Document:

Exhibit 10.1

Exhibit 10.1

AMENDMENT TO STOCKHOLDERS AGREEMENT

This Amendment, dated as of May 27, 2011 (the “Amendment”), amends the Stockholders
Agreement, dated as of April 5, 2006 (the “Agreement”), by and among HealthMarkets, Inc., a
Delaware corporation previously known as UICI (the “Company”), and the other parties
thereto. Capitalized terms not defined in this Amendment shall have the meanings ascribed to them
in the Agreement.

WHEREAS, in connection with certain amendments to the Company’s Charter, the Company and the
Sponsor Stockholders desire to amend the Agreement as set forth in this Amendment; and

WHEREAS, Sections 1.05 and 7.09 provide that the Agreement may be amended, modified or
supplemented only in a writing signed by Sponsor Stockholders that own not less than 70% of the
Sponsor Shares and approved by each Investor Group which would be subject to materially adverse
differential treatment as a result thereof, as compared to the other Investor Groups.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
to this Amendment hereby agree as follows:

1. Board Committees. Section 1.04 of the Agreement is hereby amended to include the
following as the third sentence thereto:

“Notwithstanding the foregoing, at no time shall any Investor Director nominated by
the GS Investor Group serve as (i) the chairman of any committee of the Board; (ii)
a member of any committee of the Board if such Investor Director would occupy more
than 25% of the seats on such committee; (iii) a member of a committee of the Board
if at any time such committee would have decision-making authority for policies or
actions on managerial matters (other than decisions related to retaining third party
consultants or advisers in connection with carrying out committee duties) unless (1)
recommendations of such committee as to policy or actions on managerial matters are
reviewed and approved or reviewed and ratified by the full Board or (2) such
committee is carrying out functions in accordance with a policy or parameters
approved by the full Board; or (iv) a member of any committee if such Investor
Director has the authority or practical ability unilaterally to make, or block the
making of, policy or other decisions that bind the Board, any committee of the
Board, or management of the Company.”

 

 

2. Approval Rights. Section 1.05(b) of the Agreement is hereby amended and restated
in its entirety to read as follows:

“(b)(1) In addition to any other approval required, the Company shall not, and shall
cause its Subsidiaries not to, take any of the following actions or facilitate any
of the following actions without an approval of the Board that includes (1) for so
long as all three Investor Groups are not Non-Qualifying Investor Groups, the
approval of at least 80% of the Investor Directors (where, for the purposes of
giving such approval, the Blackstone Directors shall collectively have 3 votes, the
Investor Directors nominated by the GS Investor Group shall collectively have 1 vote
and the Investor Directors nominated by the DLJ Investor Group shall collectively
have 1 vote) or (2) for so long as the Blackstone Investor Group is not a
Non-Qualifying Investor Group and there are less than three Investor Groups that are
not Non-Qualifying Investor Groups, the approval of the Blackstone Directors:

(i) in the case of the Company entering into any merger, consolidation or
other business combination, reorganization, or liquidation or consummation
of a similar transaction (other than any such transaction between or among
the Company and one or more wholly-owned (directly or indirectly)
Subsidiaries of the Company, which transactions would not adversely affect
the rights of any Investor Groups);

(ii) acquiring or disposing of (in each case, including by merger, business
combination, reorganization or other similar transaction), in a single
transaction or a series of related transactions, any business or assets for
consideration having a value (valuing any non-cash consideration at fair
market value as determined by the Board in good faith) in excess of 20% of
the fair market value of the total assets of the Company and its
Subsidiaries, taken as a whole, as of immediately prior to such transaction
or series of transactions (as determined by the Board in good faith);

(iii) (A) incurring any indebtedness for borrowed money or issuing any debt
securities (other than indebtedness or debt securities owed between or among
the Company and/or one or more wholly-owned Subsidiaries) or (B) issuing to
any third party any preferred stock (1) that the Company is required on a
date certain, or can be required by the holder at the option of the holder,
to redeem or repurchase, or with respect to which the Company is required to
pay cash dividends or (2) of a type other than the types of preferred stock
set forth in clause (1), to the extent that the aggregate liquidation value
of all such preferred stock described in this clause (2) exceeds $50 million
in the aggregate, if, in the cases of either of clause (A) or (B) and in the
aggregate for all transactions described in clauses (A) and (B), the amount
of such new indebtedness or the liquidation value of such preferred stock
exceeds 20% of the fair market value of the total assets of the Company and
its Subsidiaries, taken as a whole, as of immediately prior to such
incurrence or issuance (as determined by the Board in good faith);

(iv) entering into or effecting any agreement or transaction after the
Closing between or among the Company and/or any of its Subsidiaries, on the
one hand, and any Affiliates of either the Company or any Stockholder, on
the other hand, other than DE MINIMIS transactions on arm’s length terms;
and

 

- 2-

 

(v) effecting any amendment to the Charter or Bylaws with the purpose or
effect of facilitating any actions referred to in clauses (i)-(iv) or that
otherwise would directly conflict with the terms of this Agreement.

(2) For the avoidance of doubt, in the event the Blackstone Investor Group becomes a
Non-Qualifying Investor Group, this Section 1.05(b) shall be void and of no effect.”

3. Miscellaneous.

(a) For purposes of Section 1.05(e) of the Agreement, each Investor Group signatory
hereto shall be deemed to have approved the terms of this Amendment.

(b) Except as expressly amended by this Amendment, the Agreement is in all respects
ratified and confirmed and all the terms thereof shall remain in full force and effect.
Except to the extent specifically provided in this Amendment, this Amendment shall not be
deemed to be an amendment to any other term of the Agreement or otherwise affect or operate
as a waiver or relinquishment of any of the rights of any party under the Agreement.

(c) This Amendment shall form a part of the Agreement for all purposes and shall be
binding upon all parties to the Agreement. From and after the execution of this Amendment,
any reference to the Agreement shall be deemed a reference to the Agreement as amended by
this Amendment.

(d) THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH, AND GOVERNED BY, THE LAWS OF
THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES WHICH WOULD RESULT IN
THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

(e) This Amendment may be signed in any number of counterparts, each of which shall be
an original, with the same effect as if the signature thereto and hereto were upon the same
instrument.

[Signature Pages Follow]

 

- 3-

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date set forth
above.

	 	 	 	 	 	 	 	 	 
	 	 	BLACKSTONE CAPITAL PARTNERS IV L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Blackstone Management Associates IV 

L.L.C.,
its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John A. Magliano	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John A. Magliano	 	 
	 

	 	 	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BLACKSTONE CAPITAL
PARTNERS IV-A L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Blackstone Management Associates IV 

L.L.C., its
General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John A. Magliano	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John A. Magliano	 	 
	 

	 	 	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BLACKSTONE FAMILY INVESTMENT 

PARTNERSHIP IV-A L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Blackstone Management Associates IV

L.L.C., its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John A. Magliano	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John A. Magliano	 	 
	 

	 	 	 	 	 	Title: Managing Director	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	BLACKSTONE PARTICIPATION 

PARTNERSHIP IV L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Blackstone Management Associates IV 

L.L.C., its
General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ John A. Magliano	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: John A. Magliano	 	 
	 

	 	 	 	 	 	Title: Managing Director	 	 

[Blackstone Signature Page to Amendment to Stockholder Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	MULBERRY HOLDINGS I, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GS Maverick Co., its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Adrian M. Jones	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Adrian M. Jones	 	 
	 

	 	 	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MULBERRY HOLDINGS II, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	GS Maverick Co., its Managing Member	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Adrian M. Jones	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Adrian M. Jones	 	 
	 

	 	 	 	 	 	Title: President	 	 

[Goldman Sachs Signature Page to Amendment to Stockholder Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	DLJ MERCHANT BANKING PARTNERS IV, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	DLJ Merchant Banking IV, L.P.,

its General Partner

By: DLJ MB, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Kenneth Lohsen	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DLJ OFFSHORE PARTNERS IV, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	DLJ Merchant Banking IV, L.P.,

its General Partner

By: DLJ MB, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Kenneth Lohsen	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	MBP IV PLAN INVESTORS, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	DLJ LBO Plans Management, LLC,

its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Kenneth Lohsen	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Kenneth Lohsen	 	 
	 

	 	 	 	 	 	Title: President	 	 

[DLJ Signature Page to Amendment to Stockholder Agreement]

 

 

 

	 	 	 	 	 	 	 	 	 
	 	 	CSFB STRATEGIC PARTNERS HOLDINGS III, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	CSFB Strategic Associates, III, L.P.,

its General Partner

By: DLJ MB Advisors, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Verdun Perry	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Verdun Perry	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	CSFB STRATEGIC PARTNERS PARALLEL HOLDINGS III, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	CSFB Strategic Associates III, L.P.,

its General Partner

By: DLJ MB Advisors, LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Verdun Perry	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Verdun Perry	 	 
	 

	 	 	 	 	 	Title: Vice President	 	 

[DLJ Signature Page to Amendment to Stockholder Agreement]exv10w1

EXHIBIT 10.1

SECOND AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT

dated as of May 31, 2011

between

ANIXTER INC.,

as Seller

AND

ANIXTER RECEIVABLES CORPORATION,

as Buyer

 

 

	 	 	 	 	 

	ARTICLE I AMOUNTS AND TERMS
	 	 	2	 
	Section 1.1 Purchase of Receivables
	 	 	2	 
	Section 1.2 Payment for the Purchase
	 	 	3	 
	Section 1.3 Purchase Price Credit Adjustments
	 	 	5	 
	Section 1.4 Payments and Computations, Etc.
	 	 	6	 
	Section 1.5 Transfer of Records
	 	 	6	 
	Section 1.6 Characterization
	 	 	6	 
	ARTICLE II REPRESENTATIONS AND WARRANTIES
	 	 	7	 
	Section 2.1 Representations and Warranties of Seller
	 	 	7	 
	ARTICLE III CONDITIONS OF PURCHASE
	 	 	10	 
	Section 3.1 Conditions Precedent to Purchase
	 	 	10	 
	Section 3.2 Conditions Precedent to Subsequent Payments
	 	 	11	 
	ARTICLE IV COVENANTS
	 	 	11	 
	Section 4.1 Affirmative Covenants of Seller
	 	 	11	 
	Section 4.2 Negative Covenants of Seller
	 	 	16	 
	ARTICLE V AMORTIZATION EVENTS
	 	 	18	 
	Section 5.1 Amortization Events
	 	 	18	 
	Section 5.2 Remedies
	 	 	19	 
	ARTICLE VI INDEMNIFICATION
	 	 	19	 
	Section 6.1 Indemnities by Seller
	 	 	19	 
	Section 6.2 Other Costs and Expenses
	 	 	21	 
	ARTICLE VII MISCELLANEOUS
	 	 	22	 
	Section 7.1 Waivers and Amendments
	 	 	22	 
	Section 7.2 Notices
	 	 	22	 
	Section 7.3 Protection of Ownership Interests of Buyer
	 	 	22	 
	Section 7.4 Confidentiality
	 	 	23	 
	Section 7.5 Bankruptcy Petition
	 	 	24	 
	Section 7.6 CHOICE OF LAW
	 	 	24	 
	Section 7.7 CONSENT TO JURISDICTION
	 	 	24	 
	Section 7.8 WAIVER OF JURY TRIAL
	 	 	24	 
	Section 7.9 Integration; Binding Effect; Survival of Terms
	 	 	24	 
	Section 7.10 Counterparts; Severability; Section References
	 	 	25	 

i

 

