are not otherwise defined
in this Security Agreement are used herein as defined in the UCC.

          1.3. Definitions of Certain Terms Used Herein. As used in this Security Agreement, in
addition to the terms defined in the Preliminary Statement, the following terms shall have the
following meanings:

          “Accounts” shall have the meaning set forth in Article 9 of the UCC.

          “Article” means a numbered article of this Security Agreement, unless another document
is specifically referenced.

          “Chattel Paper” shall have the meaning set forth in Article 9 of the UCC.

          “Closing Date” means the date of the Credit Agreement.

          “Collateral” shall have the meaning set forth in Article II.

          “Collateral Access Agreement” means any landlord waiver or other agreement, in form
and substance satisfactory to the Administrative Agent, between the Administrative Agent and any
third party (including any bailee, consignee, customs broker, or other similar Person) in
possession of any

 

 

Collateral or any landlord of any Loan Party for any real property where any Collateral is
located, as such landlord waiver or other agreement may be amended, restated, or otherwise modified
from time to time.

          “Collateral Deposit Account” shall have the meaning set forth in Section 7.1(a).

          “Collateral Report” means any certificate (including any Borrowing Base Certificate),
report or other document delivered by any Grantor to the Administrative Agent or any Lender with
respect to the Collateral pursuant to any Loan Document.

          “Collection Account” shall have the meaning set forth in Section 7.2.

          “Control” shall have the meaning set forth in Article 8 or, if applicable, in Section
9-104, 9-105, 9-106 or 9-107 of Article 9 of the UCC.

          “Copyrights” means, with respect to any Person, all of such Person’s right, title, and
interest in and to the following: (a) all copyrights, rights and interests in copyrights, works
protectable by copyright, copyright registrations, and copyright applications; (b) all renewals of
any of the foregoing; (c) all income, royalties, damages, and payments now or hereafter due and/or
payable under any of the foregoing, including, without limitation, damages or payments for past or
future infringements for any of the foregoing; (d) the right to sue for past, present, and future
infringements of any of the foregoing; and (e) all rights corresponding to any of the foregoing
throughout the world.

          “Default” means any event or condition which constitutes an Event of Default or which
upon notice, lapse of time or both would, unless cured or waived, become an Event of Default.

          “Deposit Account Control Agreement” means an agreement, in form and substance
satisfactory to the Administrative Agent, among any Loan Party, a banking institution holding such
Loan Party’s funds, and the Administrative Agent with respect to collection and control of all
deposits and balances held in a deposit account maintained by any Loan Party with such banking
institution.

          “Deposit Accounts” shall have the meaning set forth in Article 9 of the UCC.

          “Documents” shall have the meaning set forth in Article 9 of the UCC.

          “Equipment” shall have the meaning set forth in Article 9 of the UCC.

          “Event of Default” means an event described in Section 5.1.

          “Excluded General Intangibles” means all General Intangibles that are not Revolving
General Intangibles.

          “Excluded Payments” shall have the meaning set forth in Section 4.6(d)(iii).

          “Excluded Securities” shall mean the Securities listed on Exhibit G.

          “Excluded Securities Accounts” shall mean the securities accounts listed on
Exhibit H.

          “Exhibit” refers to a specific exhibit to this Security Agreement, unless another
document is specifically referenced.

          “Fixtures” shall have the meaning set forth in Article 9 of the UCC.

-2-

 

          “General Intangibles” shall have the meaning set forth in Article 9 of the UCC.

          “Goods” shall have the meaning set forth in Article 9 of the UCC.

          “Instruments” shall have the meaning set forth in Article 9 of the UCC.

          “Inventory” shall have the meaning set forth in Article 9 of the UCC and shall include
without limitation all Drugs and Drug Product Candidates.

          “Investment Property” shall have the meaning set forth in Article 9 of the UCC.

          “Lenders” means the lenders party to the Credit Agreement and their successors and
assigns.

          “Letter-of-Credit Rights” shall have the meaning set forth in Article 9 of the UCC.

          “Licenses” means, with respect to any Person, all of such Person’s right, title, and
interest in and to (a) any and all licensing agreements or similar arrangements in and to its
Patents, Copyrights, or Trademarks, (b) all income, royalties, damages, claims, and payments now or
hereafter due or payable under and with respect thereto, including, without limitation, damages and
payments for past and future breaches thereof, and (c) all rights to sue for past, present, and
future breaches.

          “Lock Boxes” shall have the meaning set forth in Section 7.1(b).

          “Patents” means, with respect to any Person, all of such Person’s right, title, and
interest in and to: (a) any and all patents and patent applications; (b) all inventions and
improvements described and claimed therein; (c) all reissues, divisions, continuations, renewals,
extensions, and continuations-in-part thereof; (d) all income, royalties, damages, claims, and
payments now or hereafter due or payable under and with respect thereto, including, without
limitation, damages and payments for past and future infringements thereof; (e) all rights to sue
for past, present, and future infringements thereof; and (f) all rights corresponding to any of the
foregoing throughout the world.

          “Permitted Liens” means any Lien permitted pursuant to Section 6.02 of the Credit
Agreement.

          “Pledged Collateral” means all Instruments and Pledged Investment Property of the
Grantors, whether or not physically delivered to the Administrative Agent pursuant to this Security
Agreement.

          “Pledged Equity Interests” shall mean (i) the Equity Interests of each domestic
Subsidiary of the Company and (ii) 65% of the Equity Interests of each foreign Subsidiary of the
Company.

          “Pledged Investment Property” means (a) the Pledged Equity Interests and (b)
Investment Property, including Securities (other than Excluded Securities) and the Pledged
Securities Accounts.

          “Pledged Securities Accounts” means all securities accounts of the Grantors, and all
Investment Property of the Grantors with respect to all financial assets credited thereto, other
than Excluded Securities Accounts.

          “Receivables” means the Accounts, Chattel Paper, Documents, Investment Property,
Instruments and any other rights or claims to receive money which are General Intangibles or which
are otherwise included as Collateral.

-3-

 

          “Required Secured Parties” means (a) prior to an acceleration of the Obligations under
the Credit Agreement, the Required Lenders, (b) after an acceleration of the Obligations under the
Credit Agreement but prior to the date upon which the Credit Agreement has terminated by its terms
and all of the obligations thereunder have been paid in full, Lenders holding in the aggregate at
least
662/3% of the total of the Aggregate Credit Exposure, and (c) after the Credit Agreement has
terminated by its terms and all of the Obligations thereunder have been paid in full (whether or
not the Obligations under the Credit Agreement were ever accelerated), Lenders holding in the
aggregate at least 662/3% of the aggregate net early termination payments and all other amounts then
due and unpaid from any Grantor to the Lenders under Swap Agreements, as determined by the
Administrative Agent in its reasonable discretion.

          “Revolving General Intangibles” means (a) all equity interests of limited liability
companies, including the equity interests of any Subsidiary, and (b) all General Intangibles
(including payment intangibles), to the extent evidencing, relating to, or constituting Proceeds
of, any Accounts or Inventory or arising from, relating to or supporting the sale of Inventory;
provided that, by way of clarification, Copyrights, Licenses, Patents and Trademarks shall not be
considered Revolving General Intangibles.

          “Scheduled Payments” shall have the meaning set forth in Section 4.6(d)(iii).

          “Section” means a numbered section of this Security Agreement, unless another document
is specifically referenced.

          “Securities Account Control Agreement” shall have the meaning set forth in Section
4.5.

          “Security” has the meaning set forth in Article 8 of the UCC.

          “State Street” shall have the meaning set forth in Section 4.5.

          “State Street Control Agreement” shall have the meaning set forth in Section 4.5.

          “Stock Rights” means all dividends, instruments or other distributions and any other
right or property which the Grantors shall receive or shall become entitled to receive for any
reason whatsoever with respect to, in substitution for or in exchange for any Equity Interest
constituting Collateral, any right to receive an Equity Interest and any right to receive earnings,
in which the Grantors now have or hereafter acquire any right, issued by an issuer of such Equity
Interest.

          “Supporting Obligations” shall have the meaning set forth in Article 9 of the UCC.

          “Trademarks” means, with respect to any Person, all of such Person’s right, title, and
interest in and to the following: (a) all trademarks (including service marks), trade names, trade
dress, and trade styles and the registrations and applications for registration thereof and the
goodwill of the business symbolized by the foregoing; (b) all licenses of the foregoing, whether as
licensee or licensor; (c) all renewals of the foregoing; (d) all income, royalties, damages, and
payments now or hereafter due or payable with respect thereto, including, without limitation,
damages, claims, and payments for past and future infringements thereof; (e) all rights to sue for
past, present, and future infringements of the foregoing, including the right to settle suits
involving claims and demands for royalties owing; and (f) all rights corresponding to any of the
foregoing throughout the world.

          “UCC” means the Uniform Commercial Code, as in effect from time to time, of the State
of New York or of any other state the laws of which are required as a result thereof to be applied
in connection with the attachment, perfection or priority of, or remedies with respect to,
Administrative Agent’s or any Lender’s Lien on any Collateral.

-4-

 

          The foregoing definitions shall be equally applicable to both the singular and plural forms of
the defined terms.

ARTICLE II.

GRANT OF SECURITY INTEREST

          Each Grantor hereby pledges, assigns and grants to the Administrative Agent, on behalf of and
for the ratable benefit of the Lenders, a security interest in all of its right, title and interest
in, to and under all of the following personal property, whether now owned by or owing to, or
hereafter acquired by or arising in favor of such Grantor, and whether owned or consigned by or to,
or leased from or to, such Grantor, and regardless of where located (all of which will be
collectively referred to as the “Collateral”), including:

          (i) all Accounts;

          (ii) all Chattel Paper;

          (iii) all Documents;

          (iv) all Revolving General Intangibles;

          (v) all Instruments;

          (vi) all Inventory;

          (vii) all Pledged Investment Property;

          (viii) all cash or cash equivalents;

          (ix) all letters of credit, Letter-of-Credit Rights and Supporting Obligations;

          (x) all Deposit Accounts with any bank or other financial institution;

          (xi) and all accessions to, substitutions for and replacements, proceeds (including Stock
Rights), insurance proceeds and products of the foregoing, together with all books and records,
customer lists, credit files, computer files, programs, printouts and other computer materials and
records related thereto and any General Intangibles at any time evidencing or relating to any of
the foregoing;

to secure the prompt and complete payment and performance of the Secured Obligations.

