Document:

exv10w5

Exhibit 10.5

NOTE: PORTIONS OF THIS AGREEMENT ARE THE SUBJECT OF A

CONFIDENTIAL TREATMENT REQUEST BY THE REGISTRANT TO THE

SECURITIES AND EXCHANGE COMMISSION. SUCH PORTIONS HAVE BEEN

REDACTED AND ARE MARKED WITH A “[****]” IN PLACE OF THE REDACTED LANGUAGE.

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

among

PENSON WORLDWIDE, INC.,

as the Borrower,

REGIONS BANK,

as Administrative Agent, Swing Line Lender,

and

Letter of Credit Issuer,

REGIONS CAPITAL MARKETS, a division of Regions Bank,

as Lead Arranger and Bookrunner,

THE PRIVATEBANK AND TRUST COMPANY,

as Syndication Agent,

TEXAS CAPITAL BANK, NATIONAL ASSOCIATION and

CAPITAL ONE, N.A., as Co-Documentation Agents,

and

The Other Lenders Party Hereto

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	 	 	 	 
	1.01 Defined Terms
	 	 	1	 
	1.02 Other Interpretive Provisions
	 	 	26	 
	1.03 Accounting Terms
	 	 	27	 
	1.04 Rounding
	 	 	28	 
	1.05 Times of Day
	 	 	28	 
	1.06 Letter of Credit Amounts
	 	 	28	 
	 
	 	 	 	 
	ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	28	 
	 
	 	 	 	 
	2.01 Revolving Loans
	 	 	28	 
	2.02 Borrowings, Conversions and Continuations of Revolving Loans
	 	 	28	 
	2.03 Letters of Credit
	 	 	30	 
	2.04 Swing Line Loans
	 	 	39	 
	2.05 Prepayments and Mandatory Prepayments
	 	 	42	 
	2.06 Termination or Reduction of Commitments
	 	 	44	 
	2.07 Repayment of Loans
	 	 	44	 
	2.08 Interest
	 	 	44	 
	2.09 Fees
	 	 	45	 
	2.10 Computation of Interest and Fees
	 	 	46	 
	2.11 Evidence of Debt
	 	 	46	 
	2.12 Payments Generally; Administrative Agent’s Clawback
	 	 	47	 
	2.13 Sharing of Payments by Lenders
	 	 	49	 
	2.14 Increase in Commitments
	 	 	50	 
	2.15 Extension of Maturity Date
	 	 	51	 
	 
	 	 	 	 
	ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	53	 
	 
	 	 	 	 
	3.01 Taxes
	 	 	53	 
	3.02 Illegality
	 	 	55	 
	3.03 Inability to Determine Rates
	 	 	55	 
	3.04 Increased Costs
	 	 	56	 
	3.05 Compensation for Losses
	 	 	57	 
	3.06 Mitigation Obligations; Replacement of Lenders
	 	 	58	 
	3.07 Survival
	 	 	59	 
	 
	 	 	 	 
	ARTICLE IV. CONDITIONS PRECEDENT TO CLOSING
	 	 	59	 
	 
	 	 	 	 
	4.01 Conditions of Closing of Credit Agreement
	 	 	59	 
	4.02 Conditions to all Credit Extensions
	 	 	62	 
	 
	 	 	 	 
	ARTICLE V. REPRESENTATIONS AND WARRANTIES
	 	 	63	 
	 
	 	 	 	 
	5.01 Existence, Qualification and Power
	 	 	63	 

i

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	5.02 Authorization; No Contravention
	 	 	63	 
	5.03 Governmental Authorization; Other Consents
	 	 	63	 
	5.04 Binding Effect
	 	 	63	 
	5.05 Financial Statements; No Material Adverse Effect; No Internal Control Event
	 	 	64	 
	5.06 Litigation
	 	 	65	 
	5.07 No Default
	 	 	65	 
	5.08 Ownership of Property; Liens
	 	 	65	 
	5.09 Environmental Compliance
	 	 	65	 
	5.10 Insurance
	 	 	65	 
	5.11 Taxes
	 	 	65	 
	5.12 ERISA Compliance
	 	 	66	 
	5.13 Subsidiaries; Equity Interests
	 	 	66	 
	5.14 Margin Regulations; Investment Company Act; Other Regulations
	 	 	66	 
	5.15 Disclosure
	 	 	67	 
	5.16 Compliance with Laws
	 	 	67	 
	5.17 Taxpayer Identification Number
	 	 	67	 
	5.18 Intellectual Property; Licenses, Etc
	 	 	67	 
	5.19 Solvency
	 	 	68	 
	5.20 Common Enterprise
	 	 	68	 
	5.21 Burdensome Agreements
	 	 	68	 
	5.22 Collateral
	 	 	68	 
	 
	 	 	 	 
	ARTICLE VI. AFFIRMATIVE COVENANTS
	 	 	69	 
	 
	 	 	 	 
	6.01 Financial Statements
	 	 	69	 
	6.02 Certificates; Other Information
	 	 	70	 
	6.03 Notices
	 	 	71	 
	6.04 Payment of Obligations
	 	 	72	 
	6.05 Preservation of Existence, Etc
	 	 	73	 
	6.06 Maintenance of Properties
	 	 	73	 
	6.07 Maintenance of Insurance
	 	 	73	 
	6.08 Compliance with Laws and Material Contracts
	 	 	73	 
	6.09 Books and Records
	 	 	73	 
	6.10 Inspection Rights
	 	 	73	 
	6.11 Use of Proceeds
	 	 	74	 
	6.12 Additional Subsidiaries and Collateral
	 	 	74	 
	6.13 Further Assurances
	 	 	74	 
	 
	 	 	 	 
	ARTICLE VII. NEGATIVE COVENANTS
	 	 	75	 
	 
	 	 	 	 
	7.01 Liens
	 	 	75	 
	7.02 Investments
	 	 	76	 
	7.03 Indebtedness
	 	 	77	 

ii

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	7.04 Fundamental Changes
	 	 	79	 
	7.05 Dispositions
	 	 	79	 
	7.06 Restricted Payments
	 	 	79	 
	7.07 Change in Nature of Business
	 	 	80	 
	7.08 Transactions with Affiliates
	 	 	80	 
	7.09 Burdensome Agreements
	 	 	81	 
	7.10 Use of Proceeds
	 	 	81	 
	7.11 Sale and Leaseback
	 	 	81	 
	7.12 Change in Fiscal Year or Accounting Methods
	 	 	81	 
	7.13 Prepayment of Indebtedness
	 	 	81	 
	7.14 Material Contracts
	 	 	82	 
	7.15 Management Fees
	 	 	82	 
	7.16 Financial Covenants
	 	 	82	 
	7.17 Amendments to Organization Documents
	 	 	83	 
	7.18 Amendments to 2014 and 2017 Notes Offering Documents
	 	 	83	 
	7.19 Ridge Acquisition
	 	 	83	 
	 
	 	 	 	 
	ARTICLE VIII. EVENTS OF DEFAULT AND REMEDIES
	 	 	83	 
	 
	 	 	 	 
	8.01 Events of Default
	 	 	83	 
	8.02 Remedies Upon Event of Default
	 	 	85	 
	8.03 Application of Funds
	 	 	86	 
	 
	 	 	 	 
	ARTICLE IX. ADMINISTRATIVE AGENT
	 	 	87	 
	 
	 	 	 	 
	9.01 Appointment and Authority
	 	 	87	 
	9.02 Rights as a Lender
	 	 	87	 
	9.03 Exculpatory Provisions
	 	 	88	 
	9.04 Reliance by Administrative Agent
	 	 	89	 
	9.05 Delegation of Duties
	 	 	89	 
	9.06 Resignation or Removal of Administrative Agent
	 	 	89	 
	9.07 Non-Reliance on Administrative Agent and Other Lenders
	 	 	90	 
	9.08 No Other Duties, Etc
	 	 	90	 
	9.09 Administrative Agent May File Proofs of Claim
	 	 	90	 
	9.10 Collateral and Guaranty Matters
	 	 	91	 
	 
	 	 	 	 
	ARTICLE X. MISCELLANEOUS
	 	 	92	 
	 
	 	 	 	 
	10.01 Amendments, Etc
	 	 	92	 
	10.02 Notices; Effectiveness; Electronic Communication
	 	 	93	 
	10.03 No Waiver; Cumulative Remedies
	 	 	95	 
	10.04 Expenses; Indemnity; Damage Waiver
	 	 	95	 
	10.05 Payments Set Aside
	 	 	97	 
	10.06 Successors and Assigns
	 	 	97	 
	10.07 Treatment of Certain Information; Confidentiality
	 	 	101	 

iii

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	10.08 Right of Setoff
	 	 	102	 
	10.09 Interest Rate Limitation
	 	 	103	 
	10.10 Counterparts; Integration; Effectiveness
	 	 	103	 
	10.11 Survival of Representations and Warranties
	 	 	103	 
	10.12 Severability
	 	 	103	 
	10.13 Replacement of Lenders
	 	 	104	 
	10.14 Governing Law; Jurisdiction; Etc.
	 	 	104	 
	10.15 Waiver of Jury Trial
	 	 	105	 
	10.16 No Advisory or Fiduciary Responsibility
	 	 	106	 
	10.17 USA PATRIOT Act Notice
	 	 	107	 
	10.18 Entire Agreement
	 	 	107	 
	 
	 	 	 	 
	SIGNATURES
	 	 	S-1	 

iv

 

	 

	SCHEDULES

	 

	2.01 Commitments and Pro Rata Percentages

	5.05 Existing Indebtedness

	5.13 Subsidiaries and Other Equity Investments

	5.20 Common Enterprise

	7.01 Existing Liens

	7.02 Existing Investments

	10.02 Administrative Agent’s Office; Certain Addresses for Notices

	 

	EXHIBITS

	 

	Form of

	 

	A Revolving Loan Notice

	B Swing Line Loan Notice

	C Note

	D Compliance Certificate

	E Assignment and Assumption

	F Opinion Matters

	G Guaranty

v

 

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

     This SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is entered into
as of May 6, 2010, among PENSON WORLDWIDE, INC. a Delaware corporation (the “Borrower”),
each lender from time to time party hereto (collectively, the “Lenders” and individually, a
“Lender”), REGIONS BANK, as Administrative Agent (in such capacity, the “Administrative
Agent”), Swing Line Lender, and Letter of Credit Issuer, REGIONS CAPITAL MARKETS, a division of
Regions Bank, as Lead Arranger and Bookrunner, THE PRIVATEBANK AND TRUST COMPANY, as Syndication
Agent and TEXAS CAPITAL BANK, NATIONAL ASSOCIATION and CAPITAL ONE, N.A., as Co-Documentation
Agents.

     .The Borrower, the Administrative Agent, and the lenders party thereto, executed that certain
Amended and Restated Credit Agreement dated as of May 1, 2009 (as has been amended, restated,
supplemented or modified from time to time, the “Existing Credit Agreement”), whereby the
lenders thereto made certain revolving loans to the Borrower.

     The Borrower has requested that the Lenders amend and restate the Existing Credit Agreement
and provide a revolving credit facility, and the Lenders are willing to do so on the terms and
conditions set forth herein. This amendment and restatement is in extension and renewal, and not
in extinguishment or novation, of the indebtedness outstanding under the Existing Credit Agreement,
as herein provided, it being acknowledged and agreed by the Borrower that the Indebtedness under
this Agreement constitutes an extension, renewal, and ratification of the outstanding indebtedness
under the Existing Credit Agreement.

     In consideration of the mutual covenants and agreements herein contained, the parties hereto
covenant and agree as follows:

ARTICLE I.

DEFINITIONS AND ACCOUNTING TERMS

     1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings
set forth below:

     “2000 Stock Incentive Plan” means the Borrower’s 2000 Amended and Restated Stock
Incentive Plan.

     “2014 Convertible Notes” means those certain convertible senior notes due 2014 issued
pursuant to the 2014 Notes Offering in an aggregate principal amount of up to $75,000,000, as may
be amended in accordance with Section 7.18.

     “2014 Indenture” means that certain Indenture by and between the Borrower and US Bank,
National Association, as Trustee, with respect to the 2014 Convertible Notes, as may be amended in
accordance with Section 7.18.

     “2014 Notes Offering” means the issuance by the Borrower of the 2014 Convertible Notes
pursuant to the 2014 Indenture and the 2014 Offering Memorandum.

1

 

     “2014 Notes Offering Documents” means the 2014 Convertible Notes and the 2014
Indenture.

     “2014 Offering Memorandum” means that certain Offering Memorandum issued by the
Borrower with respect to the sale of the 2014 Convertible Notes.

     “2017 Indenture” means that certain Indenture by and between the Borrower and U.S.
Bank National Association, as Trustee, with respect to the 2017 Senior Notes, as may be amended in
accordance with Section 7.18.

     “2017 Notes Offering” means the issuance by the Borrower of the 2017 Senior Notes
pursuant to the 2017 Indenture and the 2017 Offering Memorandum.

     “2017 Notes Offering Documents” means the 2017 Senior Notes, the 2017 Indenture and
the 2017 Pledge Agreement.

     “2017 Offering Memorandum” means that certain Offering Memorandum issued by the
Borrower with respect to the sale of the 2017 Senior Notes.

     “2017 Pledge Agreement” means that certain Second Lien Pledge Agreement executed
between the Borrower and U.S. Bank National Association with respect to the 2017 Senior Notes, as
may be amended in accordance with Section 7.18.

     “2017 Senior Notes” means those certain senior notes due 2017 issued pursuant to the
2017 Notes Offering in an aggregate principal amount of up to $200,000,000, as may be amended in
accordance with Section 7.18.

     “Administrative Agent” means Regions Bank in its capacity as administrative agent
under any of the Loan Documents, or any successor administrative agent.

     “Administrative Agent’s Office” means the Administrative Agent’s address and, as
appropriate, account as set forth on Schedule 10.02, or such other address or account as
the Administrative Agent may from time to time notify to the Borrower and the Lenders.

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

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

     “Agreement” means this Second Amended and Restated Credit Agreement.

     “Applicable Margin” means the following percentages per annum, based upon the
Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the
Administrative Agent pursuant to Section 6.02(a):

2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Applicable Margin	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	LIBOR Rate/	 	 	 	 
	Pricing	 	 	Consolidated	 	Commitment	 	 	Letters of	 	 	 	 
	Level	 	 	Leverage Ratio	 	Fee	 	 	Credit	 	 	Base Rate	 
	 	1	 	 	Less than **** to ****
	 	 	*	***%	 	 	*	***%	 	 	*	***%
	 	2	 	 	Greater than or equal
	 	 	*	***%	 	 	*	***%	 	 	*	***%
	 	 	 	 	to **** to **** but
less than **** to
****
	 	 	 	 	 	 	 	 	 	 	 	 
	 	3	 	 	Greater than or equal
	 	 	*	***%	 	 	*	***%	 	 	*	***%
	 	 	 	 	to **** to **** but
less than **** to
****
	 	 	 	 	 	 	 	 	 	 	 	 
	 	4	 	 	Greater than or equal
	 	 	*	***%	 	 	*	***%	 	 	*	***%
	 	 	 	 	to **** to **** but
less than **** to
****
	 	 	 	 	 	 	 	 	 	 	 	 
	 	5	 	 	Greater than or equal
	 	 	*	***%	 	 	*	***%	 	 	*	***%
	 	 	 	 	to **** to ****
	 	 	 	 	 	 	 	 	 	 	 	 

     Any increase or decrease in the Applicable Margin resulting from a change in the
Consolidated Leverage Ratio shall become effective as of the first Business Day immediately
following the date a Compliance Certificate is delivered pursuant to Section 6.02(a);
provided, however, that if a Compliance Certificate is not delivered when due in
accordance with such Section, then Pricing Level 5 shall apply as of the first Business Day after
the date on which such Compliance Certificate was required to have been delivered until such
Compliance Certificate is delivered indicating a different Pricing Level. The Applicable Margin in
effect from the Closing Date through the date the financial statements for the fiscal quarter ended
June 30, 2010 are delivered pursuant to Section 6.01(b) shall be Pricing Level 5.

     “Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an
Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a
Lender.

     “Asset Purchase Agreement” means that certain Asset Purchase Agreement dated as of
November 2, 2009, among the Borrower, Ridge and Broadridge in form and substance reasonably
acceptable to the Administrative Agent.

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

     “Attributable Indebtedness” means, on any date, (a) in respect of any capital lease of
any Person, the capitalized amount thereof that would appear on a balance sheet of such Person
prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the relevant lease that
would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if
such lease were accounted for as a capital lease.

3

 

     “Audited Financial Statements” means the audited consolidated balance sheet of the
Borrower and its Subsidiaries for the fiscal year ended December 31, 2009, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for such
fiscal year of the Borrower and its Subsidiaries, including the notes thereto.

     “Availability Period” means the period from and including the Closing Date to the
earliest of (a) the Maturity Date, (b) the date of termination of the Total Commitments pursuant to
Section 2.06, and (c) the date of termination of the commitment of each Lender to make
Loans and of the obligation of the Letter of Credit Issuer to make Letter of Credit Extensions
pursuant to Section 8.02.

     “Bankruptcy Laws” means the Bankruptcy Code of the United States, and all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium,
rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and affecting the
rights of creditors generally.

     “Base Rate”  means for any day a fluctuating rate per annum equal
to the higher of (a) the Federal Funds Rate plus 1/2 of 1%, (b) the rate of interest in effect for
such day as publicly announced from time to time by Regions Bank as its “prime rate,” and (c) the
LIBOR Rate (subject to the floor of 2.00%) for such day for an Interest Period of one month plus
1%. The “prime rate” is a rate set by Regions Bank based upon various factors including Regions
Bank’s costs and desired return, general economic conditions and other factors, and is used as a
reference point for pricing some loans, which may be priced at, above, or below such announced
rate. Any change in such rate announced by Regions Bank shall take effect at the opening of
business on the day specified in the public announcement of such change.

     “Base Rate Loan” means a Loan that bears interest based on the Base Rate.

     “Base Rate Revolving Loan” means a Revolving Loan that is a Base Rate Loan.

     “Borrower” has the meaning specified in the introductory paragraph hereto.

     “Borrowing” means a Revolving Borrowing or a Swing Line Borrowing, as the context may
require.

     “Broadridge” means Broadridge Financial Solutions, Inc.

     “Broker Dealer Subsidiaries” means Penson Financial Services, Inc., Penson Financial
Service Canada, Inc., Penson Financial Services Limited, Penson GHCO, Penson Financial Futures,
Inc., Penson Execution Services, Inc., Penson Financial Services Australia Pty Ltd, Penson
Financial Services Asia Limited, Penson Worldwide Nominees Limited, Penson Australia Nominees Pty.
Ltd. and each other broker dealer and/or futures commission merchant (or foreign equivalent) direct
or indirect Subsidiary of the Borrower engaged in activities substantially similar to those of such
Persons (including subsets of such activities).

4

 

     “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks are authorized to close under the Laws of, or are in fact closed in, the state
where the Administrative Agent’s Office is located and, if such day relates to any LIBOR Rate Loan,
means any such day on which dealings in Dollar deposits are conducted by and between banks in the
London interbank LIBOR market.

     “Capital Assets” means, with respect to any Person, all equipment, fixed assets and
real property or improvements of such Person, or replacements or substitutions therefor or
additions thereto, that, in accordance with GAAP, have been or should be reflected as additions to
property, plant or equipment on the balance sheet of such Person.

     “Capital Expenditures” means, with respect to any Person for any period, any
expenditure incurred in respect of the purchase or other acquisition of any Capital Asset
(excluding normal replacements and maintenance which are properly charged to current operations).
For purposes of this definition, the purchase price (or, if such Capital Asset has already been
purchased, the fair market value) of any Capital Asset that is traded in, swapped or exchanged for
any existing Capital Asset or with insurance proceeds shall be included in Capital Expenditures
only to the extent of the gross amount by which such purchase price exceeds the credit granted by
the seller of such Capital Asset for the Capital Asset being traded in at such time or the amount
of such insurance proceeds, as the case may be.

     “Cash Collateralize” has the meaning specified in Section 2.03(g).

     “Cash Equivalents” (a) obligations issued or fully guaranteed or insured by the United
States Government or any state thereof, the District of Columbia or the Commonwealth of Puerto Rico
or any agency or instrumentality thereof having maturities of not more than 12 months from the date
of acquisition, (b) certificates of deposit with maturities of 12 months and other interest bearing
deposits or accounts, with a Lender or with any commercial bank organized under the laws of the
United States of America or any state thereof, the District of Columbia or the Commonwealth of
Puerto Rico, having capital and surplus in excess of $250,000,000 or being fully insured by the
FDIC, (c) repurchase obligations with a term of not more than seven days for underlying securities
of the types described in clauses (a) and (b) entered into with any financial
institution meeting the qualifications specified in clause (b) above, (d) commercial paper
issued by a Lender or any Affiliate of a Lender and commercial paper rated A/1 or the equivalent
thereof by Standard & Poor’s Ratings Group or P-1 or the equivalent thereof by Moody’s Investors
Service, Inc. on the date of investment and in each case maturing within 12 months after the date
of acquisition, and (e) money market funds that invest in any of the foregoing clauses
(a)-(d).

     “Change in Law” means the occurrence, after the date of this Agreement, of any of the
following: (a) the adoption or taking effect of any law, rule, regulation or treaty, (b) any
change in any law, rule, regulation or treaty or in the administration, interpretation or
application thereof by any Governmental Authority or (c) the making or issuance of any request,
guideline or directive (whether or not having the force of law) by any Governmental Authority.

5

 

     “Change of Control” means an event or series of events by which:

     (a) other than (i) the Current Management Group, (ii) J. Kelly Gray, his immediate
family, and their respective Affiliates, (iii) William D. Gross, his immediate family, and
their respective Affiliates, (iv) TCV Member Fund, L.P. and TCV V, L.P. and their respective
Affiliates and (v) Broadridge and its Affiliates, any “person” or “group,” (as such terms
are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding
any employee benefit plan of such person or its subsidiaries, and any person or entity
acting in its capacity as trustee, agent or other fiduciary or administrator of any such
plan), becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Securities Exchange Act of 1934, except that a person or group shall be deemed to have
“beneficial ownership” of all securities that such person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of time (such right,
an “option right”)), directly or indirectly, of 25% or more of the equity securities of the
Borrower entitled to vote for members of the board of directors or equivalent governing body
of the Borrower on a fully-diluted basis (and taking into account all such securities that
such person or group has the right to acquire pursuant to any option right);

     (b) during any period of 12 consecutive months, a majority of the members of the board
of directors or other equivalent governing body of the Borrower cease to be composed of
individuals (i) who were members of that board or equivalent governing body on the first day
of such period, (ii) whose election or nomination to that board or equivalent governing body
was approved by individuals referred to in clause (i) above constituting at the time of such
election or nomination at least a majority of that board or equivalent governing body or
(iii) whose election or nomination to that board or other equivalent governing body was
approved by individuals referred to in clauses (i) and (ii) above constituting at the time
of such election or nomination at least a majority of that board or equivalent governing
body (excluding, in the case of both clause (ii) and clause (iii), any individual whose
initial nomination for, or assumption of office as, a member of that board or equivalent
governing body occurs as a result of an actual or threatened solicitation of proxies or
consents for the election or removal of one or more directors by any person or group other
than a solicitation for the election of one or more directors by or on behalf of the board
of directors); or

     (c) other than those Persons excluded under paragraph (a) above, any Person or two or
more Persons acting in concert shall have acquired by contract or otherwise, or shall have
entered into a contract or arrangement that, upon consummation thereof, will result in its
or their acquisition of the power to exercise, directly or indirectly, control over the
management or policies of the Borrower, or control over the equity securities of the
Borrower entitled to vote for members of the board of directors or equivalent governing body
of the Borrower on a fully-diluted basis (and taking into account all such securities that
such Person or group has the right to acquire pursuant to any option right) representing 25%
or more of the combined voting power of such securities.

6

 

     “Closing Date” means the earlier of May 6, 2010 or the first date that all the
conditions precedent in Section 4.01 are satisfied or waived in accordance with Section
10.01.

     “Code” means the Internal Revenue Code of 1986.

     “Commitment” means, as to each Lender, its obligation to (a) make Revolving Loans to
the Borrower pursuant to Section 2.01, (b) purchase participations in Letter of Credit
Obligations, and (c) purchase participations in Swing Line Loans, in an aggregate principal amount
at any one time outstanding not to exceed the amount set forth opposite such Lender’s name on
Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a
party hereto, as applicable, as such amount may be adjusted from time to time in accordance with
this Agreement.

     “Compliance Certificate” means a certificate substantially in the form of Exhibit
D.

     “Consolidated EBITDA” means, for any period, for the Borrower and its Subsidiaries on
a consolidated basis, an amount equal to Consolidated Net Income for such period plus (a)
the following to the extent deducted in calculating such Consolidated Net Income: (i) Interest
Charges for such period, (ii) the provision for Federal, state, local and foreign income taxes
payable by the Borrower and its Subsidiaries for such period, (iii) depreciation and amortization
expense, (iv) non-cash stock based compensation and (v) costs, expenses and fees incurred in
connection with the Ridge Acquisition, the 2017 Notes Offering, the 2014 Notes Offering, the
Existing Credit Agreement and this Agreement minus (b) the following to the extent included
in calculating such Consolidated Net Income: (i) Federal, state, local and foreign income tax
credits of the Borrower and its Subsidiaries for such period and (ii) all non-cash items increasing
Consolidated Net Income for such period. In addition, for the twelve month period following the
closing of the Ridge Acquisition, the calculation of Consolidated EBITDA shall include an amount
equal to $1,050,000 for any month (commencing with the first full month after the closing of the
Ridge Acquisition) for which the actual EBITDA earned by PFS and attributable to correspondent
clearing contracts acquired in the Ridge Acquisition is not included in the calculation of
Consolidated EBITDA.

     “Consolidated Fixed Charge Coverage Ratio” means, at any date of determination, the
ratio of (a) Consolidated EBITDA, to (b) the sum of (i) Interest Charges, (ii) the aggregate
principal amount of all regularly scheduled principal payments or redemptions or similar
acquisitions for value of outstanding debt for borrowed money, it being understood the Total
Outstandings hereunder shall be assumed to be amortized over a five year period solely in order to
calculate scheduled payments of the Loans and (iii) the aggregate amount of Federal, state, local
and foreign income taxes paid in cash, in each case, of or by the Borrower and its Subsidiaries for
the most recently completed period of determination; provided, however, that for
purposes of calculating the Consolidated Fixed Charge Coverage Ratio, Interest Charges with respect
to the 2014 Convertible Notes and the 2017 Senior Notes shall be limited to interest paid in cash
for such period.

     “Consolidated Funded Indebtedness” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, the sum of (a) the outstanding principal

7

 

amount of all obligations, whether current or long-term, for borrowed money (including Obligations
hereunder) and all obligations evidenced by bonds, debentures, notes, loan agreements or other
similar instruments, (b) all purchase money Indebtedness, (c) all direct obligations arising under
letters of credit (including standby and commercial), bankers’ acceptances, bank guaranties, surety
bonds and similar instruments, (d) all obligations in respect of the deferred purchase price of
property or services (other than trade accounts payable in the ordinary course of business), (e)
Attributable Indebtedness in respect of capital leases and Synthetic Lease Obligations, (f) without
duplication, all Guarantees with respect to outstanding Indebtedness of the types specified in
clauses (a) through (e) above of Persons other than the Borrower or any Subsidiary, and (g) all
Indebtedness of the types referred to in clauses (a) through (f) above of any partnership or joint
venture (other than a joint venture that is itself a corporation or limited liability company) in
which the Borrower or a Subsidiary is a general partner or joint venturer, unless such Indebtedness
is expressly made non-recourse to the Borrower or such Subsidiary. Notwithstanding the foregoing,
Short Term Subsidiary Indebtedness and Indebtedness with respect to clause (g) in the
definition of “Indebtedness” and earn outs and other deferred purchase price obligations incurred
in respect of acquisitions completed prior to the Closing Date and previously disclosed to the
Administrative Agent or approved pursuant to the terms of this Agreement shall not be included in
the definition of Consolidated Funded Indebtedness.

     “Consolidated Leverage Ratio” means, as of any date of determination, the ratio of (a)
Consolidated Funded Indebtedness as of such date to (b) Consolidated EBITDA for the period of the
four fiscal quarters most recently ended.

     “Consolidated Net Income” means, for any period, for the Borrower and its Subsidiaries
on a consolidated basis, the net income of the Borrower and its Subsidiaries (excluding
extraordinary gains and extraordinary losses) for that period.

     “Consolidated Tangible Net Worth” means, as of any date of determination, for the
Borrower and its Subsidiaries on a consolidated basis, Shareholders’ Equity of the Borrower and its
Subsidiaries on that date minus the Intangible Assets of the Borrower and its Subsidiaries on that
date.

     “Contractual Obligation” means, as to any Person, any provision of any security issued
by such Person or of any agreement, instrument or other undertaking to which such Person is a party
or by which it or any of its property is bound.

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

     “Credit Extension” means each of the following: (a) a Borrowing and (b) a Letter of
Credit Extension.

8

 

     “Current Management Group” means Roger J. Engemoen, Jr., Daniel P. Son, and Philip A.
Pendergraft.

     “Debit Balances” means the outstanding balances attributable to a Person’s margin
lending activities.

     “Default” means any event or condition that constitutes an Event of Default or that,
with the giving of any notice, the passage of time, or both, would be an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than Letter of
Credit Fees, an interest rate equal to (i) the Base Rate plus (ii) the Applicable Margin
applicable to Base Rate Loans plus (iii) 2% per annum; provided, however,
that with respect to a LIBOR Rate Loan, the Default Rate shall be an interest rate equal to the
interest rate (including any Applicable Margin) otherwise applicable to such Loan plus 2% per
annum, and (b) when used with respect to Letter of Credit Fees, a rate equal to the Applicable
Margin plus 2% per annum.

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

     “Disposition” or “Dispose” means the sale, transfer, license, lease or other
disposition (including any sale and leaseback transaction) of any property by any Person, including
any sale, assignment, transfer or other disposal, with or without recourse, of any notes or
accounts receivable or any rights and claims associated therewith; provided,
however, that the 2014 Notes Offering, the conversion of 2014 Convertible Notes, and the
2017 Notes Offering shall not be considered Dispositions.

     “Documentation Agent” means Texas Capital Bank, National Association and Capital One,
N.A., each in its capacity as a Co-Documentation Agent under any of the Loan Documents, or any
successor documentation agent.

     “Dollar,” “Dollars” and “$” mean lawful money of the United States.

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

     “Eligible Assignee” means any Person that meets the requirements to be an assignee
under Section 10.06(b)(iii), (v) and (vi) (subject to such consents, if
any, as may be required under Section 10.06(b)(iii)).

9

 

     “Environmental Laws” means any and all Federal, state, local, and foreign statutes,
laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants,
franchises, licenses, agreements or governmental restrictions relating to pollution and the
protection of the environment or the release of any materials into the environment, including those
related to hazardous substances or wastes, air emissions and discharges to waste or public systems.

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

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership interests or dividend or distribution interests associated with
ownership in) such Person, all of the warrants, options or other rights for the purchase or
acquisition from such Person of shares of capital stock of (or other ownership interests or
dividend or distribution interests associated with ownership in) such Person, all of the securities
convertible into or exchangeable for shares of capital stock of (or other ownership interests or
dividend or distribution interests associated with ownership in) such Person or warrants, rights or
options for the purchase or acquisition from such Person of such shares (or such other interests),
and all of the other ownership interests or dividend or distribution interests associated with
ownership in such Person (including partnership, member or trust interests therein), whether voting
or nonvoting, and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination; provided, however, that JBO Stock shall
not be considered Equity Interests.

     “Equity Repurchase” means the Borrower’s repurchase of its Equity Interests with
respect to (a) any shares withheld to cover tax-withholding requirements relating to the vesting of
restricted stock units issued pursuant to, and other ordinary course repurchases in respect of, the
2000 Stock Incentive Plan and (b) upon the consent of the Required Lenders, any other restricted
stock units or stock options repurchased from former employees, directors or contractors in
accordance with the terms of the Borrower’s restricted stock unit or stock option plans.

     “ERISA” means the Employee Retirement Income Security Act of 1974.

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

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by the Borrower or any ERISA Affiliate from a Pension Plan subject to Section 4063 of
ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2)
of ERISA) or a cessation of operations that is treated as such a withdrawal

10

 

under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a
Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) the filing
of a notice of intent to terminate, the treatment of a Plan amendment as a termination under
Section 4041 or 4041A of ERISA, or the commencement of proceedings by the PBGC to terminate a
Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under
Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any
Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA,
other than for PBGC premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower
or any ERISA Affiliate.

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

     “Event of Default” has the meaning specified in Section 8.01.

     “Excluded Taxes” means, with respect to the Administrative Agent, any Lender, the
Letter of Credit Issuer or any other recipient of any payment to be made by or on account of any
obligation of the Borrower hereunder, (a) taxes imposed on or measured by its overall net income
(however denominated), and franchise taxes imposed on it (in lieu of net income taxes), by the
jurisdiction (or any political subdivision thereof) under the laws of which such recipient is
organized or in which its principal office is located or, in the case of any Lender, in which its
applicable Lending Office is located, (b) any branch profits taxes imposed by the United States or
any similar tax imposed by any other jurisdiction in which the Borrower is located and (c) in the
case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower under
Section 10.13), any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party hereto (or designates a new Lending Office)
or is attributable to such Foreign Lender’s failure or inability (other than as a result of a
Change in Law) to comply with Section 3.01(e), except to the extent that such Foreign
Lender (or its assignor, if any) was entitled, at the time of designation of a new Lending Office
(or assignment), to receive additional amounts from the Borrower with respect to such withholding
tax pursuant to Section 3.01(a).

     “Existing Credit Agreement” means that certain Amended and Restated Credit Agreement
dated as of May 1, 2009, by and between the Borrower, the Administrative Agent and the lenders
party thereto, as has been amended, restated, supplemented or modified from time to time.

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

11

 

1%) charged to Regions Bank on such day on such transactions as determined by
the Administrative Agent.

     “Fee Letter” means the letter agreement dated April 13, 2010, between the Borrower and
the Administrative Agent.

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

     “Foreign Subsidiary” means each Subsidiary of the Borrower which is organized under
the Laws of a jurisdiction other than the United States of America or any state or commonwealth
thereof.

     “FRB” means the Board of Governors of the Federal Reserve System of the United States.

     “Fronting Fees” has the meaning specified in Section 2.03(i).

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

     “GAAP” means generally accepted accounting principles in the United States set forth
in the opinions and pronouncements of the Accounting Principles Board and the American Institute of
Certified Public Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant segment of the
accounting profession in the United States, that are applicable to the circumstances as of the date
of determination, consistently applied.

     “Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any agency, authority,
instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to
government (including any supra-national bodies such as the European Union or the European Central
Bank).

“Guarantee” means, as to any Person, (a) any obligation, contingent or otherwise, of
such Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation payable or performable by another Person (the “primary obligor”) in any manner, whether
directly or indirectly, and including any obligation of such Person, direct or indirect, (i) to
purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for the purpose of
assuring the obligee in respect of such Indebtedness or other obligation of the payment or
performance of such Indebtedness or other obligation, (iii) to maintain working capital, equity
capital or any other financial statement condition or liquidity or level of income or

12

 

cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness
or other obligation, or (iv) entered into for the purpose of assuring in any other manner the
obligee in respect of such Indebtedness or other obligation of the payment or performance thereof
or to protect such obligee against loss in respect thereof (in whole or in part), or (b) any Lien
on any assets of such Person securing any Indebtedness or other obligation of any other Person,
whether or not such Indebtedness or other obligation is assumed by such Person (or any right,
contingent or otherwise, of any holder of such Indebtedness to obtain any such Lien). The amount
of any Guarantee shall be deemed to be an amount equal to the stated or determinable amount of the
related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if
not stated or determinable, the maximum reasonably anticipated liability in respect thereof as
determined by the guaranteeing Person in good faith. The term “Guarantee” as a verb has a
corresponding meaning.

     “Guarantors” means, collectively, SAI Holdings, Inc., Penson Holdings, Inc., and each
other Person who becomes a Guarantor hereunder, together with their successors and permitted
assigns.

     “Guaranty” means an Amended and Restated Guaranty made by each Guarantor in favor of
Administrative Agent and Lenders, substantially in the form of Exhibit G, as renewed,
extended, amended or restated from time to time.

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

     “Honor Date” has the meaning specified in Section 2.03(c)(i).

     “Impacted Lender” means (a) any Lender that is a Defaulting Lender and (b) any Lender
as to which (i) the Borrower, the Administrative Agent or the Letter of Credit Issuer has a good
faith belief that such Lender has defaulted in fulfilling its obligations under one or more other
syndicated credit facilities or (ii) an entity that controls such Lender has been deemed insolvent
or become subject to a bankruptcy or other similar proceeding.

     “Increase Effective Date” has the meaning specified in Section 2.14(d).