Exhibits and Schedules

	 	 	 

	EXHIBIT I

	 	Definitions
	 
	 	 
	EXHIBIT II

	 	Principal Place of Business; Location(s) of Records; Federal
Employer Identification Number; Other Names; State of
Incorporation; Organizational Identification Number
	 
	 	 
	EXHIBIT III

	 	Lock-Boxes; Collection Accounts; Collection Banks
	 
	 	 
	EXHIBIT IV

	 	Form of Compliance Certificate
	 
	 	 
	EXHIBIT V

	 	Credit and Collection Policy
	 
	 	 
	EXHIBIT VI

	 	Copy of Subscription Agreement
	 
	 	 
	EXHIBIT VII

	 	Form of Second Amended and Restated Subordinated Note
	 
	 	 
	SCHEDULE A

	 	List of Documents to Be Delivered to Buyer

ii

 

SECOND AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT

          THIS SECOND AMENDED AND RESTATED RECEIVABLES SALE AGREEMENT, dated as of May 31, 2011, is by
and between ANIXTER INC., a Delaware corporation, (“ Seller”), and ANIXTER RECEIVABLES
CORPORATION, a Delaware corporation (“ Buyer”). Unless defined elsewhere herein,
capitalized terms used in this Agreement shall have the meanings assigned to such terms in
Exhibit I.

PRELIMINARY STATEMENTS

          Reference is hereby made to that certain Amended and Restated Receivables Sale Agreement dated
as of October 3, 2002 by and between Seller and Buyer (the “ Earlier Receivables Sale
Agreement”).

          Seller and Buyer have agreed to amend and restate the Earlier Receivables Sale Agreement on
the terms and subject to the conditions set forth herein.

          Seller now owns, and from time to time hereafter will own, Receivables (including Receivables
transferred pursuant to the Accu-Tech Transfer Agreement). Seller wishes to sell and assign to
Buyer, and Buyer wishes to purchase from Seller, all of Seller’s right, title and interest in and
to such Receivables, together with the Related Security and Collections with respect thereto.

          Seller and Buyer intend the transactions contemplated hereby to be true sales of the
Receivables from Seller to Buyer, providing Buyer with the full benefits of ownership of the
Receivables, and Seller and Buyer do not intend these transactions to be, or for any purpose to be
characterized as, loans from Buyer to Seller.

          Following the purchase of Receivables from Seller, Buyer will sell undivided interests therein
and in the associated Related Security and Collections pursuant to that certain Second Amended and
Restated Receivables Purchase Agreement dated as of May 31, 2011 (as the same may from time to time
hereafter be amended, supplemented, restated or otherwise modified, the “ Purchase
Agreement”) among Buyer, Seller, as Servicer, Falcon Asset Securitization Company LLC and Three
Pillars Funding LLC, as Conduit Purchasers, the financial institutions from time to time party
thereto (“ Financial Institutions” and, together with the Conduit Purchasers, the
” Purchasers”), JPMorgan Chase Bank, N.A. (“ JPMCB”) and SunTrust Robinson Humphrey,
Inc., as managing agents (collectively, the “ Managing Agents”)

 

 

and JPMCB, or any successor agent appointed pursuant to the terms of the Purchase Agreement,
as agent for the Purchasers (in such capacity, the “ Agent”).

ARTICLE I

AMOUNTS AND TERMS

     Section 1.1 Purchase of Receivables.

          (a) Pursuant to the Earlier Receivables Sale Agreement, Seller has sold to Buyer, without
recourse (except to the extent expressly provided therein), all of Seller’s right, title and
interest in and to all Receivables existing as of the close of business on the day immediately
prior to the closing date of the Earlier Receivables Sale Agreement and all Receivables arising
thereafter, in each case, with all Related Security relating thereto and all Collections thereof.
Seller and Buyer hereby reaffirm that purchase and sale, and, in consideration for the Purchase
Price and upon the terms and subject to the conditions set forth herein, Seller does hereby sell,
assign, transfer, set-over and otherwise convey to Buyer, without recourse (except to the extent
expressly provided herein), and Buyer does hereby purchase from Seller, all of Seller’s right,
title and interest in and to all Receivables existing today and hereafter arising through and
including the Amortization Date, together with all Related Security relating thereto and all
Collections thereof; provided that Buyer shall be obligated to pay the Purchase
Price therefor in accordance with Section 1.2. In connection with the payment of the
Purchase Price for any Receivables purchased hereunder, Buyer may request that Seller deliver, and
Seller shall deliver, such approvals, opinions, information, reports or documents as Buyer may
reasonably request.

          (b) It is the intention of the parties hereto that the Purchase of Receivables made hereunder
shall constitute a “sale of accounts” (as such term is used in Article 9 of the UCC), which sale is
absolute and irrevocable and provides Buyer with the full benefits of ownership of the Receivables.
Except for the Purchase Price Credits owed pursuant to Section 1.3, the sale of
Receivables hereunder is made without recourse to Seller; provided, however, that
(i) Seller shall be liable to Buyer for all representations, warranties and covenants made by
Seller pursuant to the terms of the Transaction Documents to which Seller is a party, and (ii) such
sale does not constitute and is not intended to result in an assumption by Buyer or any assignee
thereof of any obligation of Seller or any other Person arising in connection with the Receivables,
the related Contracts and/or other Related Security or any other obligations of Seller. In view of
the intention of the parties hereto that the Purchase of Receivables made hereunder shall
constitute a sale of such Receivables rather than loans secured thereby, Seller agrees that it
will, on or prior to the date hereof and in accordance with Section 4.1(e)(ii), cause all
Receivable reports relating to the Receivables to bear a legend acceptable to Buyer and to the
Agent or any Managing Agent, as Buyer’s assignees, evidencing that Buyer has purchased such
Receivables as provided in this Agreement and note in its financial statements that its Receivables
have been sold to Buyer. Upon the request of Buyer or the Agent or any Managing

2

 

Agent, as Buyer’s assignees, Seller will execute and file such financing or continuation
statements, or amendments thereto or assignments thereof, and such other instruments or notices, as
may be necessary or appropriate to perfect and maintain the perfection of Buyer’s ownership
interest in the Receivables and the Related Security and Collections with respect thereto, or as
Buyer or the Agent or any Managing Agent, as Buyer’s assignees, may reasonably request.

     Section 1.2 Payment for the Purchase.

          (a) The Purchase Price for each Receivable coming into existence after the date hereof shall
be due and owing in full by Buyer to Seller or its designee on the date each such Receivable came
into existence (except that Buyer may, with respect to any such Purchase Price, offset against such
Purchase Price any amounts owed by Seller to Buyer hereunder and which have become due but remain
unpaid) and shall be paid to Seller in the manner provided in the following paragraphs (b), (c),
(d) and (e).

          (b) With respect to any Receivables coming into existence after the date hereof, on each
Settlement Date, Buyer shall pay the Purchase Price therefor in accordance with Section
1.2(d) and (e) and in the following manner:

          (i) first, by delivery of immediately available funds, to the extent of funds
available to Buyer from (i) its subsequent sale of an interest in the Receivables to each
Managing Agent for the benefit of the Purchasers under the Purchase Agreement, (ii)
Collections arising from any Receivables previously sold to Buyer in which Buyer has
retained an interest, or (iii) other cash on hand;

          (ii) second, by delivery of the proceeds of a subordinated revolving loan from
Seller to Buyer (a “ Subordinated Loan”), provided that the making of any
such Subordinated Loan shall be subject to the provisions set forth in below; and

          (iii) third, unless the Seller has declared the Amortization Date to have
occurred pursuant to Section 5.2, by accepting a contribution to its capital
pursuant to the Subscription Agreement in an amount equal to the remaining unpaid balance of
such Purchase Price.

The maximum amount of any Subordinated Loan that can be borrowed by Buyer pursuant to clause (ii)
above is limited to the maximum Subordinated Loan that could be borrowed without rendering Buyer’s
Net Worth less than the Required Capital Amount. The Seller is hereby authorized by Buyer to
endorse on the schedule attached to the Subordinated Note an appropriate notation evidencing the
date and amount of each advance thereunder, as well as the date of each payment with respect
thereto, provided that the failure to make such notation shall not affect any obligation of Buyer
thereunder. Subject to the limitations set forth in the second preceding sentence, Seller
irrevocably agrees to advance each Subordinated Loan requested by Buyer on or

3

 

prior to the Amortization Date. The Subordinated Loans shall be evidenced by, and shall be payable
in accordance with the terms and provisions of the Subordinated Note and shall be payable solely
from funds which Buyer is not required under the Purchase Agreement to set aside for the benefit
of, or otherwise pay over to, the Purchasers, the Agent, the Managing Agents or any other Person
then entitled to any amounts as specified in the Purchase Agreement.

          (c) From and after the Amortization Date, Seller shall not sell Receivables to Buyer.

          (d) On each day prior to the Amortization Date (unless Buyer or the Agent shall otherwise
direct), Buyer may permit any Originator to retain all or a specified portion of the Collections
received in respect of Receivables theretofore transferred by the Seller to Buyer hereunder, it
being understood that in the event Buyer shall have sold, assigned or otherwise transferred an
interest in such Receivables to the Agent for the benefit of the Purchasers under the Purchase
Agreement, such Collections in the possession of such Originator or Buyer are made available to
Buyer at the discretion of the Agent and the Managing Agents. Any such Collections so retained by
any Originator (“ Applied Collections”) shall, on and as of the date of receipt thereof, be
(i) deemed applied toward the Purchase Price of any Receivables of such Originator arising on such
date and then being transferred to Buyer pursuant to the terms hereof, to the extent of any such
Purchase Price, (ii) then, in respect of any balance remaining, deemed applied toward the Purchase
Price of any other Receivables of such Originator arising during such Accrual Period and in respect
of which the Purchase Price shall not theretofore have been paid, to the extent of any such
Purchase Price, and (iii) in respect of any balance remaining, held in trust by such Originator for
the benefit of Buyer until the earlier to occur of (A) application toward the Purchase Price for
any Purchase occurring on any later date and (B) the next following Settlement Date, in which case
such amount shall be remitted to Buyer.