Notwithstanding the foregoing, if on October ___, 2007 or on any six month anniversary thereafter,
(a) Average Liquidity for the prior fiscal quarter exceeds $110,000,000 and (b) Liquidity on each
of the prior 15 Business Days exceeds $110,000,000, Administrative Agent shall terminate the
perfection of its security interest in Inventory hereunder (but not its security interest therein)
by filing UCC partial releases to its financing statements covering the Collateral in the
applicable jurisdictions; provided that if at any time after such termination, Liquidity fails at
any time to equal at least $110,000,000, each Grantor hereby authorizes Administrative Agent to
file any financing statement or amendment of a financing statement (in such offices as the
Administrative Agent in its sole discretion deems necessary or desirable) as the Administrative
Agent in its sole discretion deems necessary or desirable to perfect Administrative Agent’s
security interest in such Grantor’s Inventory.

-5-

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

          Each Grantor represents and warrants to the Administrative Agent and the Lenders that:

          3.1. Title, Perfection and Priority. Such Grantor has good and valid rights in or the
power to transfer the Collateral and title to the Collateral with respect to which it has purported
to grant a security interest hereunder, free and clear of all Liens except for Liens permitted
under Section 4.1(e), and has full power and authority to grant to the Administrative Agent the
security interest in such Collateral pursuant hereto. Subject to Article II above, when financing
statements have been filed in the appropriate offices against such Grantor in the locations listed
on Exhibit E, the Administrative Agent will have a fully perfected first priority security
interest in that Collateral of such Grantor in which a security interest may be perfected by
filing, subject only to Liens permitted under Section 4.1(e).

          3.2. Type and Jurisdiction of Organization, Organizational and Identification Numbers.
The type of entity of such Grantor, its state of organization, the organizational number issued to
it by its state of organization and its federal employer identification number as of the date
hereof are set forth on Exhibit A.

          3.3. Principal Location. Such Grantor’s mailing address and the location of its place
of business (if it has only one) or its chief executive office (if it has more than one place of
business as of the date hereof), are disclosed in Exhibit A; as of the date hereof, such
Grantor has no other places of business except those set forth in Exhibit A.

          3.4. Collateral Locations. As of the date hereof, all of such Grantor’s locations
where Collateral is located are listed on Exhibit A. All of said locations are owned by
such Grantor except for locations (i) which are leased by the Grantor as lessee and designated in
Part VII(b) of Exhibit A and (ii) at which Inventory is held in a public warehouse
or is otherwise held by a bailee or on consignment as designated in Part VII(c) of
Exhibit A.

          3.5. Deposit Accounts. All of such Grantor’s Deposit Accounts as of the date hereof
are listed on Exhibit B.

          3.6. Exact Names. Such Grantor’s name in which it has executed this Security
Agreement is the exact name as it appears in such Grantor’s organizational documents as of the date
hereof, as amended, as filed with such Grantor’s jurisdiction of organization. Except as set forth
on Exhibit A, as of the date hereof such Grantor has not, during the past five years, been
known by or used any other corporate or fictitious name, or been a party to any merger or
consolidation, or been a party to any acquisition.

          3.7. Letter-of-Credit Rights and Chattel Paper. Exhibit C lists all
Letter-of-Credit Rights and Chattel Paper of such Grantor, individually in an amount in excess of
$500,000. All action by such Grantor necessary or desirable to protect and perfect the
Administrative Agent’s Lien on each item listed on Exhibit C (including the delivery of all
originals and the placement of a legend on all Chattel Paper as required hereunder) has been duly
taken. The Administrative Agent will have a fully perfected first priority security interest in the
Collateral listed on Exhibit C, subject only to Liens permitted under Section 4.1(e).

          3.8. Accounts.

          (a) The names of the obligors, amounts owing, due dates and other information with respect to
its Accounts are and will be correctly stated in all material respects in all records of such

-6-

 

Grantor relating thereto and in all invoices and Collateral Reports with respect thereto
furnished to the Administrative Agent by such Grantor from time to time. As of the time when each
Eligible Account arises, such Grantor shall be deemed to have represented and warranted that such
Eligible Account and all records relating thereto, are genuine and in all respects what they
purport to be.

          (b) With respect to its Accounts, except as specifically disclosed on the most recent
Collateral Report, (i) all Accounts are Eligible Accounts (it being understood that Accounts that
are not Eligible Accounts shall be disclosed by category and not individually); (ii) all Accounts
represent bona fide sales of Inventory or rendering of services to Account Debtors in the ordinary
course of such Grantor’s business and are not evidenced by a judgment, Instrument or Chattel Paper;
(iii) there are no setoffs, claims or disputes existing or asserted with respect thereto and such
Grantor has not made any agreement with any Account Debtor for any extension of time for the
payment thereof, any compromise or settlement for less than the full amount thereof, any release of
any Account Debtor from liability therefor, or any deduction therefrom except a discount or
allowance allowed by such Grantor in the ordinary course of its business for prompt payment and
disclosed to the Administrative Agent; (iv) to such Grantor’s knowledge, there are no facts, events
or occurrences which in any way impair the validity or enforceability thereof or could reasonably
be expected to reduce the amount payable thereunder as shown on such Grantor’s books and records
and any invoices, statements and Collateral Reports with respect thereto; (v) such Grantor has not
received any notice of proceedings or actions which are threatened or pending against any Account
Debtor which might result in any adverse change in such Account Debtor’s financial condition; and
(vi) such Grantor has no knowledge that any Account Debtor is unable generally to pay its debts as
they become due.

          (c) In addition, with respect to all of its Accounts, (i) the amounts shown on all invoices,
statements and Collateral Reports with respect thereto are actually and absolutely owing to such
Grantor as indicated thereon and are not in any way contingent; (ii) no payments after the
Liquidity Event have been or shall be made thereon except payments immediately delivered to a
Collateral Deposit Account as required pursuant to Section 7.1; and (iii) to such Grantor’s
knowledge, all Account Debtors have the capacity to contract.

          3.9. Inventory. With respect to any of its Inventory scheduled or listed on the most
recent Collateral Report, (a) such Inventory that represents finished goods (other than Inventory
in transit) is located at one of such Grantor’s locations set forth on Exhibit A, (b) no
Inventory that represents finished goods (other than Inventory in transit) in excess of $2,000,000
is now, or shall at any time or times hereafter be stored at any other location except as permitted
by Section 4.1(g), (c) such Grantor has good, indefeasible and merchantable title to such Inventory
and such Inventory is not subject to any Lien or security interest or document whatsoever except
for the Lien granted to the Administrative Agent, for the benefit of the Administrative Agent and
Lenders, and except for Permitted Liens, (d) such Inventory is of good and merchantable quality,
free from any defects, (e) such Inventory is not subject to any licensing, patent, royalty,
trademark, trade name or copyright agreements with any third parties which would require any
consent of any third party upon sale or disposition of that Inventory or the payment of any monies
to any third party upon such sale or other disposition except for the licensing agreements
identified on Schedule 3.12 to the Credit Agreement and immaterial licensing agreements entered in
the ordinary course of business, (f) such Inventory has been produced in accordance with the
Federal Fair Labor Standards Act of 1938, as amended (as applicable) and in material compliance
with all FDA Laws, as amended, and all rules, regulations and orders thereunder and (g) the
completion of manufacture, sale or other disposition of such Inventory by the Administrative Agent
following an Event of Default shall not require the consent of any Person (other than the Food and
Drug Administration, other Governmental Authorities responsible for the regulation of any Drug and
licensor party to any licensing agreement identified on Schedule 3.12 to the Credit Agreement or
any immaterial license agreement or similar agreement containing a license or sublicense entered
into by a Grantor in the ordinary course of business)

-7-

 

and shall not constitute a breach or default under any contract or agreement to which such
Grantor is a party or to which such property is subject.

          3.10. Filing Requirements. None of the Collateral owned by it is of a type for which
security interests or liens may be perfected by filing under any federal statute.

          3.11. No Financing Statements, Security Agreements. No financing statement or
security agreement describing all or any portion of the Collateral which has not lapsed or been
terminated naming such Grantor as debtor has been filed or is of record in any jurisdiction except
(a) for financing statements or security agreements naming the Administrative Agent on behalf of
the Lenders as the secured party and (b) as permitted by Section 4.1(e).

          3.12. Pledged Collateral.

          (a) Exhibit D sets forth a complete and accurate list of all Pledged Collateral owned
by such Grantor. Such Grantor is the direct, sole beneficial owner and sole holder of record of
the Pledged Collateral listed on Exhibit D as being owned by it, free and clear of any
Liens, except for the security interest granted to the Administrative Agent for the benefit of the
Lenders hereunder. Such Grantor further represents and warrants that (i) all Pledged Collateral
owned by it constituting Pledged Equity Interests has been (to the extent such concepts are
relevant with respect to such Pledged Collateral) duly authorized, validly issued, are fully paid
and non-assessable, (ii) with respect to any certificates delivered to the Administrative Agent
representing an Equity Interest, either such certificates are Securities as defined in Article 8 of
the UCC as a result of actions by the issuer or otherwise, or, if such certificates are not
Securities, such Grantor has so informed the Administrative Agent so that the Administrative Agent
may take steps to perfect its security interest therein as a General Intangible, (iii) all such
Pledged Collateral held by a securities intermediary is covered by a Securities Account Control
Agreement among such Grantor, the securities intermediary and the Administrative Agent pursuant to
which the Administrative Agent has Control and (iv) to the best of such Grantor’s knowledge, all
Pledged Collateral which represents Indebtedness owed to such Grantor has been duly authorized,
authenticated or issued and delivered by the issuer of such Indebtedness, is the legal, valid and
binding obligation of such issuer and such issuer is not in default thereunder.

          (b) In addition, (i) to the best of such Grantor’s knowledge, none of the Pledged Collateral
owned by it has been issued or transferred in violation of the securities registration, securities
disclosure or similar laws of any jurisdiction to which such issuance or transfer may be subject,
(ii) there are existing no options, warrants, calls or commitments of any character whatsoever
relating to Pledged Equity Interests or which obligate the issuer of any Pledged Equity Interest to
issue additional Equity Interests, and (iii) no consent, approval, authorization, or other action
by, and no giving of notice, filing with, any governmental authority or any other Person is
required for the pledge by such Grantor of such Pledged Collateral pursuant to this Security
Agreement or for the execution, delivery and performance of this Security Agreement by such
Grantor, or for the exercise by the Administrative Agent of the voting or other rights provided for
in this Security Agreement or for the remedies in respect of the Pledged Collateral pursuant to
this Security Agreement, except as may be required in connection with such disposition by laws
affecting the offering and sale of securities generally.