     “Indebtedness” means, as to any Person at a particular time, without duplication, all
of the following, whether or not included as indebtedness or liabilities in accordance with GAAP:

     (a) all obligations of such Person for borrowed money and all obligations of such
Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments;

     (b) all direct or contingent obligations of such Person arising under letters of credit
(including standby and commercial), bankers’ acceptances, bank guaranties, surety bonds and
similar instruments;

13

 

     (c) net obligations of such Person under any Swap Contract;

     (d) all obligations of such Person to pay the deferred purchase price of property or
services (other than (i) trade accounts payable in the ordinary course of business and, in
each case, not past due for more than 60 days after the date on which such trade account
payable was created and (ii) earn outs and other deferred purchase price obligations
incurred in respect of acquisitions completed prior to the Closing Date and previously
disclosed to the Administrative Agent or permitted pursuant to the terms of this Agreement);

     (e) indebtedness (excluding prepaid interest thereon) secured by a Lien on property
owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been
assumed by such Person or is limited in recourse;

     (f) capital leases and Synthetic Lease Obligations;

     (g) all obligations of such Person to purchase, redeem, retire, defease or otherwise
make any payment in respect of any Equity Interest in such Person or any other Person
(excluding Equity Repurchases), valued, in the case of a redeemable preferred interest, at
the greater of its voluntary or involuntary liquidation preference plus accrued and
unpaid dividends; and

     (h) all Guarantees of such Person in respect of any of the foregoing.

     For all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any
partnership or joint venture (other than a joint venture that is itself a corporation or limited
liability company) in which such Person is a general partner or a joint venturer, unless such
Indebtedness is expressly made non-recourse to such Person. The amount of any net obligation under
any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such
date. The amount of any capital lease or Synthetic Lease Obligation as of any date shall be deemed
to be the amount of Attributable Indebtedness in respect thereof as of such date. Indebtedness of
the Borrower or a Subsidiary guaranteed by another Subsidiary or the Borrower shall be determined
without duplication.

     “Indemnified Taxes” means Taxes other than Excluded Taxes.

     “Indemnitees” has the meaning specified in Section 10.04(b).

     “Information” has the meaning specified in Section 10.07.

     “Intangible Assets” means assets that are considered to be intangible assets under
GAAP, including customer lists, goodwill, computer software, copyrights, trade names, trademarks,
patents, franchises, licenses, unamortized deferred charges, unamortized debt discount and
capitalized research and development costs.

14

 

     “Intercreditor Agreement” means that certain Intercreditor Agreement, dated on or
about the date hereof, among the Borrower, the Administrative Agent, and U.S. Bank National
Association, as trustee and collateral agent for the 2017 Senior Notes, as renewed, extended,
amended or restated from time to time.

     “Interest Charges” means, for any period, for the Borrower, the sum of (a) all
interest, premium payments, debt discount, fees, charges and related expenses of the Borrower in
connection with borrowed money (including capitalized interest) or in connection with the deferred
purchase price of assets, in each case to the extent treated as interest in accordance with GAAP,
and (b) the portion of rent expense of the Borrower with respect to such period under capital
leases that is treated as interest in accordance with GAAP.

     “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan, the
last day of each Interest Period applicable to such Loan and the Maturity Date; provided,
however, that if any Interest Period for a LIBOR Rate Loan exceeds three months, the
respective dates that fall every three months after the beginning of such Interest Period shall
also be Interest Payment Dates; and (b) as to any Base Rate Loan (including a Swing Line Loan), the
last Business Day of each March, June, September and December and the Maturity Date.

     “Interest Period” means, as to each LIBOR Rate Loan, the period commencing on the date
such LIBOR Rate Loan is disbursed or converted to or continued as a LIBOR Rate Loan and ending on
the date one, two, three or six months thereafter, as selected by the Borrower in its Revolving
Loan Notice; provided that:

     (a) any Interest Period that would otherwise end on a day that is not a Business Day
shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding
Business Day;

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

     (c) no Interest Period shall extend beyond the Maturity Date.

     “Internal Control Event” means a material weakness in, or fraud that involves
management or other employees who have a significant role in, the Borrower’s internal controls over
financial reporting, in each case as described in the Securities Laws.

     “Investment” means, as to any Person, any direct or indirect acquisition or investment
by such Person, whether by means of (a) the purchase or other acquisition of capital stock or other
securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or
assumption of debt of, or purchase or other acquisition of any other debt or equity participation
or interest in, another Person, including any partnership or joint venture interest in such other
Person and any arrangement pursuant to which the investor Guarantees Indebtedness of such

15

 

other
Person, or (c) the purchase or other acquisition (in one transaction or a series of transactions)
of assets of another Person that constitute a business unit; provided, however,
that the 2014 Notes Offering, the conversion of 2014 Convertible Notes, and the 2017 Notes Offering
shall not be considered Investments. For purposes of covenant compliance, the amount of any
Investment shall be the amount actually invested, without adjustment for subsequent increases or
decreases in the value of such Investment.

     “IP Rights” has the meaning specified in Section 5.18.

     “IRS” means the United States Internal Revenue Service.

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

     “Issuer Documents” means with respect to any Letter of Credit, the Letter of Credit
Application, and any other document, agreement and instrument entered into by the Letter of Credit
Issuer and the Borrower (or any Subsidiary) or in favor of the Letter of Credit Issuer and relating
to such Letter of Credit.

     “JBO Stock” means preferred stock issued by a Subsidiary to brokers or dealers for
purposes of establishing a joint back office arrangement as set forth in FINRA Rule 2520;
provided (i) such preferred stock does not accrue dividends, and (ii) such preferred stock
is issued in the ordinary course of business substantially consistent with the past practice of the
Borrower and its Subsidiaries.

     “Law” or “Laws” means, collectively, all international, foreign, federal,
state and local statutes, treaties, rules, regulations, ordinances, codes and administrative or
judicial precedents or authorities.

     “Lead Arranger” means Regions Capital Markets, in its capacity as lead arranger and
bookrunner.

     “Lender” has the meaning specified in the introductory paragraph hereto and, as the
context requires, includes the Swing Line Lender.

     “Lending Office” means, as to any Lender, the office or offices of such Lender
described as such in such Lender’s Administrative Questionnaire, or such other office or offices as
a Lender may from time to time notify the Borrower and the Administrative Agent.

     “Letter of Credit” means any standby letter of credit issued hereunder.

     “Letter of Credit Advance” means, with respect to each Lender, such Lender’s funding
of its participation in any Letter of Credit Borrowing in accordance with its Pro Rata Percentage.

16

 

     “Letter of Credit Application” means an application and agreement for the issuance or
amendment of a Letter of Credit in the standard form from time to time in use by the Letter of
CreditIssuer.

     “Letter of Credit Borrowing” means an extension of credit resulting from a drawing
under any Letter of Credit which has not been reimbursed on the date when made or refinanced as a
Revolving Borrowing.

     “Letter of Credit Expiration Date” means the day that is seven days prior to the
Maturity Date then in effect (or, if such day is not a Business Day, the next preceding Business
Day).

     “Letter of Credit Extension” means, with respect to any Letter of Credit, the issuance
thereof or extension of the expiry date thereof, or the increase of the amount thereof.

     “Letter of Credit Fee” has the meaning specified in Section 2.03(i).

     “Letter of Credit Issuer” means Regions Bank in its capacity as issuer of Letters of
Credit hereunder, or any successor issuer of Letters of Credit hereunder.

     “Letter of Credit Obligations” means, as at any date of determination, the aggregate
amount available to be drawn under all outstanding Letters of Credit plus the aggregate of
all Unreimbursed Amounts, including all Letter of Credit Borrowings. For purposes of computing the
amount available to be drawn under any Letter of Credit, the amount of such Letter of Credit shall
be determined in accordance with Section 1.06. For all purposes of this Agreement, if on
any date of determination a Letter of Credit has expired by its terms but any amount may still be
drawn thereunder by reason of the operation of Rule 3.14 of the ISP, such Letter of Credit shall be
deemed to be “outstanding” in the amount so remaining available to be drawn.

     “Letter of Credit Sublimit” means an amount equal to $10,000,000. The Letter of
Credit Sublimit is part of, and not in addition to, the Total Commitments.

     “LIBOR Rate” means, for any Interest Period for all LIBOR Rate Loans, an interest rate
per annum equal to the rate per annum obtained by dividing (a) the rate per annum (rounded upwards,
if necessary, to the nearest 1/100 of 1%) appearing on page “LIBOR 01” of the Reuters Screen (or
any successor page) as the London interbank offered rate for deposits in Dollars at 11:00 A.M.
(London time) two Business Days before the first day of such Interest Period for a period equal to
such Interest Period (provided that, if for any reason such rate is not available, the term “LIBOR
Rate” shall mean, for any Interest Period for all LIBOR Rate Loans, the rate per annum (rounded
upwards, if necessary, to the nearest 1/100 of 1%) equal to the rate determined by the
Administrative Agent to be the offered rate on such other page or other service which displays an
average British Bankers Association Interest Settlement Rate for deposits in
Dollars at approximately 11:00 A.M. (London time) two Business Days prior to the first day of
such Interest Period for a term comparable to such Interest Period; provided,
however, if more than one rate is specified on page “LIBOR01” of the Reuters Screen, the
applicable rate shall be the arithmetic mean of all such rates) by (b) a percentage equal to 100%
minus the LIBOR Rate

17

 

Reserve Percentage for such Interest Period. Notwithstanding anything
contained herein to the contrary, the LIBOR Rate shall never be less than 2.00%.

     “LIBOR Rate Loan” means a Revolving Loan that bears interest at a rate based on the
LIBOR Rate, excluding Base Rate Loans.

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

     “Lien” means any mortgage, pledge, hypothecation, assignment by way of security,
deposit arrangement, encumbrance, lien (statutory or other), charge, or other security interest or
preferential arrangement in the nature of a security interest of any kind or nature whatsoever
(including any conditional sale or other title retention agreement, any easement, right of way or
other encumbrance on title to real property, and any financing lease having substantially the same
economic effect as any of the foregoing).

     “Loan” means an extension of credit by a Lender to the Borrower under Article
II in the form of a Revolving Loan or a Swing Line Loan.

     “Loan Documents” means this Agreement, each Note, each Issuer Document, the Fee
Letter, the Pledge Agreement, each Guaranty, the Intercreditor Agreement, and any other agreement,
instrument, certificate, report and other document executed and delivered pursuant hereto or
thereto or otherwise evidencing or securing any Loan or any other Obligations, including any
renewals, extensions, modifications, increases, amendments, restatements, ratifications,
confirmations, supplements and rearrangements thereof.

     “Loan Parties” means, collectively, the Borrower, and each Guarantor.

     “Material Adverse Effect” means (a) a material adverse change in, or a material
adverse effect upon, the operations, business, properties, liabilities (actual or contingent),
condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole; (b) a
material impairment of the ability of any Loan Party to perform its obligations under any Loan
Document to which it is a party; or (c) a material adverse effect upon the legality, validity,
binding effect or enforceability against any Loan Party of any Loan Document to which it is a
party.

     “Material Contract” means, with respect to any Person, (a) each contract to which such
Person is a party involving aggregate consideration payable to or by such Person of $20,000,000 or
more in any year or otherwise material to the business, condition (financial or otherwise),
operations, performance or properties of such Person and (b) whether or not included in

18

 

subsection
(a), the Outsourcing Agreement, the Asset Purchase Agreement, the Seller Notes, the 2014 Notes
Offering Documents and the 2017 Notes Offering Documents.

     “Material Domestic Subsidiary” shall mean Penson Financial Services, Inc., SAI
Holdings, Inc., GHP1, Inc., and each other Domestic Subsidiary of the Borrower having 5% or more of
the total assets and total revenues of the Borrower and its Subsidiaries determined on a
consolidated basis in accordance with GAAP as of the end of the most recent fiscal quarter for
which the Borrower has delivered financial statements pursuant to Section 6.01(a) or
(b). Notwithstanding anything to the contrary contained herein, so long as the Equity
Interests of GHP1, Inc. are being pledged pursuant to the Pledge Agreement and GHP2, LLC is wholly
owned by GHP1, Inc., GHP2, LLC and Penson GHCO shall not be a Material Domestic Subsidiary
hereunder.

     “Material Foreign Subsidiary” shall mean Penson Financial Services Canada Inc. and
each other Foreign Subsidiary of the Borrower having 5% or more of the total assets and total
revenues of the Borrower and its Subsidiaries determined on a consolidated basis in accordance with
GAAP as of the end of the most recent fiscal quarter for which the Borrower has delivered financial
statements pursuant to Section 6.01(a) or (b).

     “Material Subsidiary” shall mean a Material Domestic Subsidiary and/or a Material
Foreign Subsidiary, as applicable.

     “Maturity Date” means the earlier of (a) May 6, 2013, as may be extended in accordance
with Section 2.15(a), and (b) or such other date on which the Loans become due and payable
as provided in this Agreement; provided, however, that if such date is not a
Business Day, the Maturity Date shall be the next preceding Business Day.

     “Maximum Rate” means at the particular time in question the maximum rate of interest
which, under applicable Law, any Lender is then permitted to charge on the Obligations. If the
maximum rate of interest which, under applicable Law, any Lender is permitted to charge on the
Obligations shall change after the date hereof, the Maximum Rate shall be automatically increased
or decreased, as the case may be, from time to time as of the effective time of each change in the
Maximum Rate without notice to the Borrower.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which the Borrower or any ERISA Affiliate makes or is obligated to make
contributions, or during the preceding five plan years, has made or been obligated to make
contributions.

     “Net Cash Proceeds” means:

     (a) with respect to the Disposition of any asset by the Borrower or any Subsidiary, the
excess, if any, of (i) the sum of cash and Cash Equivalents received in connection with such
sale (including any cash received by way of deferred payment pursuant to, or by monetization
of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of
(A) the principal amount of any Indebtedness that is

19

 

secured by such asset and that is
required to be repaid in connection with the sale thereof (other than Indebtedness under the
Loan Documents), (B) the out-of-pocket expenses incurred by the Borrower or any Subsidiary
in connection with such sale and (C) taxes reasonably estimated to be actually payable
within two years of the date of the relevant asset sale as a result of any gain recognized
in connection therewith; and

     (b) with respect to the sale or issuance of any capital stock or other Equity Interest
(other than any exercise price or other payment in respect of the vesting or exercise of any
restricted stock units or stock options issued to employees, directors or contractors in
accordance with the terms of the Borrower’s restricted stock unit or stock option plans and
payments received in respect of the exercise of purchase rights pursuant to the Borrower’s
employee stock purchase plan) by the Borrower, the excess of (i) the sum of the cash and
Cash Equivalents received in connection with such sale or issuance over (ii) the
underwriting discounts and commissions, and other out-of-pocket expenses, incurred by the
Borrower in connection with such sale or issuance.

     “Non-Financed Capital Expenditures” means, with respect to any Person for any period,
any Capital Expenditure not financed by capitalized leases or with the proceeds of Borrowings.

     “Note” means a promissory note made by the Borrower in favor of a Lender evidencing
Loans made by such Lender, substantially in the form of Exhibit C, including any renewals,
extensions, modifications, increases, amendments, restatements, ratifications, confirmations,
supplements and rearrangements thereof.

     “Obligations” means all debts, liabilities and obligations of any Loan Party arising
under any Loan Document or any Swap Contract entered into with any Lender or any Affiliate of any
Lender, whether direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising, and shall also include all
fees, expenses and other amounts owing to any Lender pursuant to cash management, depository
accounts (including chargebacks) or similar agreements. Without limiting the generality of the
foregoing, “Obligations” includes all amounts which would be owed by any Loan Party or any
other Person (other than Administrative Agent or Lenders) to Administrative Agent, Lenders or any
Affiliate of a Lender under any Loan Document, but for the fact that they are unenforceable or not
allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving any
Loan Party or any other Person (including all such amounts which would become due or would be
secured but for the filing of any petition in bankruptcy, or the commencement of any insolvency,
reorganization or like proceeding of any other Loan Party or any other Person under any Bankruptcy
Law).

     “Organization Documents” means, (a) with respect to any corporation, the certificate
or articles of incorporation and the bylaws (or equivalent or comparable constitutive documents
with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the
certificate or articles of formation or organization and operating agreement; and (c) with respect
to any partnership, joint venture, trust or other form of business entity, the partnership, joint
venture or other applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or

20

 

organization with
the applicable Governmental Authority in the jurisdiction of its formation or organization and, if
applicable, any certificate or articles of formation or organization of such entity.

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

     “Outsourcing Agreement” means that certain Master Services Agreement dated as of
November 2, 2009 among Broadridge and Borrower, including all schedules thereto, all as may be
amended, modified, restated or replaced.

     “Outstanding Amount” means (i) with respect to Revolving Loans and Swing Line Loans on
any date, the aggregate outstanding principal amount thereof after giving effect to any borrowings
and prepayments or repayments of Revolving Loans and Swing Line Loans, as the case may be,
occurring on such date; and (ii) with respect to any Letter of Credit Obligations on any date, the
amount of such Letter of Credit Obligations on such date after giving effect to any Letter of
Credit Extension occurring on such date and any other changes in the aggregate amount of the Letter
of Credit Obligations as of such date, including as a result of any reimbursements by the Borrower
of Unreimbursed Amounts.

     “Participant” has the meaning specified in Section 10.06(d).

     “PBGC” means the Pension Benefit Guaranty Corporation.

     “PCAOB” means the Public Company Accounting Oversight Board.

     “Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any
ERISA Affiliate contributes or has an obligation to contribute, or in the case of a multiple
employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time
during the immediately preceding five plan years.

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

     “PFS” means Penson Financial Services, Inc., a North Carolina corporation.

     “Plan” means any “employee benefit plan” (as such term is defined in Section 3(3) of
ERISA) established by the Borrower or, with respect to any such plan that is subject to Section 412
of the Code or Title IV of ERISA, any ERISA Affiliate.

     “Pledge Agreement” means that certain Amended and Restated Pledge Agreement executed
among the Borrower, certain Subsidiaries party thereto, and the Administrative Agent for the
benefit of the Lenders, as renewed, extended, amended or restated from time to time.

21

 

     “Pro Rata Percentage” means with respect to any Lender at any time, the percentage
(carried out to the ninth decimal place) of the Total Commitments represented by such Lender’s
Commitment at such time. If the commitment of each Lender to make Loans and the obligation of the
Letter of Credit Issuer to make Letter of Credit Extensions have been terminated pursuant to
Section 8.02 or if the Total Commitments have expired, then the Pro Rata Percentage of each
Lender shall be determined based on the Pro Rata Percentage of such Lender most recently in effect,
giving effect to any subsequent assignments. The initial Pro Rata Percentage of each Lender is set
forth opposite the name of such Lender on Schedule 2.01 or in the Assignment and Assumption
pursuant to which such Lender becomes a party hereto, as applicable.

     “Regions Bank” means Regions Bank, and its successors.

     “Regions Capital Markets” means Regions Capital Markets, a division of Regions Bank,
and its successors.

     “Register” has the meaning specified in Section 10.06(c).

     “Registered Public Accounting Firm” has the meaning specified in the Securities Laws
and shall be independent of the Borrower as prescribed by the Securities Laws.

     “Regulatory Capital” means net capital as defined in, and determined in accordance
with, Rule 15c3-1 of the Securities and Exchange Commission.

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

     “Reportable Event” means any of the events set forth in Section 4043(c) of ERISA,
other than events for which the 30 day notice period has been waived.

     “Request for Credit Extension” means (a) with respect to a Borrowing, conversion or
continuation of Revolving Loans, a Revolving Loan Notice, (b) with respect to a Letter of Credit
Extension, a Letter of Credit Application, and (c) with respect to a Swing Line Loan, a Swing Line
Loan Notice.

     “Required Lenders” means, as of any date of determination, Lenders having at least
66-2/3% of the Total Commitments or, if the commitment of each Lender to make Loans and the
obligation of the Letter of Credit Issuer to make Letter of Credit Extensions have been
terminated pursuant to Section 8.02, Lenders holding in the aggregate at least 66-2/3%
of the Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded
participation in Letter of Credit Obligations and Swing Line Loans being deemed “held” by such
Lender for purposes of this definition); provided that the Commitment of, and the portion
of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for
purposes of making a determination of Required Lenders.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, executive vice president, chairman, vice chairman or treasurer of a Loan Party. Any
document

22

 

delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be
conclusively presumed to have been authorized by all necessary corporate, partnership and/or other
action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed
to have acted on behalf of such Loan Party.

     “Restricted Payment” means any dividend or other distribution (whether in cash,
securities or other property) with respect to any capital stock or other Equity Interest of the
Borrower or any Subsidiary, or any payment (whether in cash, securities or other property),
including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such capital stock or other Equity Interest, or on
account of any return of capital to the Borrower’s stockholders, partners or members (or the
equivalent Person thereof).

     “Revolving Borrowing” means a borrowing consisting of simultaneous Revolving Loans of
the same Type and, in the case of LIBOR Rate Loans, having the same Interest Period made by each of
the Lenders pursuant to Section 2.01.

     “Revolving Loan” has the meaning specified in Section 2.01.

     “Revolving Loan Notice” means a notice of (a) a Revolving Borrowing, (b) a conversion
of Revolving Loans from one Type to the other, or (c) a continuation of LIBOR Rate Loans, pursuant
to Section 2.02(a), which, if in writing, shall be substantially in the form of Exhibit
A.

     “Ridge” means Ridge Clearing and Outsourcing Solutions, Inc., a subsidiary of
Broadridge.

     “Ridge Acquisition” means the Borrower’s acquisition of the correspondent clearing
contracts and associated assets of Ridge and the assumption of certain associated liabilities.

     “Sale and Leaseback Transaction” means any transaction providing for the leasing to
any Loan Party of any property or to any Person in exchange for funds which have been or are to be
advanced by such Person on the security of, or for the transfer of, such property.

     “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002.

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

     “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of
1934, Sarbanes-Oxley and the applicable accounting and auditing principles, rules, standards and
practices promulgated, approved or incorporated by the SEC or the PCAOB.

     “Seller Notes” means those certain promissory notes executed by the Borrower payable
to the order of Broadridge or its Affiliates, as applicable, in order to finance a portion of the
Ridge Acquisition and to evidence the Seller Term Loan, in form and substance reasonably acceptable
to the Administrative Agent.

23

 

     “Seller Term Loan” means that certain loan in an amount not to exceed $30,000,000 (as
increased pursuant to the Asset Purchase Agreement, as long as such increases do not increase the
principal amount of the Seller Term Loan by more than $15,000,000) evidenced by a Seller Note
payable to the order of Ridge (or its designated affiliate) and maturing five years from the date
of such note’s execution.

     “Shareholders’ Equity” means, as of any date of determination, consolidated
shareholders’ equity of the Borrower and its Subsidiaries as of that date determined in accordance
with GAAP.

     “Short Term Subsidiary Indebtedness” means, with respect to the Broker Dealer
Subsidiaries, that certain Indebtedness incurred (a) for the purpose of purchasing Equity Interests
and other working capital purposes and (b) for the purpose of purchasing on a proprietary basis
commodities contracts, futures contracts, or Swap Contracts or options or other derivatives related
thereto in an aggregate net amount not to exceed $10,000,000, each in the ordinary course of
business consistent with such Broker Dealer Subsidiary’s historical practice.

     “Solvent” means, with respect to any Person, as of any date of determination, that the
fair value of the assets of such Person (at fair valuation) is, on the date of determination,
greater than the total amount of liabilities (including contingent and unliquidated liabilities) of
such Person as of such date, that the present fair saleable value of the assets of such Person
will, as of such date, be greater than the amount that will be required to pay the probable
liability of such Person on its debts as such debts become absolute and matured, and that, as of
such date, such Person will be able to pay all liabilities of such Person as such liabilities
mature and such Person does not have unreasonably small capital with which to carry on its
business. In computing the amount of contingent or unliquidated liabilities at any time, such
liabilities will be computed at the amount which, in light of all the facts and circumstances
existing at such time, represents the amount that can reasonably be expected to become an actual or
matured liability discounted to present value at rates believed to be reasonable by such Person.

     “Subordination Agreement” means a Subordination Agreement executed by the Borrower,
Broadridge, Ridge and the Administrative Agent in form and substance reasonably acceptable to the
Administrative Agent.

     “Subsidiary” of a Person means a corporation, partnership, joint venture, limited
liability company or other business entity of which a majority of the shares or securities or other
interests having ordinary voting power for the election of directors or other governing body (other
than securities or interests having such power only by reason of the happening of a contingency)
are
at the time beneficially owned, or the management of which is otherwise controlled, directly,
or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise
specified, all references herein to a “Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary
or Subsidiaries of the Borrower.

     “Swap Contract” means (a) any and all rate swap transactions, basis swaps, credit
derivative transactions, forward rate transactions, commodity swaps, commodity options, forward
commodity contracts, equity or equity index swaps or options, bond or bond price or bond index
swaps or options or forward bond or forward bond price or forward bond index

24

 

transactions, interest
rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar
transactions, currency swap transactions, cross-currency rate swap transactions, currency options,
spot contracts, or any other similar transactions or any combination of any of the foregoing
(including any options to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions of any kind, and
the related confirmations, which are subject to the terms and conditions of, or governed by, any
form of master agreement published by the International Swaps and Derivatives Association, Inc.,
any International Foreign Exchange Master Agreement, or any other similar master agreement (any
such master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

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

     “Swing Line Borrowing” means a borrowing of a Swing Line Loan pursuant to Section
2.04.

     “Swing Line Lender” means Regions Bank in its capacity as provider of Swing Line
Loans, or any successor swing line lender hereunder.

     “Swing Line Loan” has the meaning specified in Section 2.04(a).

     “Swing Line Loan Notice” means a notice of a Swing Line Borrowing pursuant to
Section 2.04(b), which, if in writing, shall be substantially in the form of Exhibit
B.

     “Swing Line Sublimit” means an amount equal to the lesser of (a) $5,000,000 and (b)
the Total Commitments. The Swing Line Sublimit is part of, and not in addition to, the Total
Commitments.

     “Syndication Agent” means The Privatebank and Trust Company, in its capacity as
Syndication Agent under any of the Loan Documents, or any successor syndication agents.

     “Synthetic Lease Obligation” means the monetary obligation of a Person under (a) a
so-called synthetic, off-balance sheet or tax retention lease, or (b) an agreement for the use or
possession of property creating obligations that do not appear on the balance sheet of such Person
but which, upon the insolvency or bankruptcy of such Person, would be characterized as the
indebtedness of such Person (without regard to accounting treatment).

25

 

     “Taxes” means all present or future taxes, levies, imposts, duties, deductions,
withholdings, assessments, fees or other charges imposed by any Governmental Authority, including
any interest, additions to tax or penalties applicable thereto.

     “Threshold Amount” means $10,000,000.

     “Total Commitments” means the Commitments of all the Lenders in an aggregate amount up
to but not exceeding $75,000,000, as may be increased in accordance with Section 2.14(a).

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all
Letter of Credit Obligations.

     “Type” means, with respect to a Revolving Loan, its character as a Base Rate Loan or a
LIBOR Rate Loan.

     “Unencumbered Liquidity” shall mean the sum of (a) all cash, (b) Cash Equivalents and
(c) Investments and marketable securities in the ordinary course held by the Borrower and its
Material Subsidiaries that are not subject to any pledge, hypothecation, assignment as security for
Indebtedness, encumbrance, lien (statutory or otherwise), charge, or preference, priority or other
security interest or preferential arrangement of any kind or nature whatsoever provided,
however, in the case of valuation of clause (c), such Investments shall be reduced
as the Borrower reasonably determines in order to account for the risk of loss such Investment
poses, provided, further, such reductions shall not be less than 30% for any
Investment.

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

     “United States” and “U.S.” mean the United States of America.

     “Unreimbursed Amount” has the meaning specified in Section 2.03(c)(i).

     1.02 Other Interpretive Provisions. With reference to this Agreement and each other Loan
Document, unless otherwise specified herein or in such other Loan Document:

     (a) The definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. The words
“include,” “includes” and “including” shall be deemed to be followed
by the phrase “without limitation.” The word “will” shall be construed to have the
same meaning and effect as the word “shall.” Unless the context requires otherwise,
(i) any definition of or reference to any agreement, instrument or other document (including
any Organization Document) shall be construed as referring to such agreement, instrument or
other document as from time to time amended, supplemented, renewed, extended, increased,
reinstated, confirmed, rearranged or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan

26

 

Document),
(ii) any reference herein to any Person shall be construed to include such Person’s
successors and assigns, (iii) the words “herein,” “hereof” and
“hereunder,” and words of similar import when used in any Loan Document, shall be
construed to refer to such Loan Document in its entirety and not to any particular provision
thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any
law shall include all statutory and regulatory provisions consolidating, amending, replacing
or interpreting such law and any reference to any law or regulation shall, unless otherwise
specified, refer to such law or regulation as amended, modified or supplemented from time to
time, and (vi) the words “asset” and “property” shall be construed to have
the same meaning and effect and to refer to any and all tangible and intangible assets and
properties, including cash, securities, accounts and contract rights.

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

     (c) Section headings herein and in the other Loan Documents are included for
convenience of reference only and shall not affect the interpretation of this Agreement or
any other Loan Document.

     1.03 Accounting Terms.

     (a) Generally. All accounting terms not specifically or completely defined
herein shall be construed in conformity with, and all financial data (including financial
ratios and other financial calculations) required to be submitted pursuant to this Agreement
shall be prepared in conformity with, GAAP applied on a consistent basis, as in effect from
time to time, applied in a manner consistent with that used in preparing the Audited
Financial Statements, except as otherwise specifically prescribed herein.

     (b) Changes in GAAP. If at any time any change in GAAP would affect the
computation of any financial ratio or requirement set forth in any Loan Document, and either
the Borrower or the Required Lenders shall so request, the Administrative Agent, the Lenders
and the Borrower shall negotiate in good faith to amend such ratio or requirement to
preserve the original intent thereof in light of such change in GAAP
(subject to the approval of the Required Lenders); provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP
prior to such change therein and (ii) the Borrower shall provide to the Administrative Agent
and the Lenders financial statements and other documents required under this Agreement or as
reasonably requested hereunder setting forth a reconciliation between calculations of such
ratio or requirement made before and after giving effect to such change in GAAP.

     (c) Consolidation of Variable Interest Entities. All references herein to
consolidated financial statements of the Borrower and its Subsidiaries or to the

27

 

determination of any amount for the Borrower and its Subsidiaries on a consolidated basis or
any similar reference shall, in each case, be deemed to include each variable interest
entity that the Borrower is required to consolidate pursuant to FASB Interpretation No. 46
 — Consolidation of Variable Interest Entities: an interpretation of ARB No. 51 (January
2003) as if such variable interest entity were a Subsidiary as defined herein.

     1.04 Rounding. Any financial ratios required to be maintained by the Borrower pursuant to
this Agreement shall be calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such ratio is expressed
herein and rounding the result up or down to the nearest number (with a rounding-up if there is no
nearest number).

     1.05 Times of Day. Unless otherwise specified, all references herein to times of day shall be
references to Eastern time (daylight or standard, as applicable).

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

ARTICLE II.

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01 Revolving Loans. Subject to the terms and conditions set forth herein, each Lender
severally agrees to make loans (each such loan, a “Revolving Loan”) to the Borrower from
time to time, on any Business Day during the Availability Period, in an aggregate amount not to
exceed at any time outstanding the amount of such Lender’s Commitment; provided,
however, that after giving effect to any Revolving Borrowing, (i) the Total Outstandings
shall not exceed the Total Commitments, and (ii) the aggregate Outstanding Amount of the Revolving
Loans of any Lender, plus such Lender’s Pro Rata Percentage of the Outstanding Amount of
all Letter of Credit Obligations, plus such Lender’s Pro Rata Percentage of the Outstanding
Amount of all Swing Line Loans shall not exceed such Lender’s Commitment. Within the limits of
each Lender’s Commitment, and subject to the other terms and conditions hereof, the Borrower may
borrow under this Section 2.01, prepay under Section 2.05, and reborrow under
this Section 2.01. Revolving Loans may be Base Rate Loans or LIBOR Rate Loans, as further
provided herein.

     2.02 Borrowings, Conversions and Continuations of Revolving Loans.

     (a) Each Revolving Borrowing, each conversion of Revolving Loans from one Type to the
other, and each continuation of LIBOR Rate Loans shall be made upon the Borrower’s
irrevocable notice to the Administrative Agent, which may be given by telephone. Each such
notice must be received by the Administrative Agent not later than

28

 

11:00 a.m. (i) three
Business Days prior to the requested date of any Borrowing of, conversion to or continuation
of LIBOR Rate Loans or of any conversion of LIBOR Rate Loans to Base Rate Revolving Loans,
and (ii) one Business Day prior to the requested date of any Borrowing of Base Rate
Revolving Loans. Each telephonic notice by the Borrower pursuant to this Section
2.02(a) must be confirmed promptly by delivery to the Administrative Agent of a written
Revolving Loan Notice, appropriately completed and signed by a Responsible Officer of the
Borrower. Each Borrowing of, conversion to or continuation of LIBOR Rate Loans shall be in
a principal amount of $2,000,000 or a whole multiple of $1,000,000 in excess thereof.
Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of or
conversion to Base Rate Revolving Loans shall be in a principal amount of $500,000 or a
whole multiple of $100,000 in excess thereof. Each Revolving Loan Notice (whether
telephonic or written) shall specify (i) whether the Borrower is requesting a Revolving
Borrowing, a conversion of Revolving Loans from one Type to the other, or a continuation of
LIBOR Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as
the case may be (which shall be a Business Day), (iii) the principal amount of Revolving
Loans to be borrowed, converted or continued, (iv) the Type of Revolving Loans to be
borrowed or to which existing Revolving Loans are to be converted, and (v) if applicable,
the duration of the Interest Period with respect thereto. If the Borrower fails to specify
a Type of Revolving Loan in a Revolving Loan Notice or if the Borrower fails to give a
timely notice requesting a conversion or continuation, then the applicable Revolving Loans
shall be made as, or converted to, Base Rate Loans. Any such automatic conversion to Base
Rate Loans shall be effective as of the last day of the Interest Period then in effect with
respect to the applicable LIBOR Rate Loans. If the Borrower requests a Borrowing of,
conversion to, or continuation of LIBOR Rate Loans in any such Revolving Loan Notice, but
fails to specify an Interest Period, it will be deemed to have specified an Interest Period
of one month.

     (b) Following receipt of a Revolving Loan Notice, the Administrative Agent shall
promptly notify each Lender of the amount of its Pro Rata Percentage of the applicable
Revolving Loans, and if no timely notice of a conversion or continuation is provided by the
Borrower, the Administrative Agent shall notify each Lender of the details of any automatic
conversion to Base Rate Loans described in the preceding subsection. In the case of a
Revolving Borrowing, each Lender shall make the amount of its Revolving Loan available to
the Administrative Agent in immediately available funds at the Administrative Agent’s Office
not later than 3:00 p.m. on the Business Day
specified in the applicable Revolving Loan Notice. Upon satisfaction of the applicable
conditions set forth in Section 4.02 (and, if such Borrowing is the initial Credit
Extension, Section 4.01), the Administrative Agent shall make all funds so received
available to the Borrower in like funds as received by the Administrative Agent either by
(i) crediting the account of the Borrower on the books of Regions Bank with the amount of
such funds or (ii) wire transfer of such funds, in each case in accordance with instructions
provided to (and reasonably acceptable to) the Administrative Agent by the Borrower;
provided, however, that if, on the date the Revolving Loan Notice with
respect to such Borrowing is given by the Borrower, there are Swing Line Loans or Letter of
Credit Borrowings outstanding, then the proceeds of such Borrowing, shall be applied

29

 

first, to the payment in full of any such Letter of Credit Borrowings,
second, to the payment in full of such Swing Line Loans, and third, shall be
made available to the Borrower as provided above.

     (c) Except as otherwise provided herein, a LIBOR Rate Loan may be continued or
converted only on the last day of an Interest Period for such LIBOR Rate Loan. During the
existence of a Default, no Loans may be requested as, converted to or continued as LIBOR
Rate Loans without the consent of the Required Lenders.

     (d) The Administrative Agent shall promptly notify the Borrower and the Lenders of the
interest rate applicable to any Interest Period for LIBOR Rate Loans upon determination of
such interest rate.

     (e) After giving effect to all Revolving Borrowings, all conversions of Revolving Loans
from one Type to the other, and all continuations of Revolving Loans as the same Type, there
shall not be more than eight Interest Periods in effect with respect to Revolving Loans.