          (e) Although the Purchase Price for each Receivable coming into existence after the date
hereof shall be due and payable in full by Buyer to Seller on the date such Receivable came into
existence, and payment of such Purchase Price shall be made from Applied Collections, to the extent
available, as provided in Section 1.2(d), final settlement of the Purchase Price between
Buyer and Seller shall be effected on a monthly basis on Settlement Dates with respect to all
Receivables coming into existence during the same Calculation Period and based on the information
contained in the Monthly Report delivered by the Servicer pursuant to Article VIII of the
Purchase Agreement for the Calculation Period then most recently ended. On each Settlement Date,
Buyer and Seller shall cause a reconciliation to be made in respect of all Purchases that shall
have been made during the Calculation Period then most recently ended. To the extent that the
aggregate amount of Applied Collections retained by Seller during such Calculation Period shall
have been less than the aggregate Purchase Price in respect of all Purchases made by Buyer from
Seller during such month, Buyer shall pay the balance due in respect of such aggregate Purchase
Price in the manner described in Section 1.2(a). To the extent that the aggregate amount
of Applied Collections retained by Seller during such

4

 

Calculation Period shall have been greater than the aggregate Purchase Price in respect of all
Purchases made by Buyer from Seller during such Calculation Period, Seller shall turn over such
excess to Buyer either by remitting such excess in immediately available funds to Buyer or by
directing that a reduction in the outstanding balance of the Subordinated Loan occur in an amount
equal to such excess, or a combination of both. Although settlement shall be effected on
Settlement Dates, increases or decreases in the amount owing under the Subordinated Note made
pursuant to Section 1.2(b) and any contribution of capital by Seller to Buyer made pursuant
to Section 1.2(b) shall be deemed to have occurred and shall be effective as of the last
Business Day of the Calculation Period to which such settlement relates.

          (f) At all times prior to the occurrence of the Amortization Date, notwithstanding any delay
in the making of any payment of the Purchase Price in respect of any Purchase, all right, title and
interest of Seller in and to each Receivable shall be sold, assigned and otherwise transferred to
Buyer effective immediately and automatically upon the creation of such Receivable, without any
further action of any type or kind being required on the part of any Person. The monthly
settlement and reconciliation contemplated in this Section 1.2 has been devised solely for
the administrative convenience of the parties hereto. Buyer and Seller may at any time, as may
agreed between themselves, elect to effect settlement and reconciliation on a more (but not less)
frequent basis.

     Section 1.3 Purchase Price Credit Adjustments. If on any day:

          (a) the Outstanding Balance of a Receivable is:

          (i) reduced as a result of any defective or rejected goods or services, any discount or
any adjustment or otherwise by any Originator (other than cash Collections on account of the
Receivables or as a result of the insolvency, bankruptcy or lack of creditworthiness of the
relevant Obligor); or

          (ii) reduced or canceled as a result of a setoff in respect of any claim by any Person
(whether such claim arises out of the same or a related transaction or an unrelated
transaction); or

          (b) any of the representations and warranties set forth in paragraphs (i) and
(s) of Section 2.1 are no longer true with respect to any Receivable;

then, in such event, Buyer shall be entitled to a credit (each, a “ Purchase Price Credit”)
against the Purchase Price otherwise payable hereunder equal to the Outstanding Balance of such
Receivable. If such Purchase Price Credit exceeds the Original Balance of the Receivables coming
into existence on any day, then Seller shall pay the remaining amount of such Purchase Price Credit
in cash within three (3) Business Days thereafter, provided that if the
Amortization Date has not occurred, Seller shall be allowed to deduct the remaining amount of such
Purchase

5

 

Price Credit from any indebtedness owed to it under the Subordinated Note on the next Settlement
Date.

     Section 1.4 Payments and Computations, Etc. All amounts to be paid or deposited by
Buyer hereunder shall be paid or deposited in accordance with the terms hereof on the day when due
in immediately available funds to the account of Seller designated from time to time by Seller or
as otherwise directed by Seller. In the event that any payment owed by any Person hereunder
becomes due on a day that is not a Business Day, then such payment shall be made on the next
succeeding Business Day. If any Person fails to pay any amount hereunder when due, such Person
agrees to pay, on demand, the Default Fee in respect thereof until paid in full; provided,
however, that such Default Fee shall not at any time exceed the maximum rate permitted by
applicable law. All computations of interest payable hereunder shall be made on the basis of a
year of 360 days for the actual number of days (including the first but excluding the last day)
elapsed.

     Section 1.5 Transfer of Records.

          (a) In connection with the Purchase of Receivables hereunder, Seller hereby sells, transfers,
assigns and otherwise conveys to Buyer all of Seller’s right and title to and interest in the
Records relating to all Receivables sold hereunder, without the need for any further documentation
in connection with the Purchase. In connection with such transfer, Seller hereby grants to each of
Buyer, the Agent and the Servicer, an irrevocable, non-exclusive license to use, without royalty or
payment of any kind, all software used by Seller to account for the Receivables, to the extent
necessary to administer the Receivables, whether such software is owned by Seller or is owned by
others and used by Seller under license agreements with respect thereto, provided
that should the consent of any licensor of Seller to such grant of the license described
herein be required, Seller hereby agrees that upon the request of Buyer (or the Agent or any
Managing Agent as Buyer’s assignees), Seller will use its reasonable efforts to obtain the consent
of such third-party licensor. The license granted hereby shall be irrevocable, and shall terminate
on the date this Agreement terminates in accordance with its terms.

          (b) Seller (i) shall take such action requested by Buyer (or the Agent or any Managing Agent
as Buyer’s assignees), from time to time hereafter, that may be necessary or appropriate to ensure
that Buyer and its assigns under the Purchase Agreement have an enforceable ownership interest in
the Records relating to the Receivables purchased from Seller hereunder, and (ii) shall use its
reasonable efforts to ensure that each of the Buyer, the Agent and the Servicer has an enforceable
right (whether by license, sublicense or otherwise) to use all of the computer software used by
Seller to account for the Receivables and/or to recreate such Records.

     Section 1.6 Characterization. If, notwithstanding the intention of the parties
expressed in Section 1.1(b), any sale or contribution by Seller to Buyer of Receivables
hereunder

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shall be characterized as a secured loan and not a sale or such sale shall for any reason be
ineffective or unenforceable (any of the foregoing being a “ Recharacterization”), then this
Agreement shall be deemed to constitute a security agreement under the UCC and other applicable
law. For this purpose and without being in derogation of the parties’ intention that the sale of
Receivables hereunder shall constitute a true sale thereof, Seller hereby grants to Buyer a duly
perfected security interest in all of Seller’s right, title and interest in, to and under all
Receivables now existing and hereafter arising, all Collections, Related Security and Records with
respect thereto, each Lock-Box and Collection Account and all proceeds of the foregoing, which
security interest shall be prior to all other Adverse Claims thereto. After the occurrence of an
Amortization Event, Buyer and its assigns shall have, in addition to the rights and remedies which
they may have under this Agreement, all other rights and remedies provided to a secured creditor
after default under the UCC and other applicable law, which rights and remedies shall be
cumulative. In the case of any Recharacterization, each of the Seller and the Buyer represents and
warrants as to itself that each remittance of Collections by the Seller to the Buyer hereunder will
have been (i) in payment of a debt incurred by the Seller in the ordinary course of business or
financial affairs of the Seller and the Buyer and (ii) made in the ordinary course of business or
financial affairs of the Seller and the Buyer.

ARTICLE II

REPRESENTATIONS AND WARRANTIES

     Section 2.1 Representations and Warranties of Seller. Seller hereby represents and
warrants to Buyer, as of the date hereof and as of the date of each purchase hereunder, that:

          (a) Corporate Existence and Power. Seller is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware, is a “registered
organization” as defined in the UCC in such jurisdiction, and is duly qualified to do business and
is in good standing as a foreign corporation, and has and holds all corporate power and all
governmental licenses, authorizations, consents and approvals required to carry on its business in
each jurisdiction in which its business is conducted, except where the failure to so qualify could
not reasonably be expected to have a Material Adverse Effect.

          (b) Power and Authority; Due Authorization Execution and Delivery. The execution and
delivery by Seller of this Agreement and each other Transaction Document to which it is a party,
and the performance of its obligations hereunder and thereunder and, Seller’s use of the proceeds
of the Purchase made hereunder, are within its corporate powers and authority and have been duly
authorized by all necessary corporate action on its part. This Agreement and each other
Transaction Document to which Seller is a party has been duly executed and delivered by Seller.

          (c) No Conflict. The execution and delivery by Seller of this Agreement and each
other Transaction Document to which it is a party, and the performance of its obligations

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hereunder and thereunder do not contravene or violate (i) its certificate or articles of
incorporation or by-laws, (ii) any law, rule or regulation applicable to it, (iii) any restrictions
under any agreement, contract or instrument to which it is a party or by which it or any of its
property is bound, or (iv) any order, writ, judgment, award, injunction or decree binding on or
affecting it or its property, and do not result in the creation or imposition of any Adverse Claim
on assets of Seller or its Subsidiaries (except as created hereunder), except, in any case, where
such contravention or violation could not reasonably be expected to have a Material Adverse Effect;
and no transaction contemplated hereby requires compliance with any bulk sales act or similar law.

          (d) Governmental Authorization. Other than the filing of the financing statements
required hereunder, no authorization or approval or other action by, and no notice to or filing
with, any governmental authority or regulatory body is required for the due execution and delivery
by Seller of this Agreement and each other Transaction Document to which it is a party and the
performance of its obligations hereunder and thereunder.

          (e) Actions, Suits. There are no actions, suits or proceedings pending, or to the
best of Seller’s knowledge, threatened, against or affecting Seller, or any of its properties, in
or before any court, arbitrator or other body, that could reasonably be expected to have a Material
Adverse Effect. Seller is not in default with respect to any order of any court, arbitrator or
governmental body, which defaults, individually or in the aggregate could reasonably be expected to
have a Material Adverse Effect.

          (f) Binding Effect. This Agreement and each other Transaction Document to which
Seller is a party constitute the legal, valid and binding obligations of Seller enforceable against
Seller in accordance with their respective terms, except as such enforcement may be limited by
applicable bankruptcy, insolvency, reorganization or other similar laws relating to or limiting
creditors’ rights generally and by general principles of equity (regardless of whether enforcement
is sought in a proceeding in equity or at law).