          (c) Except as set forth in Exhibit D, such Grantor owns 100% of the issued and
outstanding Equity Interests which constitute Pledged Equity Interests owned by it and none of the
Pledged Collateral which represents Indebtedness owed to such Grantor is subordinated in right of
payment to other Indebtedness or subject to the terms of an indenture.

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ARTICLE IV.

COVENANTS

          From the date of this Security Agreement, and thereafter until this Security Agreement is
terminated, each Grantor agrees that:

          4.1. General.

          (a) Collateral Records. Such Grantor will maintain complete and accurate books and
records with respect to the Collateral owned by it, and furnish to the Administrative Agent such
reports relating to such Collateral as the Administrative Agent shall from time to time request in
accordance with the Credit Agreement.

          (b) Authorization to File Financing Statements; Ratification. Such Grantor hereby
authorizes the Administrative Agent to file, and if requested will deliver to the Administrative
Agent, all financing statements and other documents and take such other actions as may from time to
time be requested by the Administrative Agent in order to maintain a first perfected security
interest in and, if applicable, Control of, the Collateral owned by such Grantor. Any financing
statement filed by the Administrative Agent may be filed in any filing office in any UCC
jurisdiction and shall indicate such Grantor’s Collateral by any description which reasonably
approximates the description contained in this Security Agreement, and contain any other
information required by part 5 of Article 9 of the UCC for the sufficiency or filing office
acceptance of any financing statement or amendment, including whether such Grantor is an
organization, the type of organization and any organization identification number issued to such
Grantor.

          (c) Further Assurances. Such Grantor will, if so requested by the Administrative
Agent, furnish to the Administrative Agent, as often as the Administrative Agent requests,
statements and schedules further identifying and describing the Collateral owned by it and such
other reports and information in connection with its Collateral as the Administrative Agent may
reasonably request, all in such detail as the Administrative Agent may specify. Such Grantor also
agrees to take any and all actions necessary to defend title to the Collateral against all persons
and to defend the security interest of the Administrative Agent in its Collateral and the priority
thereof against any Lien not expressly permitted hereunder.

          (d) Disposition of Collateral. Such Grantor will not sell, lease or otherwise dispose
of the Collateral owned by it except for dispositions specifically permitted pursuant to Section
6.05 of the Credit Agreement.

          (e) Liens. Such Grantor will not create, incur, or suffer to exist any Lien on the
Collateral owned by it except (i) the security interest created by this Security Agreement, and
(ii) other Permitted Liens.

          (f) Other Financing Statements. Such Grantor will not authorize the filing of any
financing statement naming it as debtor covering all or any portion of the Collateral owned by it,
except in connection with Permitted Liens. Such Grantor acknowledges that it is not authorized to
file any financing statement or amendment or termination statement with respect to any financing
statement without the prior written consent of the Administrative Agent, subject to such Grantor’s
rights under Section 9-509(d)(2) of the UCC.

          (g) Locations. Such Grantor will not, except in compliance with Section 4.14 hereof,
(i) maintain any Collateral owned by it at any location other than those locations listed on
Exhibit A, (ii) otherwise change, or add to, such locations without the Administrative
Agent’s prior written consent,

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or (iii) change its principal place of business or chief executive office from the location
identified on Exhibit A.

          (h) Compliance with Terms. Such Grantor will perform and comply in all material
respects with all obligations in respect of the Collateral owned by it and all agreements to which
it is a party or by which it is bound relating to such Collateral.

          4.2. Receivables.

          (a) Certain Agreements on Receivables. Such Grantor will not make or agree to make
any discount, credit, rebate or other reduction in the original amount owing on a Receivable or
accept in satisfaction of a Receivable less than the original amount thereof, except that, (i)
pursuant to written contracts with its customers or (ii) otherwise prior to the occurrence of an
Event of Default, such Grantor may reduce the amount of Accounts arising from the sale of Inventory
in accordance with its present policies and in the ordinary course of business, including the
Borrowers’ policy of providing chargeback credit to certain of its distributors.

          (b) Collection of Receivables. Except as otherwise provided in this Security
Agreement, such Grantor will collect and enforce, at such Grantor’s sole expense, all amounts due
or hereafter due to such Grantor under the Receivables owned by it in accordance with its present
policies and in the ordinary course of business.

          (c) Delivery of Invoices. Such Grantor will deliver to the Administrative Agent
promptly upon its request in its Permitted Discretion duplicate invoices with respect to each
Account owned by it.

          (d) Disclosure of Counterclaims on Receivables. If (i) any discount, credit or
agreement to make a rebate or to otherwise reduce the amount owing on any Receivable in excess of
$5,000,000 owned by such Grantor exists (other than rebates or reductions in accordance with its
present policies, including the Borrowers’ policy of providing chargeback credit to certain of its
distributors) or (ii) if, to the knowledge of such Grantor, any dispute, setoff, claim,
counterclaim or defense exists or has been asserted or threatened with respect to any such
Receivable in excess of $5,000,000, such Grantor will promptly disclose such fact to the
Administrative Agent in writing, if the same occurs after the Liquidity Event. After the Liquidity
Event, such Grantor shall send the Administrative Agent a copy of each credit memorandum in excess
of $1,000,000 as soon as issued, and such Grantor shall promptly report each credit memo and each
of the facts required to be disclosed to the Administrative Agent in accordance with this
Section 4.2(d) on the Borrowing Base Certificates submitted by it.

          (e) Electronic Chattel Paper. Upon request by the Administrative Agent, such Grantor
shall take all steps necessary to grant the Administrative Agent Control of all electronic chattel
paper in excess of $500,000 in accordance with the UCC and all “transferable records” as defined in
each of the Uniform Electronic Transactions Act and the Electronic Signatures in Global and
National Commerce Act.

          4.3. Inventory and Equipment.

          (a) Maintenance of Goods. Such Grantor will do all things necessary to maintain,
preserve, protect and keep its Inventory in good repair and working and saleable condition, except
for damaged or defective goods arising in the ordinary course of such Grantor’s business.

          (b) Returned Inventory. If an Account Debtor returns any Inventory to such Grantor
when no Event of Default exists, then such Grantor shall promptly determine the reason for such
return

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and shall issue a credit memorandum to the Account Debtor in the appropriate amount. Such
Grantor shall promptly report to the Administrative Agent any return involving an amount in excess
of $500,000. Each such report shall indicate the reasons for the returns and the locations and
condition of the returned Inventory. In the event any Account Debtor returns Inventory to such
Grantor when an Event of Default exists, such Grantor, upon the request of the Administrative
Agent, shall: (i) hold the returned Inventory in trust for the Administrative Agent; (ii) segregate
all returned Inventory from all of its other property; (iii) dispose of the returned Inventory
solely according to the Administrative Agent’s written instructions; and (iv) not issue any credits
or allowances with respect thereto without the Administrative Agent’s prior written consent. All
returned Inventory shall be subject to the Administrative Agent’s Liens thereon.

          (c) Inventory Report. Promptly after the Administrative Agent’s request such Grantor,
at its own expense, shall deliver to the Administrative Agent a copy of each report delivered to
KPMG (or any other outside auditor) related to its Inventory to enable such auditor to audit such
Grantor’s financial statements.

          (d) Equipment. Such Grantor shall promptly inform the Administrative Agent of any
additions to or deletions from its Equipment which could be expected to have a Material Adverse
Effect.

          4.4. Delivery of Instruments, Securities, Chattel Paper and Documents. Such Grantor
will (a) deliver to the Administrative Agent immediately upon execution of this Security Agreement
the originals of all Chattel Paper in an amount in excess of $500,000, Securities and Instruments
constituting Collateral owned by it (if any then exist), except that Grantors need not delivery
original Securities of Inactive Subsidiaries until the occurrence of the Liquidity Event, (b) hold
in trust for the Administrative Agent upon receipt and promptly thereafter deliver to the
Administrative Agent any such Chattel Paper, Securities and Instruments constituting Collateral,
(c) upon the Administrative Agent’s request, deliver to the Administrative Agent (and thereafter
hold in trust for the Administrative Agent upon receipt and immediately deliver to the
Administrative Agent) any Document evidencing or constituting Collateral and (d) upon the
Administrative Agent’s request, deliver to the Administrative Agent a duly executed amendment to
this Security Agreement, in the form of Exhibit F hereto (the “Amendment”),
pursuant to which such Grantor will pledge such additional Collateral. Such Grantor hereby
authorizes the Administrative Agent to attach each Amendment to this Security Agreement and agrees
that all additional Collateral owned by it set forth in such Amendments shall be considered to be
part of the Collateral.

          4.5. Uncertificated Pledged Collateral. Such Grantor will permit the Administrative
Agent from time to time to cause the appropriate issuers (and, if held with a securities
intermediary, such securities intermediary) of uncertificated securities or other types of Pledged
Collateral owned by it not represented by certificates to mark their books and records with the
numbers and face amounts of all such uncertificated securities or other types of Pledged Collateral
not represented by certificates and all rollovers and replacements therefor to reflect the Lien of
the Administrative Agent granted pursuant to this Security Agreement. With respect to any Pledged
Collateral owned by it, such Grantor will take any actions necessary to cause (a) the issuers of
uncertificated securities which are Pledged Investment Property and (b) any securities intermediary
which is the holder of any such Pledged Investment Property, to cause the Administrative Agent to
have and retain Control over such Pledged Investment Property. Without limiting the foregoing,
such Grantor will, with respect to any such Pledged Investment Property held with a securities
intermediary, cause such securities intermediary to enter into a control agreement covering the
applicable Pledged Investment Property (each a “Securities Account Control Agreement”) with the
Administrative Agent, in form and substance reasonably satisfactory to the Administrative Agent,
giving the Administrative Agent Control. At any time Availability is less than $50,000,000,
Administrative Agent shall provide notice to the applicable securities intermediaries that all
Pledged Securities Accounts at such securities intermediary shall be blocked and the applicable
securities intermediary shall act only upon the instruction of Administrative Agent with respect to
such securities accounts. At any time that Administrative Agent provides a Notice of Exclusive
Control (as defined in

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that certain Securities Account Control Agreement, dated as of the date hereof, among State
Street Bank and Trust Company (“State Street”), Administrative Agent, the Company and certain other
parties thereto (the “State Street Control Agreement”)) under the State Street Control Agreement,
all Investment Property of the Loan Parties held at State Street shall be immediately transferred
to a securities account at Chase. Each Loan Party agrees from time to time to execute and deliver
to Administrative Agent all agreements, documents or instruments necessary for Administrative Agent
to effect the transfer of such Investment Property without the consent or approval of any other
Person.