     2.03 Letters of Credit.

     (a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) the Letter of
Credit Issuer agrees, in reliance upon the agreements of the Lenders set forth in
this Section 2.03, (1) from time to time on any Business Day during the
period from the Closing Date until the Letter of Credit Expiration Date, to issue
Letters of Credit for the account of the Borrower, and to amend Letters of Credit
previously issued by it, in accordance with subsection (b) below, and (2) to honor
drawings under the Letters of Credit; and (B) the Lenders severally agree to
participate in Letters of Credit issued for the account of the Borrower and any
drawings thereunder; provided that after giving effect to any Letter of
Credit Extension with respect to any Letter of Credit, (x) the Total Outstandings
shall not exceed the Total Commitments, (y) the aggregate Outstanding Amount of the
Revolving Loans of any Lender, plus such Lender’s Pro Rata Percentage of the
Outstanding Amount of all Letter of Credit Obligations, plus such Lender’s
Pro Rata Percentage of the Outstanding Amount of all Swing Line Loans shall not
exceed such Lender’s Commitment, and (z) the Outstanding Amount of the Letter
of Credit Obligations shall not exceed the Letter of Credit Sublimit. Each request
by the Borrower for the issuance or amendment of a Letter of Credit shall be deemed
to be a representation by the Borrower that the Letter of Credit Extension so
requested complies with the conditions set forth in the proviso to the preceding
sentence. Within the foregoing limits, and subject to the terms and conditions
hereof, the Borrower’s ability to obtain Letters of Credit shall be fully revolving,
and accordingly the Borrower may, during the foregoing period, obtain Letters of
Credit to replace Letters of Credit that have expired or that have been drawn upon
and reimbursed.

30

 

     (ii) The Letter of Credit Issuer shall not issue any Letter of Credit, if:

     (A) the expiry date of such requested Letter of Credit would occur more
than twenty-four months after the date of issuance, unless the Required
Lenders have approved such expiry date; or

     (B) the expiry date of such requested Letter of Credit would occur
after the Letter of Credit Expiration Date, unless all the Lenders have
approved such expiry date.

     (iii) The Letter of Credit Issuer shall not be under any obligation to issue
any Letter of Credit if:

     (A) any order, judgment or decree of any Governmental Authority or
arbitrator shall by its terms purport to enjoin or restrain the Letter of
Credit Issuer from issuing such Letter of Credit, or any Law applicable to
the Letter of Credit Issuer or any request or directive (whether or not
having the force of law) from any Governmental Authority with jurisdiction
over the Letter of Credit Issuer shall prohibit, or request that the Letter
of Credit Issuer refrain from, the issuance of letters of credit generally
or such Letter of Credit in particular or shall impose upon the Letter of
Credit Issuer with respect to such Letter of Credit any restriction, reserve
or capital requirement (for which the Letter of Credit Issuer is not
otherwise compensated hereunder) not in effect on the Closing Date, or shall
impose upon the Letter of Credit Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the Letter of
Credit Issuer in good faith deems material to it;

     (B) the issuance of such Letter of Credit would violate one or more
policies of the Letter of Credit Issuer applicable to letters of credit
generally;

     (C) except as otherwise agreed by the Administrative Agent and the
Letter of Credit Issuer, such Letter of Credit is in an initial stated
amount of less than $500,000;

     (D) such Letter of Credit is to be denominated in a currency other than
Dollars;

     (E) such Letter of Credit contains any provisions for automatic
reinstatement of the stated amount after any drawing thereunder; or

     (F) a default of any Lender’s obligations to fund under Section
2.03(c) exists or any Lender is at such time a Defaulting Lender or
Impacted Lender hereunder, unless the Letter of Credit Issuer has entered

31

 

into satisfactory arrangements with the Borrower or such Lender to eliminate
the Letter of Credit Issuer’s risk with respect to such Lender.

     (iv) The Letter of Credit Issuer shall not amend any Letter of Credit if the
Letter of Credit Issuer would not be permitted at such time to issue such Letter of
Credit in its amended form under the terms hereof.

     (v) The Letter of Credit Issuer shall be under no obligation to amend any
Letter of Credit if (A) the Letter of Credit Issuer would have no obligation at such
time to issue such Letter of Credit in its amended form under the terms hereof, or
(B) the beneficiary of such Letter of Credit does not accept the proposed amendment
to such Letter of Credit.

     (vi) The Letter of Credit Issuer shall act on behalf of the Lenders with
respect to any Letters of Credit issued by it and the documents associated
therewith, and the Letter of Credit Issuer shall have all of the benefits and
immunities (A) provided to the Administrative Agent in Article IX with
respect to any acts taken or omissions suffered by the Letter of Credit Issuer in
connection with Letters of Credit issued by it or proposed to be issued by it and
Issuer Documents pertaining to such Letters of Credit as fully as if the term
“Administrative Agent” as used in Article IX included the Letter of Credit
Issuer with respect to such acts or omissions, and (B) as additionally provided
herein with respect to the Letter of Credit Issuer.

     (b) Procedures for Issuance and Amendment of Letters of Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of the Borrower delivered to the Letter of Credit Issuer (with a copy to
the Administrative Agent) in the form of a Letter of Credit Application,
appropriately completed and signed by a Responsible Officer of the Borrower. Such
Letter of Credit Application must be received by the Letter of Credit Issuer and the
Administrative Agent not later than 11:00 a.m. at least two Business Days (or such
later date and time as the Administrative Agent and the Letter of Credit
Issuer may agree in a particular instance in their sole discretion) prior to
the proposed issuance date or date of amendment, as the case may be. In the case of
a request for an initial issuance of a Letter of Credit, such Letter of Credit
Application shall specify in form and detail satisfactory to the Letter of Credit
Issuer: (A) the proposed issuance date of the requested Letter of Credit (which
shall be a Business Day); (B) the amount thereof; (C) the expiry date thereof; (D)
the name and address of the beneficiary thereof; (E) the documents to be presented
by such beneficiary in case of any drawing thereunder; (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing thereunder;
and (G) such other matters as the Letter of Credit Issuer may require. In the case
of a request for an amendment of any outstanding Letter of Credit, such Letter of
Credit Application shall specify in form and detail satisfactory to the Letter of
Credit Issuer (W) the Letter of Credit to be amended; (X) the

32

 

proposed date of
amendment thereof (which shall be a Business Day); (Y) the nature of the proposed
amendment; and (Z) such other matters as the Letter of Credit Issuer may require.
Additionally, the Borrower shall furnish to the Letter of Credit Issuer and the
Administrative Agent such other documents and information pertaining to such
requested Letter of Credit issuance or amendment, including any Issuer Documents, as
the Letter of Credit Issuer or the Administrative Agent may require.

     (ii) Promptly after receipt of any Letter of Credit Application, the Letter of
Credit Issuer will confirm with the Administrative Agent (by telephone or in
writing) that the Administrative Agent has received a copy of such Letter of Credit
Application from the Borrower and, if not, the Letter of Credit Issuer will provide
the Administrative Agent with a copy thereof. Unless the Letter of Credit Issuer
has received written notice from any Lender, the Administrative Agent or any Loan
Party, at least one Business Day prior to the requested date of issuance or
amendment of the applicable Letter of Credit, that one or more applicable conditions
contained in Article IV shall not then be satisfied, then, subject to the
terms and conditions hereof, the Letter of Credit Issuer shall, on the requested
date, issue a Letter of Credit for the account of the Borrower or enter into the
applicable amendment, as the case may be, in each case in accordance with the Letter
of Credit Issuer’s usual and customary business practices. Immediately upon the
issuance of each Letter of Credit, each Lender shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the Letter of Credit Issuer
a risk participation in such Letter of Credit in an amount equal to the product of
such Lender’s Pro Rata Percentage times the amount of such Letter of Credit.

     (iii) Promptly after its delivery of any Letter of Credit or any amendment to a
Letter of Credit to an advising bank with respect thereto or to the beneficiary
thereof, the Letter of Credit Issuer will also deliver to the Borrower and the
Administrative Agent a true and complete copy of such Letter of Credit or amendment.

     (c) Drawings and Reimbursements; Funding of Participations.

     (i) Upon receipt from the beneficiary of any Letter of Credit of any notice of
a drawing under such Letter of Credit, the Letter of Credit Issuer shall notify the
Borrower and the Administrative Agent thereof. Not later than 11:00 a.m. on the
date of any payment by the Letter of Credit Issuer under a Letter of Credit (each
such date, an “Honor Date”), the Borrower shall reimburse the Letter of
Credit Issuer through the Administrative Agent in an amount equal to the amount of
such drawing. If the Borrower fails to so reimburse the Letter of Credit Issuer by
such time, the Administrative Agent shall promptly notify each Lender of the Honor
Date, the amount of the unreimbursed drawing (the “Unreimbursed Amount”),
and the amount of such Lender’s Pro Rata Percentage thereof. In such event, the
Borrower shall be deemed to have requested a Revolving Borrowing of

33

 

Base Rate Loans
to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount,
without regard to the minimum and multiples specified in Section 2.02 for
the principal amount of Base Rate Loans, but subject to the amount of the unutilized
portion of the Total Commitments and the conditions set forth in Section
4.02 (other than the delivery of a Revolving Loan Notice). Any notice given by
the Letter of Credit Issuer or the Administrative Agent pursuant to this Section
2.03(c)(i) may be given by telephone if immediately confirmed in writing;
provided that the lack of such an immediate confirmation shall not affect
the conclusiveness or binding effect of such notice.

     (ii) Each Lender shall upon any notice pursuant to Section 2.03(c)(i)
make funds available to the Administrative Agent for the account of the Letter of
Credit Issuer at the Administrative Agent’s Office in an amount equal to its Pro
Rata Percentage of the Unreimbursed Amount not later than 3:00 p.m. on the Business
Day specified in such notice by the Administrative Agent, whereupon, subject to the
provisions of Section 2.03(c)(iii), each Lender that so makes funds
available shall be deemed to have made a Base Rate Revolving Loan to the Borrower in
such amount. The Administrative Agent shall remit the funds so received to the
Letter of Credit Issuer.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced by a
Revolving Borrowing of Base Rate Loans because the conditions set forth in
Section 4.02 cannot be satisfied or for any other reason, the Borrower shall
be deemed to have incurred from the Letter of Credit Issuer a Letter of Credit
Borrowing in the amount of the Unreimbursed Amount that is not so refinanced, which
Letter of Credit Borrowing shall be due and payable on demand (together with
interest) and shall bear interest at the Default Rate. In such event, each Lender’s
payment to the Administrative Agent for the account of the Letter of Credit Issuer
pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its
participation in such Letter of Credit Borrowing and shall constitute a Letter of
Credit Advance from such Lender in satisfaction of its participation obligation
under this Section 2.03.

     (iv) Until each Lender funds its Revolving Loan or Letter of Credit Advance
pursuant to this Section 2.03(c) to reimburse the Letter of Credit Issuer
for any amount drawn under any Letter of Credit, interest in respect of such
Lender’s Pro Rata Percentage of such amount shall be solely for the account of the
Letter of Credit Issuer.

     (v) Each Lender’s obligation to make Revolving Loans or Letter of Credit
Advances to reimburse the Letter of Credit Issuer for amounts drawn under Letters of
Credit, as contemplated by this Section 2.03(c), shall be absolute and
unconditional and shall not be affected by any circumstance, including (A) any
setoff, counterclaim, recoupment, defense or other right which such Lender may have
against the Letter of Credit Issuer, the Borrower or any other Person for any reason
whatsoever; (B) the occurrence or continuance of a Default, or (C) any

34

 

other
occurrence, event or condition, whether or not similar to any of the foregoing;
provided, however, that each Lender’s obligation to make Revolving
Loans pursuant to this Section 2.03(c) is subject to the conditions set
forth in Section 4.02 (other than delivery by the Borrower of a Revolving
Loan Notice). No such making of a Letter of Credit Advance shall relieve or
otherwise impair the obligation of the Borrower to reimburse the Letter of Credit
Issuer for the amount of any payment made by the Letter of Credit Issuer under any
Letter of Credit, together with interest as provided herein.

     (vi) If any Lender fails to make available to the Administrative Agent for the
account of the Letter of Credit Issuer any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.03(c) by the time
specified in Section 2.03(c)(ii), the Letter of Credit Issuer shall be
entitled to recover from such Lender (acting through the Administrative Agent), on
demand, such amount with interest thereon for the period from the date such payment
is required to the date on which such payment is immediately available to the Letter
of Credit Issuer at a rate per annum equal to the greater of the Federal Funds Rate
and a rate determined by the Letter of Credit Issuer in accordance with banking
industry rules on interbank compensation, plus any administrative, processing or
similar fees customarily charged by the Letter of Credit Issuer in connection with
the foregoing. If such Lender pays such amount (with interest and fees as
aforesaid), the amount so paid shall constitute such Lender’s Revolving Loan
included in the relevant Revolving Borrowing or Letter of Credit Advance in respect
of the relevant Letter of Credit Borrowing, as the case may be. A certificate of
the Letter of Credit Issuer submitted to any Lender (through the Administrative
Agent) with respect to any amounts owing under this clause (vi) shall be conclusive
absent manifest error.

     (d) Repayment of Participations.

     (i) At any time after the Letter of Credit Issuer has made a payment under any
Letter of Credit and has received from any Lender such Lender’s Letter
of Credit Advance in respect of such payment in accordance with Section
2.03(c), if the Administrative Agent receives for the account of the Letter of
Credit Issuer any payment in respect of the related Unreimbursed Amount or interest
thereon (whether directly from the Borrower or otherwise, including proceeds of Cash
Collateral applied thereto by the Administrative Agent), the Administrative Agent
will distribute to such Lender its Pro Rata Percentage thereof in the same funds as
those received by the Administrative Agent.

     (ii) If any payment received by the Administrative Agent for the account of the
Letter of Credit Issuer pursuant to Section 2.03(c)(i) is required to be
returned under any of the circumstances described in Section 10.05
(including pursuant to any settlement entered into by the Letter of Credit Issuer in
its discretion), each Lender shall pay to the Administrative Agent for the account
of the Letter of Credit Issuer its Pro Rata Percentage thereof on demand of the

35

 

Administrative Agent, plus interest thereon from the date of such demand to the date
such amount is returned by such Lender, at a rate per annum equal to the Federal
Funds Rate from time to time in effect. The obligations of the Lenders under this
clause shall survive the payment in full of the Obligations and the termination of
this Agreement.

     (e) Obligations Absolute. The obligation of the Borrower to reimburse the
Letter of Credit Issuer for each drawing under each Letter of Credit and to repay each
Letter of Credit Borrowing shall be absolute, unconditional and irrevocable, and shall be
paid strictly in accordance with the terms of this Agreement under all circumstances,
including the following:

     (i) any lack of validity or enforceability of such Letter of Credit, this
Agreement, or any other Loan Document;

     (ii) the existence of any claim, counterclaim, setoff, defense or other right
that the Borrower or any Subsidiary may have at any time against any beneficiary or
any transferee of such Letter of Credit (or any Person for whom any such beneficiary
or any such transferee may be acting), the Letter of Credit Issuer or any other
Person, whether in connection with this Agreement, the transactions contemplated
hereby or by such Letter of Credit or any agreement or instrument relating thereto,
or any unrelated transaction;

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

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

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

     The Borrower shall promptly examine a copy of each Letter of Credit and each amendment
thereto that is delivered to it and, in the event of any claim of noncompliance with the
Borrower’s instructions or other irregularity, the Borrower will promptly notify

36

 

the Letter
of Credit Issuer. The Borrower shall be conclusively deemed to have waived any such claim
against the Letter of Credit Issuer and its correspondents unless such notice is given as
aforesaid.

     (f) Role of Letter of Credit Issuer. Each Lender and the Borrower agree that,
in paying any drawing under a Letter of Credit, the Letter of Credit Issuer shall not have
any responsibility to obtain any document (other than any sight draft, certificates and
documents expressly required by the Letter of Credit) or to ascertain or inquire as to the
validity or accuracy of any such document or the authority of the Person executing or
delivering any such document. None of the Letter of Credit Issuer, the Administrative
Agent, any of their respective Related Parties nor any correspondent, participant or
assignee of the Letter of Credit Issuer shall be liable to any Lender for (i) any action
taken or omitted in connection herewith at the request or with the approval of the Lenders
or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of
gross negligence or willful misconduct; or (iii) the due execution, effectiveness, validity
or enforceability of any document or instrument related to any Letter of Credit or Issuer
Document. The Borrower hereby assumes all risks of the acts or omissions of any beneficiary
or transferee with respect to its use of any Letter of Credit; provided,
however, that this assumption is not intended to, and shall not, preclude the
Borrower’s pursuing such rights and remedies as it may have against the beneficiary or
transferee at law or under any other agreement. None of the Letter of Credit Issuer, the
Administrative Agent, any of their respective Related Parties nor any correspondent,
participant or assignee of the Letter of Credit Issuer shall be liable or responsible for
any of the matters described in clauses (i) through (v) of Section 2.03(e);
provided, however, that anything in such clauses to the contrary
notwithstanding, the Borrower may have a claim against the Letter of Credit Issuer, and the
Letter of Credit Issuer may be liable to the Borrower, to the extent, but only to the
extent, of any direct, as opposed to consequential or exemplary, damages suffered by the
Borrower which the Borrower proves were caused by the Letter of Credit Issuer’s willful
misconduct or gross negligence or the Letter of Credit Issuer’s willful failure to pay under
any Letter of Credit after the presentation to it by the beneficiary of a sight draft and
certificate(s) strictly
complying with the terms and conditions of a Letter of Credit. In furtherance and not
in limitation of the foregoing, the Letter of Credit Issuer may accept documents that appear
on their face to be in order, without responsibility for further investigation, regardless
of any notice or information to the contrary, and the Letter of Credit Issuer shall not be
responsible for the validity or sufficiency of any instrument transferring or assigning or
purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or
proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any
reason.

     (g) Cash Collateral. Upon the request of the Administrative Agent, (i) if the
Letter of Credit Issuer has honored any full or partial drawing request under any Letter of
Credit and such drawing has resulted in a Letter of Credit Borrowing, or (ii) if, as of the
Letter of Credit Expiration Date, any Letter of Credit Obligation for any reason remains
outstanding, the Borrower shall, in each case, immediately Cash Collateralize the then
Outstanding Amount of all Letter of Credit Obligations, in the case of clause (i),
until

37

 

such Letter of Credit Borrowing has been repaid or refinanced. Upon the request of
the Administrative Agent, if any Lender shall be an Impacted Lender and any Letter of Credit
Obligation for any reason remains outstanding, the Borrower shall immediately Cash
Collateralize the outstanding Letter of Credit Obligations in an amount equal to the pro
rata share of such Impacted Lender’s Outstanding Amount of Letter of Credit Obligations.
Sections 2.05 and 8.02(c) set forth certain additional requirements to
deliver Cash Collateral hereunder. For purposes of this Section 2.03, Section
2.05 and Section 8.02(c), “Cash Collateralize” means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the Letter of Credit
Issuer and the Lenders, as collateral for the Letter of Credit Obligations, cash or deposit
account balances pursuant to documentation in form and substance satisfactory to the
Administrative Agent and the Letter of Credit Issuer (which documents are hereby consented
to by the Lenders). Derivatives of such term have corresponding meanings. The Borrower
hereby grants to the Administrative Agent, for the benefit of the Letter of Credit Issuer
and the Lenders, a security interest in all such cash, deposit accounts and all balances
therein and all proceeds of the foregoing. Cash Collateral shall be maintained in blocked,
non-interest bearing deposit accounts at Regions Bank.

     (h) Applicability of ISP. Unless otherwise expressly agreed by the Letter of
Credit Issuer and the Borrower when a Letter of Credit is issued, the rules of the ISP shall
apply to each Letter of Credit.

     (i) Letter of Credit Fees and Fronting Fees. The Borrower shall pay to the
Administrative Agent for the account of each Lender in accordance with its Pro Rata
Percentage a Letter of Credit fee (the “Letter of Credit Fee”) for each Letter of
Credit equal to the Applicable Margin for LIBOR Rate Loans and Letters of Credit
times the daily amount available to be drawn under such Letter of Credit. In
addition to the Letter of Credit Fee, the Borrower shall pay the Letter of Credit Issuer,
for its own account, a fronting fee (the “Fronting Fee”) equal to 0.15% per annum of
the amount available to be drawn under any outstanding Letter of Credit. For purposes of
computing the daily
amount available to be drawn under any Letter of Credit, the amount of such Letter of
Credit shall be determined in accordance with Section 1.06. Letter of Credit Fees
and Fronting Fees shall be (i) due and payable on the last Business Day of each March, June,
September and December, commencing with the first such date to occur after the issuance of
such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand and
(ii) computed on a quarterly basis in arrears. If there is any change in the Applicable
Margin for LIBOR Rate Loans and Letters of Credit during any quarter, the daily amount
available to be drawn under each standby Letter of Credit shall be computed and multiplied
by the appropriate Applicable Margin separately for each period during such quarter that
such Applicable Margin was in effect.  Notwithstanding anything to the contrary
contained herein, upon the request of the Required Lenders, while any Event of Default
exists, all Letter of Credit Fees and Fronting Fees shall accrue at the Default Rate.

     (j) Documentary and Processing Charges Payable to Letter of Credit Issuer. In
addition to any other fees described herein, the Borrower shall pay directly to the

38

 

Letter
of Credit Issuer for its own account the customary issuance, presentation, amendment and
other processing fees, and other standard costs and charges, of the Letter of Credit Issuer
relating to letters of credit as from time to time in effect. Such customary fees and
standard costs and charges are due and payable on demand and are nonrefundable.

     (k) Conflict with Issuer Documents. In the event of any conflict between the
terms hereof and the terms of any Issuer Document, the terms hereof shall control.

     2.04 Swing Line Loans.

     (a) The Swing Line. Subject to the terms and conditions set forth herein, the
Swing Line Lender agrees, in reliance upon the agreements of the other Lenders set forth in
this Section 2.04, to make loans (each such loan, a “Swing Line Loan”) to
the Borrower from time to time on any Business Day during the Availability Period in an
aggregate amount not to exceed at any time outstanding the amount of the Swing Line
Sublimit, notwithstanding the fact that such Swing Line Loans, when aggregated with the Pro
Rata Percentage of the Outstanding Amount of Revolving Loans and Letter of Credit
Obligations of the Lender acting as Swing Line Lender, may exceed the amount of such
Lender’s Commitment; provided, however, that after giving effect to any
Swing Line Loan, (i) the Total Outstandings shall not exceed the Total Commitments, and (ii)
the aggregate Outstanding Amount of the Revolving Loans of any Lender, plus such
Lender’s Pro Rata Percentage of the Outstanding Amount of all Letter of Credit Obligations,
plus such Lender’s Pro Rata Percentage of the Outstanding Amount of all Swing Line
Loans shall not exceed such Lender’s Commitment, and provided, further, that the
Borrower shall not use the proceeds of any Swing Line Loan to refinance any outstanding
Swing Line Loan. Within the foregoing limits, and subject to the other terms and conditions
hereof, the Borrower may borrow under this Section 2.04, prepay under Section
2.05, and reborrow under this Section 2.04. Each Swing Line Loan shall be a
Base Rate Loan.

     Immediately upon the making of a Swing Line Loan, each Lender shall be deemed to, and
hereby irrevocably and unconditionally agrees to, purchase from the Swing Line Lender a risk
participation in such Swing Line Loan in an amount equal to the product of such Lender’s Pro
Rata Percentage times the amount of such Swing Line Loan.

     (b) Borrowing Procedures. Each Swing Line Borrowing shall be made upon the
Borrower’s irrevocable notice to the Swing Line Lender and the Administrative Agent, which
may be given by telephone. Each such notice must be received by the Swing Line Lender and
the Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall
specify (i) the amount to be borrowed, which shall be a minimum of $100,000, and (ii) the
requested borrowing date, which shall be a Business Day. Each such telephonic notice must
be confirmed promptly by delivery to the Swing Line Lender and the Administrative Agent of a
written Swing Line Loan Notice, appropriately completed and signed by a Responsible Officer
of the Borrower. Promptly after receipt by the Swing Line Lender of any telephonic Swing
Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by
telephone or in writing) that the Administrative Agent has also received such Swing Line
Loan Notice

39

 

and, if not, the Swing Line Lender will notify the Administrative Agent (by
telephone or in writing) of the contents thereof. Unless the Swing Line Lender has received
notice (by telephone or in writing) from the Administrative Agent (including at the request
of any Lender) prior to 2:00 p.m. on the date of the proposed Swing Line Borrowing (A)
directing the Swing Line Lender not to make such Swing Line Loan as a result of the
limitations set forth in the proviso to the first sentence of Section 2.04(a), or
(B) that one or more of the applicable conditions specified in Article IV is not
then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender
will, not later than 3:00 p.m. on the borrowing date specified in such Swing Line Loan
Notice, make the amount of its Swing Line Loan available to the Borrower.

     (c) Refinancing of Swing Line Loans.

     (i) The Swing Line Lender, at any time, in its sole and absolute discretion may
request, on behalf of the Borrower (which hereby irrevocably authorizes the Swing
Line Lender to so request on its behalf), that each Lender make a Base Rate
Revolving Loan in an amount equal to such Lender’s Pro Rata Percentage of the amount
of Swing Line Loans then outstanding. Such request shall be made in writing (which
written request shall be deemed to be a Revolving Loan Notice for purposes hereof)
and in accordance with the requirements of Section 2.02, without regard to
the minimum and multiples specified therein for the principal amount of Base Rate
Loans, but subject to the unutilized portion of the Total Commitments and the
conditions set forth in Section 4.02. The Swing Line Lender shall furnish
the Borrower with a copy of the applicable Revolving Loan Notice promptly after
delivering such notice to the Administrative Agent. Each Lender shall make an
amount equal to its Pro Rata Percentage of the amount specified in such Revolving
Loan Notice available to the Administrative Agent in immediately available funds for
the account of the Swing Line Lender at the
Administrative Agent’s Office not later than 3:00 p.m. on the day specified in
such Revolving Loan Notice, whereupon, subject to Section 2.04(c)(ii), each
Lender that so makes funds available shall be deemed to have made a Base Rate
Revolving Loan to the Borrower in such amount. The Administrative Agent shall remit
the funds so received to the Swing Line Lender.

     (ii) If for any reason any Swing Line Loan cannot be refinanced by such a
Revolving Borrowing in accordance with Section 2.04(c)(i), the request for
Base Rate Revolving Loans submitted by the Swing Line Lender as set forth herein
shall be deemed to be a request by the Swing Line Lender that each of the Lenders
fund its risk participation in the relevant Swing Line Loan and each Lender’s
payment to the Administrative Agent for the account of the Swing Line Lender
pursuant to Section 2.04(c)(i) shall be deemed payment in respect of such
participation.

     (iii) If any Lender fails to make available to the Administrative Agent for the
account of the Swing Line Lender any amount required to be paid by such Lender
pursuant to the foregoing provisions of this Section 2.04(c) by the time

40

 

specified in Section 2.04(c)(i), the Swing Line Lender shall be entitled to
recover from such Lender (acting through the Administrative Agent), on demand, such
amount with interest thereon for the period from the date such payment is required
to the date on which such payment is immediately available to the Swing Line Lender
at a rate per annum equal to the greater of the Federal Funds Rate and a rate
determined by the Swing Line Lender in accordance with banking industry rules on
interbank compensation, plus any administrative, processing or similar fees
customarily charged by the Swing Line Lender in connection with the foregoing. If
such Lender pays such amount (with interest and fees as aforesaid), the amount so
paid shall constitute such Lender’s Revolving Loan included in the relevant
Revolving Borrowing or funded participation in the relevant Swing Line Loan, as the
case may be. A certificate of the Swing Line Lender submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this
clause (iii) shall be conclusive absent manifest error.

     (iv) Each Lender’s obligation to make Revolving Loans or to purchase and fund
risk participations in Swing Line Loans pursuant to this Section 2.04(c)
shall be absolute and unconditional and shall not be affected by any circumstance,
including (A) any setoff, counterclaim, recoupment, defense or other right which
such Lender may have against the Swing Line Lender, the Borrower or any other Person
for any reason whatsoever, (B) the occurrence or continuance of a Default, or (C)
any other occurrence, event or condition, whether or not similar to any of the
foregoing; provided, however, that each Lender’s obligation to make
Revolving Loans pursuant to this Section 2.04(c) is subject to the
conditions set forth in Section 4.02. No such funding of risk
participations shall relieve or otherwise impair the obligation of the Borrower to
repay Swing Line Loans, together with interest as provided herein.

     (d) Repayment of Participations.

     (i) At any time after any Lender has purchased and funded a risk participation
in a Swing Line Loan, if the Swing Line Lender receives any payment on account of
such Swing Line Loan, the Swing Line Lender will distribute to such Lender its Pro
Rata Percentage thereof in the same funds as those received by the Swing Line
Lender.

     (ii) If any payment received by the Swing Line Lender in respect of principal
or interest on any Swing Line Loan is required to be returned by the Swing Line
Lender under any of the circumstances described in Section 10.05 (including
pursuant to any settlement entered into by the Swing Line Lender in its discretion),
each Lender shall pay to the Swing Line Lender its Pro Rata Percentage thereof on
demand of the Administrative Agent, plus interest thereon from the date of such
demand to the date such amount is returned, at a rate per annum equal to the Federal
Funds Rate. The Administrative Agent will make such demand upon the request of the
Swing Line Lender. The obligations of the

41

 

Lenders under this clause shall survive
the payment in full of the Obligations and the termination of this Agreement.

     (e) Interest for Account of Swing Line Lender. The Swing Line Lender shall be
responsible for invoicing the Borrower for interest on the Swing Line Loans. Until each
Lender funds its Base Rate Revolving Loan or risk participation pursuant to this Section
2.04 to refinance such Lender’s Pro Rata Percentage of any Swing Line Loan, interest in
respect of such Pro Rata Percentage shall be solely for the account of the Swing Line
Lender.

     (f) Payments Directly to Swing Line Lender. The Borrower shall make all
payments of principal and interest in respect of the Swing Line Loans directly to the Swing
Line Lender.

     2.05 Prepayments and Mandatory Prepayments.

     (a) The Borrower may, upon notice to the Administrative Agent, at any time or from time
to time voluntarily prepay Revolving Loans in whole or in part without premium or penalty;
provided that (i) such notice must be received by the Administrative Agent not later
than 11:00 a.m. (A) three Business Days prior to any date of prepayment of LIBOR Rate Loans
and (B) on the date of prepayment of Base Rate Revolving Loans; (ii) any prepayment of LIBOR
Rate Loans shall be in a principal amount of $2,000,000 or a whole multiple of $1,000,000 in
excess thereof; and (iii) any prepayment of Base Rate Revolving Loans shall be in a
principal amount of $500,000 or a whole multiple of $100,000 in excess thereof or, in each
case, if less, the entire principal amount thereof then outstanding. Each such notice shall
specify the date and amount of such prepayment and the Type(s) of Revolving Loans to be
prepaid and, if LIBOR Rate Loans are to be prepaid, the Interest Period(s) of such Loans.
The Administrative Agent will promptly notify each Lender of its receipt of each such
notice, and of the amount of such Lender’s
Pro Rata Percentage of such prepayment. If such notice is given by the Borrower, the
Borrower shall make such prepayment and the payment amount specified in such notice shall be
due and payable on the date specified therein. Any prepayment of a LIBOR Rate Loan shall be
accompanied by all accrued interest on the amount prepaid, together with any additional
amounts required pursuant to Section 3.05. Each such prepayment shall be applied to
the Revolving Loans of the Lenders in accordance with their respective Pro Rata Percentages.

     (b) The Borrower may, upon notice to the Swing Line Lender (with a copy to the
Administrative Agent), at any time or from time to time, voluntarily prepay Swing Line Loans
in whole or in part without premium or penalty; provided that (i) such notice must
be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m.
on the date of the prepayment, and (ii) any such prepayment shall be in a minimum principal
amount of $100,000. Each such notice shall specify the date and amount of such prepayment.
If such notice is given by the Borrower, the Borrower shall make such prepayment and the
payment amount specified in such notice shall be due and payable on the date specified
therein.

42

 

     (c) If for any reason the Total Outstandings at any time exceed the Total
Commitments then in effect, the Borrower shall immediately prepay Loans and/or Cash
Collateralize the Letter of Credit Obligations in an aggregate amount equal to such excess;
provided, however, that the Borrower shall not be required to Cash
Collateralize the Letter of Credit Obligations pursuant to this Section 2.05(c)
unless after the prepayment in full of the Loans the Total Outstandings exceed the Total
Commitments then in effect.

     (d) Upon the Disposition of assets by the Borrower or any Subsidiary as permitted in
Section 7.05(c) (for the avoidance of doubt, JBO Stock and Equity Interests shall
not be considered assets for purposes of this subsection (d)) 100% of the Net Cash
Proceeds shall be paid within two Business Days to the Administrative Agent to be applied to
the Loans, and the Total Commitments shall be permanently reduced by the amount of the Net
Cash Proceeds of such Disposition provided, however, that, with respect to
any Net Cash Proceeds realized under a Disposition described in this
Section 2.05(d), at the election of the Borrower (as notified by the Borrower to the
Administrative Agent on or prior to the date of such Disposition), and so long as no Default
shall have occurred and be continuing, the Borrower or such Subsidiary may reinvest all or
any portion of such Net Cash Proceeds in operating assets (including investments in capital
of Subsidiaries) so long as within 90 days after the receipt of such Net Cash Proceeds, such
purchase shall have been consummated (as certified by the Borrower in writing to the
Administrative Agent); and provided further, however, that any Net
Cash Proceeds not subject to such definitive agreement or so reinvested by such time shall
be immediately applied to the prepayment of the Loans as set forth in this
Section 2.05(d) along with a corresponding permanent reduction to the Total
Commitments. The provisions of this Section do not constitute a consent to the consummation
of any Disposition not otherwise permitted in Section 7.05.

     (e) Upon the issuance of any Indebtedness by the Borrower or any Subsidiary not
otherwise permitted in Section 7.03, 100% of the Net Cash Proceeds shall be
immediately paid to the Administrative Agent to be applied to the Loans, and the Total
Commitments shall be permanently reduced by the amount of the Net Cash Proceeds of such
issuance. The provisions of this Section do not constitute a consent to the issuance of any
Indebtedness not otherwise permitted in Section 7.03.

     (f) If at any time the Consolidated Leverage Ratio is greater than **** to ****as set
forth in the most recent Compliance Certificate received by the Administrative Agent
pursuant to Section 6.02(a), there shall be a period of at least thirty (30)
consecutive days during the six-month period following delivery of such Compliance
Certificate (the “Clean Down Period”) during which (i) the Total Outstandings shall
be zero and (ii) no additional Loans shall be made and no Letters of Credit shall be issued;
provided, however, that the Clean Down Period shall terminate prior to the
end of such six-month period if and at such time as the Borrower submits its regularly
scheduled quarterly Compliance Certificate evidencing that the Consolidated Leverage Ratio
is less than or equal to **** to ****.

43

 

     (g) Each prepayment under this Section 2.05 shall be accompanied by accrued
interest on the amount prepaid to the date of such prepayment and amounts, if any, required
to be paid pursuant to Section 3.05.

     2.06 Termination or Reduction of Commitments. The Borrower may, upon notice to the
Administrative Agent, terminate the Total Commitments, or from time to time permanently reduce the
Total Commitments; provided that (i) any such notice shall be received by the
Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination
or reduction, (ii) any such partial reduction shall be in an aggregate amount of $5,000,000 or any
whole multiple of $1,000,000 in excess thereof, (iii) the Borrower shall not terminate or reduce
the Total Commitments if, after giving effect thereto and to any concurrent prepayments hereunder,
the Total Outstandings would exceed the Total Commitments, and (iv) if, after giving effect to any
reduction of the Total Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit
exceeds the amount of the Total Commitments, such Sublimit shall be automatically reduced by the
amount of such excess. The Administrative Agent will promptly notify the Lenders of any such
notice of termination or reduction of the Total Commitments. Any reduction of the Total
Commitments shall be applied to the Commitment of each Lender according to its Pro Rata Percentage.
All fees accrued until the effective date of any termination of the Total Commitments shall be
paid on the effective date of such termination. Notwithstanding the foregoing, for the avoidance
of doubt but without prejudice to the right of the Borrower to terminate or permanently reduce the
Total Commitments pursuant to Section 2.06, if the Total Commitments are reduced to zero
due to mandatory prepayments pursuant to Section 2.05(e), the revolving credit facility
hereunder shall not automatically terminate and shall terminate only upon the written request of
the Borrower or the Administrative Agent.

     2.07 Repayment of Loans.

     (a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate
principal amount of Revolving Loans outstanding on such date and all other outstanding and
unpaid Obligations.

     (b) The Borrower shall repay each Swing Line Loan on the earlier to occur of (i) unless
otherwise refinanced as a Revolving Loan pursuant to Section 2.04(c), the date five
Business Days after such Loan is made and (ii) the Maturity Date.

     2.08 Interest.

     (a) Subject to the provisions of subsection (b) below, (i) each LIBOR Rate Loan shall
bear interest on the outstanding principal amount thereof for each Interest Period at a rate
per annum equal to the lesser of (A) the LIBOR Rate for such Interest Period plus
the Applicable Margin or (B) the Maximum Rate; (ii) each Base Rate Revolving Loan shall bear
interest on the outstanding principal amount thereof from the applicable borrowing date at a
rate per annum equal to the lesser of (A) the Base Rate plus the Applicable Margin
or (B) the Maximum Rate; and (iii) each Swing Line Loan shall bear interest on the
outstanding principal amount thereof from the applicable

44

 

borrowing date at a rate per annum equal to the lesser of (A) the Base Rate
plus the Applicable Margin or (B) the Maximum Rate.