          (g) Accuracy of Information. All information heretofore furnished by Seller or any of
its Affiliates to Buyer (or to the Agent or any Managing Agent, as Buyer’s assignees) for purposes
of or in connection with this Agreement, any of the other Transaction Documents or any transaction
contemplated hereby or thereby is, and all such information hereafter furnished by Seller or any of
its Affiliates to Buyer (or to the Agent or any Managing Agent, as Buyer’s assignees) will be, true
and accurate in every material respect on the date such information is stated or certified and does
not and will not contain any material misstatement of fact or omit to state a material fact or any
fact necessary to make the statements contained therein not misleading.

          (h) Use of Proceeds. No proceeds of the Purchase hereunder will be used (i) for a
purpose that violates, or would be inconsistent with, Regulations T, U or X promulgated by

8

 

the Board of Governors of the Federal Reserve System from time to time or (ii) to acquire any
security in any transaction which is subject to Section 13 or 14 of the Securities
Exchange Act of 1934, as amended.

          (i) Good Title. Immediately prior to each purchase of a Receivable hereunder, Seller
shall be the legal and beneficial owner of each such Receivable and Related Security with respect
thereto, free and clear of any Adverse Claim, except as created by the Transaction Documents.

          (j) Perfection. This Agreement, together with the filing of the financing statements
contemplated hereby, is effective to transfer to Buyer (and Buyer shall acquire from Seller) legal
and equitable title to, with the right to sell and encumber each Receivable existing and hereafter
arising, together with the Related Security and Collections with respect thereto, free and clear of
any Adverse Claim, except as created by the Transactions Documents. There have been duly filed all
financing statements or other similar instruments or documents necessary under the UCC (or any
comparable law) of all appropriate jurisdictions to perfect Buyer’s ownership interest in the
Receivables, the Related Security and the Collections.

          (k) Places of Business. The principal places of business and chief executive office
of Seller and the offices where it keeps all of its Records are located at the address(es) listed
on Exhibit II or such other locations of which Buyer has been notified in accordance with
Section 4.2(a) in jurisdictions where all action required by Section 4.2(a) has
been taken and completed. Seller’s state of organization, organizational identification number (if
any), and Federal Employer Identification Number are correctly set forth on Exhibit II.

          (l) Collections. The conditions and requirements set forth in Section 4.1(j) have at
all times been satisfied and duly performed. The names and addresses of all Collection Banks,
together with the account numbers of the Collection Accounts of Seller at each Collection Bank and
the post office box number of each Lock-Box, are listed on Exhibit III.

          (m) Material Adverse Effect. Since December 31, 2010 no event has occurred that would
have a Material Adverse Effect.

          (n) Names. Except for those listed on Exhibit II, in the past five (5)
years, Seller has not used any corporate names, trade names or assumed names other than the name in
which it has executed this Agreement.

          (o) Ownership of Buyer. Seller owns, directly or indirectly, 100% of the issued and
outstanding capital stock of Buyer, free and clear of any Adverse Claim. Such capital stock is
validly issued, fully paid and nonassessable, and there are no options, warrants or other rights to
acquire securities of Buyer.

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          (p) Not an Investment Company. Seller is not an “ investment company” within
the meaning of the Investment Company Act of 1940, as amended, or any successor statute.

          (q) Compliance with Law. Seller has complied in all respects with all applicable
laws, rules, regulations, orders, writs, judgments, injunctions, decrees or awards to which it may
be subject, except where the failure to so comply could not reasonably be expected to have a
Material Adverse Effect. Each Receivable, together with the Contract related thereto, does not
contravene any laws, rules or regulations applicable thereto (including, without limitation, laws,
rules and regulations relating to truth in lending, fair credit billing, fair credit reporting,
equal credit opportunity, fair debt collection practices and privacy), and no part of such Contract
is in violation of any such law, rule or regulation, except where such contravention or violation
could not reasonably be expected to have a Material Adverse Effect.

          (r) Compliance with Credit and Collection Policy. Seller has complied in all material
respects with the Credit and Collection Policy with regard to each Receivable and the related
Contract, and has not made any change to such Credit and Collection Policy except such material
change as to which the Agent has been notified in accordance with Section 4.1(a)(vii).

          (s) Enforceability of Contracts. Each Contract with respect to each Receivable is
effective to create, and has created, a legal, valid and binding obligation of the related Obligor
to pay the Outstanding Balance of the Receivable created thereunder and any accrued interest
thereon, enforceable against the Obligor in accordance with its terms, except as such enforcement
may be limited by applicable bankruptcy, insolvency, reorganization or other similar laws relating
to or limiting creditors’ rights generally and by general principles of equity (regardless of
whether enforcement is sought in a proceeding in equity or at law).

          (t) Eligible Receivables. As of the date of this Agreement, each Receivable included
in the Net Receivables Balance under the Earlier Agreement is an “Eligible Receivable” as defined
under the Purchase Agreement as of the date of this Agreement. Each Receivable included in the Net
Receivables Balance as an Eligible Receivable on the date it came into existence was an Eligible
Receivable on such date.

          (u) Accounting. The manner in which Seller accounts for the transactions contemplated
by this Agreement does not jeopardize the true sale analysis.

ARTICLE III

CONDITIONS OF PURCHASE

     Section 3.1 Conditions Precedent to Purchase. The effectiveness of this Agreement is
subject to the condition precedent that Buyer shall have received on or before the date of such
purchase those documents listed on Schedule A.

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     Section 3.2 Conditions Precedent to Subsequent Payments. Buyer’s obligation to pay
for Receivables coming into existence after the date hereof shall be subject to the further
conditions precedent that (a) the Facility Termination Date shall not have occurred; and (b) Buyer
shall have received such other approvals, opinions or documents as it may reasonably request.
Seller represents and warrants that the representations and warranties set forth in Article
II are true and correct on and as of the date each Receivable came into existence as though
made on and as of such date.

ARTICLE IV

COVENANTS

     Section 4.1 Affirmative Covenants of Seller. Until the date on which this Agreement
terminates in accordance with its terms, Seller hereby covenants as set forth below:

          (a) Financial Reporting. Seller will maintain, for itself and each of its
Subsidiaries, a system of accounting established and administered in accordance with generally
accepted accounting principles, and furnish to Buyer (and to the Agent and each Managing Agent, as
Buyer’s assignees):

          (i) Annual Reporting. Within 90 days after the close of each of its respective
fiscal years, audited financial statements (which shall include balance sheets, statements
of income and retained earnings and a statement of cash flows) for Seller for such fiscal
year certified in a manner acceptable to Buyer (and to the Agent and the Managing Agents, as
Buyer’s assignees) by Ernst & Young or other independent public accountants of recognized
national standing.

          (ii) Quarterly Reporting. Within 45 days after the close of the first three
(3) quarterly periods of each of its respective fiscal years, balance sheets of Seller as at
the close of each such period and statements of income and retained earnings and a statement
of cash flows for Seller for the period from the beginning of such fiscal year to the end of
such quarter, all certified by its chief financial officer or treasurer.

          (iii) Compliance Certificate. Together with the financial statements required
hereunder, a compliance certificate in substantially the form of Exhibit IV signed
by Seller’s Authorized Officer on behalf of Seller and dated the date of such annual
financial statement or such quarterly financial statement, as the case may be.

          (iv) Shareholders Statements and Reports. Promptly upon the furnishing thereof
to the shareholders of Seller copies of all financial statements, reports and proxy
statements so furnished.

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          (v) S.E.C. Filings. Promptly upon the filing thereof, copies of all
registration statements and annual, quarterly, monthly or other regular reports which Seller
or any of its Subsidiaries files with the Securities and Exchange Commission.

          (vi) Copies of Notices. Promptly upon its receipt of any notice, request for
consent, financial statements, certification, report or other communication under or in
connection with any Transaction Document from any Person other than Buyer, the Agent, the
Managing Agents or the Purchasers, copies of the same.

          (vii) Change in Credit and Collection Policy. At least thirty (30) days prior
to the effectiveness of any material change in or material amendment to the Credit and
Collection Policy, a notice (A) indicating such change or amendment, and (B) if such
proposed change or amendment would be reasonably likely to adversely affect the
collectibility of the Receivables or decrease the credit quality of any newly created
Receivables, requesting the consent of each Managing Agent thereto; provided that if such
change or amendment was required pursuant to any change in any applicable law, rule or
regulation, the Seller shall only be required to give notice of such change or amendment and
shall not be required to request the consent of the Managing Agents.

          (viii) Other Information. Promptly, from time to time, such other information,
documents, records or reports relating to the Receivables or the condition or operations,
financial or otherwise, of Seller as Buyer (or the Agent or any Managing Agent, as Buyer’s
assignees) may from time to time reasonably request in order to protect the interests of
Buyer (and its assigns) under or as contemplated by this Agreement.

          (b) Notices. Seller will notify the Buyer (and the Agent and each Managing Agent, as
Buyer’s assignees) in writing of any of the following promptly upon learning of the occurrence
thereof, describing the same and, if applicable, the steps being taken with respect thereto:

          (i) Amortization Events or Potential Amortization Events. The occurrence of
each Amortization Event and each Potential Amortization Event, by a statement of an
Authorized Officer of Seller.

          (ii) Judgment and Proceedings. (A) The entry of any judgment or decree against
Seller or any of its Subsidiaries if the aggregate amount of all judgments and decrees then
outstanding against Seller and its Subsidiaries exceeds $25,000,000, or (B) the institution
of any litigation, arbitration proceeding or governmental proceeding against Seller, which
individually or in the aggregate could reasonably be expected to have a Material Adverse
Effect, or which seeks to enjoin performance of or otherwise relates to the Transaction
Documents.

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          (iii) Material Adverse Effect. The occurrence of any event or condition that
has, or could reasonably be expected to have, a Material Adverse Effect.

          (iv) Defaults Under Other Agreements. The occurrence of a default or an event
of default under any other financing arrangement or arrangements governing indebtedness,
individually or in the aggregate for all such arrangements, in a principal amount greater
than or equal to $50,000,000, pursuant to which Seller is a debtor or an obligor.

          (v) Downgrade of the Seller. Any downgrade in the rating of any Indebtedness
of the Seller by Standard and Poor’s Ratings Group or by Moody’s Investors Service, Inc.,
setting forth the Indebtedness affected and the nature of such change.