          4.6. Pledged Collateral.

          (a) Changes in Capital Structure of Issuers. Except as permitted under the Credit
Agreement, such Grantor will not (i) to the extent within the control of such Grantor, permit or
suffer any issuer of an Equity Interest constituting Pledged Equity Interests owned by it to
dissolve, merge, liquidate, retire any of its Equity Interests or other Instruments or Securities
evidencing ownership, reduce its capital, sell or encumber all or substantially all of its assets
(except for Permitted Liens and sales of assets permitted pursuant to Section 4.1(d)) or
merge or consolidate with any other entity, or (ii) vote any such Pledged Equity Interests in favor
of any of the foregoing.

          (b) Issuance of Additional Securities. To the extent within the control of such
Grantor, such Grantor will not permit or suffer the issuer of any Pledged Equity Interests owned by
it to issue additional Equity Interests, any right to receive the same or any right to receive
earnings, except to such Grantor.

          (c) Registration of Pledged Equity Interests. After the occurrence and during the
continuance of an Event of Default, such Grantor will permit any registerable Pledged Collateral
owned by it to be registered in the name of the Administrative Agent or its nominee at any time at
the option of the Required Secured Parties.

          (d) Exercise of Rights in Pledged Collateral.

          (i) Without in any way limiting the foregoing and subject to clause (ii) below, such Grantor
shall have the right to exercise all voting rights or other rights relating to the Pledged
Collateral owned by it for all purposes not inconsistent with this Security Agreement, the Credit
Agreement or any other Loan Document; provided however, that no vote or other right shall be
exercised or action taken which would have the effect of impairing the rights of the Administrative
Agent in respect of such Pledged Collateral.

          (ii) Such Grantor will permit the Administrative Agent or its nominee at any time after the
occurrence and during the continuance of an Event of Default, without notice, to exercise all
voting rights or other rights relating to the Pledged Collateral owned by it, including, without
limitation, exchange, subscription or any other rights, privileges, or options pertaining to any
Pledged Investment Property as if it were the absolute owner thereof.

          (iii) Such Grantor shall be entitled to collect and receive for its own use all cash dividends
and interest paid in respect of the Pledged Investment Property owned by it to the extent not in
violation of the Credit Agreement other than any of the following distributions and
payments (collectively referred to as the “Excluded Payments”): (A) dividends and interest
paid or payable other than in cash in respect of such Pledged Equity Interests, and instruments and
other property received, receivable or otherwise distributed in respect of, or in exchange for, any
Pledged Collateral; (B) dividends and other distributions paid or payable in cash in respect of
such Pledged Equity Interests in connection with a partial or total liquidation or dissolution or
in connection with a reduction of capital, capital surplus or paid-in capital of an issuer; and (C)
cash paid, payable or otherwise distributed, in respect of principal of,

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or in redemption of, or in exchange for, such Pledged Equity Interests; provided however, that
until actually paid, all rights to such distributions shall remain subject to the Lien created by
this Security Agreement; and

          (iv) All Excluded Payments, whenever paid or made, shall be delivered to the Administrative
Agent to hold as Pledged Collateral and shall, if received by such Grantor, be received in trust
for the benefit of the Administrative Agent, be segregated from the other property or funds of such
Grantor, and be forthwith delivered to the Administrative Agent as Pledged Collateral in the same
form as so received (with any necessary endorsement).

          4.7. Intellectual Property.

          Such Grantor shall notify the Administrative Agent promptly if it knows of any event relating
to any Patent, Trademark or Copyright (now or hereafter existing), which could reasonably be
expected to have a Material Adverse Effect.

          4.8. Letter-of-Credit Rights. If such Grantor is or becomes the beneficiary of a
letter of credit in excess of $500,000 (excluding any letter of credit that is a supporting
obligation with respect to any Account) or a letter of credit that is a supporting obligation with
respect to any Account, it shall promptly, and in any event within five Business Days after
becoming a beneficiary, notify the Administrative Agent thereof and, if requested by the
Administrative Agent, agrees to use best efforts to cause the issuer and/or confirmation bank to
(i) consent to the assignment of any Letter-of-Credit Rights to the Administrative Agent and (ii)
agree to direct all payments thereunder to a Deposit Account subject to a Deposit Account Control
Agreement for application to the Secured Obligations, in accordance with Section 2.18 of the Credit
Agreement, all in form and substance reasonably satisfactory to the Administrative Agent.

          4.9. Federal, State or Municipal Claims. Such Grantor will promptly notify the
Administrative Agent of any Collateral which constitutes a claim against the United States
government or any state or local government or any instrumentality or agency thereof, the
assignment of which claim is restricted by federal, state or municipal law.

          4.10. No Interference. Such Grantor agrees that it will not interfere with the
permitted exercise of any right, power and remedy of the Administrative Agent provided for in this
Security Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or
the permitted exercise or beginning of the permitted exercise by the Administrative Agent of any
one or more of such rights, powers or remedies.

          4.11. Insurance.

          (a) In the event any Collateral is located in any area that has been designated by the Federal
Emergency Management Agency as a “Special Flood Hazard Area”, such Grantor shall purchase and
maintain flood insurance on such Collateral (including any personal property which is located on
any real property leased by such Loan Party within a “Special Flood Hazard Area”). The amount of
flood insurance required by this Section shall at a minimum comply with applicable law, including
the Flood Disaster Protection Act of 1973, as amended.

          (b) All insurance policies required hereunder and under Section 5.09 of the Credit Agreement
shall name the Administrative Agent (for the benefit of the Administrative Agent and the Lenders)
as an additional insured or as lender’s loss payee, as applicable, and shall contain loss payable
clauses, through endorsements in form and substance satisfactory to the Administrative Agent, which
provide that: (i) all proceeds thereunder with respect to any Collateral shall be payable solely to
the

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Administrative Agent; (ii) no such insurance shall be affected by any act or neglect of the
insured or owner of the property described in such policy; and (iii) such policy and loss payable
or mortgagee clauses may be canceled, amended, or terminated only upon at least thirty days prior
written notice given to the Administrative Agent.

          (c) All premiums on any such insurance shall be paid when due by such Grantor, and copies of
the policies delivered to the Administrative Agent. If such Grantor fails to obtain any insurance
as required by this Section, the Administrative Agent at the direction of the Required Secured
Parties may obtain such insurance at the Borrowers’ expense. By purchasing such insurance, the
Administrative Agent shall not be deemed to have waived any Default arising from the Grantor’s
failure to maintain such insurance or pay any premiums therefor.

          4.12. Collateral Access Agreements. After an Event of Default, such Grantor shall use
commercially reasonable efforts to obtain a Collateral Access Agreement, from the lessor of each
leased property, mortgagee of owned property or bailee or consignee with respect to any warehouse,
processor or converter facility or other location where Collateral is stored or located, which
agreement or letter shall provide access rights, contain a waiver or subordination of all Liens or
claims that the landlord, mortgagee, bailee or consignee may assert against the Collateral at that
location, and shall otherwise be reasonably satisfactory in form and substance to the
Administrative Agent.

          4.13. Deposit Account Control Agreements. Such Grantor shall comply with Article VII
relating to Deposit Account Control Agreements.

          4.14. Change of Name or Location; Change of Fiscal Year. Such Grantor shall not (a)
change its name as it appears in official filings in the state of its incorporation or
organization, (b) change its state of incorporation or organization, (c) change its organization
identification number, if any, issued by its state of incorporation or organization, (d) change its
federal employer identification number, or (e) change the type of entity that it is, unless in each
case, the Administrative Agent shall have received at least thirty (30) days prior written notice
of such change and such Grantor shall have taken any reasonable action required by the
Administrative Agent in connection therewith (including any action to maintain the validity,
perfection and priority of any Liens in favor of the Administrative Agent, on behalf of Lenders, in
any Collateral). Subject to Section 4.12, such Grantor shall not change its chief executive
office, principal place of business, mailing address, or corporate offices, or the location of its
records concerning the Collateral as set forth in this Security Agreement, in each case, unless (i)
the Administrative Agent shall have received written notice of such change not later than thirty
(30) days prior to such change and (ii) any new location shall be in the continental U.S.; provided
that, such Grantor shall take any reasonable action requested by the Administrative Agent in
connection with such change (including any action to maintain the validity, perfection and priority
of any Liens in favor of the Administrative Agent, on behalf of Lenders, in any Collateral). Such
Grantor shall not move any of its distribution centers or warehouse locations for finished goods
for sale in the United States outside of the continental United States. Such Grantor shall not
change its fiscal year which currently ends on December 31.

ARTICLE V.

EVENTS OF DEFAULT AND REMEDIES

          5.1. Events of Default. The occurrence of any one or more of the following events
shall constitute an Event of Default hereunder:

          (a) Any representation or warranty made by or on behalf of any Grantor under or in connection
with this Security Agreement shall be materially false as of the date on which made.

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          (b) The breach by any Grantor of any of the terms or provisions of Article IV or
Article VII.

          (c) The breach by any Grantor (other than a breach which constitutes an Event of Default under
any other Section of this Article V) of any of the terms or provisions of this Security Agreement
which is not remedied within thirty (30) days after such breach; provided, however, that so long as
such breaching Grantor is diligently seeking solution of such breach, Administrative Agent may in
its sole discretion extend such thirty (30) day period to sixty (60) days.

          (d) The occurrence of any “Event of Default” under, and as defined in, the Credit Agreement.

          (e) Any Equity Interest which is included within the Collateral shall at any time constitute a
Security or the issuer of any such Equity Interest shall take any action to have such interests
treated as a Security unless (i) all certificates or other documents constituting such Security
have been delivered to the Administrative Agent and such Security is properly defined as such under
Article 8 of the UCC of the applicable jurisdiction, whether as a result of actions by the issuer
thereof or otherwise, or (ii) the Administrative Agent has entered into a control agreement with
the issuer of such Security or with a securities intermediary relating to such Security and such
Security is defined as such under Article 8 of the UCC of the applicable jurisdiction, whether as a
result of actions by the issuer thereof or otherwise.