     (b) (i) If any amount of principal of any Loan is not paid when due (without regard to
any applicable grace periods), whether at stated maturity, by acceleration or otherwise,
such amount shall thereafter bear interest at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by applicable Laws.

     (ii) If any amount (other than principal of any Loan) payable by the Borrower
under any Loan Document is not paid when due (without regard to any applicable grace
periods), whether at stated maturity, by acceleration or otherwise, then upon the
request of the Required Lenders, such amount shall thereafter bear interest at a
fluctuating interest rate per annum at all times equal to the Default Rate to the
fullest extent permitted by applicable Laws.

     (iii) Upon the request of the Required Lenders, while any Event of Default
exists, the Borrower shall pay interest on the principal amount of all outstanding
Obligations hereunder at a fluctuating interest rate per annum at all times equal to
the Default Rate to the fullest extent permitted by applicable Laws.

     (iv) Accrued and unpaid interest on past due amounts shall be due and payable
upon demand.

     (c) Interest on each Loan shall be due and payable in arrears on each Interest Payment
Date applicable thereto and at such other times as may be specified herein. Interest
hereunder shall be due and payable in accordance with the terms hereof before and after
judgment, and before and after the commencement of any proceeding under any Bankruptcy Law.

     2.09 Fees. In addition to certain fees described in subsections (i) and (j) of
Section 2.03:

     (a) Commitment Fee. The Borrower shall pay to the Administrative Agent for the
account of each Lender in accordance with its Pro Rata Percentage, a commitment fee equal to
the Applicable Margin times the actual daily amount by which the Total Commitments
exceed the sum of (i) the Outstanding Amount of Revolving Loans and (ii) the Outstanding
Amount of Letter of Credit Obligations. The commitment fee shall accrue at all times during
the Availability Period, including at any time during which one or more of the conditions in
Article IV is not met, and shall be due and payable quarterly in arrears on the last
Business Day of each March, June, September and December, commencing with the first such
date to occur after the Closing Date, and on the last day of the Availability Period. The
commitment fee shall be calculated quarterly in arrears, and if there is any change in the
Applicable Margin during any quarter, the actual daily amount shall be computed and
multiplied by the Applicable Margin separately for each period during such quarter that such
Applicable Margin was in effect.

45

 

     (b) Other Fees.

     (i) The Borrower shall pay to the Administrative Agent for its own account fees
in the amounts and at the times specified in the Fee Letter. Such fees shall be
fully earned when paid and shall not be refundable for any reason whatsoever.

     (ii) The Borrower shall pay to the Lenders such fees as shall have been
separately agreed upon in writing in the amounts and at the times so specified.
Such fees shall be fully earned when paid and shall not be refundable for any reason
whatsoever.

     2.10 Computation of Interest and Fees.

     (a) All computations of fees and interest shall be made on the basis of a 360-day year
and actual days elapsed (which results in more fees or interest, as applicable, being paid
than if computed on the basis of a 365-day year). Interest shall accrue on each Loan for
the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof,
for the day on which the Loan or such portion is paid, provided that any Loan that
is repaid on the same day on which it is made shall, subject to Section 2.12(a),
bear interest for one day. Each determination by the Administrative Agent of an interest
rate or fee hereunder shall be presumptive evidence of such rate or fee, absent manifest
error.

     (b) If, as a result of any restatement of or other adjustment to the financial
statements of the Borrower, the Borrower or the Required Lenders determine in good faith
that (i) the Consolidated Leverage Ratio as calculated by the Borrower as of any applicable
date was inaccurate and (ii) a proper calculation of the Consolidated Leverage Ratio would
have resulted in higher pricing for such period, the Borrower shall immediately and
retroactively be obligated to pay to the Administrative Agent for the account of the
applicable Lenders, promptly on demand by the Administrative Agent (or, after the occurrence
of an actual or deemed entry of an order for relief with respect to the Borrower under the
Bankruptcy Laws, automatically and without further action by the Administrative Agent or any
Lender), an amount equal to the excess of the amount of interest and fees that should have
been paid for such period over the amount of interest and fees actually paid for such
period. This paragraph shall not limit the rights of the Administrative Agent or any Lender
under any other provision of this Agreement. The Borrower’s obligations under this
paragraph shall survive the termination of the Total Commitments and the repayment of all
other Obligations hereunder for a period of one year.

     2.11 Evidence of Debt.

     (a) The Credit Extensions made by each Lender shall be evidenced by one or more
accounts or records maintained by such Lender and by the Administrative Agent in the
ordinary course of business. The accounts or records maintained by the

46

 

 Administrative Agent and each Lender shall be presumptively correct, absent manifest
error, of the amount of the Credit Extensions made by the Lenders to the Borrower and the
interest and payments thereon. Any failure to so record or any error in doing so shall not,
however, limit or otherwise affect the obligation of the Borrower hereunder to pay any
amount owing with respect to the Obligations. In the event of any conflict between the
accounts and records maintained by any Lender and the accounts and records of the
Administrative Agent in respect of such matters, the accounts and records of the
Administrative Agent shall control in the absence of manifest error. Upon the request of
any Lender made through the Administrative Agent, the Borrower shall execute and deliver to
such Lender (through the Administrative Agent) a Note, which shall evidence such Lender’s
Loans in addition to such accounts or records. Each Lender may attach schedules to its Note
and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and
payments with respect thereto.

     (b) In addition to the accounts and records referred to in subsection (a), each Lender
and the Administrative Agent shall maintain in accordance with its usual practice accounts
or records evidencing the purchases and sales by such Lender of participations in Letters of
Credit and Swing Line Loans. In the event of any conflict between the accounts and records
maintained by the Administrative Agent and the accounts and records of any Lender in respect
of such matters, the accounts and records of the Administrative Agent shall control in the
absence of manifest error.

     2.12 Payments Generally; Administrative Agent’s Clawback.

     (a) General. All payments to be made by the Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein, all payments by the Borrower hereunder shall be made to
the Administrative Agent, for the account of the respective Lenders to which such payment is
owed, at the Administrative Agent’s Office in Dollars and in immediately available funds not
later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly
distribute to each Lender its Pro Rata Percentage (or other applicable share as provided
herein) of such payment in like funds as received by wire transfer to such Lender’s Lending
Office. All payments received by the Administrative Agent after 2:00 p.m. shall be deemed
received on the next succeeding Business Day and any applicable interest or fee shall
continue to accrue. If any payment to be made by the Borrower shall come due on a day other
than a Business Day, payment shall be made on the next following Business Day, and such
extension of time shall be reflected in computing interest or fees, as the case may be.

(b) (i) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received notice from a Lender prior to the proposed
date of any Revolving Borrowing of LIBOR Loans (or, in the case of any Revolving
Borrowing of Base Rate Loans, prior to 12:00 noon on the date of such Revolving
Borrowing) that such Lender will not make available to the Administrative Agent such
Lender’s share of such Revolving Borrowing, the Administrative Agent may assume that such Lender has made such share

47

 

 available on
such date in accordance with Section 2.02 and may, in reliance upon such
assumption, make available to the Borrower a corresponding amount. In such event,
if a Lender has not in fact made its share of the applicable Revolving Borrowing
available to the Administrative Agent, then the applicable Lender and the Borrower
severally agree to pay to the Administrative Agent forthwith on demand such
corresponding amount in immediately available funds with interest thereon, for each
day from and including the date such amount is made available to the Borrower to but
excluding the date of payment to the Administrative Agent, at (A) in the case of a
payment to be made by such Lender, the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation, and (B) in the case of a payment to be made by the Borrower,
the interest rate applicable to Base Rate Loans. If the Borrower and such Lender
shall pay such interest to the Administrative Agent for the same or an overlapping
period, the Administrative Agent shall promptly remit to the Borrower the amount of
such interest paid by the Borrower for such period. If such Lender pays its share
of the applicable Revolving Borrowing to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Revolving Loan included in such Revolving
Borrowing. Any payment by the Borrower shall be without prejudice to any claim the
Borrower may have against a Lender that shall have failed to make such payment to
the Administrative Agent.

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

     A notice of the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under this subsection (b) shall be conclusive, absent manifest error.

     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to
the Administrative Agent funds for any Loan to be made by such Lender as provided in
the foregoing provisions of this Article II, and such funds are not made
available to the Borrower by the Administrative Agent because the conditions to the
applicable Credit

48

 

Extension set forth in Article IV are not satisfied or waived in
accordance with the terms hereof, the Administrative Agent shall return such funds (in like
funds as received from such Lender) to such Lender, without interest.

     (d) Obligations of Lenders Several. The obligations of the Lenders hereunder
to make Revolving Loans, to fund participations in Letters of Credit and Swing Line Loans
and to make payments pursuant to Section 10.04(c) are several and not joint. The
failure of any Lender to make any Revolving Loan, to fund any such participation or to make
any payment under Section 10.04(c) on any date required hereunder shall not relieve
any other Lender of its corresponding obligation to do so on such date, and no Lender shall
be responsible for the failure of any other Lender to so make its Revolving Loan, to
purchase its participation or to make its payment under Section 10.04(c).

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

     2.13 Sharing of Payments by Lenders. If any Lender shall, by exercising any right of setoff
or counterclaim or otherwise, obtain payment in respect of any principal of or interest on any of
the Revolving Loans made by it, or the participations in Letter of Credit Obligations or in Swing
Line Loans held by it resulting in such Lender’s receiving payment of a proportion of the aggregate
amount of such Revolving Loans or participations and accrued interest thereon greater than its
pro rata share thereof as provided herein, then the Lender receiving such greater
proportion shall (a) notify the Administrative Agent of such fact, and (b) purchase (for cash at
face value) participations in the Revolving Loans and subparticipations in Letter of Credit
Obligations and Swing Line Loans of the other Lenders, or make such other adjustments as shall be
equitable, so that the benefit of all such payments shall be shared by the Lenders ratably in
accordance with the aggregate amount of principal of and accrued interest on their respective
Revolving Loans and other amounts owing them, provided that:

     (i) if any such participations or subparticipations are purchased and all or
any portion of the payment giving rise thereto is recovered, such participations or
subparticipations shall be rescinded and the purchase price restored to the extent
of such recovery, without interest; and

     (ii) the provisions of this Section shall not be construed to apply to (x) any
payment made by the Borrower pursuant to and in accordance with the express terms of
this Agreement or (y) any payment obtained by a Lender as consideration for the
assignment of or sale of a participation in any of its Revolving Loans or
subparticipations in Letter of Credit Obligations or Swing Line Loans to any
assignee or participant, other than to the Borrower or any Subsidiary thereof (as to
which the provisions of this Section shall apply).

     The Borrower consents to the foregoing and agrees, to the extent it may effectively do so
under applicable Law, that any Lender acquiring a participation pursuant to the foregoing

49

 

arrangements may exercise against the Borrower rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of the Borrower in the amount
of such participation.

     2.14 Increase in Commitments.

     (a) Request for Increase. Provided there exists no Default, upon notice to the
Administrative Agent (which shall promptly notify the Lenders), the Borrower may, no more
than two times through the Maturity Date, request an increase in the Total Commitments by an
aggregate amount not exceeding $50,000,000; provided that any such request for an
increase shall be in a minimum amount of $5,000,000. At the time of sending such notice,
the Borrower (in consultation with the Administrative Agent) shall specify the time period
within which each Lender is requested to respond (which shall in no event be less than ten
Business Days from the date of delivery of such notice to the Lenders).

     (b) Lender Elections to Increase. Each Lender shall notify the Administrative
Agent within such time period whether or not it agrees to increase its Commitment and, if
so, whether by an amount equal to, greater than, or less than its Pro Rata Percentage of
such requested increase. Any Lender not responding within such time period shall be deemed
to have declined to increase its Commitment. No Lender shall be under any obligation to
elect to increase its Commitment.

     (c) Notification by Administrative Agent; Additional Lenders. The
Administrative Agent shall notify the Borrower and each Lender of the Lenders’ responses to
each request made hereunder. To achieve the full amount of a requested increase and subject
to the approval of the Administrative Agent, the Letter of Credit Issuer and the Swing Line
Lender (which approvals shall not be unreasonably withheld), the Borrower may also invite
additional Eligible Assignees to become Lenders pursuant to a joinder agreement in form and
substance reasonably satisfactory to the Administrative Agent and its counsel.

     (d) Effective Date and Allocations. If the Total Commitments are increased in
accordance with this Section, the Administrative Agent and the Borrower shall determine the
effective date (the “Increase Effective Date”) and the final allocation of such
increase. The Administrative Agent shall promptly notify the Borrower and the Lenders of
the final allocation of such increase and the Increase Effective Date.

     (e) Conditions to Effectiveness of Increase. As a condition precedent to such
increase, the Borrower shall deliver to the Administrative Agent a certificate of each Loan
Party dated as of the Increase Effective Date (in sufficient copies for each Lender) signed
by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions
adopted by such Loan Party approving or consenting to such increase, and (ii) in the case of
the Borrower, certifying that, before and after giving effect to such
increase, (A) the representations and warranties contained in Article V and the
other Loan Documents are true and correct on and as of the Increase Effective Date, except
to the

50

 

extent that such representations and warranties specifically refer to an earlier
date, in which case they are true and correct as of such earlier date, and except that for
purposes of this Section 2.14, the representations and warranties contained in
subsections (a) and (b) of Section 5.05 shall be deemed to refer to the most recent
statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01,
and (B) no Default exists. The Borrower shall prepay any Revolving Loans outstanding on the
Increase Effective Date (and pay any additional amounts required pursuant to
Section 3.05) to the extent necessary to keep the outstanding Revolving Loans
ratable with any revised Pro Rata Percentages arising from any nonratable increase in the
Commitments under this Section.

     (f) Conflicting Provisions. This Section shall supersede any provisions in
Section 2.13 or 10.01 to the contrary.

     2.15 Extension of Maturity Date.

     (a) Requests for Extension. The Borrower may, by notice to the Administrative
Agent (who shall promptly notify the Lenders) not earlier than 45 days and not later than 35
days prior to the Maturity Date then in effect hereunder (the “Existing Maturity
Date”), request that each Lender extend such Lender’s Maturity Date for an additional
364 days from the Existing Maturity Date. The Borrower may request no more than two such
extensions of the Maturity Date.

     (b) Lender Elections to Extend. Each Lender, acting in its sole and individual
discretion, shall, by notice to the Administrative Agent given not earlier than 30 days
prior to the Existing Maturity Date and not later than the date (the “Notice Date”)
that is 20 days prior to the Existing Maturity Date, advise the Administrative Agent whether
or not such Lender agrees to such an extension of the Maturity Date for such Lender’s Loans
and Commitments (each Lender that determines not to so extend its Maturity Date shall be
referred to as a “Non-Extending Lender”), and any Lender that does not so advise the
Administrative Agent on or before the Notice Date shall be deemed to be a Non-Extending
Lender. The election of any Lender to agree to such extension shall not obligate any other
Lender to so agree.

     (c) Notification by Administrative Agent. The Administrative Agent shall
notify the Borrower of each Lender’s determination under this Section no later than the date
15 days prior to the Existing Maturity Date (or, if such date is not a Business Day, on the
next preceding Business Day).

     (d) Additional Commitment Lenders. The Borrower shall have the right to
replace each Non-Extending Lender with, and add as “Lenders” under this Agreement in place
thereof, one or more Eligible Assignees (each, an “Additional Commitment Lender”) as
provided in Section 10.06; provided that each of such Additional Commitment
Lenders shall enter into an Assignment and Assumption pursuant to which such Additional
Commitment Lender shall, effective as of the Existing Maturity Date,
undertake a Commitment (and, if any such Additional Commitment Lender is already a

51

 

Lender, its Commitment shall be in addition to such Lender’s Commitment hereunder on such
date).

     (e) Minimum Extension Requirement. If (and only if) the total of the
Commitments of the Lenders that have agreed so to extend their Maturity Date (each, an
“Extending Lender”) and the additional Commitments of the Additional Commitment
Lenders shall be more than 66-2/3% of the aggregate amount of the Commitments in effect
immediately prior to the Existing Maturity Date, then, effective as of the Existing Maturity
Date, the Maturity Date of each Extending Lender and of each Additional Commitment Lender
shall be extended to the date falling 364 days after the Existing Maturity Date (except
that, if such date is not a Business Day, such Maturity Date as so extended shall be the
next preceding Business Day) and each Additional Commitment Lender shall thereupon become a
“ Lender” for all purposes of this Agreement.

     (f) Conditions to Effectiveness of Extensions. As a condition precedent to
such extension, the Borrower shall deliver to the Administrative Agent a certificate of each
Loan Party dated as of the Existing Maturity Date (in sufficient copies for each Extending
Lender and each Additional Commitment Lender) signed by a Responsible Officer of such Loan
Party (i) certifying and attaching the resolutions adopted by such Loan Party approving or
consenting to such extension and (ii) in the case of the Borrower, certifying that, before
and after giving effect to such extension, (A) the representations and warranties contained
in Article V and the other Loan Documents are true and correct on and as of the
Existing Maturity Date, except to the extent that such representations and warranties
specifically refer to an earlier date, in which case they are true and correct as of such
earlier date, and except that for purposes of this Section 2.14, the representations
and warranties contained in subsections (a) and (b) of Section 5.05 shall be deemed
to refer to the most recent statements furnished pursuant to subsections (a) and (b),
respectively, of Section 6.01, and (B) no Default exists. In addition, on the
Maturity Date of each Non-Extending Lender, the Borrower shall repay such Non-Extending
Lender’s Revolving Loans (except to the extent assigned to an Extending Lender or Additional
Commitment Lender) and shall prepay Revolving Loans of the Extending Lenders and Additional
Commitment Lenders outstanding on such date (and pay any additional amounts required
pursuant to Section 3.05) to the extent necessary to keep outstanding Revolving
Loans ratable with any revised Pro Rata Percentages of the respective Extending Lenders and
Additional Commitment Lenders effective as of such date.

     (g) Conflicting Provisions. This Section shall supersede any provisions in
Section 2.13 or 10.01 to the contrary.

52

 

ARTICLE III.

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01 Taxes.

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

     (b) Payment of Other Taxes by the Borrower. Without limiting the provisions of
subsection (a) above, the Borrower shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable Law.

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

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

     (e) Status of Lenders. Any Foreign Lender that is entitled to an exemption
from or reduction of withholding tax under the law of the jurisdiction in which the Borrower
is resident for tax purposes, or any treaty to which such jurisdiction is a party, with
respect to payments hereunder or under any other Loan Document shall deliver to

53

 

the Borrower (with a copy to the Administrative Agent), at the time or times prescribed
by applicable Law or reasonably requested by the Borrower or the Administrative Agent, such
properly completed and executed documentation prescribed by applicable Law as will permit
such payments to be made without withholding or at a reduced rate of withholding. In
addition, any Lender, if requested by the Borrower or the Administrative Agent, shall
deliver such other documentation prescribed by applicable Law or reasonably requested by the
Borrower or the Administrative Agent as will enable the Borrower or the Administrative Agent
to determine whether or not such Lender is subject to backup withholding or information
reporting requirements.

     Without limiting the generality of the foregoing, in the event that the Borrower is
resident for tax purposes in the United States, any Foreign Lender shall deliver to the
Borrower and the Administrative Agent (in such number of copies as shall be requested by the
recipient) on or prior to the date on which such Foreign Lender becomes a Lender under this
Agreement (and from time to time thereafter upon the request of the Borrower or the
Administrative Agent, but only if such Foreign Lender is legally entitled to do so),
whichever of the following is applicable:

     (i) duly completed copies of Internal Revenue Service Form W-8BEN claiming
eligibility for benefits of an income tax treaty to which the United States is a
party,

     (ii) duly completed copies of Internal Revenue Service Form W-8ECI,

     (iii) in the case of a Foreign Lender claiming the benefits of the exemption
for portfolio interest under Section 881(c) of the Code, (x) a certificate to the
effect that such Foreign Lender is not (A) a “bank” within the meaning of Section
881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of the Borrower within the
meaning of Section 881(c)(3)(B) of the Code, or (C) a “controlled foreign
corporation” described in Section 881(c)(3)(C) of the Code and (y) duly completed
copies of Internal Revenue Service Form W-8BEN, or

     (iv) any other form prescribed by applicable Law as a basis for claiming
exemption from or a reduction in United States Federal withholding tax duly
completed together with such supplementary documentation as may be prescribed by
applicable Law to permit the Borrower to determine the withholding or deduction
required to be made.

     (f) Treatment of Certain Refunds. If the Administrative Agent, any Lender or
the Letter of Credit Issuer determines, in its reasonable discretion, that it has received a
refund of any Taxes or Other Taxes as to which it has been indemnified by the Borrower or
with respect to which the Borrower has paid additional amounts pursuant to this Section, it
shall pay to the Borrower an amount equal to such refund (but only to the extent of
indemnity payments made, or additional amounts paid, by the Borrower under this Section with
respect to the Taxes or Other Taxes giving rise to such refund), net of all out-of-pocket
expenses of the Administrative Agent, such Lender or the Letter of

54

 

Credit Issuer, as the case may be, and without interest (other than any interest paid
by the relevant Governmental Authority with respect to such refund), provided that
the Borrower, upon the request of the Administrative Agent, such Lender or the Letter of
Credit Issuer, agrees to repay the amount paid over to the Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to the
Administrative Agent, such Lender or the Letter of Credit Issuer in the event the
Administrative Agent, such Lender or the Letter of Credit Issuer is required to repay such
refund to such Governmental Authority. This subsection shall not be construed to require
the Administrative Agent, any Lender or the Letter of Credit Issuer to make available its
tax returns (or any other information relating to its taxes that it deems confidential) to
the Borrower or any other Person.

     3.02 Illegality. If any Lender determines that any Law has made it unlawful, or that any
Governmental Authority has asserted that it is unlawful, for any Lender or its applicable Lending
Office to make, maintain or fund LIBOR Rate Loans, or to determine or charge interest rates based
upon the LIBOR Rate, or any Governmental Authority has imposed material restrictions on the
authority of such Lender to purchase or sell, or to take deposits of, Dollars in the London
interbank market, then, on notice thereof by such Lender to the Borrower through the Administrative
Agent, any obligation of such Lender to make or continue LIBOR Rate Loans or to convert Base Rate
Revolving Loans to LIBOR Rate Loans shall be suspended until such Lender notifies the
Administrative Agent and the Borrower that the circumstances giving rise to such determination no
longer exist. Upon receipt of such notice, the Borrower shall, upon demand from such Lender (with
a copy to the Administrative Agent), prepay or, if applicable, convert all LIBOR Rate Loans of such
Lender to Base Rate Loans, either on the last day of the Interest Period therefor, if such Lender
may lawfully continue to maintain such LIBOR Rate Loans to such day, or immediately, if such Lender
may not lawfully continue to maintain such LIBOR Rate Loans. Upon any such prepayment or
conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted.

     3.03 Inability to Determine Rates. If the Required Lenders determine that for any reason in
connection with any request for a LIBOR Rate Loan or a conversion to or continuation thereof that
(a) Dollar deposits are not being offered to banks in the London interbank LIBOR market for the
applicable amount and Interest Period of such LIBOR Rate Loan, (b) adequate and reasonable means do
not exist for determining the LIBOR Rate for any requested Interest Period with respect to a
proposed LIBOR Rate Loan, or (c) the LIBOR Rate for any requested Interest Period with respect to a
proposed LIBOR Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding
such Loan, the Administrative Agent will promptly so notify the Borrower and each Lender.
Thereafter, the obligation of the Lenders to make or maintain LIBOR Rate Loans shall be suspended
until the Administrative Agent (upon the instruction of the Required Lenders) revokes such notice.
Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of,
conversion to or continuation of LIBOR Rate Loans or, failing that, will be deemed to have
converted such request into a request for a Revolving Borrowing of Base Rate Loans in the amount
specified therein.

55

 

     3.04 Increased Costs.

     (a) Increased Costs Generally. If any Change in Law shall:

     (i) impose, modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with or
for the account of, or credit extended or participated in by, any Lender (except any
reserve requirement contemplated by Section 3.04(e)) or the Letter of Credit
Issuer;

     (ii) subject any Lender or the Letter of Credit Issuer to any tax of any kind
whatsoever with respect to this Agreement, any Letter of Credit, any participation
in a Letter of Credit or any LIBOR Rate Loan made by it, or change the basis of
taxation of payments to such Lender or the Letter of Credit Issuer in respect
thereof (except for Indemnified Taxes or Other Taxes covered by Section 3.01
and the imposition of, or any change in the rate of, any Excluded Tax payable by
such Lender or the Letter of Credit Issuer); or

     (iii) impose on any Lender or the Letter of Credit Issuer or the London
interbank market any other condition, cost or expense affecting this Agreement or
LIBOR Rate Loans made by such Lender or any Letter of Credit or participation
therein;

and the result of any of the foregoing shall be to increase the cost to such Lender of
making or maintaining any LIBOR Rate Loan (or of maintaining its obligation to make any such
Loan), or to increase the cost to such Lender or the Letter of Credit Issuer of
participating in, issuing or maintaining any Letter of Credit (or of maintaining its
obligation to participate in or to issue any Letter of Credit), or to reduce the amount of
any sum received or receivable by such Lender or the Letter of Credit Issuer hereunder
(whether of principal, interest or any other amount) then, upon request of such Lender or
the Letter of Credit Issuer, the Borrower will pay to such Lender or the Letter of Credit
Issuer, as the case may be, such additional amount or amounts as will compensate such Lender
or the Letter of Credit Issuer, as the case may be, for such additional costs incurred or
reduction suffered.

     (b) Capital Requirements. If any Lender or the Letter of Credit Issuer
determines that any Change in Law affecting such Lender or the Letter of Credit Issuer or
any Lending Office of such Lender or such Lender’s or the Letter of Credit Issuer’s holding
company, if any, regarding capital requirements has or would have the effect of reducing the
rate of return on such Lender’s or the Letter of Credit Issuer’s capital or on the capital
of such Lender’s or the Letter of Credit Issuer’s holding company, if any, as a consequence
of this Agreement, the Commitments of such Lender or the Loans made by, or participations in
Letters of Credit held by, such Lender, or the Letters of Credit issued by the Letter of
Credit Issuer, to a level below that which such Lender or the Letter of Credit Issuer or
such Lender’s or the Letter of Credit Issuer’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s or the

56

 

Letter of Credit Issuer’s policies and the policies of such Lender’s or the Letter of
Credit Issuer’s holding company with respect to capital adequacy), then from time to time
the Borrower will pay to such Lender or the Letter of Credit Issuer, as the case may be,
such additional amount or amounts as will compensate such Lender or the Letter of Credit
Issuer or such Lender’s or the Letter of Credit Issuer’s holding company for any such
reduction suffered.

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

     (d) Delay in Requests. Failure or delay on the part of any Lender or the
Letter of Credit Issuer to demand compensation pursuant to the foregoing provisions of this
Section shall not constitute a waiver of such Lender’s or the Letter of Credit Issuer’s
right to demand such compensation, provided that the Borrower shall not be required
to compensate a Lender or the Letter of Credit Issuer pursuant to the foregoing provisions
of this Section for any increased costs incurred or reductions suffered more than nine
months prior to the date that such Lender or the Letter of Credit Issuer, as the case may
be, notifies the Borrower of the Change in Law giving rise to such increased costs or
reductions and of such Lender’s or the Letter of Credit Issuer’s intention to claim
compensation therefor (except that, if the Change in Law giving rise to such increased costs
or reductions is retroactive, then the nine-month period referred to above shall be extended
to include the period of retroactive effect thereof).

     (e) Reserves on LIBOR Rate Loans. The Borrower shall pay to each Lender, as
long as such Lender shall be required to maintain reserves with respect to liabilities or
assets consisting of or including Eurocurrency funds or deposits (currently known as
“Eurocurrency liabilities”), additional interest on the unpaid principal amount of each
LIBOR Rate Loan equal to the actual costs of such reserves allocated to such Loan by such
Lender (as determined by such Lender in good faith, which determination shall be
conclusive), which shall be due and payable on each date on which interest is payable on
such Loan, provided the Borrower shall have received at least 10 days’ prior notice
(with a copy to the Administrative Agent) of such additional interest from such Lender. If
a Lender fails to give notice 10 days prior to the relevant Interest Payment Date, such
additional interest shall be due and payable 10 days from receipt of such notice.

     3.05 Compensation for Losses. Upon demand of any Lender (with a copy to the Administrative
Agent) from time to time, the Borrower shall promptly compensate such Lender for and hold such
Lender harmless from any loss, cost or expense incurred by it as a result of:

57

 

     (a) any continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan on a day other than the last day of the Interest Period for such Loan (whether
voluntary, mandatory, automatic, by reason of acceleration, or otherwise);

     (b) any failure by the Borrower (for a reason other than the failure of such Lender to
make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate Loan on
the date or in the amount notified by the Borrower; or

     (c) any assignment of a LIBOR Rate Loan on a day other than the last day of the
Interest Period therefor as a result of a request by the Borrower pursuant to
Section 10.13;

including any loss of anticipated profits and any loss or expense arising from the liquidation or
reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing.

For purposes of calculating amounts payable by the Borrower to the Lenders under this
Section 3.05, each Lender shall be deemed to have funded each LIBOR Rate Loan made by it at
the rate described in clause (a) of the definition of “LIBOR Rate” for such Loan by a matching
deposit or other borrowing in the London interbank LIBOR market for a comparable amount and for a
comparable period, whether or not such LIBOR Rate Loan was in fact so funded.

     3.06 Mitigation Obligations; Replacement of Lenders.

     (a) Designation of a Different Lending Office. If any Lender requests
compensation under Section 3.04, or the Borrower is required to pay any additional
amount to any Lender or any Governmental Authority for the account of any Lender pursuant to
Section 3.01, or if any Lender gives a notice pursuant to Section 3.02, then
such Lender shall use reasonable efforts to designate a different Lending Office for funding
or booking its Loans hereunder or to assign its rights and obligations hereunder to another
of its offices, branches or affiliates, if, in the judgment of such Lender, such designation
or assignment (i) would eliminate or reduce amounts payable pursuant to Section 3.01
or 3.04, as the case may be, in the future, or eliminate the need for the notice
pursuant to Section 3.02, as applicable, and (ii) in each case, would not subject
such Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous
to such Lender. The Borrower hereby agrees to pay all reasonable costs and expenses
incurred by any Lender in connection with any such designation or assignment.

     (b) Replacement of Lenders. If any Lender requests compensation under
Section 3.04 or is an Impacted Lender, or if the Borrower is required to pay any
additional amount to any Lender or any Governmental Authority for the account of any Lender
pursuant to Section 3.01, the Borrower may replace such Lender in accordance with
Section 10.13.

58

 

     3.07 Survival. All of the Borrower’s obligations under this Article III shall survive
termination of the Total Commitments and repayment of all other Obligations hereunder.

ARTICLE IV.

CONDITIONS PRECEDENT TO CLOSING

     4.01 Conditions of Closing of Credit Agreement. The obligation of the Letter of Credit Issuer
and each Lender to make Credit Extensions hereunder following the closing of the Credit Agreement
is subject to satisfaction of the following conditions precedent on or prior to the Closing Date:

     (a) The Administrative Agent’s receipt of the following, each of which shall be
originals or telecopies (followed promptly by originals) unless otherwise specified, each
properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing
Date (or, in the case of certificates of governmental officials, a recent date before the
Closing Date) and each in form and substance satisfactory to the Administrative Agent:

     (i) executed counterparts of this Agreement, sufficient in number for
distribution to the Administrative Agent, each Lender and the Borrower;

     (ii) a Note executed by the Borrower in favor of each Lender requesting a Note;

     (iii) a Pledge Agreement executed by the Borrower and its Subsidiaries (as
required by this Agreement) in favor of the Administrative Agent for the benefit of
the Lenders and evidence that a first priority lien has been granted in all
collateral covered by such Pledge Agreement in favor of the Administrative Agent;

     (iv) stock certificates, if any, for 100% of all voting Equity Interests of
each Material Domestic Subsidiary and for 65% of all voting Equity Interests of each
Material Foreign Subsidiary and stock powers, sufficient in number for distribution
to the Administrative Agent, each Lender and the Borrower; it being understood that
such pledged stock shall not include JBO Stock;

     (v) a Guaranty executed by each Guarantor in favor of the Administrative Agent
and Lenders;

     (vi) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party as the
Administrative Agent may require evidencing the identity, authority and capacity of
each Responsible Officer thereof authorized to act as a Responsible Officer in
connection with this Agreement and the other Loan Documents to which such Loan Party
is a party;

59

 

(vii) such documents and certifications as the Administrative Agent may
reasonably require to evidence that each Loan Party is duly organized or formed, and
that the Borrower is validly existing, in good standing and qualified to engage in
business in Delaware and each other jurisdiction where its ownership, lease or
operation of properties or the conduct of its business requires such qualification,
except to the extent that failure to do so would not reasonably be expected to have
a Material Adverse Effect;

     (viii) a favorable opinion of internal counsel of the Borrower, addressed to
the Administrative Agent and each Lender, as to the matters set forth in
Exhibit F and such other matters concerning the Loan Parties and the Loan
Documents as the Required Lenders may reasonably request;

     (ix) copies of central filing UCC searches of the Borrower and its
Subsidiaries, each such search showing no Liens except Liens permitted pursuant to
Section 7.01;

     (x) a certificate of a Responsible Officer of each Loan Party either
(A) attaching copies of all consents, licenses and approvals (other than Board
approvals) required in connection with the execution, delivery and performance by
such Loan Party and the validity against such Loan Party of the Loan Documents to
which it is a party, and such consents, licenses and approvals shall be in full
force and effect, or (B) stating that no such consents, licenses or approvals (other
than Board approvals) are so required with respect thereto;

     (xi) a certificate signed by a Responsible Officer of the Borrower certifying
(A) that the conditions specified in Sections 4.02(a) and (b) have
been satisfied and (B) that there has been no event or circumstance since the
Audited Financial Statements that has had or would be reasonably expected to have,
either individually or in the aggregate, a Material Adverse Effect;

     (xii) evidence that all insurance required to be maintained pursuant to the
Loan Documents has been obtained and is in effect;

     (xiii) the Audited Financial Statements and quarterly financial statements
required under Section 6.01(b) for the fiscal quarter ended December 31,
2009;

     (xiv) financial projections of the Borrower’s consolidated operations
including, on a quarterly basis, quarterly balance sheets, income statements and
statements of cash flows of the Borrower and its Subsidiaries;

     (xiv) an organizational chart of the Borrower and its Subsidiaries;

60

 

     (xv) a Compliance Certificate, duly and properly executed by the chief
executive officer, chief financial officer, treasurer or controller of the Borrower
dated the date hereof but with all calculations made as of March 31, 2010;

     (xvi) executed counterparts of the Intercreditor Agreement;

     (xvii) a copy of each 2017 Notes Offering Document and each other document
relating to the 2017 Notes Offering as reasonably requested by Administrative Agent;

     (xviii) evidence that all conditions precedent to the closing of the 2017 Notes
Offering shall have been completed; and

     (xix) such other assurances, certificates, documents, consents or opinions as
the Administrative Agent, the Letter of Credit Issuer, the Swing Line Lender or the
Required Lenders reasonably may require.

     (b) Any fees required to be paid on or before the Closing Date shall have been paid,
including those fees required to be paid in the Fee Letter.

     (c) Unless waived by the Administrative Agent, the Borrower shall have paid all fees,
charges and disbursements of counsel to the Administrative Agent (directly to such counsel
if requested by the Administrative Agent) to the extent invoiced prior to or on the Closing
Date, plus such additional amounts of such fees, charges and disbursements as shall
constitute its reasonable estimate of such fees, charges and disbursements incurred or to be
incurred by it through the closing proceedings (provided that such estimate shall not
thereafter preclude a final settling of accounts between the Borrower and the Administrative
Agent).

     (d) Except as disclosed in the Borrower’s public securities filings, since the Audited
Financial Statements, there shall not have occurred (i) any event, development, or
circumstance that has caused or would reasonably be expected to cause a Material Adverse
Effect, or (ii) any event, development, or circumstance that has caused or would reasonably
be expected to cause the projections previously provided in Section 4.01(a)(xv) or
any of the material assumptions on which such projections were prepared to be materially
incorrect so as to render such projections materially incorrect.

     (e) Except as disclosed in the Borrower’s public securities filings, no action, suit,
investigation or proceeding pending or, to the knowledge of the Borrower, threatened in any
court or before any arbitrator or governmental authority against the Borrower or a
Subsidiary that would reasonably be expected to have a Material Adverse Effect.

     (f) The Administrative Agent shall have completed a due diligence investigation of the
Borrower and its Subsidiaries in scope, and with results, reasonably satisfactory to the
Administrative Agent and shall have been given such access to the management, records, books of account, contracts and properties of
the Borrower and its

61

 

Subsidiaries and shall have received such material financial, business and other information
regarding the Borrower and its Subsidiaries as the Administrative Agent shall have
reasonably requested, including, without limitation, information requested as to probable
material contingent liabilities, tax matters, collective bargaining and labor agreements,
insurance and other material contracts, and its material real and personal property.