          (c) Compliance with Laws and Preservation of Corporate Existence. Seller will comply
in all respects with all applicable laws, rules, regulations, orders, writs, judgments,
injunctions, decrees or awards to which it may be subject except where the failure to comply could
not reasonably be expected to have a Material Adverse Effect. Seller will preserve and maintain
its corporate existence, rights, franchises and privileges in the jurisdiction of its
incorporation, and qualify and remain qualified in good standing as a foreign corporation in each
jurisdiction where its business is conducted, except where the failure to maintain or qualify could
not reasonably be expected to have a Material Adverse Effect.

          (d) Audits. Seller will furnish to Buyer (and the Agent and each Managing Agent, as
Buyer’s assignees) from time to time such information with respect to it and the Receivables as
Buyer (or the Agent or any Managing Agent, as Buyer’s assignees) may reasonably request. Seller
will, from time to time during regular business hours as requested by Buyer (or the Agent or any
Managing Agent, as Buyer’s assignees), upon reasonable notice and at the sole cost of Seller except
as provided below, permit Buyer (or the Agent or any Managing Agent, as Buyer’s assignees) or their
respective agents or representatives (and shall cause each other Originator to permit Buyer (or the
Agent or any Managing Agent, as Buyer’s assignees) or their respective agents or representatives),
(i) to examine and make copies of and abstracts from all Records in the possession or under the
control of such Person relating to the Receivables and the Related Security, including, without
limitation, the related Contracts, and (ii) to visit the offices and properties of such Person for
the purpose of examining such materials described in clause (i) above, and to discuss matters
relating to such Person’s financial condition or the Receivables and the Related Security or such
Person’s performance under any of the Transaction Documents or such Person’s performance under the
Contracts and, in each case, with any of the officers or employees of such Person having knowledge
of such matters. So long as no Potential Amortization Event or Amortization Event exists, the
visits under this Section 4.1(d) that are at the sole cost of the Seller and that are
requested by the Agent or any Managing Agent shall be limited to one per calendar year.

13

 

          (e) Keeping and Marking of Records and Books.

          (i) Seller will (and will cause each other Originator to) maintain and implement
administrative and operating procedures (including, without limitation, an ability to
recreate records evidencing Receivables in the event of the destruction of the originals
thereof), and keep and maintain all documents, books, records and other information
reasonably necessary or advisable for the collection of all Receivables (including, without
limitation, records adequate to permit the immediate identification of each new Receivable
and all Collections of and adjustments to each existing Receivable). Seller will give Buyer
(and the Agent and each Managing Agent, as Buyer’s assignees) notice of any material change
in the administrative and operating procedures referred to in the previous sentence.

          (ii) Seller will (and will cause each other Originator to) (A) on or prior to the date
hereof, cause all reports relating to the Receivables to bear a legend, acceptable to Buyer
(and the Agent and each Managing Agent, as Buyer’s assignees), describing Buyer’s ownership
interests in the Receivables and further describing the Purchaser Interests of the
Purchasers under the Purchase Agreement and (B) from and after the occurrence of an
Amortization Event, (x) mark each Contract with a legend describing Buyer’s ownership
interests in the Receivables and further describing the Purchaser Interests of the
Purchasers and (y) deliver to Buyer (and the Agent and each Managing Agent, as Buyer’s
assignees) all Contracts (including, without limitation, all multiple originals of any such
Contract) relating to the Receivables.

          (f) Compliance with Contracts and Credit and Collection Policy. Seller will (and will
cause each other Originator to) timely and fully (i) perform and comply with all provisions,
covenants and other promises required to be observed by it under the Contracts related to the
Receivables, and (ii) comply in all respects with the Credit and Collection Policy in regard to
each Receivable and the related Contract. Seller will pay when due any taxes payable in connection
with the Receivables, exclusive of taxes on or measured by income or gross receipts of Buyer and
its assigns.

          (g) Performance and Enforcement of Transfer Agreements. Seller will and will require
each other Originator to, perform each of their respective obligations and undertakings under and
pursuant to the applicable Transfer Agreement, will purchase Receivables thereunder in strict
compliance with the terms thereof and will vigorously enforce the rights and remedies accorded to
Seller under each Transfer Agreement. Seller will take all actions to perfect and enforce its
rights and interests (and the rights and interests of Buyer as assignee of Seller) under each
Transfer Agreement as Buyer (or its assigns) may from time to time reasonably request,
including, without limitation, making claims to which it may be entitled under any
indemnity, reimbursement or similar provision contained in such Transfer Agreement. Seller will
not, and will not permit any other Originator to, amend or otherwise modify any

14

 

Transfer Agreement without the prior written consent of each Managing Agent for the benefit of
the Purchasers.

          (h) Ownership. Seller will take all necessary action to (and will cause each other
Originator to) establish and maintain, irrevocably in Buyer, legal and equitable title to the
Receivables, the Related Security and the Collections, free and clear of any Adverse Claims other
than Adverse Claims in favor of Buyer (and the Agent and each Managing Agent, as Buyer’s assignees)
(including, without limitation, the filing of all financing statements or other similar instruments
or documents necessary under the UCC (or any comparable law) of all appropriate jurisdictions to
perfect Buyer’s interest in such Receivables, Related Security and Collections and such other
action to perfect, protect or more fully evidence the interest of Buyer (and the Agent and each
Managing Agent, as Buyer’s assignees) as Buyer (or the Agent or any Managing Agent, as Buyer’s
assignees) may reasonably request).

          (i) Purchasers’ Reliance. Seller acknowledges that the Agent, the Managing Agents and
the Purchasers are entering into the transactions contemplated by the Purchase Agreement in
reliance upon Buyer’s identity as a legal entity that is separate from Seller and any Affiliates
thereof. Therefore, from and after the date of execution and delivery of this Agreement, Seller
shall take all reasonable steps including, without limitation, all steps that Buyer (or the Agent
or any Managing Agent, as Buyer’s assignees) may from time to time reasonably request to maintain
Buyer’s identity as a separate legal entity and to make it manifest to third parties that Buyer is
an entity with assets and liabilities distinct from those of Seller and any Affiliates thereof and
not just a division of Seller. Without limiting the generality of the foregoing and in addition to
the other covenants set forth herein, Seller (i) will not hold itself out to third parties as
liable for the debts of Buyer nor purport to own the Receivables and other assets acquired by Buyer
from Seller, (ii) will take all other actions necessary on its part to ensure that Buyer is at all
times in compliance with the covenants set forth in Section 7.1(i) of the Purchase
Agreement and (iii) will cause all tax liabilities arising in connection with the transactions
contemplated herein or otherwise to be allocated between Seller and Buyer on an arm’s-length basis
and in a manner consistent with the procedures set forth in U.S. Treasury Regulations
§§1.1502-33(d) and 1.1552-1.

          (j) Collections. Seller will cause (1) all proceeds from all Lock-Boxes to be
directly deposited by a Collection Bank into a Collection Account and (2) each Lock-Box and
Collection Account to be subject at all times to a Collection Account Agreement that is in full
force and effect. In the event any payments relating to Receivables are remitted directly to
Seller or any Affiliate of Seller, Seller will remit (or will cause all such payments to be
remitted) directly to a Collection Bank for deposit into a Collection Account within two (2)
Business Days following receipt thereof and, at all times prior to such remittance, Seller will
itself hold or, if applicable, will cause such payments to be held in trust for the exclusive
benefit of Buyer (and the Agent and each Managing Agent, as Buyer’s assignees). Seller will
transfer exclusive ownership, dominion and control of each Lock-Box and Collection Account to Buyer
and, will

15

 

not grant the right to take dominion and control of any Lock-Box or Collection Account at a
future time or upon the occurrence of a future event to any Person, except to Buyer (or the Agent,
as Buyer’s assignee) as contemplated by this Agreement and the Purchase Agreement. The Seller
shall instruct the Obligors with the customer prefixes SIE and SG. to pay all amounts due with
respect to their Receivables to an account which is not a Lock-Box or Collection Account.

          (k) Taxes. Seller will file all tax returns and reports required by law to be filed
by it and promptly pay all taxes and governmental charges at any time owing , except any such taxes
which are not yet delinquent or are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with generally accepted accounting
principles shall have been set aside on its books, unless the failure to make any such
payment (1) shall give rise to an immediate right to foreclosure on an Adverse Claim securing such
amounts, or (2) could reasonably be expected to have a Material Adverse Effect.

          (l) Insurance. Seller will maintain in effect, or cause to be maintained in effect,
at Seller’s own expense, such casualty and liability insurance as Seller deems appropriate in its
good faith business judgement. Seller will pay or cause to be paid, the premiums therefor and
deliver to Buyer and each Managing Agent evidence satisfactory to Buyer and each Managing Agent of
such insurance coverage. Copies of each policy shall be furnished to Buyer, each Managing Agent,
the Agent and any Purchaser in certificated form upon Buyer’s, any Managing Agent’s, the Agent’s or
such Purchaser’s request. The foregoing requirements shall not be construed to negate, reduce or
modify, and are in addition to, Seller’s obligations hereunder.

          (m) Payment to the Originators. With respect to any Receivable purchased by Seller
from any other Originator, such sale shall be effected under, and in strict compliance with the
terms of, the applicable Transfer Agreement, including, without limitation, the terms relating to
amount and timing of payments to be made to the applicable Originator in respect of the purchase
price for such Receivable.

     Section 4.2 Negative Covenants of Seller. Until the date on which this Agreement
terminates in accordance with its terms, Seller hereby covenants that:

          (a) Name Change, Offices and Records. Seller will not change its name, identity,
state of incorporation or corporate structure (within the meaning of Section 9-507(c) of
Revised Article 9 of the UCC) or relocate its chief executive office or any office where Records
are kept unless it shall have: (i) given Buyer (and the Agent and each Managing Agent, as Buyer’s
assignees) at least forty-five (45) days’ prior written notice thereof and (ii) delivered to Buyer
(and the Agent and each Managing Agent, as Buyer’s assignees) all financing statements, instruments
and other documents requested by Buyer (or the Agent or any Managing Agent, as Buyer’s assignees)
in connection with such change or relocation.

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          (b) Change in Payment Instructions to Obligors. Except as may be required by the
Agent pursuant to Section 8.2(b) of the Purchase Agreement, Seller will not add or
terminate any bank as a Collection Bank, or make any change in the instructions to Obligors
regarding payments to be made to any Lock-Box or Collection Account, unless Buyer (and the Agent
and each Managing Agent, as Buyer’s assignees) shall have received, at least ten (10) days before
the proposed effective date therefor, (i) written notice of such addition, termination or change
and (ii) with respect to the addition of a Collection Bank or a Collection Account or Lock-Box, an
executed Collection Account Agreement with respect to the new Collection Account or Lock-Box;
provided, however, that Seller may make changes in instructions to Obligors
regarding payments if such new instructions require such Obligor to make payments to another
existing Collection Account.