          5.2. Remedies.

          (a) Upon the occurrence and during the continuance of an Event of Default, the Administrative
Agent may, exercise any or all of the following rights and remedies:

          (i) those rights and remedies provided in this Security Agreement, the Credit Agreement, or
any other Loan Document; provided that, this Section 5.2(a) shall not be understood to limit any
rights or remedies available to the Administrative Agent and the Lenders prior to an Event of
Default;

          (ii) those rights and remedies available to a secured party under the UCC (whether or not the
UCC applies to the affected Collateral) or under any other applicable law (including, without
limitation, any law governing the exercise of a bank’s right of setoff or bankers’ lien) when a
debtor is in default under a security agreement;

          (iii) if not previously sent pursuant to Section 4.5, give notice of sole control or any other
instruction under any Deposit Account Control Agreement, Securities Account Control Agreement or
other control agreement with any securities intermediary and take any action therein with respect
to such Collateral;

          (iv) without notice (except as specifically provided in Section 8.1 or elsewhere herein),
demand or advertisement of any kind to any Grantor or any other Person, enter the premises of any
Grantor where any Collateral is located (through self-help and without judicial process) to
collect, receive, assemble, process, appropriate, sell, lease, assign, grant an option or options
to purchase or otherwise dispose of, deliver, or realize upon, the Collateral or any part thereof
in one or more parcels at public or private sale or sales (which sales may be adjourned or
continued from time to time with or without notice and may take place at any Grantor’s premises or
elsewhere), for cash, on credit or for future delivery without assumption of any credit risk, and
upon such other terms as the Administrative Agent may deem commercially reasonable; and

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          (v) concurrently with written notice to the applicable Grantor, transfer and register in its
name or in the name of its nominee the whole or any part of the Pledged Collateral, to exchange
certificates or instruments representing or evidencing Pledged Collateral for certificates or
instruments of smaller or larger denominations, to exercise the voting and all other rights as a
holder with respect thereto, to collect and receive all cash dividends, interest, principal and
other distributions made thereon and to otherwise act with respect to the Pledged Collateral as
though the Administrative Agent was the outright owner thereof.

          (b) The Administrative Agent, on behalf of the Lenders, may comply with any applicable state
or federal law requirements in connection with a disposition of the Collateral and compliance will
not be considered to adversely affect the commercial reasonableness of any sale of the Collateral.

          (c) The Administrative Agent shall have the right upon any such public sale or sales and, to
the extent permitted by law, upon any such private sale or sales, to purchase for the benefit of
the Administrative Agent and the Lenders, the whole or any part of the Collateral so sold, free of
any right of equity redemption, which equity redemption the Grantor hereby expressly releases.

          (d) Until the Administrative Agent is able to effect a sale, lease, or other disposition of
Collateral, the Administrative Agent shall have the right to hold or use Collateral, or any part
thereof, to the extent that it deems appropriate for the purpose of preserving Collateral or its
value or for any other purpose deemed appropriate by the Administrative Agent. The Administrative
Agent may, if it so elects, seek the appointment of a receiver or keeper to take possession of
Collateral and to enforce any of the Administrative Agent’s remedies (for the benefit of the
Administrative Agent and Lenders), with respect to such appointment without prior notice or hearing
as to such appointment.

          (e) Notwithstanding the foregoing, neither the Administrative Agent nor the Lenders shall be
required to (i) make any demand upon, or pursue or exhaust any of their rights or remedies against,
any Grantor, any other obligor, guarantor, pledgor or any other Person with respect to the payment
of the Secured Obligations or to pursue or exhaust any of their rights or remedies with respect to
any Collateral therefor or any direct or indirect guarantee thereof, (ii) marshal the Collateral or
any guarantee of the Secured Obligations or to resort to the Collateral or any such guarantee in
any particular order, or (iii) effect a public sale of any Collateral.

          (f) Each Grantor recognizes that the Administrative Agent may be unable to effect a public
sale of any or all the Pledged Collateral and may be compelled to resort to one or more private
sales thereof in accordance with clause (a) above. Each Grantor also acknowledges that any
private sale may result in prices and other terms less favorable to the seller than if such sale
were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall
not be deemed to have been made in a commercially unreasonable manner solely by virtue of such sale
being private. The Administrative Agent shall be under no obligation to delay a sale of any of the
Pledged Collateral for the period of time necessary to permit any Grantor or the issuer of the
Pledged Collateral to register such securities for public sale under the Securities Act of 1933, as
amended, or under applicable state securities laws, even if the applicable Grantor and the issuer
would agree to do so.

          5.3. Grantor’s Obligations Upon Default. Upon the request of the Administrative Agent
after the occurrence of and during the continuation of a Default, each Grantor will:

          (a) assemble and make available to the Administrative Agent the Collateral and all books and
records relating thereto at any place or places specified by the Administrative Agent, whether at a
Grantor’s premises or elsewhere;

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          (b) permit the Administrative Agent, by the Administrative Agent’s representatives and agents,
to enter, occupy and use any premises where all or any part of the Collateral, or the books and
records relating thereto, or both, are located, to take possession of all or any part of the
Collateral or the books and records relating thereto, or both, to remove all or any part of the
Collateral or the books and records relating thereto, or both, and to conduct sales of the
Collateral, without any obligation to pay the Grantor for such use and occupancy; and

          (c) at its own expense, cause the independent certified public accountants then engaged by
each Grantor to prepare and deliver to the Administrative Agent and each Lender, at any time, and
from time to time, promptly upon the Administrative Agent’s request, the following reports with
respect to the applicable Grantor: (i) a reconciliation of all Accounts; (ii) an aging of all
Accounts; (iii) trial balances; and (iv) a test verification of such Accounts.

          5.4. Grant of Intellectual Property License. For the purpose of enabling the
Administrative Agent to exercise the rights and remedies under this Article V at such time
as the Administrative Agent shall be lawfully entitled to exercise such rights and remedies, each
Grantor hereby, to the extent permitted by applicable law and not otherwise prohibited pursuant to
any license, sublicense or agreement entered into by such Grantor relating to any Drug or Drug
Product Candidate, (a) grants to the Administrative Agent, for the benefit of the Administrative
Agent and the Lenders, an irrevocable, nonexclusive license (exercisable without payment of royalty
or other compensation to any Grantor) to use, license or sublicense any intellectual property
rights now owned or hereafter acquired by such Grantor, and wherever the same may be located, and
including in such license access to all media in which any of the licensed items may be recorded or
stored and to all computer software and programs used for the compilation or printout thereof and
(b) irrevocably agrees that the Administrative Agent may sell any of such Grantor’s Inventory
directly to any person, including without limitation persons who have previously purchased the
Grantor’s Inventory from such Grantor and in connection with any such sale or other enforcement of
the Administrative Agent’s rights under this Security Agreement, may sell Inventory which bears any
Trademark owned by or licensed to such Grantor and any Inventory that is covered by any Copyright
or Patent owned by or licensed to such Grantor and the Administrative Agent may finish any work in
process and affix any Trademark owned by or licensed to such Grantor and sell such Inventory as
provided herein.

ARTICLE VI.

ACCOUNT VERIFICATION; ATTORNEY IN FACT; PROXY

          6.1. Account Verification. The Administrative Agent may at any time, in the
Administrative Agent’s own name, in the name of a nominee of the Administrative Agent, or in the
name of any Grantor communicate (by mail, telephone, facsimile or otherwise) with the Account
Debtors of any such Grantor, parties to contracts with any such Grantor and obligors in respect of
Instruments of any such Grantor to verify with such Persons, to the Administrative Agent’s
satisfaction, the existence, amount, terms of, and any other matter relating to, Accounts,
Instruments, Chattel Paper, payment intangibles and/or other Receivables.

          6.2. Authorization for Secured Party to Take Certain Action.

          (a) Each Grantor irrevocably authorizes the Administrative Agent at any time and from time to
time in the sole discretion of the Administrative Agent and appoints the Administrative Agent as
its attorney in fact (i) to execute on behalf of such Grantor as debtor and to file financing
statements necessary or desirable in the Administrative Agent’s sole discretion to perfect and to
maintain the perfection and priority of the Administrative Agent’s security interest in the
Collateral, (ii) during the continuation of an Event of Default, to collect any cash proceeds of
the Collateral, (iii) to file a carbon, photographic or other reproduction of this Security
Agreement or any financing statement with respect to

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the Collateral as a financing statement and to file any other financing statement or amendment
of a financing statement (which does not add new collateral or add a debtor) in such offices as the
Administrative Agent in its sole discretion deems necessary or desirable to perfect and to maintain
the perfection and priority of the Administrative Agent’s security interest in the Collateral, (iv)
to contact and enter into one or more agreements with the issuers of uncertificated securities
which are Pledged Collateral or with securities intermediaries holding Pledged Collateral as may be
necessary or advisable to give the Administrative Agent Control over such Pledged Collateral, (v)
to apply the proceeds of any Collateral received by the Administrative Agent to the Secured
Obligations as provided in Section 7.3, (vi) as provided in Section 2.04 of the Credit Agreement,
to discharge past due taxes, assessments, charges, fees or Liens on the Collateral (except for such
Liens as are specifically permitted hereunder), (vii) to contact Account Debtors for Account
verification, (viii) to endorse any and all checks, drafts, and other instruments for the payment
of money relating to the Receivables, and (ix) to do all other acts and things necessary to carry
out this Security Agreement; and such Grantor agrees to reimburse the Administrative Agent on
demand for any reasonable payment made or any expense incurred by the Administrative Agent in
connection with any of the foregoing; provided that, this authorization shall not relieve such
Grantor of any of its obligations under this Security Agreement or under the Credit Agreement.

          (b) From and after an Event of Default and during continuation thereof, each Grantor
irrevocably authorizes the Administrative Agent at any time and from time to time the sole
discretion of Administrative Agent and appoints the Administrative Agent as its attorney in fact
(i) to contact Account Debtors for any reason (other than Account verification), (ii) to demand
payment or enforce payment of the Receivables in the name of the Administrative Agent or such
Grantor, (iii) to sign such Grantor’s name on any invoice or bill of lading relating to the
Receivables, drafts, against any Account Debtor of the Grantor, assignments and verifications of
Receivables, (iv) to exercise all of such Grantor’s rights and remedies with respect to the
collection of the Receivables and any other Collateral, (v) to settle, adjust, compromise, extend
or renew the Receivables, (vi) to settle, adjust or compromise any legal proceedings brought to
collect Receivables, (vii) to prepare, file and sign such Grantor’s name on a proof of claim in
bankruptcy or similar document against any Account Debtor of such Grantor, (viii) to prepare, file
and sign such Grantor’s name on any notice of Lien, assignment or satisfaction of Lien or similar
document in connection with the Receivables, and (ix) to change the address for delivery of mail
addressed to such Grantor to such address as the Administrative Agent may designate and to receive,
open and dispose of all mail addressed to such Grantor; and such Grantor agrees to reimburse the
Administrative Agent on demand for any reasonable payment made or any expense incurred by the
Administrative Agent in connection with any of the foregoing; provided that, this authorization
shall not relieve such Grantor of any of its obligations under this Security Agreement or under the
Credit Agreement.