     (g) There shall not have occurred any material disruption or material adverse change in
the financial, banking, or capital markets which the Administrative Agent, in its reasonable
discretion, deems to materially impair the syndication of this revolving credit facility.

     Without limiting the generality of the provisions of Section 9.04, for purposes of
determining compliance with the conditions specified in this Section 4.01, each Lender that
has signed this Agreement shall be deemed to have consented to, approved or accepted or to be
satisfied with, each document or other matter required thereunder to be consented to or approved by
or acceptable or satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

     4.02 Conditions to all Credit Extensions. The obligation of each Lender to honor any Request
for Credit Extension (other than a Revolving Loan Notice requesting only a conversion of Revolving
Loans to the other Type, or a continuation of LIBOR Rate Loans) is subject to the following
conditions precedent:

     (a) The representations and warranties of the Borrower and each other Loan Party
contained in Article V or any other Loan Document, or which are contained in any
document furnished at any time under or in connection herewith or therewith, shall be true
and correct on and as of the date of such Credit Extension, except to the extent that such
representations and warranties specifically refer to an earlier date, in which case they
shall be true and correct as of such earlier date, and except that for purposes of this
Section 4.02, (i) the representations and warranties contained in subsections (a)
and (b) of Section 5.05 shall be deemed to refer to the most recent statements
furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 and (ii)
for purposes of representations and warranties relating to information contained on
Schedule 5.05 and 5.13, such representations and warranties shall relate to
any updated schedule provided as of the end of the most recently ended fiscal quarter.

     (b) No Default shall exist, or would result from such proposed Credit Extension or from
the application of the proceeds thereof.

     (c) The Administrative Agent and, if applicable, the Letter of Credit Issuer or the
Swing Line Lender shall have received a Request for Credit Extension in accordance with the
requirements hereof.

     Each Request for Credit Extension (other than a Revolving Loan Notice requesting only a
conversion of Revolving Loans to the other Type or a continuation of LIBOR Rate Loans)

62

 

submitted by
the Borrower shall be deemed to be a representation and warranty that the conditions specified in
Sections 4.02(a) and (b) have been satisfied on and as of the date of the
applicable Credit Extension.

ARTICLE V.

REPRESENTATIONS AND WARRANTIES

     The Borrower represents and warrants to the Administrative Agent and the Lenders that:

     5.01 Existence, Qualification and Power. Each Loan Party (a) is duly organized or formed,
validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its
incorporation or organization, (b) has all requisite power and authority and all requisite
governmental licenses, authorizations, consents and approvals to (i) own or lease its assets and
carry on its business, and (ii) execute, deliver and perform its obligations under the Loan
Documents to which it is a party and (c) is duly qualified and is licensed and, as applicable, in
good standing under the Laws of each jurisdiction where its ownership, lease or operation of
properties or the conduct of its business requires such qualification or license; except in each
case referred to in clause (b)(i) or (c), to the extent that failure to do so would not reasonably
be expected to have a Material Adverse Effect.

     5.02 Authorization; No Contravention. The execution, delivery and performance by each Loan
Party of each Loan Document and the transaction contemplated thereby to which such Person is party,
have been duly authorized by all necessary corporate or other organizational action, and do not and
will not (a) contravene the terms of any of such Person’s Organization Documents; (b) conflict with
or result in any breach or contravention of, or the creation of any Lien under, or require any
payment to be made under (i) any Contractual Obligation to which such Person is a party or
affecting such Person or the properties of such Person or any of its Subsidiaries or (ii) any
order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such
Person or its property is subject; or (c) violate any Law.

     5.03 Governmental Authorization; Other Consents. Other than as previously obtained and in
full force and effect, and other than the filing of security interests and notices to, and in the
case of enforcement consents from, applicable regulatory authorities with respect to the Pledge
Agreement, no approval, consent, exemption, authorization, or other action by, or notice to, or
filing with, any Governmental Authority or any other Person is necessary or required in connection
with the execution, delivery or performance by, or enforcement against, any Loan Party of this
Agreement, any other Loan Document or the transactions contemplated thereby.

     5.04 Binding Effect. This Agreement has been, and each other Loan Document, when delivered
hereunder, will have been, duly executed and delivered by each Loan Party that is party thereto.
This Agreement constitutes, and each other Loan Document when so delivered will constitute, a
legal, valid and binding obligation of such Loan Party, enforceable against each Loan Party that is
party thereto in accordance with its terms, subject to the effect of applicable
insolvency and bankruptcy laws and equitable principles and, in the case of the enforcement of
the Pledge Agreement, applicable regulatory restrictions.

63

 

     5.05 Financial Statements; No Material Adverse Effect; No Internal Control Event.

     (a) The Audited Financial Statements (i) were prepared in accordance with GAAP
consistently applied throughout the period covered thereby, except as otherwise expressly
noted therein; (ii) fairly present the financial condition of the Borrower and its
Subsidiaries as of the date thereof and their results of operations for the period covered
thereby in accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein; and (iii) show, in accordance with GAAP, all
material indebtedness and other liabilities, direct or contingent, of the Borrower and its
Subsidiaries as of the date thereof, including liabilities for taxes, material commitments
and Indebtedness.

     (b) The unaudited consolidated and consolidating balance sheet of the Borrower and its
Subsidiaries dated December 31, 2009, and the related consolidated and consolidating
statements of income or operations, shareholders’ equity and cash flows for the fiscal
quarter ended on that date (i) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted therein, and
(ii) fairly present the financial condition of the Borrower and its Subsidiaries as of the
date thereof and their results of operations for the period covered thereby, subject, in the
case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit
adjustments. Schedule 5.05 sets forth all (x) Indebtedness of the Borrower (with
respect to clauses (a), (e) and (f) of the definition of “Indebtedness”) and all capital
leases and (y) Indebtedness of the Subsidiaries, in each case with a principal amount of
more than $5,000,000 as of the date of such financial statements.

     (c) Since the date of the Audited Financial Statements, there has been no event or
circumstance, either individually or in the aggregate, that has had or would reasonably be
expected to have a Material Adverse Effect.

     (d) To the best knowledge of the Borrower, no Internal Control Event exists or has
occurred since the date of the Audited Financial Statements that has resulted in or would
reasonably be expected to result in a misstatement in any material respect, in any financial
information delivered or to be delivered to the Administrative Agent or the Lenders, of
(i) covenant compliance calculations provided hereunder or (ii) the assets, liabilities,
financial condition or results of operations of the Borrower and its Subsidiaries on a
consolidated basis.

     (e) The consolidated forecasted statements of income of the Borrower and its
Subsidiaries delivered pursuant to Section 6.01(c) were prepared in good faith on
the basis of the assumptions stated therein, which assumptions were fair in light of the
conditions existing at the time of delivery of such forecasts, and represented, at the time
of delivery, the Borrower’s best estimate of its future financial condition and
performance.

64

 

     5.06 Litigation. Other than those disclosed in public filings, if any, or provided to the
Administrative Agent and the Lenders in writing, there are no actions, suits, proceedings, claims
or disputes pending or, to the knowledge of the Borrower after due and diligent investigation,
threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority,
by or against the Borrower or any of its Subsidiaries or against any of their properties or
revenues that (a) purport to affect or pertain to this Agreement or any other Loan Document, or any
of the transactions contemplated hereby, or (b) either individually or in the aggregate, if
determined adversely, would reasonably be expected to have a Material Adverse Effect.

     5.07 No Default. Neither any Loan Party nor any Subsidiary thereof is in default under or
with respect to any Contractual Obligation that would, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has occurred and is
continuing or would result from the consummation of the transactions contemplated by this Agreement
or any other Loan Document.

     5.08 Ownership of Property; Liens. Each of the Borrower and each Subsidiary has good record
and marketable title in fee simple to, or valid leasehold interests in, all real property necessary
or used in the ordinary conduct of its business, except for such defects in title as would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. The
property of the Borrower and its Subsidiaries is subject to no Liens, other than Liens permitted by
Section 7.01.

     5.09 Environmental Compliance. The Borrower has reasonably concluded that the Borrower and
its Subsidiaries are in compliance with Environmental Laws and there are no claims that would,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

     5.10 Insurance. The properties of the Borrower and its Subsidiaries are, to the best of the
Borrower’s knowledge, insured with financially sound and reputable insurance companies not
Affiliates of the Borrower, in such amounts, with such deductibles and covering such risks as are
reasonable for its business.

     5.11 Taxes. The Borrower and its Subsidiaries have filed all Federal, state and other
material tax returns and reports required to be filed, and have paid all Federal, state and other
material taxes, assessments, fees and other governmental charges levied or imposed upon them or
their properties, income or assets otherwise due and payable, except those which are being
contested in good faith by appropriate proceedings diligently conducted and for which adequate
reserves have been provided in accordance with GAAP or where no Material Adverse Effect reasonably
would be expected to result. There is no proposed tax assessment against the Borrower or any
Subsidiary that would, if made, have a Material Adverse Effect. Neither any Loan Party nor any
Subsidiary thereof is party to any tax sharing agreement with any Person other than the Borrower
and the Subsidiaries in the ordinary course.

65

 

     5.12 ERISA Compliance.

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

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

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

     5.13 Subsidiaries; Equity Interests. The Borrower has no Subsidiaries other than those
specifically disclosed in Part (a) of Schedule 5.13, and all of the outstanding Equity
Interests in such Subsidiaries have been validly issued, are fully paid and nonassessable and,
except as set forth on Schedule 5.13, are owned by a Loan Party in the amounts specified on
Part (a) of Schedule 5.13 free and clear of all Liens (other than restrictions set forth in
the Organizational Documents of such Subsidiary). The Borrower has no equity investments in any
other corporation or entity other than those specifically disclosed in Part (b) of
Schedule 5.13 and other than those in the ordinary course of business. All of the
outstanding Equity Interests in the Borrower have been validly issued and are fully paid and
nonassessable.

     5.14 Margin Regulations; Investment Company Act; Other Regulations.

     (a) The Borrower is not engaged and will not engage, principally or as one of its
important activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the FRB), or extending credit for the purpose of

66

 

     purchasing or carrying margin stock (within the meaning of Regulation U issued by the
FRB).

     (b) None of the Borrower, any Person Controlling the Borrower, or any Subsidiary is
subject to regulation under the Investment Company Act of 1940, the Energy Policy Act of
2005, the Federal Power Act, the Interstate Commerce Act, or any state public utilities
code.

     5.15 Disclosure. The Borrower has disclosed to the Administrative Agent and the Lenders (or
has disclosed as a public filing) all agreements, instruments and corporate or other restrictions
to which it or any of its Subsidiaries is subject, and all other matters known to it, that,
individually or in the aggregate, would reasonably be expected to result in a Material Adverse
Effect. No report, financial statement, certificate or other information furnished (whether in
writing or orally) by or on behalf of any Loan Party to the Administrative Agent or any Lender in
connection with the transactions contemplated hereby and the negotiation of this Agreement or
delivered hereunder or under any other Loan Document (in each case, as modified or supplemented by
other information so furnished) contains as of the date provided or as of which it speaks any
material misstatement of fact or omits to state any material fact necessary to make the statements
therein, in the light of the circumstances under which they were made, not misleading;
provided that, with respect to projected financial information, the Borrower represents
only that such information was prepared in good faith based upon assumptions believed to be
reasonable at the time. Any disclosure by Borrower and/or its Subsidiaries called for under this
Agreement, other than disclosures under Section 6.01, shall be satisfied if such
information is publicly filed by the Borrower with the SEC.

     5.16 Compliance with Laws. Each Loan Party and each Subsidiary thereof is in compliance in
all material respects with the requirements of all Laws and all orders, writs, injunctions and
decrees applicable to it or to its properties (including the USA PATRIOT Act (Title III of Pub. L.
107-56)), except in such instances in which (a) such requirement of Law or order, writ, injunction
or decree is being contested in good faith by appropriate proceedings diligently conducted or
(b) the failure to comply therewith, either individually or in the aggregate, would not reasonably
be expected to have a Material Adverse Effect.

     5.17 Taxpayer Identification Number. The Borrower’s true and correct U.S. taxpayer
identification number is set forth on Schedule 10.02.

     5.18 Intellectual Property; Licenses, Etc. The Borrower and its Subsidiaries own, or possess
the right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent
rights, franchises, licenses and other intellectual property rights (collectively, “IP
Rights”) that are reasonably necessary for the operation of their respective businesses,
without conflict with the rights of any other Person. To the best knowledge of the Borrower, no
slogan or other advertising device, product, process, method, substance, part or other material now
employed, or now contemplated to be employed, by the Borrower or any Subsidiary infringes upon any
rights held by any other Person other than as would not be reasonably expected to have a Material
Adverse Effect. No claim or litigation regarding any of the foregoing is pending or, to the best

67

 

knowledge of the Borrower, threatened, which, either individually or in the aggregate, would
reasonably be expected to have a Material Adverse Effect.

     5.19 Solvency. The Borrower and its Subsidiaries are, on a consolidated basis, Solvent.

     5.20 Common Enterprise. The Borrower and its Subsidiaries are engaged in the businesses
described on Schedule 5.20 as of the Closing Date: These operations require financing on a
basis such that the credit supplied can be made available from time to time to the Borrower and
various of its Subsidiaries, as required for the continued successful operation of the Borrower and
its Subsidiaries as a whole. The Borrower has requested the Lender to make credit available
hereunder primarily for the purposes set forth in Section 6.11 and generally for the
purposes of financing the operations of the Borrower and its Subsidiaries. The Borrower and each
of its Subsidiaries expects to derive benefit (and the Board of Directors of the Borrower has
determined that such Subsidiary may reasonably be expected to derive benefit), directly or
indirectly, from a portion of the credit extended by the Lenders hereunder, both in its separate
capacity and as a member of the group of companies, since the successful operation and condition of
the Borrower and each of its Subsidiaries is dependent on the continued successful performance of
the functions of the group as a whole.

     5.21 Burdensome Agreements. Neither the Borrower nor any Subsidiary is in default under any
indenture, loan agreement, credit agreement, lease or other agreement or instrument, or subject to
any restriction of its constituent documents, that would, either individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. No Default has occurred and is
continuing or would result from the consummation of the transactions contemplated by this Agreement
or any other Loan Document.

     5.22 Collateral. For the avoidance of doubt, Administrative Agent and each Lender recognizes
and acknowledges that the Collateral includes Equity Interests in Broker Dealer Subsidiaries of
Borrower and that (i) the disposition or transfer of such Equity Interests, (ii) any direct or
indirect change of control of any Broker Dealer Subsidiary, (iii) any direct or indirect exercise
of management control or other control over any Broker Dealer Subsidiary, and (iv) payment of
dividends and distributions by any Broker Dealer Subsidiary is subject to regulatory restrictions
(including the need to obtain the consent or approval of applicable self regulatory authorities and
other applicable regulatory authorities) and that the creation of the pledge in such Equity
Interests may require notification to applicable regulatory authorities. For the avoidance of
doubt, Administrative Agent and each Lender recognizes and agrees that the representations and
warranties and covenants in this Agreement or the other Loan Documents shall not be breached solely
by reason of the existence of regulatory restrictions, or requirements for obtaining consent or
approval from regulatory authorities solely in respect of the enforcement of any rights and
remedies under the Loan Documents or the enforcement of any pledge of the securities of or exercise
of rights over any Broker Dealer Subsidiary. Without limiting the foregoing, Administrative Agent
and each Lender acknowledges and agrees that in respect of Penson Financial Services Canada Inc.,
the Investment Industry Regulatory Organization of Canada, the Montreal Exchange, the Toronto Stock
Exchange, the TSX Venture Exchange and/or any other applicable governmental, regulatory or
self-regulatory agency or body having

68

 

jurisdiction over Penson Financial Services Canada Inc., and/or each of their respective
successor organizations shall each be considered applicable self regulatory authorities.

ARTICLE VI.

AFFIRMATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall, and shall (except in the case of the covenants set forth in Sections 6.01,
6.02, and 6.03) cause each Subsidiary to:

     6.01 Financial Statements. Deliver to the Administrative Agent and each Lender, in form and
detail reasonably satisfactory to the Administrative Agent and the Required Lenders:

     (a) as soon as available, but in any event within 90 days after the end of each fiscal
year of the Borrower (commencing with the fiscal year ended December 31, 2010), a
consolidated balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal
year, and the related consolidated statements of income or operations, shareholders’ equity
and cash flows for such fiscal year, setting forth in each case in comparative form the
figures for the previous fiscal year, all in reasonable detail and prepared in accordance
with GAAP, such consolidated statements to be audited and accompanied by (i) a report and
opinion of a Registered Public Accounting Firm of nationally recognized standing reasonably
acceptable to the Required Lenders, which report and opinion shall be prepared in accordance
with generally accepted auditing standards and applicable Securities Laws and shall not be
subject to any “going concern” or like qualification or exception or any qualification or
exception as to the scope of such audit or with respect to the absence of any material
misstatement and (ii) if and when applicable, an opinion of such Registered Public
Accounting Firm independently assessing the Borrower’s internal controls over financial
reporting in accordance with Item 308 of SEC Regulation S-K, PCAOB Auditing Standard No. 2,
and Section 404 of Sarbanes-Oxley expressing a conclusion that contains no statement that
there is a material weakness in such internal controls, except for such material weaknesses
as to which the Required Lenders do not object; and

     (b) as soon as available, but in any event within 45 days after the end of each fiscal
quarter of each fiscal year of the Borrower (commencing with the fiscal quarter ended March
31, 2010 and including each fiscal quarter ending December 31 of each fiscal year), a
consolidated and consolidating balance sheet of the Borrower and its Subsidiaries as at the
end of such fiscal quarter, and the related consolidated and consolidating statements of
income or operations, shareholders’ equity and cash flows for such fiscal quarter and for
the portion of the Borrower’s fiscal year then ended, setting forth in each case in
comparative form the figures for the corresponding fiscal quarter of the previous fiscal
year and the corresponding portion of the previous fiscal year, all in reasonable detail,
such consolidated and consolidating statements to be certified by the chief executive
officer, chief financial officer, treasurer or controller of the Borrower as fairly
presenting the financial condition, results of operations, shareholders’ equity and

69

 

cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject only
to normal year-end audit adjustments and the absence of footnotes and such consolidating
statements to be certified by the chief executive officer, chief financial officer,
treasurer or controller of the Borrower to the effect that such statements are fairly stated
in all material respects when considered in relation to the consolidated financial
statements of the Borrower and its Subsidiaries; and

     (c) as soon as available, but in any event before the end of each fiscal year of the
Borrower, forecasts prepared by management of the Borrower, in form reasonably satisfactory
to the Administrative Agent and the Required Lenders, of consolidated statements of income
or operations of the Borrower and its Subsidiaries on a monthly basis for the immediately
following fiscal year (including the fiscal year in which the Maturity Date occurs).

     As to any information contained in materials furnished pursuant to Section 6.02(c),
the Borrower shall not be separately required to furnish such information under clause (a) or (b)
above, but the foregoing shall not be in derogation of the obligation of the Borrower to furnish
the information and materials described in clauses (a) and (b) above at the times specified
therein.

     6.02 Certificates; Other Information. Deliver to the Administrative Agent and each Lender, in
form and detail reasonably satisfactory to the Administrative Agent and the Required Lenders:

     (a) concurrently with the delivery of the financial statements referred to in
Sections 6.01(a) and (b) (commencing with the delivery of the financial
statements for the fiscal quarter ended June 30, 2010), a duly completed Compliance
Certificate signed by the chief executive officer, chief financial officer, treasurer or
controller of the Borrower;

     (b) promptly after any request by the Administrative Agent or any Lender, copies of any
detailed audit reports, management letters or recommendations submitted to the board of
directors (or the audit committee of the board of directors) of the Borrower by independent
accountants in connection with the accounts or books of the Borrower or any Subsidiary, or
any audit of any of them;

     (c) promptly after the same are available, copies of each annual report, proxy or
financial statement or other report or communication sent to the stockholders of the
Borrower, and copies of all annual, regular, periodic and special reports and registration
statements which the Borrower may file or be required to file with the SEC under Section 13
or 15(d) of the Securities Exchange Act of 1934, and not otherwise required to be delivered
to the Administrative Agent pursuant hereto;

     (d) promptly, and in any event within five Business Days after receipt thereof by any
Loan Party or any Subsidiary thereof, copies of each notice or other correspondence received
from the SEC (or comparable agency in any applicable

70

 

non-U.S. jurisdiction) concerning any investigation or possible investigation or other
inquiry by such agency regarding financial or other operational results of any Loan Party or
any Subsidiary thereof, unless such investigation is in the ordinary course of business or
would not reasonably be expected to have a Material Adverse Effect;

     (e) promptly notify the Administrative Agent of the formation of any Subsidiary of the
Borrower; and

     (f) promptly, such additional information regarding the business, financial or
corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the
Loan Documents, as the Administrative Agent or any Lender may from time to time reasonably
request.

     Documents required to be delivered pursuant to Section 6.01(a) or (b) or
Section 6.02(c) (to the extent any such documents are included in materials otherwise filed
with the SEC) may be delivered electronically and if so delivered, shall be deemed to have been
delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on
the Borrower’s website on the Internet at the website address listed on Schedule 10.02; or
(ii) on which such documents are posted on the Borrower’s behalf on an Internet or intranet
website, if any, to which each Lender and the Administrative Agent have access (whether a
commercial, third-party website or whether sponsored by the Administrative Agent); provided
that: (i) the Borrower shall deliver paper copies of such documents to the Administrative Agent or
any Lender that requests the Borrower to deliver such paper copies until a written request to cease
delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower
shall notify the Administrative Agent and each Lender (by telecopier or electronic mail) of the
posting of any such documents and provide to the Administrative Agent by electronic mail electronic
versions (i.e., soft copies) of such documents. Notwithstanding anything contained herein,
in every instance the Borrower shall be required to provide paper copies of the Compliance
Certificates required by Section 6.02(a) to the Administrative Agent. Except for such
Compliance Certificates, the Administrative Agent shall have no obligation to request the delivery
or to maintain copies of the documents referred to above, and in any event shall have no
responsibility to monitor compliance by the Borrower with any such request for delivery, and each
Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such
documents.

     6.03 Notices. Promptly notify the Administrative Agent and each Lender:

     (a) of the occurrence of any Default;

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

71

 

     (c) of the occurrence of any ERISA Event;

     (d) of any material change in accounting policies or financial reporting practices by
the Borrower or any Subsidiary; and

     (e) of the determination by the Registered Public Accounting Firm providing the opinion
required under Section 6.01(a)(ii) (in connection with its preparation of such
opinion) or the Borrower’s determination at any time of the occurrence or existence of any
Internal Control Event;

     (f) of any event or circumstances initiating a mandatory offer to purchase or redeem
any portion of the 2017 Senior Notes or the 2014 Convertible Notes;

     (g) any initiation of any optional redemption of any portion of the 2017 Senior Notes
or the 2014 Convertible Notes; and

     (h) of the sale by the Borrower of any of its capital stock or other Equity Interest
(other than (a) as contemplated under the 2000 Stock Incentive Plan or securities issued
upon exercise of stock options issued to employees, directors or contractors of the Borrower
or its Subsidiaries, (b) any conversion of 2014 Convertible Notes representing less than 50%
in the aggregate of the aggregate principal amount of all 2014 Convertible Notes issued
pursuant to the 2014 Notes Offering, and (c) as contemplated in connection with the Ridge
Acquisition or the 2017 Notes Offering; provided, however, at the request of
the Administrative Agent, the Borrower shall provide any information regarding such sales to
the Administrative Agent);

     Each notice pursuant to this Section 6.03 shall be accompanied by a statement of a
Responsible Officer of the Borrower setting forth material details of the occurrence referred to
therein and stating what action the Borrower has taken and proposes to take with respect thereto.
Each notice pursuant to Section 6.03(a) shall describe with particularity any and all
provisions of this Agreement and any other Loan Document that have been breached.

     6.04 Payment of Obligations. (a) Except to the extent no Material Adverse Effect would result
or an Event of Default under Section 8.01(e) would not occur from the applicable failure,
pay and discharge as the same shall become due and payable, (i) all tax liabilities, assessments
and governmental charges or levies upon it or its properties or assets, unless the same are being
contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the Borrower or such Subsidiary, and (ii) all
Indebtedness, as and when due and payable, but subject to any subordination provisions contained in
any instrument or agreement evidencing such Indebtedness and (b) pay and discharge all lawful
claims which, if unpaid, would by Law become a Lien upon its property except to the extent such
Lien is otherwise permitted by another Section of this Agreement, unless the same are being
contested in good faith by appropriate proceedings diligently conducted and adequate reserves in
accordance with GAAP are being maintained by the Borrower or such Subsidiary.

72

 

     6.05 Preservation of Existence, Etc. (a) Preserve, renew and maintain in full force and
effect its legal existence and good standing under the Laws of the jurisdiction of its organization
except in a transaction permitted by Section 7.04 or 7.05 or to the extent no
Material Adverse Effect would result; (b) take commercially reasonable action to maintain all
rights, privileges, permits, licenses and franchises necessary in the normal conduct of its
business, except to the extent that failure to do so would not reasonably be expected to have a
Material Adverse Effect; and (c) preserve or renew all of its registered patents, trademarks, trade
names and service marks, the non-preservation of which would reasonably be expected to have a
Material Adverse Effect.

     6.06 Maintenance of Properties. (a) Maintain, preserve and protect all of its tangible
properties and equipment in the operation of its business in good working order and condition,
ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals and
replacements thereof, except in case of clauses (a) and (b) if the failure to do so would not
reasonably be expected to have a Material Adverse Effect or would not violate Section 7.05
hereof.

     6.07 Maintenance of Insurance. Maintain with financially sound and reputable insurance
companies not Affiliates of the Borrower, insurance with respect to its properties and business, in
such amounts, with such deductibles and covering such risks as are reasonable for its business and
providing for not less than 30 days’ prior notice to the Administrative Agent of termination, lapse
or cancellation of such insurance and designating the Administrative Agent as an additional
insured, if applicable; provided, however, if such insurance company refuses to
provide insurance on such terms, Borrower may maintain insurance on such other terms as is
customarily maintained by companies in the same or similar businesses similarly situated.

     6.08 Compliance with Laws and Material Contracts. Comply in all material respects with the
requirements of (a) all Material Contracts and (b) all Laws and all orders, writs, injunctions and
decrees applicable to it or to its business or property, except in such instances in which (x) such
requirement of Law or order, writ, injunction or decree is being contested in good faith by
appropriate proceedings diligently conducted; or (y) the failure to comply with any such Material
Contract or Law would not reasonably be expected to have a Material Adverse Effect.

     6.09 Books and Records. (a) Maintain proper books of record and account, in which full, true
and correct entries in conformity with GAAP consistently applied shall be made of all financial
transactions and matters involving the assets and business of the Borrower or such Subsidiary, as
the case may be; and (b) maintain such books of record and account in material conformity with all
applicable requirements of any Governmental Authority having regulatory jurisdiction over the
Borrower or such Subsidiary, as the case may be.

     6.10 Inspection Rights. Permit representatives and independent contractors of the
Administrative Agent and each Lender to visit and inspect any of its properties, to examine its
corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to
discuss its affairs, finances and accounts with its directors, officers, and independent public
accountants, all at the expense of the Administrative Agent and each Lender and at such reasonable
times during normal business hours and as often as may be reasonably desired, upon

73

 

reasonable advance notice to the Borrower; provided, however, that when an
Event of Default exists the Administrative Agent or any Lender (or any of their respective
representatives or independent contractors) may do any of the foregoing at the expense of the
Borrower at any time during normal business hours and without advance notice.

     6.11 Use of Proceeds. Use the proceeds of the Credit Extensions (a) to provide equity capital
or loans to its Subsidiaries not in contravention of any Law or any Loan Document and (b) for
general corporate purposes, including providing working capital for itself and its Subsidiaries not
in contravention of any Law or of any Loan Document, which shall include uses such as financing for
permitted acquisitions and to pay transaction fees, costs and expenses related to this Agreement.

     6.12 Additional Subsidiaries and Collateral. Within twenty days after the time that any
Person becomes a Material Domestic Subsidiary as a result of the creation of such Material Domestic
Subsidiary, an acquisition, or otherwise, then, unless such Material Domestic Subsidiary is merged
into the Borrower (with the Borrower being the surviving Person) prior to the expiration of such
twenty day period, (a) 100% of such Material Domestic Subsidiary’s Equity Interests shall be
pledged to secure the Obligations, and (b) the Administrative Agent shall receive such board
resolutions, officer’s certificates, corporate and other documents and opinions of counsel as the
Administrative Agent shall reasonably request in connection with such pledge. Within forty-five
days after the time that any Person becomes a Material Foreign Subsidiary as a result of the
creation of such Material Foreign Subsidiary, an acquisition or otherwise, (a) 65% of such Material
Foreign Subsidiary’s Equity Interests shall be pledged to secure the Obligations, and (b) the
Administrative Agent shall receive such board resolutions, officer’s certificates, corporate and
other documents and opinions of counsel as the Administrative Agent shall reasonably request in
connection with such pledge; provided, however, that if a pledge of the Equity
Interests of a Material Foreign Subsidiary would result in adverse tax consequences, the Borrower
may provide an opinion of counsel acceptable to the Administrative Agent addressing such adverse
tax consequences and, upon the consent of the Required Lenders (such consent not to be unreasonably
withheld), such pledge shall not be required. Provided further, that if a Material
Domestic Subsidiary or Material Foreign Subsidiary is a Subsidiary of an entity which is already
the subject of a pledge in favor of Administrative Agent under the Loan Documents, such Material
Domestic Subsidiary or Material Foreign Subsidiary need not be so pledged. Notwithstanding the
foregoing, in no event shall any Broker Dealer Subsidiary be required to be a Guarantor or a
pledgor. In the event that a Subsidiary Guarantees the obligations of the Borrower under the 2017
Senior Notes, such Subsidiary shall also become a Guarantor. In addition, to the extent the
Borrower or any Subsidiary or Affiliate thereof shall pledge any assets as collateral for the
obligations of the Borrower under the 2017 Senior Notes, such collateral shall also be pledged as
collateral under the Loan Documents.

     6.13 Further Assurances. Promptly upon request by the Administrative Agent, the Borrower
shall (and shall cause any of its Subsidiaries to) take such action as the Administrative Agent may
reasonably require from time to time in order to carry out more effectively the terms of this
Agreement or any other Loan Document.

74

 

ARTICLE VII.

NEGATIVE COVENANTS

     So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation
hereunder shall remain unpaid or unsatisfied, or any Letter of Credit shall remain outstanding, the
Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly:

     7.01 Liens. Create, incur, assume or suffer to exist any Lien upon any of its property,
assets or revenues, whether now owned or hereafter acquired, other than the following:

     (a) Liens pursuant to any Loan Document;

     (b) Liens existing on the date hereof and listed on Schedule 7.01 and any
renewals or extensions thereof, provided that (i) the property covered thereby is
not changed, (ii) the amount secured or benefited thereby is not increased except as
contemplated by Section 7.03(b), (iii) the direct or any contingent obligor with
respect thereto is not changed, and (iv) any renewal or extension of the obligations secured
or benefited thereby is permitted by Section 7.03(b);

     (c) Liens for taxes not yet due or which are being contested in good faith and by
appropriate proceedings diligently conducted, if adequate reserves with respect thereto are
maintained on the books of the applicable Person in accordance with GAAP;

     (d) carriers’, warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like
Liens arising in the ordinary course of business which are not overdue for a period of more
than 30 days or which are being contested in good faith and by appropriate proceedings
diligently conducted, if adequate reserves with respect thereto are maintained on the books
of the applicable Person;

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

     (f) deposits to secure the performance of bids, trade contracts and leases (other than
Indebtedness), statutory or regulatory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature and security deposits incurred in the ordinary
course of business;

     (g) easements, rights-of-way, restrictions and other similar encumbrances affecting
real property which, in the aggregate, are not substantial in amount, and which do not in
any case materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the applicable Person;

     (h) Liens securing judgments for the payment of money not constituting an Event of
Default under Section 8.01(h);

75

 

     (i) Liens securing Indebtedness permitted under Section 7.03(d);
provided that (i) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness and (ii) the Indebtedness secured thereby does not
exceed the cost or fair market value, whichever is lower, of the property being acquired on
the date of acquisition; and

     (j) Liens securing the Short Term Subsidiary Indebtedness permitted under
Section 7.03(e); provided that such Liens do not at any time encumber any
property other than the property financed by such Short Term Subsidiary Indebtedness (and
proceeds thereof) and the rights of Persons making deposits with the Borrower and the
Subsidiaries to the extent of rights in respect of such deposits.

     (k) any interest or title of a lessor or licensor in the property subject to any
capital lease or operating lease or license;

     (l) Liens arising from filing Uniform Commercial Code financing statements regarding
leases or precautionary filings;

     (m) Liens in favor of the Borrower or a Subsidiary in the ordinary course of business;

     (n) Liens arising from the rendering of a final judgment or order against the Borrower
or a Subsidiary that does not give rise to an Event of Default;

     (o) Liens which constitute rights of set-off of a customary nature or bankers’ liens or
securities intermediaries’ liens with respect to amounts on deposit or investment property,
as applicable, whether arising by operation of law or by contract, in connection with
arrangements entered into with banks or securities intermediaries in the ordinary course of
business;

     (p) Liens in favor of customs and revenue authorities arising as a matter of law to
secure payment of customs duties in connection with the importation of goods;

     (q) Liens securing the 2017 Senior Notes and subject to the Intercreditor Agreement;
and

     (r) Liens otherwise expressly permitted by the Loan Documents.

     7.02 Investments. Make any Investments, except:

     (a) Investments held by the Borrower or such Subsidiary in the form of cash, Cash
Equivalents and short-term marketable securities and other Investments purchased, sold or
held by Broker Dealer Subsidiaries in the ordinary course of business;

     (b) advances to officers, directors and employees of the Borrower and Subsidiaries in
an aggregate amount not to exceed $500,000 at any time outstanding or

76

 

$50,000 for any individual at any time outstanding, for travel, entertainment,
relocation and analogous ordinary business purposes;

     (c) Investments of the Borrower in any wholly-owned or majority owned Subsidiary and
Investments of any wholly-owned or majority owned Subsidiary in the Borrower or in another
wholly-owned or majority owned Subsidiary;

     (d) Investments consisting of extensions of credit in the ordinary course of business
or in the nature of accounts receivable or notes receivable arising from the grant of trade
credit in the ordinary course of business, and Investments received in satisfaction or
partial satisfaction thereof from financially troubled account debtors to the extent
reasonably necessary in order to prevent or limit loss;

     (e) Investments existing on the date hereof and as set forth on Schedule 7.02;

     (f) Investments constituting acquisitions of the Equity Interests of a Person or
acquisitions of assets or other property to the extent that (i) such Investments do not
exceed $5,000,000 for any single acquisition or $20,000,000 in the aggregate during any
fiscal year and (ii) the Borrower’s Consolidated Leverage Ratio does not exceed **** to ****
as of the date of the most recently submitted Compliance Certificate; provided,
however, that this clause (f) shall not include any Equity Repurchases;

     (g) Equity Repurchases;

     (h) Investments otherwise permitted in this Agreement;

     (i) The Ridge Acquisition; and

     (j) Provided that the Borrower’s Consolidated Leverage Ratio is less than **** to ****,
other Investments in an aggregate principal amount not to exceed $10,000,000 during any
fiscal year.