          (c) Modifications to Contracts and Credit and Collection Policy. Seller will not, and
will not permit any other Originator to, make any change to the Credit and Collection Policy that
could reasonably be expected to adversely affect the collectibility of the Receivables or decrease
the credit quality of any newly created Receivables unless required to do so by any applicable law,
rule or regulation. Except as otherwise permitted in its capacity as Servicer pursuant to
Section 8.2(d) of the Purchase Agreement, Seller will not, and will not permit any other
Originator to, extend, amend or otherwise modify the terms of any Receivable or any Contract
related thereto other than in accordance with the Credit and Collection Policy.

          (d) Sales, Liens. Seller will not sell, assign (by operation of law or otherwise) or
otherwise dispose of, or grant any option with respect to, or create or suffer to exist any Adverse
Claim upon (including, without limitation, the filing of any financing statement) or with respect
to, any Receivable, Related Security or Collections, or upon or with respect to any Contract under
which any Receivable arises, or any Lock-Box or Collection Account, or assign any right to receive
income with respect thereto (other than, in each case, the creation of the interests therein in
favor of Buyer provided for herein), and Seller will defend the right, title and interest of Buyer
(and the Agent and each Managing Agent, as Buyer’s assignees) in, to and under any of the foregoing
property, against all claims of third parties claiming through or under Seller or any other
Originator. Seller shall not create or suffer to exist any mortgage, pledge, security interest,
encumbrance, lien, charge or other similar arrangement on any of its inventory.

          (e) Accounting for Purchase. Seller will not, and will not permit any Affiliate to,
account for or treat (whether in financial statements or otherwise) the transactions contemplated
hereby in any manner other than the sale of the Receivables and the Related Security by Seller to
Buyer or in any other respect account for or treat the transactions contemplated hereby in any
manner other than as a sale of the Receivables and the Related Security by Seller to Buyer except
to the extent that such transactions are not recognized on account of consolidated financial
reporting in accordance with generally accepted accounting principles.

17

 

ARTICLE V

AMORTIZATION EVENTS

     Section 5.1 Amortization Events. The occurrence of any one or more of the following
events shall constitute an Amortization Event:

          (a) Seller shall fail (i) to make any payment or deposit required hereunder when due, or (ii)
to perform or observe any term, covenant or agreement hereunder (other than as referred to in
clause (i) of this paragraph (a)) or any other Transaction Document to which it is a party and such
failure shall continue for three (3) consecutive Business Days.

          (b) Any representation, warranty, certification or statement made by Seller in this Agreement,
any other Transaction Document or in any other document delivered pursuant hereto or thereto shall
prove to have been incorrect when made or deemed made; provided, however, that any
breach of the representations and warranties set forth in Sections 2.1(i), (s) or
(t) shall not constitute an Amortization Event unless such breach or breaches apply in the
aggregate to a material portion of the Receivables.

          (c) Failure of Seller to pay when due any Indebtedness having an outstanding principal balance
in excess of $50,000,000; or the default by Seller in the performance of any term, provision or
condition contained in any agreement under which any such Indebtedness was created or is governed,
the effect of which is to cause, or to permit the holder or holders of such Indebtedness to cause,
such Indebtedness to become due prior to its stated maturity; or any such Indebtedness of Seller
shall be declared to be due and payable or required to be prepaid (other than by a regularly
scheduled payment) prior to the date of maturity thereof.

          (d) (i) Seller or any of its Significant Subsidiaries shall generally not pay its debts as
such debts become due or shall admit in writing its inability to pay its debts generally or shall
make a general assignment for the benefit of creditors; or (ii) any proceeding shall be instituted
by or against Seller or any of its Significant Subsidiaries seeking to adjudicate it bankrupt or
insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment
of a receiver, trustee or other similar official for it or any substantial part of its property;
provided that in the event any such proceedings shall have been instituted against Seller or any
Significant Subsidiary, such proceedings shall have continued undismissed or unstayed and in effect
for a period of sixty (60) consecutive days or an order for relief shall have been entered in such
proceedings; or (iii) Seller or any of its Significant Subsidiaries shall take any corporate action
to authorize any of the actions set forth in the foregoing clause (i) or (ii) of this subsection
(d).

18

 

          (e) A Change of Control shall occur.

          (f) One or more final judgments for the payment of money in an amount in excess of
$25,000,000, individually or in the aggregate, shall be entered against Seller, and such judgment
shall continue unsatisfied and in effect for thirty (30) consecutive days without a stay of
execution.

     Section 5.2 Remedies. Upon the occurrence and during the continuation of an
Amortization Event, Buyer may take any of the following actions: (i) declare the Amortization Date
to have occurred, whereupon the Amortization Date shall forthwith occur, without demand, protest or
further notice of any kind, all of which are hereby expressly waived by Seller; provided,
however, that upon the occurrence of Amortization Event described in Section
5.1(d)(ii), or of an actual or deemed entry of an order for relief with respect to Seller under
the Federal Bankruptcy Code, the Amortization Date shall automatically occur, without demand,
protest or any notice of any kind, all of which are hereby expressly waived by Seller and (ii) to
the fullest extent permitted by applicable law, declare that the Default Fee shall accrue with
respect to any amounts then due and owing by Buyer to Seller. The aforementioned rights and
remedies shall be in addition to all other rights and remedies of Buyer and its assigns available
under this Agreement, by operation of law, at equity or otherwise, all of which are hereby
expressly preserved, including, without limitation, all rights and remedies provided under the UCC,
all of which rights shall be cumulative.

ARTICLE VI

INDEMNIFICATION

     Section 6.1 Indemnities by Seller. Without limiting any other rights that Buyer may
have hereunder or under applicable law, Seller hereby agrees to indemnify Buyer and its assigns,
officers, directors, agents and employees (each an “ Indemnified Party”) from and against
any and all damages, losses, claims, taxes, liabilities, costs, expenses and for all other amounts
payable, including reasonable attorneys’ fees and disbursements (all of the foregoing being
collectively referred to as “ Indemnified Amounts”) awarded against or incurred by any of
them arising out of or as a result of this Agreement or the acquisition, either directly or
indirectly, by Buyer of an interest in the Receivables, excluding, however:

          (i) Indemnified Amounts to the extent a final judgment of a court of competent
jurisdiction holds that such Indemnified Amounts resulted from gross negligence or willful
misconduct on the part of the Indemnified Party seeking indemnification;

          (ii) Indemnified Amounts to the extent the same includes losses in respect of
Receivables that are uncollectible on account of the insolvency, bankruptcy or lack of
creditworthiness of the related Obligor; or

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          (iii) taxes imposed by the jurisdiction in which such Indemnified Party’s principal
executive office is located, on or measured by the overall net income of such Indemnified
Party to the extent that the computation of such taxes is consistent with the Intended
Characterization.

          Without limiting the generality of the foregoing indemnification, Seller shall indemnify Buyer
for Indemnified Amounts relating to or resulting from:

     (1) any representation or warranty made by Seller or any other Originator (or any
officers of any such Person) under or in connection with this Agreement, any other
Transaction Document or any other information or report delivered by any such Person
pursuant hereto or thereto, which shall have been false or incorrect when made or deemed
made;

     (2) the failure by Seller or any other Originator to comply with any applicable law,
rule or regulation with respect to any Receivable or Contract related thereto, or the
nonconformity of any Receivable or Contract included therein with any such applicable law,
rule or regulation or any failure of Seller or any other Originator to keep or perform any
of its obligations, express or implied, with respect to any Contract;

     (3) any failure of Seller or any other Originator to perform its duties, covenants or
other obligations in accordance with the provisions of this Agreement or any other
Transaction Document;

     (4) any products liability, personal injury or damage suit or similar claim arising out
of or in connection with merchandise, insurance or services that are the subject of any
Contract or any Receivable;

     (5) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable (including, without limitation, a
defense based on such Receivable or the related Contract not being a legal, valid and
binding obligation of such Obligor enforceable against it in accordance with its terms), or
any other claim resulting from the sale of the merchandise or service related to such
Receivable or the furnishing or failure to furnish such merchandise or services;

     (6) the commingling of Collections of Receivables at any time with other funds;

     (7) any investigation, litigation or proceeding related to or arising from this
Agreement or any other Transaction Document, the transactions contemplated hereby or
thereby, the use of the proceeds of a Purchase, the ownership of the Receivables, or any
other investigation, litigation or proceeding relating to Buyer, Seller or any other

20

 

     Originator in which any Indemnified Party becomes involved as a result of any of the
transactions contemplated hereby;

     (8) any inability to litigate any claim against any Obligor in respect of any
Receivable as a result of such Obligor being immune from civil and commercial law and suit
on the grounds of sovereignty or otherwise from any legal action, suit or proceeding;

     (9) any Amortization Event described in Section 5.1(d);

     (10) any failure of Seller to acquire and maintain legal and equitable title to, and
ownership of any Receivable and the Related Security and Collections with respect thereto
from any other Originator, free and clear of any Adverse Claim (other than as created
hereunder); or any failure of Seller to give reasonably equivalent value to the applicable
Originator under the applicable Transfer Agreement in consideration of the transfer by the
applicable Originator of any Receivable, or any attempt by any Person to void such transfer
under statutory provisions or common law or equitable action;

     (11) any failure to vest and maintain vested in Buyer, or to transfer to Buyer, legal
and equitable title to, and ownership of, the Receivables, the Related Security and the
Collections, free and clear of any Adverse Claim;

     (12) the failure to have filed, or any delay in filing, financing statements or other
similar instruments or documents under the UCC of any applicable jurisdiction or other
applicable laws with respect to any Receivable, the Related Security and Collections with
respect thereto, and the proceeds of any thereof, whether at the time of the Purchase or at
any subsequent time;

     (13) any action or omission by Seller which reduces or impairs the rights of Buyer with
respect to any Receivable or the value of any such Receivable; and

     (14) any attempt by any Person to void any Purchase hereunder under statutory
provisions or common law or equitable action.

     Section 6.2 Other Costs and Expenses. Seller shall pay to Buyer on demand all costs
and out-of-pocket expenses in connection with the preparation, execution, delivery and
administration of this Agreement, the transactions contemplated hereby and the other documents to
be delivered hereunder. Seller shall pay to Buyer on demand any and all costs and expenses of
Buyer, if any, including reasonable counsel fees and expenses in connection with the enforcement of
this Agreement and the other documents delivered hereunder and in connection with any restructuring
or workout of this Agreement or such documents, or the administration of this Agreement following
an Amortization Event.