          (c) All acts of said attorney or designee are hereby ratified and approved. The powers
conferred on the Administrative Agent, for the benefit of the Administrative Agent and Lenders,
under this Section 6.2 are solely to protect the Administrative Agent’s interests in the Collateral
and shall not impose any duty upon the Administrative Agent or any Lender to exercise any such
powers.

          6.3. Proxy. FROM AND AFTER AND DURING THE CONTINUATION OF AN EVENT OF DEFAULT, EACH
GRANTOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS THE ADMINISTRATIVE AGENT AS ITS PROXY AND
ATTORNEY-IN-FACT (AS SET FORTH IN SECTION 6.2 ABOVE) WITH RESPECT TO ITS PLEDGED COLLATERAL,
INCLUDING THE RIGHT TO VOTE SUCH PLEDGED COLLATERAL, WITH FULL POWER OF SUBSTITUTION TO DO SO. IN
ADDITION TO THE RIGHT TO VOTE ANY SUCH PLEDGED COLLATERAL, THE APPOINTMENT OF THE ADMINISTRATIVE
AGENT AS PROXY AND ATTORNEY-IN-FACT SHALL INCLUDE THE RIGHT TO EXERCISE ALL OTHER RIGHTS, POWERS,
PRIVILEGES AND REMEDIES TO WHICH A HOLDER OF SUCH PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING
GIVING OR WITHHOLDING WRITTEN

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CONSENTS OF SHAREHOLDERS, CALLING SPECIAL MEETINGS OF SHAREHOLDERS AND VOTING AT SUCH
MEETINGS). SUCH PROXY SHALL BE EFFECTIVE, AUTOMATICALLY AND WITHOUT THE NECESSITY OF ANY ACTION
(INCLUDING ANY TRANSFER OF ANY SUCH PLEDGED COLLATERAL ON THE RECORD BOOKS OF THE ISSUER THEREOF)
BY ANY PERSON (INCLUDING THE ISSUER OF SUCH PLEDGED COLLATERAL OR ANY OFFICER OR AGENT THEREOF).
EACH GRANTOR HEREBY ACKNOWLEDGES THAT THE PROXY APPOINTMENT AS ATTORNEY-IN-FACT UNDER THIS SECTION
6.5 IS ASSIGNABLE BY ADMINISTRATIVE AGENT AFTER THE OCCURRENCE OF AND DURING THE CONTINUATION OF AN
EVENT OF DEFAULT.

          6.4. Nature of Appointment; Limitation of Duty. THE APPOINTMENT OF THE ADMINISTRATIVE
AGENT AS PROXY AND ATTORNEY-IN-FACT IN THIS ARTICLE VI IS COUPLED WITH AN INTEREST AND SHALL BE
IRREVOCABLE UNTIL THE DATE ON WHICH THIS SECURITY AGREEMENT IS TERMINATED IN ACCORDANCE WITH
SECTION 8.14. NOTWITHSTANDING ANYTHING CONTAINED HEREIN, NEITHER THE ADMINISTRATIVE AGENT, NOR ANY
LENDER, NOR ANY OF THEIR RESPECTIVE AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR
REPRESENTATIVES SHALL HAVE ANY DUTY TO EXERCISE ANY RIGHT OR POWER GRANTED HEREUNDER OR OTHERWISE
OR TO PRESERVE THE SAME AND SHALL NOT BE LIABLE FOR ANY FAILURE TO DO SO OR FOR ANY DELAY IN DOING
SO, EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT AS FINALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION; PROVIDED THAT, IN NO EVENT
SHALL THEY BE LIABLE FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

ARTICLE VII.

COLLECTION AND APPLICATION OF COLLATERAL PROCEEDS; DEPOSIT ACCOUNTS

          7.1. Deposit Accounts.

          (a) On or before the Closing Date, each Grantor shall execute and deliver to the
Administrative Agent Deposit Account Control Agreements for each Deposit Account maintained by such
Grantor into which all cash, checks or other similar payments relating to or constituting payments
made in respect of Receivables will be deposited (each a “Collateral Deposit Account”),
which Collateral Deposit Accounts are identified as such on Exhibit B.

          (b) After the Closing Date, before opening or replacing any Collateral Deposit Account, other
Deposit Account, or establishing a lockbox service account (“Lock Boxes”) with any bank or
financial institution, each Grantor shall notify Administrative Agent thereof and cause each bank
or financial institution in which it seeks to open (i) a Deposit Account, to enter into a Deposit
Account Control Agreement with the Administrative Agent in order to give the Administrative Agent
Control of such Deposit Account, or (ii) a Lock Box, to enter into a lock box agreement with the
Administrative Agent in order to give the Administrative Agent Control of the Lock Box. In the
case of Deposit Accounts or Lock Boxes maintained with Lenders, the terms of such letter shall be
subject to the provisions of the Credit Agreement regarding setoffs.

          (c) Within thirty (30) days after the Liquidity Event, each Grantor shall close all Deposit
Accounts not maintained at Chase and establish Chase as its sole depository bank.

          7.2. Collection of Receivables. At all times after the Liquidity Event, each Grantor
shall cause all funds deposited into any Collateral Deposit Account to be swept on a daily basis
into a blocked Deposit Account in the name of the Administrative Agent maintained with Chase (the

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“Collection Account”). The Administrative Agent shall hold and apply funds received
into the Collection Account as provided by the terms of Section 7.3. At no time after the
Liquidity Event shall any Grantor remove any item from a Lock Box or from a Collateral Deposit
Account without the Administrative Agent’s prior written consent. If any Grantor should refuse or
neglect to notify any Account Debtor to forward payments directly to a Lock Box subject to a Lock
Box Agreement, after notice from the Administrative Agent, the Administrative Agent shall be
entitled to make such notification directly to Account Debtor.

          7.3. Application of Proceeds; Deficiency. All amounts deposited in the Collection
Account shall be deemed received by the Administrative Agent in accordance with Section 2.18 of the
Credit Agreement and shall, after having been credited in immediately available funds to the
Collection Account, be applied (and allocated) by Administrative Agent in accordance with Section
2.10(b) of the Credit Agreement; provided that, so long as no Liquidity Event has occurred and no
Event of Default has occurred and is continuing, any collections which are received into the
Collection Account shall be deposited into the Borrower Representative’s Funding Account rather
than being used to reduce amounts owing under the Credit Agreement. From and after an Event of
Default and during continuance thereof, the Administrative Agent shall require all other cash
proceeds of the Collateral, which are not required to be applied to the Obligations pursuant to
Section 2.11 of the Credit Agreement, to be deposited in a special non-interest bearing cash
collateral account with the Administrative Agent and held there as security for the Secured
Obligations. No Grantor shall have any control whatsoever over said cash collateral account. Any
such proceeds of the Collateral shall be applied in the order set forth in Section 2.18 of the
Credit Agreement unless a court of competent jurisdiction shall otherwise direct. The balance, if
any, after all of the Secured Obligations have been satisfied, shall be deposited by the
Administrative Agent into the Borrower Representative’s general operating account with Chase. The
Grantors shall remain liable for any deficiency if the proceeds of any sale or disposition of the
Collateral are insufficient to pay all Secured Obligations, including any attorneys’ fees and other
expenses incurred by Administrative Agent or any Lender to collect such deficiency.

ARTICLE VIII.

GENERAL PROVISIONS

          8.1. Waivers. Each Grantor hereby waives notice of the time and place of any public
sale or the time after which any private sale or other disposition of all or any part of the
Collateral may be made. To the extent such notice may not be waived under applicable law, any
notice made shall be deemed reasonable if sent to the Grantors, addressed as set forth in Article
IX, at least ten days prior to (i) the date of any such public sale or (ii) the time after which
any such private sale or other disposition may be made. To the maximum extent permitted by
applicable law, each Grantor waives all claims, damages, and demands against the Administrative
Agent or any Lender arising out of the repossession, retention or sale of the Collateral, except
such as arise solely out of the gross negligence or willful misconduct of the Administrative Agent
or such Lender as finally determined by a court of competent jurisdiction. To the extent it may
lawfully do so, each Grantor absolutely and irrevocably waives and relinquishes the benefit and
advantage of, and covenants not to assert against the Administrative Agent or any Lender, any
valuation, stay, appraisal, extension, moratorium, redemption or similar laws and any and all
rights or defenses it may have as a surety now or hereafter existing which, but for this provision,
might be applicable to the sale of any Collateral made under the judgment, order or decree of any
court, or privately under the power of sale conferred by this Security Agreement, or otherwise.
Except as otherwise specifically provided herein, each Grantor hereby waives presentment, demand,
protest or any notice (to the maximum extent permitted by applicable law) of any kind in connection
with this Security Agreement or any Collateral.

          8.2. Limitation on Administrative Agent’s and Lenders’ Duty with Respect to the
Collateral. The Administrative Agent shall have no obligation to clean-up or otherwise prepare
the

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Collateral for sale. The Administrative Agent and each Lender shall use reasonable care with
respect to the Collateral in its possession or under its control. Neither the Administrative Agent
nor any Lender shall have any other duty as to any Collateral in its possession or control or in
the possession or control of any agent or nominee of the Administrative Agent or such Lender, or
any income thereon or as to the preservation of rights against prior parties or any other rights
pertaining thereto. To the extent that applicable law imposes duties on the Administrative Agent to
exercise remedies in a commercially reasonable manner, each Grantor acknowledges and agrees that it
is commercially reasonable for the Administrative Agent (i) to fail to incur expenses deemed
significant by the Administrative Agent to prepare Collateral for disposition or otherwise to
transform raw material or work in process into finished goods or other finished products for
disposition, (ii) to fail to obtain third party consents for access to Collateral to be disposed
of, or to obtain or, if not required by other law, to fail to obtain governmental or third party
consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to
fail to exercise collection remedies against Account Debtors or other Persons obligated on
Collateral or to remove Liens on or any adverse claims against Collateral, (iv) to exercise
collection remedies against Account Debtors and other Persons obligated on Collateral directly or
through the use of collection agencies and other collection specialists, (v) to advertise
dispositions of Collateral through publications or media of general circulation, whether or not the
Collateral is of a specialized nature, (vi) to contact other Persons, whether or not in the same
business as such Grantor, for expressions of interest in acquiring all or any portion of such
Collateral, (vii) to hire one or more professional auctioneers to assist in the disposition of
Collateral, whether or not the Collateral is of a specialized nature, (viii) to dispose of
Collateral by utilizing internet sites that provide for the auction of assets of the types included
in the Collateral or that have the reasonable capacity of doing so, or that match buyers and
sellers of assets, (ix) to dispose of assets in wholesale rather than retail markets, (x) to
purchase insurance or credit enhancements to insure the Administrative Agent against risks of loss,
collection or disposition of Collateral or to provide to the Administrative Agent a guaranteed
return from the collection or disposition of Collateral, or (xi) to the extent deemed appropriate
by the Administrative Agent, to obtain the services of other brokers, investment bankers,
consultants and other professionals to assist the Administrative Agent in the collection or
disposition of any of the Collateral. Each Grantor acknowledges that the purpose of this Section
8.2 is to provide non-exhaustive indications of what actions or omissions by the Administrative
Agent would be commercially reasonable in the Administrative Agent’s exercise of remedies against
the Collateral and that other actions or omissions by the Administrative Agent shall not be deemed
commercially unreasonable solely on account of not being indicated in this Section 8.2. Without
limitation upon the foregoing, nothing contained in this Section 8.2 shall be construed to grant
any rights to any Grantor or to impose any duties on the Administrative Agent that would not have
been granted or imposed by this Security Agreement or by applicable law in the absence of this
Section 8.2.