     7.03 Indebtedness. Create, incur, assume or suffer to exist any Indebtedness, except:

     (a) Indebtedness under the Loan Documents;

     (b) Indebtedness outstanding on the date hereof and listed on Schedule 5.05 and
any refinancings, refundings, renewals or extensions thereof; provided that (i) the
amount of such Indebtedness is not increased at the time of such refinancing, refunding,
renewal or extension except by an amount equal to a reasonable premium or other reasonable
amount paid, and fees and expenses reasonably incurred, in connection with such refinancing
and by an amount equal to any existing commitments unutilized thereunder and (ii) the terms
relating to principal amount, amortization, maturity, collateral (if any) and subordination
(if any), and other material terms taken as a whole, of any such refinancing, refunding,
renewing or extending Indebtedness, and of any agreement entered into and of any instrument
issued in connection therewith, are no less favorable in any material respect to the Loan
Parties or the Lenders than the terms of any

77

 

agreement or instrument governing the Indebtedness being refinanced, refunded, renewed
or extended and the interest rate applicable to any such refinancing, refunding, renewing or
extending Indebtedness does not exceed the then applicable market interest rate;

     (c) obligations (contingent or otherwise) of the Borrower or any Subsidiary existing or
arising under any Swap Contract, provided that (i) such obligations are (or were)
entered into by such Person in the ordinary course of business for the purpose of directly
mitigating risks associated with liabilities, commitments, investments, assets, or property
held or reasonably anticipated by such Person, or changes in the value of securities issued
by such Person, and not for purposes of speculation or taking a “market view;” and (ii) such
Swap Contract does not contain any provision exonerating the non-defaulting party from its
obligation to make payments on outstanding transactions to the defaulting party;

     (d) Indebtedness in respect of capital leases, Synthetic Lease Obligations, and
purchase money obligations for fixed or capital assets within the limitations set forth in
Section 7.01(i); provided, however, that the aggregate amount of all
such Indebtedness permitted in this Section 7.03(d) at any one time outstanding
shall not exceed $25,000,000;

     (e) the Short Term Subsidiary Indebtedness and deposits and assets received from
customers and their Affiliates with respect to customers of Broker Dealer Subsidiaries;

     (f) Indebtedness of types incurred by the Borrower or any of the Subsidiaries
consistent with the historical practices and the ordinary course of business of any of the
Subsidiaries or of the Borrower (determined as of the date hereof), including (i) Guarantees
related to a customer’s or Subsidiary’s ordinary trade activities, including but not limited
to those made in favor of exchanges, market centers, third party clearing firms,
counterparties, record keeping centers or technology providers and (ii) Guarantees made in
favor of lenders to a Subsidiary’s customers required in connection with such customers’
purchase of exchange seats or memberships, provided that the relevant
exchange seat or membership’s value is, at the time the Guarantee is made, at least twice
the principal amount of the Indebtedness so Guaranteed;

     (g) Guarantees by the Borrower not otherwise permitted by this Section 7.03 of
obligations in an aggregate amount not to exceed $35,000,000 at any one time; provided that
no single Guarantee shall exceed a notional or principal amount of $10,000,000, and further
provided that all Guarantees existing or contemplated as of the date hereof are listed on
the attached Schedule 7.03(g);

     (h) Guarantees by any Subsidiary of the Borrower with respect to the 2017 Senior Notes;

     (i) Indebtedness associated with the 2014 Notes Offering Documents and the 2017 Notes
Offering Documents;

78

 

     (j) the Seller Notes, without duplication of amounts permitted under
Section 7.03(i); and

     (k) provided that the Borrower’s Consolidated Leverage Ratio is less than **** to ****,
other Indebtedness in an aggregate principal amount outstanding not to exceed $10,000,000.

     7.04 Fundamental Changes. Merge, dissolve, liquidate, consolidate with or into another
Person, or Dispose of (whether in one transaction or in a series of transactions) all or
substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any
Person, except that, so long as no Default exists or would result therefrom:

     (a) any Subsidiary may merge with (i) the Borrower, provided that the Borrower
shall be the continuing or surviving Person, or (ii) any one or more other Subsidiaries,
provided that when any wholly-owned Subsidiary or Guarantor is merging with another
Subsidiary, the wholly-owned Subsidiary or such Guarantor (as applicable) shall be the
continuing or surviving Person; and

     (b) any Subsidiary may Dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise) to the Borrower or to another Subsidiary consistent with
the terms of this Agreement, including Section 7.02 and Section 7.05;
provided that if the transferor in such a transaction is a Guarantor, then the
transferee must either be the Borrower or a Guarantor.

     7.05 Dispositions. Make any Disposition or enter into any agreement to make any Disposition,
except:

     (a) Dispositions of obsolete or worn out property, whether now owned or hereafter
acquired, in the ordinary course of business;

     (b) Dispositions permitted by Section 7.04;

     (c) other Dispositions of assets not included in clauses (a), (b) or (d) where the
aggregate sales price does not exceed $20,000,000 in the aggregate for all Dispositions in
any fiscal year and the Net Cash Proceeds are paid to the Administrative Agent as required
by Section 2.05(d); and

     (d) Dispositions of assets in the ordinary course of business consistent with
historical practice

provided, however, that any Disposition pursuant to clauses (a), (b), (c) and (d)
shall be for fair market value.

     7.06 Restricted Payments. Declare or make, directly or indirectly, any Restricted Payment, or
incur any obligation (contingent or otherwise) to do so, or issue or sell any Equity Interests,
except that, so long as no Default shall have occurred and be continuing at the time of any action
described below or would result therefrom:

79

 

     (a) each Subsidiary may make Restricted Payments to the Borrower and any other Person
that owns an Equity Interest in such Subsidiary, ratably according to their respective
holdings of the type of Equity Interest in respect of which such Restricted Payment is being
made;

     (b) the Borrower and each Subsidiary may declare and make dividend payments or other
distributions payable solely in the common stock or other common Equity Interests of such
Person;

     (c) the Borrower and each Subsidiary may purchase, redeem or otherwise acquire Equity
Interests issued by it with the proceeds received from the substantially concurrent issue of
new shares of its common stock or other common Equity Interests;

     (d) the Borrower may issue and sell its common Equity Interests and JBO Stock;

     (e) the Borrower may issue (i) restricted stock units issued pursuant to the 2000 Stock
Incentive Plan, (ii) securities issuable upon exercise of stock options, and (iii)
securities pursuant to the Borrower’s employee stock purchase plan;

     (f) Equity Repurchases;

     (g) the Borrower may issue Equity Interests in connection with the 2014 Notes Offering
and the conversion of 2014 Convertible Notes;

     (h) the Borrower may make Restricted Payments in connection with the 2014 Convertible
Notes pursuant to the terms of the 2014 Notes Offering Documents;

     (i) the Borrower and its Subsidiaries may make cash payments in lieu of fractional
entitlements to securities or may round fractional entitlements to a whole security; and

     (j) the Borrower may issue Equity Interests in connection with the Ridge Acquisition,
so long as the Net Cash Proceeds (if any) from such issuance are applied to pay a portion of
the Ridge Acquisition’s purchase price.

     7.07 Change in Nature of Business. Engage in any material line of business substantially
different from those lines of business conducted by the Borrower and its Subsidiaries on the date
hereof or any business substantially related or incidental thereto (it being agreed that a change
in customer mix or the addition of new types of customers shall not be deemed to be a change in the
nature of the business).

     7.08 Transactions with Affiliates. Enter into any transaction of any kind with any Affiliate
of the Borrower, whether or not in the ordinary course of business, other than on fair and
reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be
obtainable by the Borrower or such Subsidiary at the time in a comparable arm’s length transaction
with a Person other than an Affiliate.

80

 

     7.09 Burdensome Agreements. Enter into any Contractual Obligation (other than this Agreement,
any other Loan Document, the 2017 Notes Offering Documents or the Seller Notes) that (a) limits the
ability (i) of any Subsidiary to make Restricted Payments to the Borrower or any Subsidiary or to
otherwise transfer property to the Borrower or any Subsidiary, (ii) of any Subsidiary to Guarantee
the Indebtedness of the Borrower or (iii) of the Borrower or any Subsidiary to create, incur,
assume or suffer to exist Liens on property of such Person; provided, however, that
this clause (iii) shall not prohibit any negative pledge incurred or provided in favor of any
holder of Indebtedness permitted under Section 7.03(d) solely to the extent any such
negative pledge relates to the property financed by or the subject of such Indebtedness; or
(b) requires the Borrower or any Subsidiary to grant a Lien to secure an obligation of any Person
if the Borrower or any Subsidiary were to grant a Lien to secure another of its obligations to
another Person.

     7.10 Use of Proceeds. Use the proceeds of any Credit Extension, whether directly or
indirectly, and whether immediately, incidentally or ultimately, to purchase or carry margin stock
(within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of
purchasing or carrying margin stock (within the meaning of Regulation U of the FRB) or to refund
indebtedness originally incurred for such purpose.

     7.11 Sale and Leaseback. Enter into any Sale and Leaseback Transactions with a value in
excess of $20,000,000 in the aggregate per fiscal year (directly or indirectly) with any Person
other than among the Borrower and any Subsidiary (to the extent such transaction is otherwise
permitted hereunder).

     7.12 Change in Fiscal Year or Accounting Methods. Change its fiscal year or its method of
accounting (other than immaterial changes in methods or as required by GAAP).

     7.13 Prepayment of Indebtedness. Prepay any Indebtedness other than (a) the Obligations,
(b) Indebtedness under the Seller Note, to the extent permitted by the Subordination Agreement and
not otherwise prohibited by this Agreement, (c) other Indebtedness not to exceed $20,000,000 in the
aggregate during any fiscal year, (d) to the extent that (i) the Borrower’s Consolidated Leverage
Ratio did not exceed **** to **** as of the most recently provided Compliance Certificate and (ii)
no Default exists and is continuing, Indebtedness under the 2017 Notes Offering Documents (whether
optional or required under the terms of the 2017 Notes Offering Documents), to the extent permitted
by the Intercreditor Agreement, (e) to the extent that (i) the Borrower’s Consolidated Leverage
Ratio did not exceed **** to **** as of the most recently provided Compliance Certificate and (ii)
no Default exists and is continuing, Indebtedness under the 2014 Notes Offering Documents (provided
that cash settlement of a redemption by the holder of 2014 Convertible Notes or cash payments in
respect of fractional entitlements shall not be a prepayment for these purposes), (f) to the extent
that (i) the Borrower’s Consolidated Leverage Ratio does not exceed **** to **** on a pro forma
basis at time of such prepayment and remains at or below **** to **** following such prepayment and
(ii) no Default exists and is continuing, prepayments made out of the proceeds of the issuance of
Equity Interests or (g) Short Term Subsidiary Indebtedness and deposits and assets received from
customers and their Affiliates with respect to customers of Broker Dealer Subsidiaries;
provided,

81

 

however, that the conversion of 2014 Convertible Notes shall not be considered a
prepayment under this Section 7.13.

     7.14 Material Contracts. Amend, supplement or otherwise modify the terms of any Material
Contract or take any other action in connection with any Material Contract that would impair the
value of the interests or rights of the Borrower or any Subsidiary except as would not have a
Material Adverse Effect.

     7.15 Management Fees. Pay any management fee or similar compensation except such to Persons
and in amounts consistent with historical practice and in the ordinary course of business or to
Borrower or its Subsidiaries.

     7.16 Financial Covenants.

     (a) Consolidated Tangible Net Worth. Permit Consolidated Tangible Net Worth at
any time to be less than $****; (i) increasing quarterly by (A) an amount equal to ****% of
the net aggregate increases in Shareholders’ Equity of the Borrower and its Subsidiaries
after the date hereof by reason of the issuance and sale of Equity Interests of the Borrower
or any Subsidiary (other than issuances to the Borrower or a wholly-owned Subsidiary,
issuances of restricted stock units pursuant to the 2000 Stock Incentive Plan, securities
issued upon the exercise of stock options, or issuances of securities pursuant to the
Borrower’s employee stock purchase plan), including upon any conversion of debt securities
of the Borrower into such Equity Interests and (B) an amount equal to ****% of Consolidated
Net Income for the fiscal year then ended and (ii) decreasing quarterly by an amount equal
to goodwill and other intangibles associated with acquisitions completed prior to the
Closing Date and previously disclosed to the Administrative Agent and the Ridge Acquisition.

     (b) Consolidated Fixed Charge Coverage Ratio. Permit the Consolidated Fixed
Charge Coverage Ratio as of the end of any fiscal quarter measured quarterly in arrears on a
rolling four quarter basis of the Borrower to be less than **** to ****.

     (c) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as of
the end of any fiscal quarter measured quarterly in arrears on a rolling four quarter basis
to be greater than (i) from the Closing Date through the fiscal quarter ending March 31,
2011, **** to ****, (ii) from the fiscal quarter ending June 30, 2011 through the fiscal
quarter ending September 30, 2011, **** to ****, (iii) from the fiscal quarter ending
December 31, 2011 through the fiscal quarter ending September 30, 2012, **** to ****, and
(iv) from the fiscal quarter ending December 31, 2012 and thereafter, **** to ****.

     (d) Minimum Capital Requirement. Permit PFS to maintain Regulatory Capital
less than **** percent (****%) of its Debit Balances for more than three consecutive
Borrower business days.

82

 

     (e) Minimum Liquidity Requirement. Permit the Borrower to maintain
Unencumbered Liquidity in an amount less than the Total Outstandings at any time.

     (f) Capital Expenditures. Make or become legally obligated to make any Capital
Expenditure, except for Capital Expenditures not exceeding, in the aggregate for the
Borrower and its Subsidiaries, $**** during each fiscal year.

     7.17 Amendments to Organization Documents. Amend or otherwise modify the terms of any
Organization Document if such amendment or modification would materially and adversely impact the
Lenders’ rights under the Loan Documents.

     7.18 Amendments to 2014 and 2017 Notes Offering Documents. Amend or otherwise modify the
material terms of the 2014 Notes Offering Documents or the 2017 Notes Offering Documents if such
amendment, or modification would materially and adversely impact the Lenders’ rights under the Loan
Documents.

     7.19 Ridge Acquisition. Close the Ridge Acquisition unless and until fully executed copies of
the Seller Note, the Outsourcing Agreement and the Subordination Agreement been provided to the
Administrative Agent in form and substance reasonably satisfactory to the Administrative Agent and
the Required Lenders.

ARTICLE VIII.

EVENTS OF DEFAULT AND REMEDIES

     8.01 Events of Default. Any of the following shall constitute an Event of Default:

     (a) Non-Payment. The Borrower or any other Loan Party fails to pay (i) when
due, any amount of principal of any Loan or any Letter of Credit Obligation, or (ii) within
three days after the same becomes due, any interest on any Loan or on any Letter of Credit
Obligation, or any fee due hereunder, or (iii) within five days after the same becomes due,
any other amount payable hereunder or under any other Loan Document; or

     (b) Specific Covenants. The Borrower fails to perform or observe any term,
covenant or agreement contained in any of Section 6.01, 6.03, 6.05,
6.10, or 6.11 or Article VII; or

     (c) Other Defaults. Any Loan Party fails to perform or observe any other
covenant or agreement (not specified in subsection (a) or (b) above) contained in any Loan
Document on its part to be performed or observed and such failure continues for 30 days; or

     (d) Representations and Warranties. Any representation, warranty,
certification or statement of fact made or deemed made by or on behalf of the Borrower or
any other Loan Party herein, in any other Loan Document, or in any document delivered in
connection herewith or therewith shall be incorrect or misleading when made or deemed made;
or

83

 

     (e) Cross-Default. (i) The Borrower or any Subsidiary (A) fails to make any
payment when due (whether by scheduled maturity, required prepayment, acceleration, demand,
or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder
and Indebtedness under Swap Contracts) having an aggregate principal amount (including
amounts owing to all creditors under any combined or syndicated credit arrangement) of more
than the Threshold Amount in the aggregate, or (B) fails to observe or perform any other
agreement or condition relating to any such Indebtedness or Guarantee or contained in any
instrument or agreement evidencing, securing or relating thereto, or any other event occurs,
the effect of which default or other event is to cause, or to permit the holder or holders
of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or
agent on behalf of such holder or holders or beneficiary or beneficiaries) to cause, with
the giving of notice if required, such Indebtedness to be demanded or to become due or to be
repurchased, prepaid, defeased or redeemed (automatically or otherwise), or an offer to
repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated
maturity, or such Guarantee to become payable or cash collateral in respect thereof to be
demanded; or (ii) there occurs under any Swap Contract an Early Termination Date (as defined
in such Swap Contract) resulting from (A) any event of default under such Swap Contract as
to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap
Contract) or (B) any Termination Event (as so defined) under such Swap Contract as to which
the Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event,
the Swap Termination Value owed by the Borrower or such Subsidiary as a result thereof is
greater than the Threshold Amount in the aggregate; or

     (f) Insolvency Proceedings, Etc. Any Loan Party or any of its Subsidiaries
institutes or consents to the institution of any proceeding under any Bankruptcy Law, or
makes an assignment for the benefit of creditors; or applies for or consents to the
appointment of any receiver, trustee, custodian, conservator, liquidator, rehabilitator or
similar officer for it or for all or any material part of its property; or any receiver,
trustee, custodian, conservator, liquidator, rehabilitator or similar officer is appointed
without the application or consent of such Person and the appointment continues undischarged
or unstayed for 60 calendar days; or any proceeding under any Bankruptcy Law relating to any
such Person or to all or any material part of its property is instituted without the consent
of such Person and continues undismissed or unstayed for 60 calendar days, or an order for
relief is entered in any such proceeding; or

     (g) Inability to Pay Debts; Attachment. (i) The Borrower or any Subsidiary
becomes unable or admits in writing its inability or fails generally to pay its debts as
they become due, or (ii) any writ or warrant of attachment or execution or similar process
is issued or levied against all or any material part of the property of any such Person and
is not released, vacated or fully bonded within 60 days after its issue or levy; or

     (h) Judgments. There is entered against the Borrower or any Subsidiary (i) one
or more final judgments or orders for the payment of money in an aggregate amount (as to all
such judgments or orders) exceeding the Threshold Amount (to the extent not covered by
independent third-party insurance as to which the insurer does not

84

 

dispute coverage), or (ii) any one or more non-monetary final judgments that have, or
would reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon
such judgment or order, or (B) there is a period of 10 consecutive days during which a stay
of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in
effect; or

     (i) ERISA. (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or would reasonably be expected to result in liability
of the Borrower or any Subsidiary under Title IV of ERISA to the Pension Plan, Multiemployer
Plan or the PBGC in an aggregate amount in excess of the Threshold Amount, or (ii) the
Borrower, any Subsidiary or any ERISA Affiliate fails to pay when due, after the expiration
of any applicable grace period, any installment payment with respect to its withdrawal
liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in
excess of the Threshold Amount; or

     (j) Invalidity of Loan Documents. Any Loan Document, at any time after its
execution and delivery and for any reason other than as expressly permitted hereunder or
thereunder or satisfaction in full of all the Obligations, ceases to be in full force and
effect; or any Loan Party or any other Person contests in any manner the validity or
enforceability of any Loan Document; or any Loan Party denies that it has any or further
liability or obligation under any Loan Document, or purports to revoke, terminate or rescind
any Loan Document; or

     (k) Change of Control. There occurs any Change of Control; or

     (l) Indentures. There occurs any “Fundamental Change” as defined in the 2014
Indenture or there occurs and is continuing any “Event of Default” as defined in the 2017
Indenture; or

     (m) Seller Notes. There occurs and is continuing any material “Event of
Default” as defined in the Seller Notes; or

     (n) Intercreditor Agreement. There occurs and is continuing any default under
the Intercreditor Agreement that has, or would reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect.

     8.02 Remedies Upon Event of Default. If any Event of Default occurs and is continuing, the
Administrative Agent shall, at the request of, or may, with the consent of, the Required Lenders,
take any or all of the following actions:

     (a) declare the commitment of each Lender to make Loans and any obligation of the
Letter of Credit Issuer to make Letter of Credit Extensions to be terminated, whereupon such
commitments and obligation shall be terminated;

     (b) declare the unpaid principal amount of all outstanding Loans, all interest accrued
and unpaid thereon, and all other amounts owing or payable hereunder or under

85

 

any other Loan Document to be immediately due and payable, without presentment, demand,
protest or other notice of any kind, all of which are hereby expressly waived by the
Borrower;

     (c) require that the Borrower Cash Collateralize the Letter of Credit Obligations (in
an amount equal to the then Outstanding Amount thereof); and

     (d) exercise on behalf of itself, the Lenders and the Letter of Credit Issuer all
rights and remedies available to it, the Lenders and the Letter of Credit Issuer under the
Loan Documents;

provided, however, that upon the occurrence of an actual or deemed entry of an
order for relief with respect to the Borrower under the Bankruptcy Code of the United States, the
obligation of each Lender to make Loans and any obligation of the Letter of Credit Issuer to make
Letter of Credit Extensions shall automatically terminate, the unpaid principal amount of all
outstanding Loans and all interest and other amounts as aforesaid shall automatically become due
and payable, and the obligation of the Borrower to Cash Collateralize the Letter of Credit
Obligations as aforesaid shall automatically become effective, in each case without further act of
the Administrative Agent or any Lender.

     8.03 Application of Funds. After the exercise of remedies provided for in
Section 8.02 (or after the Loans have automatically become immediately due and payable and
the Letter of Credit Obligations have automatically been required to be Cash Collateralized as set
forth in the proviso to Section 8.02), any amounts received on account of the Obligations
shall be applied by the Administrative Agent in the following order:

     First, to payment of that portion of the Obligations constituting fees,
indemnities, expenses and other amounts (including reasonable fees, charges and
disbursements of counsel to the Administrative Agent and amounts payable under
Article III) payable to the Administrative Agent in its capacity as such;

     Second, to payment of that portion of the Obligations constituting fees,
indemnities and other amounts (other than principal, interest, amounts owing under any Swap
Contracts, Letter of Credit Fees and Fronting Fees) payable to the Lenders and the Letter of
Credit Issuer (including reasonable fees, charges and disbursements of counsel to the
respective Lenders and the Letter of Credit Issuer and amounts payable under
Article III), ratably among them in proportion to the respective amounts described
in this clause Second payable to them;

     Third, to payment of that portion of the Obligations constituting accrued and
unpaid Letter of Credit Fees, Fronting Fees, and interest on the Loans, Letter of Credit
Borrowings and other Obligations, ratably among the Lenders and the Letter of Credit Issuer
in proportion to the respective amounts described in this clause Third payable to
them;

86

 

     Fourth, to payment of that portion of the Obligations constituting unpaid
principal of the Loans and Letter of Credit Borrowings, ratably among the Lenders and the
Letter of Credit Issuer in proportion to the respective amounts described in this clause
Fourth held by them;

     Fifth, to the Administrative Agent for the account of the Letter of Credit
Issuer, to Cash Collateralize that portion of Letter of Credit Obligations comprised of the
aggregate undrawn amount of Letters of Credit;

     Sixth, to payment of that portion of the Obligations constituting all amounts
owed under any Swap Contract included in the Obligations (at the Swap Termination Value),
ratably among the Lenders in proportion to the respective amounts described in this clause
Sixth held by them;

     Seventh, to any remaining outstanding and unpaid Obligations, ratably among the
Lenders in proportion to the respective amounts described in this clause Seventh
held by them; and

     Last, the balance, if any, after all of the Obligations have been indefeasibly
paid in full, to the Borrower or as otherwise required by Law.

Subject to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings
under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral
after all Letters of Credit have either been fully drawn or expired, such remaining amount shall be
applied to the other Obligations, if any, in the order set forth above.

ARTICLE IX.

ADMINISTRATIVE AGENT

     9.01 Appointment and Authority. Each of the Lenders and the Letter of Credit Issuer hereby
irrevocably appoints Regions Bank to act on its behalf as the Administrative Agent hereunder and
under the other Loan Documents and authorizes the Administrative Agent to take such actions on its
behalf and to exercise such powers as are delegated to the Administrative Agent by the terms hereof
or thereof, together with such actions and powers as are reasonably incidental thereto. The
provisions of this Article are solely for the benefit of the Administrative Agent, the Lenders and
the Letter of Credit Issuer, and the Borrower shall not have rights as a third party beneficiary of
any of such provisions.

     9.02 Rights as a Lender. The Person serving as the Administrative Agent hereunder shall have
the same rights and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not the Administrative Agent and the term “Lender” or “Lenders” shall,
unless otherwise expressly indicated or unless the context otherwise requires, include the Person
serving as the Administrative Agent hereunder in its individual capacity. Such Person and its
Affiliates may accept deposits from, lend money to, act as the financial advisor or in any other
advisory capacity for and generally engage in any kind of business with

87

 

the Borrower or any Subsidiary or other Affiliate thereof as if such Person were not the
Administrative Agent hereunder and without any duty to account therefor to the Lenders.

     9.03 Exculpatory Provisions. The Administrative Agent shall not have any duties or
obligations except those expressly set forth herein and in the other Loan Documents. Without
limiting the generality of the foregoing, the Administrative Agent:

     (a) shall not be subject to any fiduciary or other implied duties, regardless of
whether a Default has occurred and is continuing;

     (b) shall not have any duty to take any discretionary action or exercise any
discretionary powers, except discretionary rights and powers expressly contemplated hereby
or by the other Loan Documents that the Administrative Agent is required to exercise as
directed in writing by the Required Lenders (or such other number or percentage of the
Lenders as shall be expressly provided for herein or in the other Loan Documents),
provided that the Administrative Agent shall not be required to take any action
that, in its opinion or the opinion of its counsel, may expose the Administrative Agent to
liability or that is contrary to any Loan Document or applicable Law; and

     (c) shall not, except as expressly set forth herein and in the other Loan Documents,
have any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to the Borrower or any of its Affiliates that is communicated to or
obtained by the Person serving as the Administrative Agent or any of its Affiliates in any
capacity.

     The Administrative Agent shall not be liable for any action taken or not taken by it (i) with
the consent or at the request of the Required Lenders (or such other number or percentage of the
Lenders as shall be necessary, or as the Administrative Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 10.01 and 8.02) or
(ii) in the absence of its own gross negligence or willful misconduct. The Administrative Agent
shall be deemed not to have knowledge of any Default unless and until notice describing such
Default is given to the Administrative Agent by the Borrower, a Lender or the Letter of Credit
Issuer.

     The Administrative Agent shall not be responsible for or have any duty to ascertain or inquire
into (i) any statement, warranty or representation made in or in connection with this Agreement or
any other Loan Document, (ii) the contents of any certificate, report or other document delivered
hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance
of any of the covenants, agreements or other terms or conditions set forth herein or therein or the
occurrence of any Default, (iv) the validity, enforceability, effectiveness or genuineness of this
Agreement, any other Loan Document or any other agreement, instrument or document or (v) the
satisfaction of any condition set forth in Article IV or elsewhere herein, other than to
confirm receipt of items expressly required to be delivered to the Administrative Agent.

88

 

     9.04 Reliance by Administrative Agent. The Administrative Agent shall be entitled to rely
upon, and shall not incur any liability for relying upon, any notice, request, certificate,
consent, statement, instrument, document or other writing (including any electronic message,
Internet or intranet website posting or other distribution) believed by it to be genuine and to
have been signed, sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and believed by it to have been
made by the proper Person, and shall not incur any liability for relying thereon. In determining
compliance with any condition hereunder to the making of a Loan, or the issuance of a Letter of
Credit, that by its terms must be fulfilled to the satisfaction of a Lender or the Letter of Credit
Issuer, the Administrative Agent may presume that such condition is satisfactory to such Lender or
the Letter of Credit Issuer unless the Administrative Agent shall have received notice to the
contrary from such Lender or the Letter of Credit Issuer prior to the making of such Loan or the
issuance of such Letter of Credit. The Administrative Agent may consult with legal counsel (who
may be counsel for the Borrower), independent accountants and other experts selected by it, and
shall not be liable for any action taken or not taken by it in accordance with the advice of any
such counsel, accountants or experts.

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

     9.06 Resignation or Removal of Administrative Agent. The Administrative Agent may at any time
give notice of its resignation to the Lenders, the Letter of Credit Issuer and the Borrower, and
the Administrative Agent may be removed at any time with or without cause by the Required Lenders.
Upon any such resignation or removal, the Required Lenders shall have the right, in consultation
with the Borrower, to appoint a successor, which shall be a bank with an office in the United
States, or an Affiliate of any such bank with an office in the United States. If no such successor
shall have been so appointed by the Required Lenders and shall have accepted such appointment
within 30 days after the retiring Administrative Agent’s giving of notice of its resignation or the
Required Lenders’ removal of the retiring Administrative Agent, then the retiring Administrative
Agent may on behalf of the Lenders and the Letter of Credit Issuer, appoint a successor
Administrative Agent meeting the qualifications set forth above; provided that if the
Administrative Agent shall notify the Borrower and the Lenders that no qualifying Person has
accepted such appointment, then such resignation or removal shall nonetheless become effective in
accordance with such notice and (1) the retiring Administrative Agent shall be discharged from its
duties and obligations hereunder and under the other Loan Documents and (2) all payments,
communications and determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and the Letter of Credit Issuer directly, until such
time as the Required Lenders appoint a successor Administrative Agent as provided for above in this
Section. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder, such
successor shall succeed to and

89

 

become vested with all of the rights, powers, privileges and duties of the retiring (or
retired) Administrative Agent, and the retiring Administrative Agent shall be discharged from all
of its duties and obligations hereunder or under the other Loan Documents (if not already
discharged therefrom as provided above in this Section). The fees payable by the Borrower to a
successor Administrative Agent shall be the same as those payable to its predecessor unless
otherwise agreed between the Borrower and such successor. After the retiring Administrative
Agent’s resignation or removal hereunder and under the other Loan Documents, the provisions of this
Article and Section 10.04 shall continue in effect for the benefit of such retiring
Administrative Agent, its sub-agents and their respective Related Parties in respect of any actions
taken or omitted to be taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

     Any resignation by, or removal of, Regions Bank as Administrative Agent pursuant to this
Section shall also constitute its resignation or removal as Letter of Credit Issuer and Swing Line
Lender. Upon the acceptance of a successor’s appointment as Administrative Agent hereunder,
(a) such successor shall succeed to and become vested with all of the rights, powers, privileges
and duties of the retiring Letter of Credit Issuer and Swing Line Lender, (b) the retiring Letter
of Credit Issuer and Swing Line Lender shall be discharged from all of their respective duties and
obligations hereunder or under the other Loan Documents, and (c) the successor Letter of Credit
Issuer shall issue letters of credit in substitution for the Letters of Credit, if any, outstanding
at the time of such succession or make other arrangements satisfactory to the retiring Letter of
Credit Issuer to effectively assume the obligations of the retiring Letter of Credit Issuer with
respect to such Letters of Credit.

     9.07 Non-Reliance on Administrative Agent and Other Lenders. Each Lender and the Letter of
Credit Issuer acknowledges that it has, independently and without reliance upon the Administrative
Agent or any other Lender or any of their Related Parties and based on such documents and
information as it has deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender and the Letter of Credit Issuer also acknowledges that it will,
independently and without reliance upon the Administrative Agent or any other Lender or any of
their Related Parties and based on such documents and information as it shall from time to time
deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished
hereunder or thereunder.

     9.08 No Other Duties, Etc. Anything herein to the contrary notwithstanding, neither the Lead
Arranger nor any other arranger or agent shall have any powers, duties or responsibilities under
this Agreement or any of the other Loan Documents, except in its capacity, as applicable, as the
Administrative Agent, Syndication Agent, Documentation Agent, a Lender or the Letter of Credit
Issuer hereunder.

     9.09 Administrative Agent May File Proofs of Claim. In case of the pendency of any proceeding
under any Bankruptcy Law or any other judicial proceeding relative to any Loan Party, the
Administrative Agent (irrespective of whether the principal of any Loan or Letter of Credit
Obligation shall then be due and payable as herein expressed or by declaration or

90

 

otherwise and irrespective of whether the Administrative Agent shall have made any demand on
the Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise

     (a) to file and prove a claim for the whole amount of the principal and interest owing
and unpaid in respect of the Loans, Letter of Credit Obligations and all other Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable
in order to have the claims of the Lenders, the Letter of Credit Issuer and the
Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders, the Letter of Credit Issuer and the
Administrative Agent and their respective agents and counsel and all other amounts due the
Lenders, the Letter of Credit Issuer and the Administrative Agent under
Sections 2.03(i) and (j), 2.09 and 10.04) allowed in such
judicial proceeding; and

     (b) to collect and receive any monies or other property payable or deliverable on any
such claims and to distribute the same;

and any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official
in any such judicial proceeding is hereby authorized by each Lender and the Letter of Credit Issuer
to make such payments to the Administrative Agent and, in the event that the Administrative Agent
shall consent to the making of such payments directly to the Lenders and the Letter of Credit
Issuer, to pay to the Administrative Agent any amount due for the reasonable compensation,
expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and
any other amounts due the Administrative Agent under Sections 2.09 and 10.04.

     Nothing contained herein shall be deemed to authorize the Administrative Agent to authorize or
consent to or accept or adopt on behalf of any Lender or the Letter of Credit Issuer any plan of
reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of
any Lender or the Letter of Credit Issuer to authorize the Administrative Agent to vote in respect
of the claim of any Lender or the Letter of Credit Issuer in any such proceeding.

     9.10 Collateral and Guaranty Matters. Lenders and the Letter of Credit Issuer irrevocably
authorize Administrative Agent, at its option and in its discretion,

     (a) to release any Lien on any property granted to or held by Administrative Agent
under any Loan Document (i) upon termination of the commitment of each Lender to make Loans
and payment in full of all Obligations (other than contingent indemnification obligations)
and the expiration or termination of all Letters of Credit, (ii) that is sold or to be sold
as part of or in connection with any sale permitted hereunder or under any other Loan
Document, or (iii) subject to Section 10.01, if approved, authorized or ratified in
writing by the Required Lenders; and

     (b) to release any Guarantor from its obligations under any Guaranty if such Person
ceases to be a Subsidiary as a result of a transaction permitted hereunder.

91

 

Upon request by Administrative Agent at any time, the Required Lenders will confirm in writing
Administrative Agent’s authority to release or subordinate its interest in particular types or
items of property, or to release any Guarantor from its obligations under any Guaranty pursuant to
this Section 9.10.

ARTICLE X.

MISCELLANEOUS

     10.01 Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other
Loan Document, and no consent to any departure by the Borrower or any other Loan Party therefrom,
shall be effective unless in writing signed by the Required Lenders and the Borrower or the
applicable Loan Party, as the case may be, and acknowledged by the Administrative Agent, and each
such waiver or consent shall be effective only in the specific instance and for the specific
purpose for which given; provided, however, that no such amendment, waiver or
consent shall:

     (a) waive any condition set forth in Section 4.01(a) without the written
consent of each Lender;

     (b) extend or increase the Commitment of any Lender (or reinstate any Commitment
terminated pursuant to Section 8.02) without the written consent of such Lender;

     (c) postpone any date fixed by this Agreement or any other Loan Document for any
payment (not including any mandatory prepayment) of principal, interest, fees or other
amounts due to the Lenders (or any of them) or any scheduled or mandatory reduction of the
Total Commitments hereunder or under any other Loan Document without the written consent of
each Lender directly affected thereby;

     (d) reduce the principal of, or the rate of interest specified herein on, any Loan or
Letter of Credit Borrowing, or (subject to clause (iv) of the second proviso to this
Section 10.01) any fees or other amounts payable hereunder or under any other Loan
Document without the written consent of each Lender directly affected thereby;
provided, however, that only the consent of the Required Lenders shall be
necessary to amend the definition of “Default Rate” or to waive any obligation of the
Borrower to pay interest or Letter of Credit Fees at the Default Rate;

     (e) change Section 2.13 or Section 8.03 in a manner that would alter
the pro rata sharing of payments required thereby without the written consent of each
Lender;

     (f) change any provision of this Section or the definition of “Required Lenders,” or
any other provision hereof specifying the number or percentage of Lenders required to amend,
waive or otherwise modify any rights hereunder or make any determination or grant any
consent hereunder without the written consent of each Lender;

92

 

     (g) release any Guarantor from any Guaranty or all or substantially all of the value of
any Guaranty without the written consent of each Lender, except to the extent the release of
any Guarantor is permitted pursuant to Section 9.10 (in which case such release may
be made by Administrative Agent acting alone); or

     (h) release all or substantially all of the collateral securing the Obligations without
the written consent of each Lender, except for collateral sold or otherwise disposed as
permitted in the Loan Documents, and except to the extent the release of any collateral is
permitted pursuant to Section 9.10 (in which case such release may be made by
Administrative Agent acting alone) or this Section 10.01;

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by the Letter of Credit Issuer in addition to the Lenders required above, affect
the rights or duties of the Letter of Credit Issuer under this Agreement or any Issuer Document
relating to any Letter of Credit issued or to be issued by it; (ii) no amendment, waiver or consent
shall, unless in writing and signed by the Swing Line Lender in addition to the Lenders required
above, affect the rights or duties of the Swing Line Lender under this Agreement; (iii) no
amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in
addition to the Lenders required above, affect the rights or duties of the Administrative Agent
under this Agreement or any other Loan Document; and (iv) the Fee Letter may be amended, or rights
or privileges thereunder waived, in a writing executed only by the parties thereto.
Notwithstanding anything to the contrary herein, no Defaulting Lender shall have any right to
approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of
such Lender may not be increased or extended without the consent of such Lender.

     10.02 Notices; Effectiveness; Electronic Communication.

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

     (i) if to the Borrower, the Administrative Agent, the Letter of Credit Issuer
or the Swing Line Lender, to the address, telecopier number, electronic mail address
or telephone number specified for such Person on Schedule 10.02; and

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

Notices sent by hand or overnight courier service, or mailed by certified or registered
mail, shall be deemed to have been given when received; notices sent by telecopier shall be
deemed to have been given when sent (except that, if not given during normal business

93

 

hours for the recipient, shall be deemed to have been given at the opening of business on
the next business day for the recipient). Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall be effective as
provided in such subsection (b).

     (b) Electronic Communications. Notices and other communications to the Lenders
and the Letter of Credit Issuer hereunder may be delivered or furnished by electronic
communication (including e-mail and Internet or intranet websites) pursuant to procedures
approved by the Administrative Agent, provided that the foregoing shall not apply to
notices to any Lender or the Letter of Credit Issuer pursuant to Article II if such
Lender or the Letter of Credit Issuer, as applicable, has notified the Administrative Agent
that it is incapable of receiving notices under such Article by electronic communication.
The Administrative Agent or the Borrower may, in its discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to procedures
approved by it, provided that approval of such procedures may be limited to
particular notices or communications.