21

 

ARTICLE VII

MISCELLANEOUS

     Section 7.1 Waivers and Amendments. No failure or delay on the part of Buyer (or the
Agent or any Managing Agent, as Buyer’s assignees) in exercising any power, right or remedy under
this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any
such power, right or remedy preclude any other further exercise thereof or the exercise of any
other power, right or remedy. The rights and remedies herein provided shall be cumulative and
nonexclusive of any rights or remedies provided by law. Any waiver of this Agreement shall be
effective only in the specific instance and for the specific purpose for which given. No provision
of this Agreement may be amended, supplemented, modified or waived except in writing signed by
Seller and Buyer and, to the extent required under the Purchase Agreement, the Agent and the
Financial Institutions or the Required Financial Institutions.

     Section 7.2 Notices. Except as provided below, all communications and notices
provided for hereunder shall be in writing (including bank wire, telecopy or electronic facsimile
transmission or similar writing) and shall be given to the other parties hereto at their respective
addresses or telecopy numbers set forth on the signature pages hereof or at such other address or
telecopy number as such Person may hereafter specify for the purpose of notice to each of the other
parties hereto. Each such notice or other communication shall be effective (i) if given by
telecopy, upon the receipt thereof, (ii) if given by mail, three (3) Business Days after the time
such communication is deposited in the mail with first class postage prepaid or (iii) if given by
any other means, when received at the address specified in this Section 7.2.

     Section 7.3 Protection of Ownership Interests of Buyer.

          (a) Seller agrees that from time to time, at its expense, it will promptly execute and deliver
all instruments and documents, and take all actions, that may be necessary or desirable, or that
Buyer (or the Agent or any Managing Agent, as Buyer’s assignees) may request, to perfect, protect
or more fully evidence the Purchaser Interests, or to enable Buyer (or the Agent or any Managing
Agent, as Buyer’s assignees) to exercise and enforce their rights and remedies hereunder. At any
time, Buyer (or following the occurrence of an Amortization Event, the Agent, or any Managing
Agent, as Buyer’s assignees) may, at Seller’s sole cost and expense, direct Seller to notify the
Obligors of Receivables of the ownership interests of Buyer and its assigns under this Agreement
and the other Transaction Documents and may also direct that payments of all amounts due or that
become due under any or all Receivables be made directly to Buyer or its designee (or the Agent or
any Managing Agent, as Buyer’s assignee).

          (b) If Seller fails to perform any of its obligations hereunder, Buyer (or the Agent or any
Managing Agent, as Buyer’s assignees) may (but shall not be required to) perform, or cause
performance of, such obligation, and the costs and expenses incurred by Buyer (or the Agent or any
Managing Agent, as Buyer’s assignees) in connection therewith shall be payable by

22

 

Seller as provided in Section 6.2. Seller irrevocably authorizes Buyer (and the Agent
or any Managing Agent, as Buyer’s assignees) at any time and from time to time in the sole
discretion of Buyer (or the Agent or any Managing Agent, as Buyer’s assignees), and appoints Buyer
(and the Agent and each Managing Agent, as Buyer’s assignees) as its attorney(s)-in-fact, to act on
behalf of Seller (i) to execute on behalf of Seller as debtor and to file financing statements
necessary or desirable in the sole discretion of Buyer (or the Agent or any Managing Agent, as
Buyer’s assignees) to perfect and to maintain the perfection and priority of the interest of Buyer
in the Receivables and (ii) to file a carbon, photographic or other reproduction of this Agreement
or any financing statement with respect to the Receivables as a financing statement in such offices
as Buyer (or the Agent or any Managing Agent, as Buyer’s assignees) in its sole discretion deems
necessary or desirable to perfect and to maintain the perfection and priority of Buyer’s interests
in the Receivables. This appointment is coupled with an interest and is irrevocable.

     Section 7.4 Confidentiality.

          (a) Seller shall maintain and shall cause each of its employees and officers to maintain the
confidentiality of this Agreement and the other confidential proprietary information with respect
to the Agent, the Managing Agents and the Purchasers and their respective businesses obtained by it
or them in connection with the structuring, negotiating and execution of the transactions
contemplated herein, except that Seller and its officers and employees may disclose such
information to Seller’s external accountants and attorneys and as required by any applicable law or
order of any judicial or administrative proceeding.

          (b) Anything herein to the contrary notwithstanding, Seller hereby consents to the disclosure
of any nonpublic information with respect to it (i) to Buyer, the Agent, the Managing Agents or the
Purchasers by each other, (ii) by Buyer, the Agent, the Managing Agents or the Purchasers to any
prospective or actual assignee or participant of any of them or (iii) by the Agent or any Managing
Agent to any rating agency, Commercial Paper dealer or provider of a surety, guaranty or credit or
liquidity enhancement to the Conduits or any entity organized for the purpose of purchasing, or
making loans secured by, financial assets for which any of the Managing Agents acts as the
administrative agent and to any officers, directors, employees, outside accountants and attorneys
of any of the foregoing, provided that each such Person is informed of the confidential nature of
such information. In addition, the Purchasers, the Managing Agents and the Agent may disclose any
such nonpublic information pursuant to any law, rule, regulation, direction, request or order of
any judicial, administrative or regulatory authority or proceedings (whether or not having the
force or effect of law), provided that such Purchaser, Managing Agent or the Agent, as applicable,
shall, if practicable, notify Seller in advance prior to disclosure and will use reasonable efforts
to cooperate with Seller at Seller’s expense in obtaining any protective order for such
information.

23

 

     Section 7.5 Bankruptcy Petition. Seller and Buyer each hereby covenants and agrees
that, prior to the date that is one year and one day after the payment in full of all outstanding
senior Indebtedness of a Conduit, it will not institute against, or join any other Person in
instituting against, such Conduit any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings or other similar proceeding under the laws of the United States or any
state of the United States.

     Section 7.6 CHOICE OF LAW. THIS AGREEMENT SHALL BE GOVERNED AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL LAWS (INCLUDING, BUT NOT LIMITED TO, 735 ILCS SECTION 105/5-1 ET SEQ.,
BUT OTHERWISE WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS) OF THE STATE OF ILLINOIS.

     Section 7.7 CONSENT TO JURISDICTION. SELLER HEREBY IRREVOCABLY SUBMITS TO THE
NON-EXCLUSIVE JURISDICTION OF ANY UNITED STATES FEDERAL OR ILLINOIS STATE COURT SITTING IN CHICAGO,
ILLINOIS IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY DOCUMENT
EXECUTED BY SELLER PURSUANT TO THIS AGREEMENT AND SELLER 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 BUYER (OR THE AGENT OR ANY MANAGING AGENT, AS BUYER’S ASSIGNEES) TO
BRING PROCEEDINGS AGAINST SELLER IN THE COURTS OF ANY OTHER JURISDICTION. ANY JUDICIAL PROCEEDING
BY SELLER AGAINST BUYER (OR THE AGENT OR ANY MANAGING AGENT, AS BUYER’S ASSIGNEES) OR ANY AFFILIATE
THEREOF INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER IN ANY WAY ARISING OUT OF, RELATED TO, OR
CONNECTED WITH THIS AGREEMENT OR ANY DOCUMENT EXECUTED BY SELLER PURSUANT TO THIS AGREEMENT SHALL
BE BROUGHT ONLY IN A COURT IN CHICAGO, ILLINOIS.

     Section 7.8 WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES 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 AGREEMENT, ANY
DOCUMENT EXECUTED BY SELLER PURSUANT TO THIS AGREEMENT OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR
THEREUNDER.

24

 

     Section 7.9 Integration; Binding Effect; Survival of Terms.

          (a) This Agreement, the Subordinated Note, the Subscription Agreement and each Collection
Account Agreement contain the final and complete integration of all prior expressions by the
parties hereto with respect to the subject matter hereof and shall constitute the entire agreement
among the parties hereto with respect to the subject matter hereof superseding all prior oral or
written understandings.

          (b) This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns (including any trustee in bankruptcy). This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms and shall remain in full force and effect until terminated in accordance
with its terms; provided, however, that the rights and remedies with respect to (i)
any breach of any representation and warranty made by Seller pursuant to Article II, (ii)
the indemnification and payment provisions of Article VI, and (iii) Section 7.5
shall be continuing and shall survive any termination of this Agreement.

     Section 7.10 Counterparts; Severability; Section References. This Agreement may be
executed in any number of counterparts and by different parties hereto in separate counterparts,
each of which when so executed shall be deemed to be an original and all of which when taken
together shall constitute one and the same Agreement. Any provisions of this Agreement which are
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or
render unenforceable such provision in any other jurisdiction. Unless otherwise expressly
indicated, all references herein to “Article,” “Section,” “Schedule” or “Exhibit” shall mean
articles and sections of, and schedules and exhibits to, this Agreement.

25

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and delivered
by their duly authorized officers as of the date hereof.

	 	 	 	 	 
	 	ANIXTER INC.

 	 
	 	By:  	
/S/ ROD SHOEMAKER
 	 
	 	 	Name:  	Rod Shoemaker 	 
	 	 	Title:  	V.P.-Treasurer

Address:  Anixter Inc.

                 2301 Patriot Blvd

                 Glenview, IL 60026

Attn:  VP-Treasurer

Facsimile: (224) 521-8990 	 
	 
	 	

ANIXTER RECEIVABLES CORPORATION

 	 
	 	By:  	/S/ ROD SHOEMAKER
 	 
	 	 	Name:  	Rod Shoemaker 	 
	 	 	Title:  	V.P.-Treasuer

 Address:  c/o Anixter Inc.

                 2301 Patriot Blvd

                 Glenview, IL 60026

Attn: VP-Treasurer

Facsimile: (224) 521-8990 	 
	 

Signature Page

to

Second Amended and Restated Receivables Sale Agreement

 

 

Exhibit I

Definitions

          This is Exhibit I to the Agreement (as hereinafter defined). As used in the Agreement and the
Exhibits, Schedules and Annexes thereto, capitalized terms have the meanings set forth in this
Exhibit I (such meanings to be equally applicable to the singular and plural forms thereof). If a
capitalized term is used in the Agreement, or any Exhibit, Schedule or Annex thereto, and not
otherwise defined therein or in this Exhibit I, such term shall have the meaning assigned thereto
in Exhibit I to the Purchase Agreement.

          “Accu-Tech” means Accu-Tech Corporation, a Georgia corporation.