          8.3. Compromises and Collection of Collateral. The Grantors and the Administrative
Agent recognize that setoffs, counterclaims, defenses and other claims may be asserted by obligors
with respect to certain of the Receivables, that certain of the Receivables may be or become
uncollectible in whole or in part and that the expense and probability of success in litigating a
disputed Receivable may exceed the amount that reasonably may be expected to be recovered with
respect to a Receivable. In view of the foregoing, each Grantor agrees that the Administrative
Agent may at any time and from time to time, if an Event of Default has occurred and is continuing,
compromise with the obligor on any Receivable, accept in full payment of any Receivable such amount
as the Administrative Agent in its sole discretion shall determine or abandon any Receivable, and
any such action by the Administrative Agent shall be commercially reasonable so long as the
Administrative Agent acts in good faith based on information known to it at the time it takes any
such action.

          8.4. Secured Party Performance of Debtor Obligations. Without having any obligation
to do so, the Administrative Agent may perform or pay any obligation which any Grantor has agreed
to perform or pay in this Security Agreement (subject to any cure periods set forth in Article V)
and the Grantors shall reimburse the Administrative Agent for any amounts paid by the
Administrative

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Agent pursuant to this Section 8.4. The Grantors’ obligation to reimburse the Administrative
Agent pursuant to the preceding sentence shall be a Secured Obligation payable on demand.

          8.5. Specific Performance of Certain Covenants. Each Grantor acknowledges and agrees
that a breach of any of the covenants contained in Sections 4.1(d), 4.1(e), 4.4, 4.5, 4.6, 4.7,
4.8, 4.9, 4.11, 4.13, 4.14, 5.3, or 8.6 or in Article VII will cause irreparable injury to the
Administrative Agent and the Lenders, that the Administrative Agent and Lenders have no adequate
remedy at law in respect of such breaches and therefore agrees, without limiting the right of the
Administrative Agent or the Lenders to seek and obtain specific performance of other obligations of
the Grantors contained in this Security Agreement, that the covenants of the Grantors contained in
the Sections referred to in this Section 8.5 shall be specifically enforceable against the
Grantors.

          8.6. Dispositions Not Authorized. No Grantor is authorized to sell or otherwise
dispose of the Collateral except as set forth in Section 4.1(d) and notwithstanding any course of
dealing between any Grantor and the Administrative Agent or other conduct of the Administrative
Agent, no authorization to sell or otherwise dispose of the Collateral (except as set forth in
Section 4.1(d)) shall be binding upon the Administrative Agent or the Lenders unless such
authorization is in writing signed by the Administrative Agent with the consent or at the direction
of the Required Secured Parties.

          8.7. No Waiver; Amendments; Cumulative Remedies. No delay or omission of the
Administrative Agent or any Lender to exercise any right or remedy granted under this Security
Agreement shall impair such right or remedy or be construed to be a waiver of any Default or an
acquiescence therein, and any single or partial exercise of any such right or remedy shall not
preclude any other or further exercise thereof or the exercise of any other right or remedy. No
waiver, amendment or other variation of the terms, conditions or provisions of this Security
Agreement whatsoever shall be valid unless in writing signed by the Administrative Agent with the
concurrence or at the direction of the Lenders required under Section 9.02 of the Credit Agreement
and then only to the extent in such writing specifically set forth. All rights and remedies
contained in this Security Agreement or by law afforded shall be cumulative and all shall be
available to the Administrative Agent and the Lenders until the Secured Obligations have been paid
in full.

          8.8. Limitation by Law; Severability of Provisions. All rights, remedies and powers
provided in this Security Agreement may be exercised only to the extent that the exercise thereof
does not violate any applicable provision of law, and all the provisions of this Security Agreement
are intended to be subject to all applicable mandatory provisions of law that may be controlling
and to be limited to the extent necessary so that they shall not render this Security Agreement
invalid, unenforceable or not entitled to be recorded or registered, in whole or in part. Any
provision in any this Security Agreement that is held to be inoperative, unenforceable, or invalid
in any jurisdiction shall, as to that jurisdiction, be inoperative, unenforceable, or invalid
without affecting the remaining provisions in that jurisdiction or the operation, enforceability,
or validity of that provision in any other jurisdiction, and to this end the provisions of this
Security Agreement are declared to be severable.

          8.9. Reinstatement. This Security Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against any Grantor for liquidation or
reorganization, should any Grantor become insolvent or make an assignment for the benefit of any
creditor or creditors or should a receiver or trustee be appointed for all or any significant part
of any Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be,
if at any time payment and performance of the Secured Obligations, or any part thereof, is,
pursuant to applicable law, rescinded or reduced in amount, or must otherwise be restored or
returned by any obligee of the Secured Obligations, whether as a “voidable preference,” “fraudulent
conveyance,” or otherwise, all as though such payment or performance had not been made. In the
event that any payment, or any part thereof, is

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rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and
deemed reduced only by such amount paid and not so rescinded, reduced, restored or returned.

          8.10. Benefit of Agreement. The terms and provisions of this Security Agreement shall
be binding upon and inure to the benefit of the Grantors, the Administrative Agent and the Lenders
and their respective successors and assigns (including all persons who become bound as a debtor to
this Security Agreement), except that no Grantor shall have the right to assign its rights or
delegate its obligations under this Security Agreement or any interest herein, without the prior
written consent of the Administrative Agent. No sales of participations, assignments, transfers,
or other dispositions of any agreement governing the Secured Obligations or any portion thereof or
interest therein shall in any manner impair the Lien granted to the Administrative Agent, for the
benefit of the Administrative Agent and the Lenders, hereunder.

          8.11. Survival of Representations. All representations and warranties of the Grantors
contained in this Security Agreement shall survive the execution and delivery of this Security
Agreement.

          8.12. Taxes and Expenses. Any taxes (including income taxes) payable or ruled payable
by Federal or State authority in respect of this Security Agreement shall be paid by the Grantors,
together with interest and penalties, if any. The Grantors shall reimburse the Administrative
Agent for any and all out-of-pocket expenses and internal charges (including reasonable attorneys’,
auditors’ and accountants’ fees and reasonable time charges of attorneys, paralegals, auditors and
accountants who may be employees of the Administrative Agent) paid or incurred by the
Administrative Agent in connection with the preparation, execution, delivery, administration,
collection and enforcement of this Security Agreement and in the audit, analysis, administration,
collection, preservation or sale of the Collateral (including the expenses and charges associated
with any periodic or special audit of the Collateral). Any and all costs and expenses incurred by
the Grantors in the performance of actions required pursuant to the terms hereof shall be borne
solely by the Grantors.

          8.13. Headings. The title of and section headings in this Security Agreement are for
convenience of reference only, and shall not govern the interpretation of any of the terms and
provisions of this Security Agreement.

          8.14. Termination. This Security Agreement shall continue in effect (notwithstanding
the fact that from time to time there may be no Secured Obligations outstanding) until (i) the
Credit Agreement has terminated pursuant to its express terms and (ii) all of the Secured
Obligations have been indefeasibly paid and performed in full (or with respect to any outstanding
Letters of Credit, a cash deposit or Supporting Letter of Credit has been delivered to the
Administrative Agent as required by the Credit Agreement) and no commitments of the Administrative
Agent or the Lenders which would give rise to any Secured Obligations are outstanding.

          8.15. Entire Agreement. This Security Agreement embodies the entire agreement and
understanding between the Grantors and the Administrative Agent relating to the Collateral and
supersedes all prior agreements and understandings between the Grantors and the Administrative
Agent relating to the Collateral.

          8.16. CHOICE OF LAW. THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE INTERNAL LAWS (AND NOT THE LAW OF CONFLICTS) OF THE STATE OF NEW YORK, BUT
GIVING EFFECT TO FEDERAL LAWS APPLICABLE TO NATIONAL BANKS.

          8.17. CONSENT TO JURISDICTION. EACH GRANTOR HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY U.S.

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FEDERAL OR NEW YORK STATE COURT SITTING IN NEW YORK, NEW YORK IN ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT AND EACH GRANTOR
HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN ANY SUCH COURT AND IRREVOCABLY WAIVES ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE AS
TO THE VENUE OF ANY SUCH SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT OR THAT SUCH COURT IS
AN INCONVENIENT FORUM. NOTHING HEREIN SHALL LIMIT THE RIGHT OF THE ADMINISTRATIVE AGENT OR ANY
LENDER TO BRING PROCEEDINGS AGAINST ANY GRANTOR IN THE COURTS OF ANY OTHER JURISDICTION. ANY
JUDICIAL PROCEEDING BY ANY GRANTOR AGAINST THE ADMINISTRATIVE AGENT OR ANY LENDER OR ANY AFFILIATE
OF THE AGENT OR ANY LENDER INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF,
RELATED TO, OR CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT SHALL BE BROUGHT
ONLY IN A COURT IN NEW YORK, NEW YORK.

          8.18. WAIVER OF JURY TRIAL. EACH GRANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER
HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER
(WHETHER SOUNDING IN TORT, CONTRACT OR OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH THIS SECURITY AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE RELATIONSHIP ESTABLISHED
THEREUNDER.