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

     (c) Change of Address, Etc. Each of the Borrower, the Administrative Agent,
the Letter of Credit Issuer and the Swing Line Lender may change its address, telecopier or
telephone number for notices and other communications hereunder by notice to the other
parties hereto. Each other Lender may change its address, telecopier or telephone number
for notices and other communications hereunder by notice to the Borrower, the Administrative
Agent, the Letter of Credit Issuer and the Swing Line Lender. In addition, each Lender
agrees to notify the Administrative Agent from time to time to ensure that the
Administrative Agent has on record (i) an effective address, contact name, telephone number,
telecopier number and electronic mail address to which notices and other communications may
be sent and (ii) accurate wire instructions for such Lender.

     (d) Reliance by Administrative Agent, Letter of Credit Issuer and Lenders. The
Administrative Agent, the Letter of Credit Issuer and the Lenders shall be entitled to rely
and act upon any notices (including telephonic Revolving Loan Notices and Swing Line Loan
Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not
made in a manner specified herein, were incomplete or were not preceded or followed by any
other form of notice specified herein, or (ii) the terms

94

 

thereof, as understood by the recipient, varied from any confirmation thereof. The
Borrower shall indemnify the Administrative Agent, the Letter of Credit Issuer, each Lender
and the Related Parties of each of them from all losses, costs, expenses and liabilities
resulting from the reliance by such Person on each notice purportedly given by or on behalf
of the Borrower. All telephonic notices to and other telephonic communications with the
Administrative Agent may be recorded by the Administrative Agent, and each of the parties
hereto hereby consents to such recording.

     10.03 No Waiver; Cumulative Remedies. No failure by any Lender, the Letter of Credit Issuer
or the Administrative Agent to exercise, and no delay by any such Person in exercising, any right,
remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any other or further
exercise thereof or the exercise of any other right, remedy, power or privilege. The rights,
remedies, powers and privileges herein provided are cumulative and not exclusive of any rights,
remedies, powers and privileges provided by law.

     10.04 Expenses; Indemnity; Damage Waiver.

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

     (b) Indemnification by the Borrower. The Borrower shall indemnify the
Administrative Agent (and any sub-agent thereof), the Syndication Agent, the Documentation
Agent, any other agent, each Lender and the Letter of Credit Issuer, and each Related Party
of any of the foregoing Persons (each such Person being called an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses (including the reasonable fees, charges and disbursements
of any counsel for any Indemnitee), incurred by any Indemnitee or asserted against any
Indemnitee by any third party or by the Borrower or any other Loan Party arising out of, in
connection with, or as a result of (i) the execution or delivery of

95

 

this Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by the parties hereto of their respective obligations
hereunder or thereunder, the consummation of the transactions contemplated hereby or
thereby, or, in the case of the Administrative Agent (and any sub-agent thereof) and its
Related Parties only, the administration of this Agreement and the other Loan Documents,
(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom
(including any refusal by the Letter of Credit Issuer to honor a demand for payment under a
Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or
release of Hazardous Materials on or from any property owned or operated by the Borrower or
any of its Subsidiaries, or any Environmental Liability related in any way to the Borrower
or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation,
investigation or proceeding relating to any of the foregoing, whether based on contract,
tort or any other theory, whether brought by a third party or by the Borrower or any other
Loan Party, and regardless of whether any Indemnitee is a party thereto, IN ALL CASES,
WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE,
CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses (x) are determined by a court of competent
jurisdiction by final and nonappealable judgment to have resulted from the gross negligence
or willful misconduct of such Indemnitee or (y) result from a claim brought by the Borrower
or any other Loan Party against an Indemnitee for breach in bad faith of such Indemnitee’s
obligations hereunder or under any other Loan Document, if the Borrower or such Loan Party
has obtained a final and nonappealable judgment in its favor on such claim as determined by
a court of competent jurisdiction.

     (c) Reimbursement by Lenders. To the extent that the Borrower for any reason
fails to indefeasibly pay any amount required under subsection (a) or (b) of this Section to
be paid by it to the Administrative Agent (or any sub-agent thereof), the Letter of Credit
Issuer or any Related Party of any of the foregoing, each Lender severally agrees to pay to
the Administrative Agent (or any such sub-agent), the Letter of Credit Issuer or such
Related Party, as the case may be, such Lender’s Pro Rata Percentage (determined as of the
time that the applicable unreimbursed expense or indemnity payment is sought) of such unpaid
amount, provided that the unreimbursed expense or indemnified loss, claim, damage,
liability or related expense, as the case may be, was incurred by or asserted against the
Administrative Agent (or any such sub-agent) or the Letter of Credit Issuer in its capacity
as such, or against any Related Party of any of the foregoing acting for the Administrative
Agent (or any such sub-agent) or Letter of Credit Issuer in connection with such capacity.
The obligations of the Lenders under this subsection (c) are subject to the provisions of
Section 2.12(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable Law, the Borrower shall not assert, and hereby waives, any claim against any
Indemnitee, on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection with, or as

96

 

a result of, this Agreement, any other Loan Document or any agreement or instrument
contemplated hereby, the transactions contemplated hereby or thereby, any Loan or Letter of
Credit or the use of the proceeds thereof. No Indemnitee referred to in subsection (b)
above shall be liable for any damages arising from the use by unintended recipients of any
information or other materials distributed to such unintended recipients by such Indemnitee
through telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions contemplated
hereby or thereby other than for direct or actual damages resulting from the gross
negligence or willful misconduct of such Indemnitee as determined by a final and
nonappealable judgment of a court of competent jurisdiction.

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

     (f) Survival. The agreements in this Section shall survive the resignation or
removal of the Administrative Agent, the Letter of Credit Issuer and the Swing Line Lender,
the replacement of any Lender, the termination of the Total Commitments and the repayment,
satisfaction or discharge of all the other Obligations.

     10.05 Payments Set Aside. To the extent that any payment by or on behalf of the Borrower is
made to the Administrative Agent, the Letter of Credit Issuer or any Lender, or the Administrative
Agent, the Letter of Credit Issuer or any Lender exercises its right of setoff, and such payment or
the proceeds of such setoff or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required (including pursuant to any settlement entered
into by the Administrative Agent, the Letter of Credit Issuer or such Lender in its discretion) to
be repaid to a trustee, receiver or any other party, in connection with any proceeding under any
Bankruptcy Law or otherwise, then (a) to the extent of such recovery, the obligation or part
thereof originally intended to be satisfied shall be revived and continued in full force and effect
as if such payment had not been made or such setoff had not occurred, and (b) each Lender and the
Letter of Credit Issuer severally agrees to pay to the Administrative Agent upon demand its
applicable share (without duplication) of any amount so recovered from or repaid by the
Administrative Agent, plus interest thereon from the date of such demand to the date such payment
is made at a rate per annum equal to the Federal Funds Rate from time to time in effect. The
obligations of the Lenders and the Letter of Credit Issuer under clause (b) of the preceding
sentence shall survive the payment in full of the Obligations and the termination of this
Agreement.

     10.06 Successors and Assigns.

     (a) Successors and Assigns Generally. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns permitted hereby, except that neither the Borrower nor any other Loan
Party may assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of the Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except (i) to an
assignee in accordance with the provisions of subsection (b) of this Section,

97

 

(ii) by way of participation in accordance with the provisions of subsection (d) of
this Section, or (iii) by way of pledge or assignment of a security interest subject to the
restrictions of subsection (f) of this Section (and any other attempted assignment or
transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed
or implied, shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the extent
provided in subsection (d) of this Section and, to the extent expressly contemplated hereby,
the Related Parties of each of the Administrative Agent, the Letter of Credit Issuer and the
Lenders) any legal or equitable right, remedy or claim under or by reason of this Agreement.

     (b) Assignments by Lenders. Any Lender may at any time assign to one or more
assignees all or a portion of its rights and obligations under this Agreement (including all
or a portion of its Commitment and the Loans (including for purposes of this subsection (b),
participations in Letter of Credit Obligations and in Swing Line Loans) at the time owing to
it); provided that any such assignment shall be subject to the following conditions:

     (i) Minimum Amounts. The aggregate amount of the Commitment (which for
this purpose includes Loans outstanding thereunder) or, if the Commitment is not
then in effect, the principal outstanding balance of the Loans of the assigning
Lender subject to each such assignment, determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative Agent
or, if “Trade Date” is specified in the Assignment and Assumption, as of the Trade
Date, shall not be less than $7,500,000 or an amount equal to the entire remaining
amount of the assigning Lender’s Commitment and the Loans at the time owing to it,
unless each of the Administrative Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consents (each such consent not
to be unreasonably withheld or delayed).

     (ii) Proportionate Amounts. Each partial assignment shall be made as
an assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans or the Commitment
assigned, except that this clause (ii) shall not apply to the Swing Line Lender’s
rights and obligations in respect of Swing Line Loans;

     (iii) Consents. In addition to the consent required by subsection
(b)(i) of this Section, the following consents are required:

     (A) the consent of the Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (1) an Event of Default has
occurred and is continuing at the time of such assignment or (2) such
assignment is to a Lender, an Affiliate of a Lender or an Approved Fund;

98

 

     (B) the consent of the Administrative Agent (such consent not to be
unreasonably withheld or delayed) shall be required for each assignment; and

     (C) the consent of the Letter of Credit Issuer (such consent not to be
unreasonably withheld or delayed) shall be required for any assignment that
increases the obligation of the assignee to participate in exposure under
one or more Letters of Credit (whether or not then outstanding);

     (iv) Assignment and Assumption. The parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee in the amount of $3,500 for each
assignment; provided, however, (A) no fee shall be due and payable
if any Assignor is assigning to an Affiliate of such Assignor and (B) the
Administrative Agent may, in its sole discretion, elect to waive such processing and
recordation fee in the case of any assignment. The assignee, if it is not a Lender,
shall deliver to the Administrative Agent an Administrative Questionnaire.

     (v) No Assignment to Borrower. No such assignment shall be made to the
Borrower or any of the Borrower’s Affiliates or Subsidiaries.

     (vi) No Assignment to Natural Persons. No such assignment shall be
made to a natural person.

Subject to acceptance and recording thereof by the Administrative Agent pursuant to
subsection (c) of this Section, from and after the effective date specified in each
Assignment and Assumption, the assignee thereunder shall be a party to this Agreement and,
to the extent of the interest assigned by such Assignment and Assumption, have the rights
and obligations of a Lender under this Agreement, and the assigning Lender thereunder shall,
to the extent of the interest assigned by such Assignment and Assumption, be released from
its obligations under this Agreement (and, in the case of an Assignment and Assumption
covering all of the assigning Lender’s rights and obligations under this Agreement, such
Lender shall cease to be a party hereto) but shall continue to be entitled to the benefits
of Sections 3.01, 3.04, 3.05, and 10.04 with respect to
facts and circumstances occurring prior to the effective date of such assignment. Upon
request, the Borrower (at its expense) shall execute and deliver a Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under this
Agreement that does not comply with this subsection shall be treated for purposes of this
Agreement as a sale by such Lender of a participation in such rights and obligations in
accordance with subsection (d) of this Section.

     (c) Register. The Administrative Agent, acting solely for this purpose as an
agent of the Borrower, shall maintain at the Administrative Agent’s Office a copy of each
Assignment and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitments of, and principal amounts of

99

 

the Loans and Letter of Credit Obligations owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
presumptively correct, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The
Register shall be available for inspection by the Borrower and any Lender, at any reasonable
time and from time to time upon reasonable prior notice.

     (d) Participations. Any Lender may at any time, without the consent of, or
notice to, the Borrower or the Administrative Agent, sell participations to any Person
(other than a natural person or the Borrower or any of the Borrower’s Affiliates or
Subsidiaries) (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its Commitment and/or
the Loans (including such Lender’s participations in Letter of Credit Obligations and/or
Swing Line Loans) owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations, and (iii) the Borrower,
the Administrative Agent, the Lenders and the Letter of Credit Issuer shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement.

     Any agreement or instrument pursuant to which a Lender sells such a participation shall
provide that such Lender shall retain the sole right to enforce this Agreement and to
approve any amendment, modification or waiver of any provision of this Agreement;
provided that such agreement or instrument may provide that such Lender will not,
without the consent of the Participant, agree to any amendment, waiver or other modification
described in the first proviso to Section 10.01 that affects such Participant.
Subject to subsection (e) of this Section, the Borrower agrees that each Participant shall
be entitled to the benefits of Sections 3.01, 3.04 and 3.05 to the
same extent as if it were a Lender and had acquired its interest by assignment pursuant to
subsection (b) of this Section. To the extent permitted by law, each Participant also shall
be entitled to the benefits of Section 10.08 as though it were a Lender,
provided such Participant agrees to be subject to Section 2.13 and
Section 10.07 as though it were a Lender.

     (e) Limitations upon Participant Rights. A Participant shall not be entitled
to receive any greater payment under Section 3.01 or 3.04 than the
applicable Lender would have been entitled to receive with respect to the participation sold
to such Participant, unless the sale of the participation to such Participant is made with
the Borrower’s prior written consent. A Participant that would be a Foreign Lender if it
were a Lender shall not be entitled to the benefits of Section 3.01 unless the
Borrower is notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 3.01(e) as though it
were a Lender.

     (f) Certain Pledges. Any Lender may at any time pledge or assign a security
interest in all or any portion of its rights under this Agreement (including under its Note,

100

 

if any) to secure obligations of such Lender, including any pledge or assignment to
secure obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or substitute any
such pledgee or assignee for such Lender as a party hereto.

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

     (h) Resignation as Letter of Credit Issuer or Swing Line Lender after
Assignment. Notwithstanding anything to the contrary contained herein, if at any time
Regions Bank assigns all of its Commitment and Loans pursuant to subsection (b) above,
Regions Bank may, (i) upon 30 days’ notice to the Borrower and the Lenders, resign as Letter
of Credit Issuer and/or (ii) upon 30 days’ notice to the Borrower, resign as Swing Line
Lender. In the event of any such resignation as Letter of Credit Issuer or Swing Line
Lender, the Borrower shall be entitled to appoint from among the Lenders a successor Letter
of Credit Issuer or Swing Line Lender hereunder; provided, however, that no
failure by the Borrower to appoint any such successor shall affect the resignation of
Regions Bank as Letter of Credit Issuer or Swing Line Lender, as the case may be. If
Regions Bank resigns as Letter of Credit Issuer, it shall retain all the rights, powers,
privileges and duties of the Letter of Credit Issuer hereunder with respect to all Letters
of Credit outstanding as of the effective date of its resignation as Letter of Credit Issuer
and all Letter of Credit Obligations with respect thereto (including the right to require
the Lenders to make Base Rate Revolving Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.03(c)). If Regions Bank resigns as Swing Line Lender,
it shall retain all the rights of the Swing Line Lender provided for hereunder with respect
to Swing Line Loans made by it and outstanding as of the effective date of such resignation,
including the right to require the Lenders to make Base Rate Revolving Loans or fund risk
participations in outstanding Swing Line Loans pursuant to Section 2.04(c). Upon
the appointment of a successor Letter of Credit Issuer and/or Swing Line Lender, (a) such
successor shall succeed to and become vested with all of the rights, powers, privileges and
duties of the retiring Letter of Credit Issuer or Swing Line Lender, as the case may be, and
(b) the successor Letter of Credit Issuer shall issue letters of credit in substitution for
the Letters of Credit, if any, outstanding at the time of such succession or make other
arrangements satisfactory to Regions Bank to effectively assume the obligations of Regions
Bank with respect to such Letters of Credit.

     10.07 Treatment of Certain Information; Confidentiality. Each of the Administrative Agent,
the Lenders and the Letter of Credit Issuer agrees to maintain the confidentiality of the
Information (as defined below), except that Information may be disclosed

101

 

(a) to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such Information and instructed
to keep such Information confidential), (b) to the extent requested by any regulatory authority
purporting to have jurisdiction over it (including any self-regulatory authority, such as the
National Association of Insurance Commissioners), (c) to the extent required by applicable Laws or
regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder or under any other Loan Document or any
action or proceeding relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder, (f) subject to an agreement containing provisions substantially the
same as those of this Section, to (i) any assignee of or Participant in, or any prospective
assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any
actual or prospective counterparty (or its advisors) to any swap or derivative transaction relating
to the Borrower and its obligations, (g) with the written consent of the Borrower or (h) to the
extent such Information (x) becomes publicly available other than as a result of a breach of this
Section or (y) becomes available to the Administrative Agent, any Lender, the Letter of Credit
Issuer or any of their respective Affiliates on a nonconfidential basis from a source other than
the Borrower.

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

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

     10.08 Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender, the Letter of Credit Issuer and each of their respective Affiliates is hereby authorized at
any time and from time to time, to the fullest extent permitted by applicable Law, to set off and
apply any and all deposits (general or special, time or demand, provisional or final, in whatever
currency) at any time held and other obligations (in whatever currency) at any time owing by such
Lender, the Letter of Credit Issuer or any such Affiliate to or for the credit or the account of
the Borrower or any other Loan Party against any and all of the obligations of the Borrower or such
Loan Party now or hereafter existing under this Agreement or any other Loan Document to such Lender
or the Letter of Credit Issuer, irrespective of whether or not such Lender or the Letter of Credit
Issuer shall have made any demand under this Agreement or any other Loan Document and although such
obligations of the Borrower or such Loan Party may be

102

 

contingent or unmatured or are owed to a branch or office of such Lender or the Letter of
Credit Issuer different from the branch or office holding such deposit or obligated on such
indebtedness. The rights of each Lender, the Letter of Credit Issuer and their respective
Affiliates under this Section are in addition to other rights and remedies (including other rights
of setoff) that such Lender, the Letter of Credit Issuer or their respective Affiliates may have.
Each Lender and the Letter of Credit Issuer agrees to notify the Borrower and the Administrative
Agent promptly after any such setoff and application, provided that the failure to give
such notice shall not affect the validity of such setoff and application.

     10.09 Interest Rate Limitation. Notwithstanding anything to the contrary contained in any
Loan Document, the interest paid or agreed to be paid under the Loan Documents shall not exceed the
Maximum Rate. If the Administrative Agent or any Lender shall receive interest in an amount that
exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if
it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest
contracted for, charged, or received by the Administrative Agent or a Lender exceeds the Maximum
Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that
is not principal as an expense, fee, or premium rather than interest, (b) exclude voluntary
prepayments and the effects thereof, and (c) amortize, prorate, allocate, and spread in equal or
unequal parts the total amount of interest throughout the contemplated term of the Obligations
hereunder.

     10.10 Counterparts; Integration; Effectiveness. This Agreement may be executed in
counterparts (and by different parties hereto in different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract.
This Agreement and the other Loan Documents constitute the entire contract among the parties
relating to the subject matter hereof and supersede any and all previous agreements and
understandings, oral or written, relating to the subject matter hereof. Except as provided in
Section 4.01, this Agreement shall become effective when it shall have been executed by the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
that, when taken together, bear the signatures of each of the other parties hereto. Delivery of an
executed counterpart of a signature page of this Agreement by telecopy shall be effective as
delivery of a manually executed counterpart of this Agreement.

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

     10.12 Severability. If any provision of this Agreement or the other Loan Documents is held to
be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the

103

 

remaining provisions of this Agreement and the other Loan Documents shall not be affected or
impaired thereby and (b) the parties shall endeavor in good faith negotiations to replace the
illegal, invalid or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the illegal, invalid or unenforceable provisions. The
invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

     10.13 Replacement of Lenders. If any Lender requests compensation under Section 3.04,
or if the Borrower is required to pay any additional amount to any Lender or any Governmental
Authority for the account of any Lender pursuant to Section 3.01, or if any Lender is a
Defaulting Lender or if any other circumstance exists hereunder that gives the Borrower the right
to replace a Lender as a party hereto, then the Borrower may, at its sole expense and effort, upon
notice to such Lender and the Administrative Agent, require such Lender to assign and delegate,
without recourse (in accordance with and subject to the restrictions contained in, and consents
required by, Section 10.06), all of its interests, rights and obligations under this
Agreement and the related Loan Documents to an assignee that shall assume such obligations (which
assignee may be another Lender, if a Lender accepts such assignment), provided that:

     (a) the Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 10.06(b);

     (b) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and Letter of Credit Advances, accrued interest thereon, accrued fees
and all other amounts payable to it hereunder and under the other Loan Documents (including
any amounts under Section 3.05) from the assignee (to the extent of such outstanding
principal and accrued interest and fees) or the Borrower (in the case of all other amounts);

     (c) in the case of any such assignment resulting from a claim for compensation under
Section 3.04 or payments required to be made pursuant to Section 3.01, such
assignment will result in a reduction in such compensation or payments thereafter; and

     (d) such assignment does not conflict with applicable Laws.

     A Lender shall not be required to make any such assignment or delegation if, prior thereto, as
a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to
require such assignment and delegation cease to apply.

     10.14 Governing Law; Jurisdiction; Etc.

     (a) GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAW OF THE STATE OF TEXAS.

     (b) SUBMISSION TO JURISDICTION. THE BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS,

104

 

FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE
STATE OF TEXAS SITTING IN DALLAS COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE
NORTHERN DISTRICT OF TEXAS (DALLAS DIVISION), AND ANY APPELLATE COURT FROM ANY THEREOF, IN
ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT, OR FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, AND EACH OF THE PARTIES HERETO
IRREVOCABLY AND UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR
PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, IN SUCH FEDERAL COURT. EACH OF THE PARTIES HERETO AGREES THAT
A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN
OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING
IN THIS AGREEMENT OR IN ANY OTHER LOAN DOCUMENT SHALL AFFECT ANY RIGHT THAT THE
ADMINISTRATIVE AGENT, ANY LENDER OR THE LETTER OF CREDIT ISSUER MAY OTHERWISE HAVE TO BRING
ANY ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST THE
BORROWER OR ANY OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) WAIVER OF VENUE. THE BORROWER AND EACH OTHER LOAN PARTY IRREVOCABLY AND
UNCONDITIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION
THAT IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING
OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT IN ANY COURT REFERRED TO IN
PARAGRAPH (B) OF THIS SECTION. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES, TO THE
FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.

     (d) SERVICE OF PROCESS. EACH PARTY HERETO IRREVOCABLY CONSENTS TO SERVICE OF
PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 10.02. NOTHING IN THIS
AGREEMENT WILL AFFECT THE RIGHT OF ANY PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY APPLICABLE LAW.

     10.15 Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL
PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY
OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR

105

 

ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER
LOAN DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

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

106

 

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

     10.18 Entire Agreement. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
PARTIES.

[Remainder of the Page Intentionally Left Blank.

Signature Pages to Follow.]

107

 

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

	 	 	 	 	 
	 	PENSON WORLDWIDE, INC.

 	 
	 	By:  	/s/ Daniel P. Son
 	 
	 	 	Name:  	Daniel P. Son 	 
	 	 	Title:  	President 	 
	 

Signature Page to Second Amended and Restated Credit Agreement

 

	 	 	 	 	 
	 	REGIONS BANK,

as Administrative Agent, a Lender, Letter of Credit
Issuer and Swing Line Lender

 	 
	 	By:  	/s/ Robin Ingari
 	 
	 	 	Name:  	Robin Ingari 	 
	 	 	Title:  	Sr. Vice President 	 
	 

Signature Page to Second Amended and Restated Credit Agreement

 

	 	 	 	 	 
	 	COMPASS BANK, successor in interest to Guaranty Bank,
as a Lender

 	 
	 	By:  	/s/ Stephanie Cox
 	 
	 	 	Name:  	Stephanie Cox 	 
	 	 	Title:  	Sr. Vice President 	 
	 

Signature Page to Second Amended and Restated Credit Agreement

 

	 	 	 	 	 
	 	CAPITAL ONE, N.A., as a Lender and as

Co-Documentation Agent

 	 
	 	By:  	/s/ Jacob Villere
 	 
	 	 	Name:  	Jacob Villere 	 
	 	 	Title:  	Vice President, U.S. Corporate Dept. 	 
	 

Signature Page to Second Amended and Restated Credit Agreement

 

	 	 	 	 	 
	 	TEXAS CAPITAL BANK, NATIONAL ASSOCIATION, as a Lender

and as Co-Documentation Agent

 	 
	 	By:  	/s/ Paul Howell
 	 
	 	 	Name:  	Paul Howell 	 
	 	 	Title:  	Sr. Vice President 	 
	 

	 	 	 	 	 
	 	Signature Page to Second Amended and Restated Credit Agreement

 	 
	 	 	 
	 	 	 
	 	 	 

 

	 	 	 	 	 

	 	 	 	 	 
	 	THE PRIVATEBANK AND TRUST COMPANY, as a Lender and as Syndication Agent

 	 
	 	By:  	/s/ Ronald Fontenot
 	 
	 	 	Name:  	Ronald Fontenot 	 
	 	 	Title:  	Associate Managing Director 	 
	 

Signature Page to Second Amended and Restated Credit Agreement

 

	 	 	 	 	 
	 	UNION BANK, N.A., as a Lender

 	 
	 	By:  	/s/ Megan R. Webster
 	 
	 	 	Name:  	Megan R. Webster 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Second Amended and Restated Credit Agreementexv10w6

Exhibit 10.6

Amended and Restated Pledge Agreement

     THIS AMENDED AND RESTATED PLEDGE AGREEMENT (this agreement, together with all amendments and
restatements and Joinders, this “Agreement”), dated as of May 6, 2010, is made by each of the
signatories party hereto and each other Person who becomes a party hereto pursuant to
Section 6.14 (including any permitted successors and assigns, collectively, the “Pledgors”
and each a “Pledgor”), in favor of REGIONS BANK, in its capacity as Administrative Agent (as
defined in the Credit Agreement described below), for the benefit of each Creditor (Administrative
Agent in such capacity, “Secured Party”).

BACKGROUND.

     Penson Worldwide, Inc., a Delaware corporation (the “Borrower”), the Administrative Agent, and
the lenders party thereto previously executed that certain Amended and Restated Credit Agreement
dated as of May 1, 2009 (such agreement, together with all amendments prior to the date of this
Agreement, the “Existing Credit Agreement”).

     In connection with the Existing Credit Agreement, the Pledgors and the Administrative Agent
executed that certain Pledge Agreement dated as of May 1, 2009 (such agreement, together with all
amendments prior to the date of this Agreement, the “Existing Pledge Agreement”) to secure the
obligations described therein.

     The Borrower, the Administrative Agent, and the lenders party thereto are now entering into
that certain Second Amended and Restated Credit Agreement dated as of the date hereof (as may be
amended, restated, supplemented or modified from time to time, the “Credit Agreement”).

     It is a condition precedent to the effectiveness of the Credit Agreement that each Pledgor
shall have executed and delivered this Agreement.

     It is the intention of the parties hereto to ratify and confirm the first priority security
interest created by the Existing Pledge Agreement in the Collateral in favor of Secured Party for
the benefit of Creditors securing the payment and performance of the Obligations.

AGREEMENT.

     NOW, THEREFORE, in consideration of the premises set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order
to induce Creditors to make the Loans and issue Letters of Credit under the Credit Agreement and to
extend other credit and financial accommodations under the Loan Documents, each Pledgor hereby
agrees with Secured Party, for the benefit of Creditors, as follows:

ARTICLE I

DEFINITIONS

     1.1. Definitions. For purposes of this Agreement:

     “Acquisition Rights” means all right, title, and interest of each Pledgor (in each case
whether now or hereafter existing, owned, arising, or acquired) in and to each warrant, option,

1

 

subscription right, redemption right and other right (including any instrument or right
convertible into an Equity Interest) to acquire any Equity Interest in any Person.

     “Collateral” means all (a) Collateral Records in respect of the Pledged Equity Interests,
(b) Pledged Equity Interests, (c) General Intangibles arising out of the Pledged Equity Interests
and (d) Proceeds of the foregoing.

     “Collateral Records” means books, records, ledger cards, certificates and similar items that
at any time evidence or contain information that relates to the Collateral and are necessary or
helpful in the collection thereof or realization thereupon.

     “Creditor” or “Creditors” means (a) Secured Party, (b) Administrative Agent, (c) Lenders, (d)
the Letter of Credit Issuer, and (e) any Related Party to whom any indemnification obligation is
owed by any Loan Party pursuant to any Loan Document.

     “Equity Interests” means, with respect to any Person, all of the shares of capital stock of
(or other ownership interests or dividend or distribution interests associated with ownership in)
such Person, all of the warrants, options or other rights for the purchase or acquisition from such
Person of shares of capital stock of (or other ownership interests or dividend or distribution
interests associated with ownership in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other ownership interests or dividend or
distribution interests associated with ownership in) such Person or warrants, rights or options for
the purchase or acquisition from such Person of such shares (or such other interests), and all of
the other ownership interests or dividend or distribution interests associated with ownership in
such Person (including partnership, member or trust interests therein), whether voting or
nonvoting, and whether or not such shares, warrants, options, rights or other interests are
outstanding on any date of determination; provided, however, that JBO Stock shall
not be considered Equity Interests.

     “General Intangible” means all right, title, and interest of each Pledgor (in each case
whether now or hereafter existing, owned, arising, or acquired) in and to a general intangible (as
defined in the UCC).

     “Joinder” means a Pledge Agreement Joinder in substantially the form of Exhibit A.

     “Permitted Liens” means Liens permitted by Section 7.01 of the Credit Agreement.

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

     “Pledged Entity” means each of SAI Holdings, Inc., Penson Financial Services Inc., Penson
Financial Services Canada Inc., GHP1, Inc., Penson Holdings, Inc., and each other Person whose
Equity Interests shall be pledged pursuant to the Loan Documents.

     “Pledged Equity Interests” means all Acquisition Rights, Pledged Stock, Pledged LLC Interests,
Pledged Partnership Interests and Pledged Trust Interests, in each case in a Pledged Entity;
provided, however, notwithstanding anything herein to the contrary, the amount of Pledged Equity
Interests of any Foreign Subsidiary shall be limited to 65% of the issued and outstanding voting
(as determined for purposes of Section 956(c) of the Internal Revenue Code

2

 

of 1986, as amended, and the Treasury regulations thereunder) Equity Interests of such Foreign
Subsidiary; and provided further, that Pledged Equity Interests shall not include any Pledged
Equity Interests that cannot be subject to a Lien (i) without violating any applicable law or
regulations of any Governmental Authority having jurisdiction over the Pledged Entity or (ii)
without the consent of any Governmental Authority having jurisdiction over the Pledged Entity,
which consent has not been obtained.

     “Pledged LLC Interests” means, with respect to each Pledged Entity that is a limited liability
company, all limited liability company interests in such Pledged Entity and the certificates, if
any, representing such limited liability company interests and all dividends, distributions, cash,
instruments, securities and other property or proceeds from time to time received, receivable or
otherwise distributed in respect of or in exchange for any or all of such limited liability company
interests; provided, however, notwithstanding anything herein to the contrary, the amount of
pledged limited liability company interests of any Foreign Subsidiary shall be limited to 65% of
the issued and outstanding voting (as determined for purposes of Section 956(c) of the Internal
Revenue Code of 1986, as amended, and the Treasury regulations thereunder) limited liability
company interests of such Foreign Subsidiary.

     “Pledged Partnership Interests” means, with respect to each Pledged Entity that is a
partnership, all general partnership, limited partnership, limited liability partnership or other
partnership interests in such Pledged Entity and the certificates, if any, representing such
partnership interests and all dividends, distributions, cash, instruments, securities and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such partnership interests; provided, however, notwithstanding
anything herein to the contrary, the amount of pledged general partnership, limited partnership,
limited liability partnership or other partnership interests of any Foreign Subsidiary shall be
limited to 65% of the issued and outstanding voting (as determined for purposes of Section 956(c)
of the Internal Revenue Code of 1986, as amended, and the Treasury regulations thereunder) general
partnership, limited partnership, limited liability partnership or other partnership interests of
such Foreign Subsidiary.

     “Pledged Stock” means, with respect to each Pledged Entity that is a corporation, all shares
of capital stock in such Pledged Entity and the certificates, if any, representing such shares and
all dividends, distributions, cash, instruments, securities and other property or proceeds from
time to time received, receivable or otherwise distributed in respect of or in exchange for any or
all of such shares; provided, however, notwithstanding anything herein to the contrary, the amount
of pledged capital stock of any Foreign Subsidiary shall be limited to 65% of the issued and
outstanding voting (as determined for purposes of Section 956(c) of the Internal Revenue Code of
1986, as amended, and the Treasury regulations thereunder) capital stock of such Foreign
Subsidiary; and provided further, that notwithstanding anything in this Agreement or any other Loan
Document to the contrary, JBO Stock shall not be considered Pledged Stock.

     “Pledged Trust Interests” means, with respect to each Pledged Entity that is a trust, all
business trust or other trust interests in such Pledged Entity and the certificates, if any,
representing such trust interests and all dividends, distributions, cash, instruments, securities
and other property or proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such trust interests; provided, however,

3

 

notwithstanding anything herein to the contrary, the amount of pledged trust interests of any
Foreign Subsidiary shall be limited to 65% of the issued and outstanding voting (as determined for
purposes of Section 956(c) of the Internal Revenue Code of 1986, as amended, and the Treasury
regulations thereunder) trust interests of such Foreign Subsidiary.

     “Proceeds” means all right, title, and interest of each Pledgor (in each case whether now or
hereafter existing, owned, arising, or acquired) in and to proceeds (as defined in the UCC), and
(whether or not included in such definition), (a) whatever is acquired upon the sale, lease,
license, exchange, or other disposition of the Collateral, (b) whatever is collected on, or
distributed on account of, the Collateral, (c) rights arising out of the Collateral, (d) proceeds
of insurance, including insurance payable by reason of the loss or nonconformity of, defects or
infringement of rights in, or damage to the Collateral, and (e) any and all other amounts from time
to time paid or payable in respect of the Collateral.

     “Record” means information that is inscribed on a tangible medium or that is stored in an
electronic or other medium and is retrievable in perceivable form.

     “Release Date” means the date on which all of the conditions set forth in
Section 9.10(a)(i) of the Credit Agreement (other than in respect of inchoate obligations)
have been satisfied.

     “Schedule Effective Date” means, with respect to any Schedule to this Agreement, the effective
date of such Schedule or any restatement of such Schedule, which effective date shall be stated on
such Schedule or restatement and agreed to by Secured Party as provided in Section 4.10.

     “UCC” means Chapters 8 and 9 of the Uniform Commercial Code as in effect from time to time in
the State of Texas or, where applicable as to specific items or types of Collateral, any other
relevant state.

     1.2. Other Definitional Provisions. Capitalized terms not otherwise defined herein have the
meaning specified in the Credit Agreement, and, to the extent of any conflict, terms as defined
herein shall control (provided, that a more expansive or explanatory definition shall not be deemed
a conflict).

     1.3. Construction. Unless otherwise expressly provided in this Agreement or the context
requires otherwise, (a) the singular shall include the plural, and vice versa, (b) words of a
gender include the other gender, (c) monetary references are to Dollars, (d) time references are to
Central time, (e) references to the “Agreement” and to “Articles,” “Sections,” “Exhibits,” and
“Schedules” are to this Agreement and to the Articles, Sections, Exhibits, and Schedules of and to
this Agreement, together with all amendments and restatements thereto, (f) headings used in this
Agreement are for convenience only and shall not be used in connection with the interpretation of
any provision hereof, (g) references to any Person include that Person’s heirs, personal
representatives, successors, trustees, receivers, and permitted assigns, that Person as a debtor-in
possession, and any receiver, trustee, liquidator, conservator, custodian, or similar party
appointed for such Person or all or substantially all of its assets, (h) references to any Law
include every amendment or restatement to it, rule and regulation adopted under it, and successor
or replacement for it, (i) references to a particular Loan Document include each amendment or

4

 

restatement to it made in accordance with the Credit Agreement and such Loan Document, and
(j) the inclusion of Proceeds in the definition of “Collateral” shall not be deemed a consent by
Secured Party or any other Creditor to any Disposition of any Collateral not otherwise specifically
permitted by the terms of the Credit Agreement or this Agreement. This Agreement is a Loan
Document.

ARTICLE II

GRANT OF SECURITY INTEREST

     2.1. Assignment and Grant of Security Interest. As security for the payment and performance,
as the case may be, in full of the Obligations, each Pledgor hereby pledges and grants to Secured
Party, for the benefit of Creditors, a security interest in the entire right, title, and interest
of such Pledgor in and to all Collateral, whether now or hereafter existing, owned, arising or
acquired; provided, however, that Collateral shall not include any Collateral that cannot be
subject to a Lien (i) without violating any applicable law or regulations of any Governmental
Authority having jurisdiction over the Pledged Entity or (ii) without the consent of any
Governmental Authority having jurisdiction over the Pledged Entity, which consent has not been
obtained; provided further, however, that to the extent that the grant of a Lien on such Collateral
would no longer violate any applicable law or regulations of any Governmental Authority or require
the consent of any Governmental Authority, such Collateral shall automatically become Collateral
hereunder, and such Lien shall be deemed to be automatically granted. Notwithstanding the
foregoing, in no event shall any Broker Dealer Subsidiary be required to be a pledgor hereunder or
a Guarantor.