          “Accu-Tech Transfer Agreement” means that certain Receivables Transfer Agreement,
dated as of the date hereof, between Accu-Tech and Seller, as the same may be amended, restated or
otherwise modified from time to time.

          “Agent” has the meaning set forth in the Preliminary Statements to the Agreement.

          “Agreement” means this Second Amended and Restated Receivables Sale Agreement, dated
as of May 31, 2011, between Seller and Buyer, as the same may be amended, restated or otherwise
modified.

          “Amortization Date” means the earliest to occur of (i) the Facility Termination Date,
(ii) any Business Day so designated by Seller and Buyer, (iii) the Business Day immediately prior
to the occurrence of an Amortization Event set forth in Section 5.1(d), (iv) the Business
Day specified in a written notice from Buyer to Seller following the occurrence of any other
Amortization Event, and (v) the date which is thirty (30) days after Buyer’s receipt of written
notice from Seller that it wishes to terminate the facility evidenced by this Agreement.

          “Amortization Event” has the meaning set forth in Section 5.1 of the
Agreement.

          “Applied Collections” has the meaning set forth in Section 1.2(d) of the
Agreement.

          “Authorized Officer” means, with respect to Seller, its treasurer, corporate
controller, chief financial officer or any vice president.

          “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy”, as
amended, and any successor statute thereto.

 

 

          “Base Rate” means a rate per annum equal to the corporate base rate, prime rate or
base rate of interest, as applicable, announced by JPMCB from time to time, changing when and as
such rate changes.

          “Business Day” means any day on which banks are not authorized or required to close in
New York, New York or Chicago, Illinois and The Depository Trust Company of New York is open for
business.

          “Buyer” has the meaning set forth in the preamble to the Agreement.

          “Calculation Period” means each calendar month or portion thereof which elapses during
the term of the Agreement. The first Calculation Period shall commence on the date of the Purchase
of Receivables hereunder and the final Calculation Period shall terminate on the Amortization Date.

          “Change of Control” means the acquisition by any Person, or two or more Persons acting
in concert, of beneficial ownership (within the meaning of Rule 13d-3 of the Securities and
Exchange Commission under the Securities Exchange Act of 1934) of 20% or more of the outstanding
shares of voting stock of Seller.

          “Credit and Collection Policy” means (i) Seller’s credit and collection policies and
practices relating to Contracts and Receivables existing on the date hereof and (ii) Accu-Tech’s
credit and collection policies and practices relating to Contracts and Receivables existing on the
date hereof, as summarized in Exhibit V and as modified from time to time in accordance
with the Agreement.

          “Default Fee” means a per annum rate of interest equal to the sum of (i) the Base
Rate, plus (ii) 2% per annum.

          “Dilutions” means, at any time, the aggregate amount of reductions or cancellations
described in Section 1.3(a) of the Agreement.

          “Discount Factor” means a percentage calculated to provide Buyer with a reasonable
return on its investment in the Receivables after taking account of (i) the time value of money
based upon the anticipated dates of collection of the Receivables and the cost to Buyer of
financing its investment in the Receivables during such period and (ii) the risk of nonpayment by
the Obligors. Seller and Buyer may agree from time to time to change the Discount Factor based on
changes in one or more of the items affecting the calculation thereof, provided that any
change to the Discount Factor shall take effect as of the commencement of a Calculation Period,
shall apply only prospectively and shall not affect the Purchase Price payment in respect of
Purchase which occurred during any Calculation Period ending prior to the Calculation Period during
which Seller and Buyer agree to make such change.

 

 

          “Excluded Receivable” means indebtedness and other obligations owed to Seller, in
respect of: (i) all accounts receivable generated by Seller’s Latin American export locations, (ii)
all accounts receivable generated by Seller’s “Pacer”, “IMS” and “Pentacon” divisions which are
not included in Seller’s main subledger system, (iii) all accounts receivable generated by any of
Seller’s divisions which are acquired after July 24, 2009 which are not included in Seller’s main
subledger system, (iv) all accounts receivable owing by Obligors with the following customer
prefixes: N-N, NN+, SIE or SG. (in each case, as such customer prefixes are in effect or otherwise
categorized as of July 24, 2009), and thereafter, and (v) all accounts receivable existing at
Seller’s general corporate division coded WC (as such division is in effect or otherwise structured
as of July 24, 2009).

          “Intended Characterization” means, for income tax purposes, the characterization of
the acquisition by the Purchasers of Purchaser Interests under the Purchase Agreement as a loan or
loans by the Purchasers to Buyer secured by the Receivables, the Related Security and the
Collections.

          “Managing Agents” has the meaning set forth in the Preliminary Statements to this
Agreement.

          “Material Adverse Effect” means a material adverse effect on (i) the financial
condition or operations of Seller and its Subsidiaries, (ii) the ability of Seller to perform its
obligations under the Agreement or any other Transaction Document, (iii) the legality, validity or
enforceability of the Agreement or any other Transaction Document, (iv) Seller’s, Buyer’s, the
Agent’s, any Managing Agent’s or any Purchaser’s interest in the Receivables generally or in any
significant portion of the Receivables, the Related Security or Collections with respect thereto,
or (v) the collectibility of the Receivables generally or of any material portion of the
Receivables.

          “Net Worth” means as of the last Business Day of each Calculation Period preceding any
date of determination, the excess, if any, of (a) the aggregate Outstanding Balance of the
Receivables at such time, over (b) the sum of (i) the aggregate Capital outstanding at such
time, plus (ii) the aggregate outstanding principal balance of the Subordinated Loans
(including any Subordinated Loan proposed to be made on the date of determination).

          “Original Balance” means, with respect to any Receivable, the Outstanding Balance of
such Receivable on the date it was purchased by Buyer.

          “Originator” means (i) Seller, (ii) Accu-Tech or (iii) any other Person approved from
time to time by the Managing Agents, in each case, in such Person’s capacity as a “Seller” party to
the Agreement or a Transfer Agreement.

 

 

          “Potential Amortization Event” means an event which, with the passage of time or the
giving of notice, or both, would constitute an Amortization Event.

          “Purchase” means the purchase under the Agreement by Buyer from Seller of the
Receivables, the Related Security and the Collections related thereto, together with all related
rights in connection therewith.

          “Purchase Agreement” has the meaning set forth in the Preliminary Statements to the
Agreement.

          “Purchase Price” means, with respect to any Purchase on any date, the aggregate price
to be paid by Buyer to Seller for such Purchase in accordance with Section 1.2 of the
Agreement for the Receivables, Collections and Related Security being sold to Buyer on such date,
which price shall equal (i) the product of (x) the Original Balance of such Receivables,
multiplied by (y) one minus the Discount Factor then in effect, minus (ii) any
Purchase Price Credits to be credited against the Purchase Price otherwise payable in accordance
with Section 1.3 of the Agreement.

          “Purchase Price Credit” has the meaning set forth in Section 1.3 of the
Agreement.

          “Purchasers” has the meaning set forth in the Preliminary Statements to the Agreement.

          “Receivable” means the indebtedness and other obligations owed to each Originator
(without giving effect to any transfer or conveyance under the applicable Transfer Agreement or the
Agreement) or Buyer (after giving effect to the transfers under the applicable Transfer Agreement
and the Agreement) other than Excluded Receivables whether constituting an account, chattel paper,
instrument or general intangible, arising in connection with the sale of goods or the rendering of
services by such Originator and includes, without limitation, the obligation to pay any Finance
Charges with respect thereto. Indebtedness and other rights and obligations arising from any one
transaction, including, without limitation, indebtedness and other rights and obligations
represented by an individual invoice, shall constitute a Receivable separate from a Receivable
consisting of the indebtedness and other rights and obligations arising from any other transaction.

          “Related Security” means, with respect to any Receivable:

          (i) all of the applicable Originator’s interest in the inventory and goods (including
returned or repossessed inventory or goods), if any, the sale of which by such Originator
gave rise to such Receivable, and all insurance contracts with respect thereto,

 

 

          (ii) all other security interests or liens and property subject thereto from time to
time, if any, purporting to secure payment of such Receivable, whether pursuant to the
Contract related to such Receivable or otherwise, together with all financing statements and
security agreements describing any collateral securing such Receivable,

          (iii) all guaranties, letters of credit, insurance and other agreements or arrangements
of whatever character from time to time supporting or securing payment of such Receivable
whether pursuant to the Contract related to such Receivable or otherwise,

          (iv) all service contracts and other contracts and agreements associated with such
Receivable,

          (v) all Records related to such Receivable,

          (vi) all of Seller’s interest in, to and under the Transfer Agreements, and

          (vii) all proceeds of any of the foregoing.

          “Required Capital Amount” means, as of any date of determination, an amount equal to
3.5% of the Outstanding Balance of all Receivables at such time.

          “Seller” has the meaning set forth in the preamble to the Agreement.

          “Settlement Date” means the seventeenth day of each calendar month, or if such day is
not a Business Day, the next succeeding Business Day.

          “Subordinated Loan” has the meaning set forth in Section 1.2(a) of the
Agreement.

          “Subordinated Note” means a promissory note in substantially the form of Exhibit
VII hereto as more fully described in Section 1.2 of the Agreement, as the same may be
amended, restated, supplemented or otherwise modified from time to time.

          “Subscription Agreement” means that certain Stockholder and Subscription Agreement,
dated as of October 6, 2000, between Seller and Buyer, a copy of which is attached hereto as
Exhibit VI.

          “Subsidiary” of a Person means (i) any corporation more than 50% of the outstanding
securities having ordinary voting power of which shall at the time be owned or controlled, directly
or indirectly, by such Person or by one or more of its Subsidiaries or by such

 

 

Person and one or more of its Subsidiaries, or (ii) any partnership, association, limited
liability company, joint venture or similar business organization more than 50% of the ownership
interests having ordinary voting power of which shall at the time be so owned or controlled.

          “Transaction Documents” means, collectively, this Agreement, each Transfer Agreement,
each Collection Account Agreement, the Subordinated Note, the Subscription Agreement and all other
instruments, documents and agreements executed and delivered in connection herewith.

          “Transfer Agreement” means (a) the Accu-Tech Transfer Agreement and (b) each other
receivables transfer agreement entered into from time to time between an Originator (other than
Seller) approved by the Agent, and Seller, in form and substance satisfactory to the Agent, as the
same may be amended, restated or otherwise modified from time to time.

          “UCC” means the Uniform Commercial Code as from time to time in effect in the State of
Illinois.

          All accounting terms not specifically defined herein shall be construed in accordance with
generally accepted accounting principles. All terms used in Article 9 of the UCC in the State of
Illinois, and not specifically defined herein, are used herein as defined in such Article 9.

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