          8.19. Indemnity. Each Grantor hereby agrees to indemnify the Administrative Agent and
the Lenders, and their respective successors, assigns, agents and employees, from and against any
and all liabilities, damages, penalties, suits, costs, and expenses of any kind and nature
(including, without limitation, all expenses of litigation or preparation therefor whether or not
the Administrative Agent or any Lender is a party thereto) imposed on, incurred by or asserted
against the Administrative Agent or the Lenders, or their respective successors, assigns, agents
and employees, other than due to the gross negligence or the willful misconduct of such Person (as
finally determined by a court of competent jurisdiction), in any way relating to or arising out of
this Security Agreement, or the manufacture, purchase, acceptance, rejection, ownership, delivery,
lease, possession, use, operation, condition, sale, return or other disposition of any Collateral
(including, without limitation, latent and other defects, whether or not discoverable by the
Administrative Agent or the Lenders or any Grantor, and any claim for Patent, Trademark or
Copyright infringement).

          8.20. Counterparts. This Security Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one agreement, and any of the parties
hereto may execute this Security Agreement by signing any such counterpart.

ARTICLE IX.

NOTICES

          9.1. Sending Notices. Any notice required or permitted to be given under this
Security Agreement shall be sent by United States mail, telecopier, personal delivery or nationally
established overnight courier service, and shall be deemed received (a) when received, if sent by
hand or overnight courier service, or mailed by certified or registered mail notices or (b) when
sent, if sent by telecopier (except that, if not given during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the next Business Day
for the recipient), in each case addressed to the Grantors at the notice address set forth on
Exhibit A, and to the Administrative Agent and the Lenders at the addresses set forth in
accordance with Section 9.01 of the Credit Agreement.

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          9.2. Change in Address for Notices. Each of the Grantors, the Administrative Agent
and the Lenders may change the address for service of notice upon it by a notice in writing to the
other parties.

ARTICLE X.

THE ADMINISTRATIVE AGENT

          JPMorgan Chase Bank, N.A. has been appointed Administrative Agent for the Lenders hereunder
pursuant to Article VIII of the Credit Agreement. It is expressly understood and agreed by the
parties to this Security Agreement that any authority conferred upon the Administrative Agent
hereunder is subject to the terms of the delegation of authority made by the Lenders to the
Administrative Agent pursuant to the Credit Agreement, and that the Administrative Agent has agreed
to act (and any successor Administrative Agent shall act) as such hereunder only on the express
conditions contained in such Article VIII. Any successor Administrative Agent appointed pursuant
to Article VIII of the Credit Agreement shall be entitled to all the rights, interests and benefits
of the Administrative Agent hereunder.

[Signature Page Follows]

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          IN WITNESS WHEREOF, the Grantors and the Administrative Agent have executed this Security
Agreement as of the date first above written.

	 	 	 	 	 	 	 
	 	 	GRANTORS:
	 
	 	 	 	 	 	 
	 	 	MGI PHARMA, INC., a Minnesota corporation
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ William F. Spengler	 	 
	 
	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Executive Vice President and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	MGI GP, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ William F. Spengler	 	 
	 
	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer

Signature Page to Pledge and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	MGI OM, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	MGI PHARMA BIOLOGICS, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	PROQUEST PHARMACEUTICALS, INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	MGI PRODUCTS, INC., a Maryland corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	MGI MSL, LLC, a Maryland limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	MGI (CANADA) INC., a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer

Signature Page to Pledge and Security Agreement

 

 

	 	 	 	 	 	 	 
	 	 	GPI IP, LLC, a Delaware limited liability company
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ William F. Spengler	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: William F. Spengler
	 
	 	 	Title: Treasurer and Chief Financial Officer
	 
	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A., as Administrative Agent
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ James Gurgone	 	 
	 

	 	 	 	 	 	 
	 
	 	 	Name: James Gurgone
	 
	 	 	Title: Vice President

Signature Page to Pledge and Security Agreement

 

 

EXHIBIT A

(See Sections 3.2, 3.3, 3.4, 3.9 and 9.1 of Security Agreement)

NOTICE ADDRESS FOR ALL GRANTORS

	 	 	 	 	 
	 

	 	 	 	 
	 

	 	c/o              
                    
                    
                    
	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Attention:           
         
         
         
         
           	 	 
	 

	 	Facsimile:          
          
            
            
        
        	 	 

INFORMATION AND COLLATERAL LOCATIONS OF {Insert name of applicable Grantor}

	I.	 	Name of Grantor:                                                             
	 
	II.	 	State of Incorporation or Organization:                                                             
	 
	III.	 	Type of Entity:                                                             
	 
	IV.	 	Organizational Number assigned by State of Incorporation or Organization:                                         
	 
	V.	 	Federal Identification Number:                                                             
	 
	VI.	 	Place of Business (if it has only one) or Chief Executive Office (if more than one place of
business) and Mailing Address:

	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Attention:	 	 
	 

	 	 
	 	 

	VII.	 	Locations of Collateral:

	 	(a)	 	Properties Owned by the Grantor:
	 
	 	(b)	 	Properties Leased by the Grantor (Include Landlord’s Name):
	 
	 	(c)	 	Public Warehouses or other Locations pursuant to Bailment or
Consignment Arrangements (include name of Warehouse Operator or other Bailee or
Consignee):

Exhibit A — Page 1 

 

INFORMATION AND COLLATERAL LOCATIONS OF {Insert name of applicable Grantor}

	I.	 	Name of Grantor:                                                             
	 
	II.	 	State of Incorporation or Organization:                                                             
	 
	III.	 	Type of Entity:                                                             
	 
	IV.	 	Organizational Number assigned by State of Incorporation or Organization:                                         
	 
	V.	 	Federal Identification Number:                                                             

VI. Place of Business (if it has only one) or Chief Executive Office (if more than one place of
business) and Mailing Address:

	 	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	Attention:	 	 
	 

	 	 
	 	 

	VII.	 	Locations of Collateral:

	 	(a)	 	Properties Owned by the Grantor:
	 
	 	(b)	 	Properties Leased by the Grantor (Include Landlord’s Name):
	 
	 	(c)	 	Public Warehouses or other Locations pursuant to Bailment or
Consignment Arrangements (include name of Warehouse Operator or other Bailee or
Consignee):

[NOTE: ADD ADDITIONAL INFORMATION PAGE FOR EACH GRANTOR]

Exhibit A — Page 2 

 

EXHIBIT B

(See Section 3.5 of Security Agreement)

DEPOSIT ACCOUNTS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Check here if	 	 	Description of	 
	 	 	 	 	 	 	 	 	 	 	Deposit Account is	 	 	Deposit Account	 
	 	 	 	 	 	 	 	 	 	 	a Collateral Deposit	 	 	if not a Collateral	 
	Name of Grantor	 	Name of Institution	 	 	Account Number	 	 	Account	 	 	Deposit Account	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 

Exhibit B

 

 

EXHIBIT C

(See Section 3.7 of Security Agreement)

LETTER OF CREDIT RIGHTS

CHATTEL PAPER

Exhibit C

 

 

EXHIBIT D

(See Section 3.12 of Security Agreement and Definition of “Pledged Collateral”)

LIST OF PLEDGED COLLATERAL, SECURITIES AND OTHER INVESTMENT PROPERTY

STOCKS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Percentage of	 
	 	 	 	 	 	 	Certificate	 	 	Number of	 	 	 	 	 	 	Outstanding	 
	Name of Grantor	 	Issuer	 	 	Number(s)	 	 	Shares	 	 	Class of Stock	 	 	Shares	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

BONDS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grantor	 	Issuer	 	 	Number	 	 	Face Amount	 	 	Coupon Rate	 	 	Maturity	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

GOVERNMENT SECURITIES

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Grantor	 	Issuer	 	 	Number	 	 	Type	 	 	Face Amount	 	 	Coupon Rate	 	 	Maturity	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Exhibit D — Page 1 

 

OTHER SECURITIES OR OTHER INVESTMENT PROPERTY

(CERTIFICATED AND UNCERTIFICATED)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage Ownership	 
	Name of Grantor	 	Issuer	 	 	Description of Collateral	 	 	Interest	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 

[Add description of custody accounts or arrangements with securities intermediary, if applicable]

Exhibit D — Page 2 

 

EXHIBIT E

(See Section 3.1 of Security Agreement)

OFFICES IN WHICH FINANCING STATEMENTS HAVE BEEN FILED

Exhibit E

 

 

EXHIBIT F

(See Section 4.4 of Security Agreement)

AMENDMENT

This
Amendment, dated                     , ___ is delivered pursuant to Section 4.4 of the Security
Agreement referred to below. All defined terms herein shall have the meanings ascribed thereto or
incorporated by reference in the Security Agreement. The undersigned hereby certifies that the
representations and warranties in Article III of the Security Agreement are and continue to be true
and correct. The undersigned further agrees that this Amendment may be attached to that certain
Pledge and Security Agreement, dated                      ___, ___, between the undersigned, as the
Grantors, and JPMorgan Chase Bank, N.A., as the Administrative Agent, (the “Security
Agreement”) and that the Collateral listed on Schedule I to this Amendment shall be and
become a part of the Collateral referred to in said Security Agreement and shall secure all Secured
Obligations referred to in said Security Agreement.

	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit F

 

 

SCHEDULE I TO AMENDMENT

STOCKS

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage of
	Name of	 	 	 	Certificate	 	Number of	 	 	 	Outstanding
	Grantor	 	Issuer	 	Number(s)	 	Shares	 	Class of Stock	 	Shares
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 

BONDS

	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 	 	 	 	 
	Grantor	 	Issuer	 	Number	 	Face Amount	 	Coupon Rate	 	Maturity
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 

GOVERNMENT SECURITIES

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Name of	 	 	 	 	 	 	 	 	 	 	 	 
	Grantor	 	Issuer	 	Number	 	Type	 	Face Amount	 	Coupon Rate	 	Maturity
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

OTHER SECURITIES OR OTHER INVESTMENT PROPERTY

(CERTIFICATED AND UNCERTIFICATED)

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Percentage Ownership	 
	Name of Grantor	 	Issuer	 	 	Description of Collateral	 	 	Interest	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 

[Add description of custody accounts or arrangements with securities intermediary, if applicable]

Schedule I to Exhibit F

 

 

EXHIBIT G

EXCLUDED SECURITIES

Exhibit G

 

 

EXHIBIT H

EXCLUDED SECURITIES ACCOUNTS

Exhibit H

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00111-of-00352.parquet"}]]