     2.2. Pledgors Remain Liable. Anything herein to the contrary notwithstanding, (a) each
Pledgor shall remain liable with respect to and under all Collateral, (b) the exercise by Secured
Party or any other Creditor of any of the rights hereunder shall not release any Pledgor from any
of its duties or obligations with respect to or under any Collateral or under this Agreement, and
(c) neither Secured Party nor any other Creditor shall have any obligation or liability with
respect to or under any Collateral by reason of this Agreement, nor shall Secured Party or any
other Creditor be obligated to perform any of the obligations or duties of any Pledgor thereunder
or to take any action to collect or enforce any claim for payment assigned or in which a security
interest is granted hereunder.

     2.3. Delivery of Security and Instrument Collateral. All certificates, if any, or instruments
constituting or evidencing the Collateral shall be delivered to and held by or on behalf of Secured
Party pursuant hereto and shall be in suitable form for transfer by delivery, or shall be
accompanied by undated and duly executed instruments of transfer or assignment in blank, all in
form and substance reasonably satisfactory to Secured Party. If an Event of Default exists and is
continuing, Secured Party has the right to transfer to or to register in the name of Secured Party
or any of its nominees any or all of such Collateral. Secured Party shall endeavor to provide each
Pledgor with notice of such transfer and registration; provided, any failure to provide any such
notice shall not impair any right or action of Secured Party or any Creditor. In addition, Secured
Party has the right, if Secured Party reasonably determines that the exercise of such right is
necessary to protect its rights, at any time to exchange certificates or instruments representing
or evidencing Collateral for certificates or instruments of smaller or larger denominations.

5

 

     2.4. Future Advances. Each Pledgor acknowledges that the Loan Documents provide for future
advances and financial accommodations and this Agreement secures performance of such future
advances and financial accommodations.

     2.5. Maximum Liability. Anything in this Agreement to the contrary notwithstanding, the
obligations of each Pledgor hereunder shall be limited to a maximum aggregate amount equal to the
largest amount that would not render its obligations hereunder subject to avoidance as a fraudulent
transfer or conveyance under Section 548 of Title 11 of the United States Code or any applicable
provisions of comparable Law (collectively, the “Fraudulent Transfer Laws”), in each case after
giving effect to all other liabilities of such Pledgor, contingent or otherwise, that are relevant
under the Fraudulent Transfer Laws (specifically excluding, however, any liabilities of such
Pledgor in respect of intercompany indebtedness to other Loan Parties or Affiliates of other Loan
Parties to the extent that such indebtedness would be discharged in an amount equal to the amount
paid or property conveyed by such Pledgor under the Loan Documents) and after giving effect as
assets, subject to Section 6.1, to the value (as determined under the applicable provisions
of the Fraudulent Transfer Laws) of any rights to subrogation or contribution of such Pledgor
pursuant to (a) applicable Law or (b) any agreement providing for an equitable allocation among
such Pledgor and other Loan Parties of obligations arising under the Loan Documents.

     2.6. Regulatory Restrictions. Secured Party and each Creditor recognizes and acknowledges
that the Collateral includes Pledged Equity Interests in Broker Dealer Subsidiaries of Borrower
and that (i) the disposition or transfer of such Pledged Equity Interests, (ii) any direct or
indirect change of control of any Broker Dealer Subsidiary , (iii) any direct or indirect exercise
of management control or other control over any Broker Dealer Subsidiary, and (iv) payment of
dividends and distributions by any Broker Dealer Subsidiary is subject to regulatory restrictions
(including the need to obtain the consent or approval of applicable self regulatory authorities and
other applicable regulatory authorities) and that the creation of the pledge in such Pledged Equity
Interests may require notification to applicable regulatory authorities. For the avoidance of
doubt, Secured Party and each Creditor recognize and agree that the representations and warranties
and covenants in this Agreement or the other Loan Documents shall not be breached solely by reason
of the existence of regulatory restrictions, or requirements for obtaining consent or approval from
regulatory authorities solely in respect of the enforcement of any rights and remedies under the
Loan Documents or the enforcement of any pledge of the securities of or exercise of rights over any
Broker Dealer Subsidiary. Without limiting the foregoing, Secured Party and each Creditor
acknowledge and agree that in respect of Penson Financial Services Canada Inc., the Investment
Industry Regulatory Organization of Canada, the Montreal Exchange, the Toronto Stock Exchange, the
TSX Venture Exchange and/or any other applicable governmental, regulatory or self-regulatory agency
or body having jurisdiction over Penson Financial Services Canada Inc., and/or each of their
respective successor organizations shall each be considered an applicable self regulatory
authorities.

6

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     3.1. Representations and Warranties. Each Pledgor represents and warrants to Secured Party
and each Creditor with respect to itself and its Collateral that:

     (a) This Agreement and the grant of the security interest pursuant to this Agreement in the
Collateral create a valid security interest in favor of Secured Party, for the benefit of
Creditors, in the Collateral, securing the payment and performance of the Obligations, and upon the
(i) filing of UCC-1 financing statements for such Pledgor, in the form delivered by such Pledgor to
Secured Party on or prior to the date of this Agreement and in the filing offices listed on
Schedule 1, Section (h), and (ii) delivery to and continuing possession by Secured
Party of all certificates evidencing the Pledged Equity Interests (together with undated stock
powers executed in blank), if any, shall constitute a valid, first priority, perfected security
interest in the Collateral subject to no other Lien (other than Permitted Liens), and all filings
and other actions necessary to perfect and protect such security interest and such priority have
been duly taken (or will be taken upon such Pledgor obtaining rights in Collateral after the date
hereof).

     (b) The execution, delivery and performance by such Pledgor of this Agreement have been duly
authorized by all necessary organizational action, and do not and will not (i) contravene the terms
of any of such Pledgor’s Organization Documents; (ii) conflict with or result in any breach or
contravention of, or the creation of any Lien under, or require any payment to be made under
(A) any Contractual Obligation to which such Pledgor is a party or affecting such Pledgor or the
properties of such Pledgor or any of its Subsidiaries (other than the Lien created by this
Agreement), or (B) any order, injunction, writ or decree of any Governmental Authority or any
arbitral award to which such Pledgor or its property is subject; or (C) violate any Law.

     (c) This Agreement has been duly executed and delivered by such Pledgor. This Agreement
constitutes a legal, valid and binding obligation of such Pledgor, enforceable against such Pledgor
in accordance with its terms, subject as to enforcement of remedies to any Bankruptcy Laws and to
general equitable principles.

     (d) Such Pledgor owns all of the Collateral free and clear of any Lien, except for Permitted
Liens and as set forth in Section 2.6. Such Pledgor has not granted a security interest or
other Lien in or made an assignment of any of the Collateral except for the security interest and
Lien granted by this Agreement and except for Permitted Liens. Such Pledgor has neither entered
into nor is it or any of its property subject to any agreement limiting the ability of such Pledgor
to grant a Lien in any of the Collateral, or the ability of such Pledgor to agree to grant or not
grant a Lien in any of the Collateral, except for the 2017 Notes Offering Documents and the Seller
Notes. None of the Collateral is subject to any agreement of repurchase, or subject to any dispute
or counterclaim. No effective financing statement or other similar effective document used to
perfect a Lien under the Laws of any jurisdiction covering all or any part of the Collateral is on
file in any recording office, except such as may have been filed pursuant to this Agreement or
another Loan Document or filed in respect of Permitted Liens. No control agreement in favor of
anyone other than Secured Party exists with respect to any Collateral, except in respect of
Permitted Liens.

7

 

     (e) All of the Pledged Equity Interests have been duly and validly issued, and the Pledged
Equity Interests (other than any general partner interest, if any), are fully paid and
nonassessable. None of the Pledged Equity Interests were issued in violation of the preemptive
rights of any Person or any agreement to which such Pledgor or the issuer thereof is a party or the
Pledged Equity Interest is subject. All Pledged Equity Interests that are certificated, if any,
have been delivered and pledged to Secured Party duly endorsed and accompanied by such duly
executed instruments of transfer or assignment as are necessary for such pledge, to be held as
pledged collateral. There are no Pledged Equity Interests other than that represented by
certificated securities in the possession of Secured Party. The Pledged Equity Interests include
(i) the percentage set forth on Schedule 3 of the issued and outstanding Equity Interests
of each entity in which such Pledgor owns a direct interest and which entity is not a Foreign
Subsidiary, and (ii) 65% of the issued and outstanding Equity Interests of each first-tier Foreign
Subsidiary, if any, of such Pledgor. There are no restrictions (which have not been effectively
waived by all necessary Persons) in any Organization Document governing any Pledged Equity Interest
or any other document related thereto which would limit or restrict (i) the grant of a Lien in the
Pledged Equity Interests, (ii) the perfection of such Lien, (iii) subject to Section 2.6,
the exercise of remedies in respect of such perfected Lien in the Pledged Equity Interests as
contemplated by this Agreement or (iv) subject to Section 2.6, the admission of any
transferee of the Collateral as a shareholder, member, partner or equity holder of the issuer of
such Collateral. Such Pledgor has delivered to Secured Party complete and correct copies of all
Organization Documents for each issuer of Collateral. Except as set forth on Schedule 3,
the Organization Documents of each issuer which is a partnership or limited liability company do
not provide that any interest in such issuer is a security governed by Article 8 of the UCC and no
Equity Interest of such issuer is evidenced by a certificate or other instrument. Subject to
Section 2.6, upon the exercise of remedies in respect of Pledged Equity Interests, a
transferee or assignee of any such capital stock, partnership interest or membership interest, as
the case may be, of such corporation, partnership or limited liability company, as the case may be,
shall become a shareholder, partner or member, as the case may be, of such corporation, partnership
or limited liability company, as the case may be, entitled to participate in the management thereof
and, upon the transfer of the entire interest of such Pledgor in such issuer, such Pledgor shall
cease to be a shareholder, partner or member, as the case may be of such issuer.

     (f) As of the Closing Date:

          (i) Schedule 1, Section (a) states the exact name of such
Pledgor, as such name appears in its currently effective Organization Documents as
filed with the appropriate authority of the jurisdiction of such Pledgor’s
organization.

          (ii) Schedule 1, Section (b) states the jurisdiction of
organization of such Pledgor.

          (iii) Such Pledgor is not organized in more than one jurisdiction.

          (iv) Schedule 1, Section (c) sets forth the current type of
entity of such Pledgor.

8

 

          (v) Schedule 1, Section (d) states each other entity type,
jurisdiction of organization and name such Pledgor has had in the past five years,
together with the date of the relevant change.

          (vi) Schedule 1, Section (d), such Pledgor has not changed its
identity or type of entity, jurisdiction of organization or name in any way within
the past five years (changes in identity or type of entity include mergers,
consolidations, and any change in the form or jurisdiction of organization).

          (vii) Schedule 1, Section (e) states all other business names
(including DBAs) under which Pledgor has registered to conduct its business at any
time during the past five years.

          (viii) Schedule 1, Section (f) states the Federal Taxpayer
Identification Number (if any) of such Pledgor.

          (ix) Schedule 1, Section (g) states the corporate or other
organizational number of such Pledgor issued by such Pledgor’s jurisdiction of
organization (or “N/A” if such jurisdiction does not issue an organizational number
for such Pledgor’s entity type).

     (g) As of the Closing Date, the chief executive office of such Pledgor is located at the
address stated on Schedule 2, Section (a). Except as noted in Schedule 2,
Section (a), the chief executive office of such Pledgor has not been located at any other
address during the past five years.

     (h) As of the Closing Date:

          (i) Schedule 3 contains a complete and correct description of each
certificate or other instrument included in or evidencing Collateral.

          (iii) Schedule 3 is a complete and correct list of the exact name of
each issuer of all Pledged Equity Interests described on Schedule 3, its
jurisdiction of organization, and the authorized, issued and outstanding Equity
Interests of such issuer.

          (iv) Such Pledgor’s interest in each such issuer is as stated on
Schedule 3.

     (i) Other than those already obtained prior to the date hereof, no consent of any other Person
and no authorization, approval or other action by, and no notice to or filing (other than filings
required by the UCC) with, any Governmental Authority is required (i) for the pledge by such
Pledgor of the Collateral pledged by it hereunder, for the grant by such Pledgor of the security
interest granted hereby, or for the execution, delivery, or performance of this Agreement by such
Pledgor, (ii) for the perfection or maintenance of the pledge, assignment, and security interest
created hereby (including the first priority nature of such pledge, assignment, and security
interest) or (iii) subject to Section 2.6, for the enforcement of remedies by Secured
Party or any other Creditor.

9

 

     (j) This Agreement may reasonably be expected to benefit, directly or indirectly, such
Pledgor, and the board of directors of such Pledgor, the requisite number of its partners, the
requisite number of its members or the requisite number of the appropriate governance body or
equity holders, as appropriate, have determined that this Agreement may reasonably be expected to
benefit, directly or indirectly, such Pledgor. Such Pledgor is familiar with, and has
independently reviewed the books and records regarding, the financial condition of the Borrower and
is familiar with the value of any and all collateral intended to be security for the payment of all
or any part of the Obligations; provided, however, such Pledgor is not relying on such financial
condition or collateral as an inducement to enter into this Agreement.

     (k) All representations and warranties made hereunder and in any other Loan Document or other
document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive
the execution and delivery hereof and thereof and any update of any Schedule. Such representations
and warranties have been or will be relied upon by Secured Party and each Creditor, regardless of
any investigation made by Secured Party or any Creditor or on their behalf and notwithstanding that
Secured Party or any Creditor may have had notice or knowledge of any Default at the time of any
credit extension, and shall continue in full force and survive the Release Date. Nothing herein
shall be deemed to make any representation or warranties continuous, except as expressly set forth
in the Loan Documents.

ARTICLE IV

COVENANTS

     4.1. Further Assurances.

     (a) Each Pledgor will, from time to time and at such Pledgor’s expense, promptly execute and
deliver all further instruments and documents (including the delivery of certificated securities,
if any, and supplements to all schedules), authenticate, execute and file such financing or
continuation statements, or amendments thereto, and such other instruments or notices, as may be
reasonably necessary, or as Secured Party may reasonably request, in order to perfect and preserve
the pledge, and security interest granted or purported to be granted hereby, and take all further
action that Secured Party may reasonably request, in order to perfect and protect any pledge, or
security interest granted or purported to be granted hereby, and the priority thereof or, after and
during the continuation of an Event of Default, to enable Secured Party to exercise and enforce
Secured Party’s and other Creditors’ rights and remedies hereunder with respect to any Collateral.

     (b) In addition to such other information as shall be specifically provided for herein, each
Pledgor shall furnish to Secured Party such other information with respect to such Pledgor and the
Collateral as Secured Party may reasonably request.

     (c) Each Pledgor authorizes Secured Party to file one or more financing or continuation
statements, and amendments thereto, relating to all or any part of the Collateral without the
authentication of any Pledgor where permitted by Law and that contain any other information
required by UCC Article 9 of the state or such jurisdiction for the sufficiency or filing office
acceptance of any financing statement, continuation or amendment, including whether such Pledgor is
an organization, the type of organization, and any organization identification number issued to
such Pledgor. Each Pledgor agrees to furnish any such

10

 

information to Secured Party promptly upon request. A photocopy or other reproduction of this
Agreement or any financing statement covering the Collateral or any part thereof shall be
sufficient as a financing statement where permitted by Law. Each Pledgor ratifies its
authentication, execution and delivery of, and the filing of, any financing statement or amendment
thereto describing any of the Collateral which was filed prior to the date of this Agreement.

     (d) Each Pledgor will not, and will not permit any Person to, revise, modify, amend or restate
the Organization Documents of any issuer of Pledged Equity Interests in a manner that adversely
affects the security interest of the Secured Party therein (except as permitted by the Loan
Documents), or terminate, cancel, or dissolve any such Person (except as permitted by the Loan
Documents).

     4.2. Place of Perfection. No Pledgor shall change the jurisdiction of its organization from
the jurisdiction specified in Schedule 1, Section (b), its type of entity from the
type of entity specified in Schedule 1, Section (c), its name from the name
specified in Schedule 1, Section (a), or its organizational identification number
from the organizational number specified in Schedule 1, Section (g), unless such
Pledgor has delivered to Secured Party 30 days prior written notice (unless Secured Party has
agreed in writing to a shorter period) and taken such actions as Secured Party may reasonably
require with respect to such change. Each Pledgor shall keep its chief executive office at the
address specified in Schedule 2, Section (a), unless such Pledgor has delivered to
Secured Party 30 days prior written notice (unless Secured Party has agreed in writing to a shorter
period) and taken such actions as Secured Party may reasonably require with respect to such change.

     4.3. Rights to Dividends and Distributions. With respect to any certificates constituting a
part of the Collateral, Secured Party shall have authority if an Event of Default exists and is
continuing, but subject to Section 2.6, either to have the same registered in Secured
Party’s name or in the name of a nominee, and, with or without such registration, to demand of the
issuer thereof, and to receive and receipt for, any and all dividends and distributions (including
any stock or similar dividend or distribution) payable in respect thereof, whether they be ordinary
or extraordinary. Secured Party shall endeavor to provide each Pledgor with notice of any such
action by Secured Party pursuant to the preceding sentence; provided, any failure to provide any
such notice shall not impair any right or action of Secured Party or any Creditor. If a Pledgor
shall become entitled to receive or shall receive any interest in or certificate (including,
without limitation, any interest in or certificate representing a dividend or a distribution in
connection with any reclassification, increase, or reduction of capital, or issued in connection
with any reorganization), or any option or rights evidencing any of the Collateral, whether as an
addition to, in substitution of, as a conversion of, or in exchange for any of the Collateral, or
otherwise, such Pledgor agrees to accept the same as Secured Party’s agent and to hold the same in
trust on behalf of and for the benefit of Secured Party, and to deliver the same immediately to
Secured Party in the exact form received, with appropriate undated stock or similar powers, duly
executed in blank, to be held by Secured Party, subject to the terms hereof, as Collateral. Unless
an Event of Default exists and is continuing and Secured Party has commenced enforcement hereof,
but subject to Section 2.6, or will result therefrom and subject to the other Loan
Documents, each Pledgor shall be entitled to receive all cash dividends and distributions not
representing a return of capital or liquidating dividend paid or distributed with respect to the
Pledged Equity Interests, other than dividends or distributions or interests payable in Equity

11

 

Interests of the issuer of such Pledged Equity Interest (which, if evidenced by certificated
securities, shall be delivered to Secured Party as set forth in the immediately preceding sentence,
whether or not an Event of Default exists and is continuing). Secured Party shall be entitled to
all dividends and distributions, and to any sums paid upon or in respect of any Collateral, upon
the liquidation or dissolution of the issuer thereof which shall be paid to Secured Party to be
held by it as additional collateral security for and application to the Obligations as provided in
the other Loan Documents. All dividends, distributions and Proceeds paid or distributed in respect
of the Collateral which are received by any Pledgor in violation of this Agreement shall, until
paid or delivered to Secured Party, be held by such Pledgor in trust as additional Collateral for
the Obligations.

     4.4. Right of Secured Party to Notify Issuers. If an Event of Default exists and is
continuing, and at such other times as Secured Party is entitled to receive dividends,
distributions and other property in respect of or consisting of any Collateral which is or
represents an Equity Interest, but subject to Section 2.6, Secured Party may notify issuers
of such Equity Interest to make payments of all dividends and distributions directly to Secured
Party and Secured Party may take control of all Proceeds of any Equity Interests. Until Secured
Party elects to exercise such rights to receive dividends and distributions, but subject to
Section 2.6, each Pledgor, as agent of Secured Party, shall collect, segregate and hold in
trust all dividends and other amounts paid or distributed with respect to Equity Interests.

     4.5. Transfers and Other Liens. Except as permitted by the Loan Documents, no Pledgor shall
(a) sell, assign (by operation of Law or otherwise) or otherwise Dispose of, or grant any option
with respect to, any of the Collateral, or (b) create or permit to exist any Lien, option, or other
charge or encumbrance upon or with respect to any of the Collateral.

     4.6. Secured Party Appointed Attorney-in-Fact. Each Pledgor hereby irrevocably appoints
Secured Party such Pledgor’s attorney-in-fact (exercisable if an Event of Default exists and is
continuing and Secured Party has commenced enforcement hereof, but subject to Section 2.6),
with full authority in the place and stead of such Pledgor and in the name of such Pledgor or
otherwise to take any action and to execute any instrument which Secured Party may deem necessary
or advisable to accomplish the purposes of this Agreement, including, without limitation (provided,
Secured Party shall not have any duty to take any such action or execute any instrument):

     (a) to ask, demand, collect, sue for, recover, compromise, receive, and give acquittance and
receipts for moneys due and to become due under or in connection with the Collateral;

     (b) to receive, indorse, and collect any drafts or other instruments, documents, and chattel
paper, in connection therewith; and

     (c) to file any claims or take any action or institute any proceedings which Secured Party may
deem necessary or desirable for the collection of any of the Collateral or otherwise to enforce
compliance with the terms and conditions of any Collateral or the rights of Secured Party with
respect to any of the Collateral.

12

 

     EACH PLEDGOR HEREBY IRREVOCABLY GRANTS TO SECURED PARTY SUCH PLEDGOR’S PROXY (EXERCISABLE IF
AN EVENT OF DEFAULT EXISTS) AND IS CONTINUING AND SECURED PARTY HAS COMMENCED ENFORCEMENT HEREOF TO
VOTE ANY SECURITIES INCLUDED IN COLLATERAL (INCLUDING ANY PLEDGED EQUITY INTEREST) AND APPOINTS
SECURED PARTY SUCH PLEDGOR’S ATTORNEY-IN-FACT (EXERCISABLE IF AN EVENT OF DEFAULT EXISTS AND IS
CONTINUING AND SECURED PARTY HAS COMMENCED ENFORCEMENT HEREOF) TO PERFORM ALL OBLIGATIONS OF SUCH
PLEDGOR UNDER THIS AGREEMENT AND TO EXERCISE ALL OF SECURED PARTY’S AND EACH OTHER CREDITOR’S
RIGHTS HEREUNDER. THE PROXY AND EACH POWER OF ATTORNEY HEREIN GRANTED, AND EACH STOCK POWER AND
SIMILAR POWER NOW OR HEREAFTER GRANTED (INCLUDING ANY EVIDENCED BY A SEPARATE WRITING), ARE COUPLED
WITH AN INTEREST AND ARE IRREVOCABLE BEFORE THE RELEASE DATE.

     Secured Party shall endeavor to provide each Pledgor with notice of any action by Secured
Party pursuant to this Section 4.6; provided, any failure to provide any such notice shall
not impair any right or action of Secured Party or any Creditor.

     4.7. Dilution of Ownership. As to any Pledged Equity Interests, no Pledgor will consent to or
approve of the issuance of (a) any additional shares or units of any class of Equity Interests of
such issuer (unless promptly upon issuance additional Equity Interests are pledged and delivered to
Secured Party pursuant to the terms hereof to the extent necessary to give Secured Party a security
interest after such issuance in at least the same percentage of such issuer’s outstanding
securities or other Equity Interest as Secured Party had before such issuance), (b) any instrument
convertible voluntarily by the holder thereof or automatically upon the occurrence or
non-occurrence of any event or condition into, or exchangeable for, any such securities or other
Equity Interests, or (c) any warrants, options, contracts or other commitments entitling any third
party to purchase or otherwise acquire any such securities or other Equity Interests.

     4.8. Waiver. To the extent not prohibited by applicable Laws and subject to Section
2.6, each Pledgor agrees that any provision of any Organization Document of any issuer of any
Collateral, any applicable Law, any certificate or instrument evidencing Collateral or any other
governance document that in any manner restricts, prohibits or provides conditions to (a) the grant
of a Lien on any interest in such issuer or any other Collateral, (b) any transfer of any interest
in such issuer or any other Collateral, (c) any change in management or control of such issuer or
any other Collateral, (d) the admission of any transferee of any Collateral as a shareholder,
member, partner or other equity holder of the issuer of such Collateral, or (e) any other exercise
by Secured Party or any other Creditor of any rights pursuant to this Agreement, any other Loan
Document, or Law shall not apply to (i) the grant of any Lien hereunder, (ii) the execution,
delivery and performance of this Agreement by such Pledgor, (iii) the foreclosure or other
realization upon any interest in any Collateral, or (iv) the exercise of rights with respect to
such Collateral, including the right to participate in the management of such issuer. Furthermore,
to the extent not prohibited by applicable Laws or required by the rules or regulations of any
regulatory authority and subject to Section 2.6, no Pledgor will permit any amendment to or
restatement of any Organization Document or any other governance document or enter into or permit
to exist any agreement that in any manner adversely affects Secured

13

 

Party’s ability to foreclose on any Collateral or which conflicts with the provisions of this
Section 4.8 without the prior written consent of Secured Party.

     4.9. Restrictions on Securities. To the extent not prohibited by applicable Laws or required
by the rules or regulations of any regulatory authority and subject to Section 2.6, no
issuer of any Pledged Equity Interests which is either a partnership or limited liability company
shall amend or restate its Organization Documents (if its Organization Documents do not provide
that any Equity Interest of such issuer is a security governed by Article 8 of the UCC or that any
Equity Interest of such issuer is evidenced by a certificate or other instrument) to provide that
any Equity Interest of such issuer is a security governed by Article 8 of the UCC or permit any
Equity Interest of such issuer to be evidenced by a certificate or other instrument. Subject to
Section 2.6, no certificate or other instrument evidencing or constituting any Pledged
Equity Interest shall contain any restriction on transfer or other legend not reasonably acceptable
to Secured Party. With respect to each certificate that contains any such legend that is not
reasonably acceptable to Secured Party, each Pledgor shall cause the issuer of each such
certificate to issue one or more certificates in a form reasonably acceptable to Secured Party.

     4.10. Changes to Representations, Schedules. Not later than 30 days after the last day of
each fiscal quarter of a Pledgor during which any material information disclosed on any Schedule to
this Agreement changed and at such other times as required by this Agreement, each such Pledgor
shall deliver to Secured Party an updated Schedule (which updates shall restate (and not
supplement) such Schedule in its entirety); provided, the delivery of any updated Schedule shall
not be deemed a waiver of any (i) obligation of such Pledgor under any Loan Document, or (ii)
representation or warranty of such Pledgor with respect to a Schedule during the period such
Schedule was effective. Each Pledgor shall promptly notify Secured Party of any change in any
representation herein and any information on any Schedule hereto if such change could reasonably be
expected to have a Material Adverse Effect.

ARTICLE V

RIGHTS AND POWERS OF SECURED PARTY

     5.1. Secured Party May Perform. If any Pledgor fails to perform any agreement contained
herein, Secured Party may itself perform, or cause performance of, such agreement, and the
reasonable expenses of Secured Party incurred in connection therewith shall be payable by such
Pledgor under Section 5.8. Secured Party shall endeavor to provide such Pledgor with
notice of any action by Secured Party pursuant to the preceding sentence; provided, any failure to
provide any such notice shall not impair any right or action of Secured Party or any Creditor.

     5.2. Secured Party’s Duties. The powers conferred on Secured Party hereunder are solely to
protect Secured Party’s and Creditors’ interest in the Collateral and shall not impose any duty
upon it to exercise any such powers. Except for the safe custody of any Collateral in its
possession and the accounting for moneys actually received by Secured Party and Creditors
hereunder, neither Secured Party nor any other Creditor shall have any duty as to any Collateral,
as to ascertaining or taking action with respect to calls, conversions, exchanges, maturities,
tenders, or other matters relative to any Collateral, whether or not Secured Party or any other
Creditor has or is deemed to have knowledge of such matters, or as to the taking of any necessary
steps to preserve rights against prior parties or any other rights pertaining to any reasonable
care in the custody and preservation of any Collateral in its possession if such

14

 

Collateral is accorded treatment substantially equal to that which Secured Party accords its
own property. Except as provided in this Section 5.2, neither Secured Party nor any other
Creditor shall have any duty or liability to protect or preserve any Collateral or to preserve
rights pertaining thereto. Nothing contained in this Agreement shall be construed as requiring or
obligating Secured Party or any other Creditor, and neither Secured Party nor any other Creditor
shall be required or obligated, to (a) present or file any claim or notice or take any action, with
respect to any Collateral or in connection therewith or (b) notify any Pledgor of any decline in
the value of any Collateral. This Section 5.2 shall survive the termination of this
Agreement, and any satisfaction and discharge of any Pledgor by virtue of any payment, court order,
or Law.

     5.3. Events of Default. The existence of an Event of Default shall be an Event of Default
under this Agreement.

     5.4. Remedies. If an Event of Default exists and is continuing:

     (a) Secured Party may exercise in respect of the Collateral, in addition to other rights and
remedies provided for herein or otherwise available to it or any other Creditor pursuant to any
applicable Laws, all the rights and remedies of a secured party on default under the UCC (whether
or not the UCC applies to the affected Collateral), and also may require each Pledgor to, and each
Pledgor will at its expense and upon request of Secured Party forthwith, assemble all or part of
the Collateral as directed by Secured Party and make it available to Secured Party at a place to be
designated by Secured Party which is reasonably convenient to both parties for public or private
sale, at any of Secured Party’s offices or elsewhere, for cash, on credit or for future delivery,
and upon such other terms as Secured Party may deem commercially reasonable. Each Pledgor agrees
that, to the extent notice of sale shall be required by Law, ten days’ notice to each Pledgor of
the time and place of any public sale or the time after which any private sale is to be made shall
constitute reasonable notification. Secured Party shall not be obligated to make any sale of
Collateral regardless of notice of sale having been given. Secured Party may adjourn any public or
private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned.

     (b) All proceeds received by Secured Party upon any sale of, collection of, or other
realization upon, all or any part of the Collateral shall be applied as set forth in the Loan
Documents.

     (c) Upon the written request of Secured Party, all payments received by each Pledgor under or
in connection with any Collateral shall be received in trust for the benefit of Secured Party,
shall be segregated from other funds of such Pledgor, and shall be forthwith paid or delivered over
to Secured Party in the same form as so received (with any necessary endorsement) for application
to the Obligations.

     (d) Because of the Securities Act of 1933, as amended (“Securities Act”), and other Laws,
including without limitation state “blue sky” Laws, or contractual restrictions or agreements,
there may be legal restrictions or limitations affecting Secured Party in any attempts to Dispose
of the Collateral and the enforcement of rights under this Agreement. For these reasons, Secured
Party is authorized by each Pledgor, but not obligated, if any Event of Default exists and is
continuing, to sell or otherwise Dispose of any of the Collateral at private sale,

15

 

subject to an investment letter, or in any other manner which will not require the Collateral,
or any part thereof, to be registered in accordance with the Securities Act, or any other Law.
Secured Party is also hereby authorized by each Pledgor, but not obligated, to take such actions,
give such notices, obtain such consents, and do such other things as Secured Party may deem
required or appropriate under the Securities Act or other securities Laws or other Laws or
contractual restrictions or agreements in the event of a sale or disposition of any Collateral.
Each Pledgor understands that Secured Party may in its discretion approach a restricted number of
potential purchasers and that a sale under such circumstances may yield a lower price for the
Collateral than would otherwise be obtainable if same were registered and/or sold in the open
market. No sale so made in good faith by Secured Party shall be deemed to be not “commercially
reasonable” because so made. Each Pledgor agrees that if an Event of Default exists and is
continuing, and Secured Party sells the Collateral or any portion thereof at any private sale or
sales, Secured Party shall have the right to rely upon the advice and opinion of appraisers and
other Persons, which appraisers and other Persons are acceptable to Secured Party, as to the best
price reasonably obtainable upon such a private sale thereof. In the absence of fraud or gross
negligence, such reliance shall be conclusive evidence that Secured Party and the other Creditors
handled such matter in a commercially reasonable manner under applicable Law. To the extent
required by applicable Law, Secured Party shall provide notice to each Pledgor of an action taken
by Secured Party pursuant to this Section 5.4(d).

     5.5. Appointment of Receiver or Trustee. In connection with the exercise of Secured Party’s
rights under this Agreement or any other Loan Document, Secured Party may, if an Event of Default
exists and is continuing, obtain the appointment of a receiver or trustee to assume, upon receipt
of any necessary judicial or other Governmental Authority consents or approvals, control of or
ownership of any Collateral. Such receiver or trustee shall have all rights and powers provided to
it by Law or by court order or provided to Secured Party under this Agreement or any other Loan
Document. Upon the appointment of such trustee or receiver, each Pledgor shall cooperate, to the
extent necessary or appropriate, in the expeditious preparation, execution, and filing of an
application to any Governmental Authority or for consent to the transfer of control or assignment
of such Collateral to the receiver or trustee. To the extent required by applicable Law, Secured
Party shall provide to such Pledgor notice of the request for or appointment of such receiver or
trustee.

     5.6. Further Approvals Required.

     (a) In connection with the exercise by Secured Party of rights under this Agreement that
affects the disposition of or use of any Collateral, it may be necessary to obtain the prior
consent or approval of Governmental Authorities and other Persons to a transfer or assignment of
Collateral. Each Pledgor shall execute, deliver, and file, and hereby appoints (to the extent not
prohibited by applicable Law) Secured Party as its attorney (exercisable if an Event of Default
exists and is continuing, but subject to Section 2.6), to execute, deliver, and file on
such Pledgor’s behalf and in such Pledgor’s name, all applications, certificates, filings,
instruments, and other documents (including without limitation any application for an assignment or
transfer of control or ownership) that may be necessary or appropriate, in Secured Party’s
reasonable opinion, to obtain such consents or approvals. Secured Party shall endeavor to provide
such Pledgor with a copy of each such document executed, delivered or filed by Secured Party;
provided, any failure to provide any such copy shall not impair any right or action of Secured
Party or any Creditor. Each Pledgor acknowledges that there is no adequate remedy at Law for

16

 

failure by it to comply with the provisions of this Section 5.6 and that such failure
would not be adequately compensable in damages, and therefore agrees that this Section 5.6
may be specifically enforced.

     5.7. INDEMNITY AND EXPENSES.

     (a) EACH PLEDGOR WILL UPON DEMAND PAY TO SECURED PARTY THE AMOUNT OF ANY AND ALL REASONABLE
EXPENSES, INCLUDING THE REASONABLE FEES AND EXPENSES OF ITS COUNSEL AND OF ANY EXPERTS AND AGENTS,
WHICH SECURED PARTY MAY INCUR IN CONNECTION WITH (I) THE CUSTODY, PRESERVATION, USE OR OPERATION
OF, OR THE SALE OF, COLLECTION FROM, OR OTHER REALIZATION UPON, ANY OF THE COLLATERAL, (II) THE
EXERCISE OR ENFORCEMENT OF ANY OF THE RIGHTS OF SECURED PARTY HEREUNDER, OR (III) THE FAILURE BY
SUCH PLEDGOR TO PERFORM OR OBSERVE ANY OF THE PROVISIONS HEREOF.

     (b) EACH PLEDGOR WILL UPON DEMAND PAY TO SECURED PARTY THE AMOUNT OF ANY AND ALL REASONABLE
EXPENSES, INCLUDING THE REASONABLE FEES AND EXPENSES OF ITS COUNSEL AND OF ANY EXPERTS AND AGENTS,
WHICH SECURED PARTY OR SUCH CREDITOR MAY INCUR IN CONNECTION WITH THE ADMINISTRATION OF THIS
AGREEMENT.

     (c) EACH PLEDGOR SHALL INDEMNIFY SECURED PARTY (AND ANY AGENT THEREOF), EACH CREDITOR, AND
EACH RELATED PARTY OF ANY OF THE FOREGOING PERSONS (EACH SUCH PERSON BEING CALLED AN “INDEMNITEE”)
AGAINST, AND HOLD EACH INDEMNITEE HARMLESS FROM, ANY AND ALL LOSSES, CLAIMS, DAMAGES, LIABILITIES
AND RELATED EXPENSES (INCLUDING THE REASONABLE FEES, CHARGES AND DISBURSEMENTS OF ANY COUNSEL FOR
ANY INDEMNITEE), INCURRED BY ANY INDEMNITEE OR ASSERTED AGAINST ANY INDEMNITEE BY ANY THIRD PARTY
OR BY SUCH PLEDGOR OR ANY OTHER LOAN PARTY ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF
(I) THE EXECUTION OR DELIVERY OF THIS AGREEMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY
OR THEREBY, THE PERFORMANCE BY THE PARTIES HERETO OF THEIR RESPECTIVE OBLIGATIONS HEREUNDER OR
THEREUNDER, THE CONSUMMATION OF THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR THE
ADMINISTRATION OF THIS AGREEMENT, (II) ANY ACTUAL OR ALLEGED PRESENCE OR RELEASE OF HAZARDOUS
MATERIALS ON OR FROM ANY PROPERTY OWNED OR OPERATED BY SUCH PLEDGOR OR ANY OF ITS SUBSIDIARIES, OR
ANY ENVIRONMENTAL LIABILITY RELATED IN ANY WAY TO SUCH PLEDGOR OR ANY OF ITS SUBSIDIARIES, OR (III)
ANY ACTUAL OR PROSPECTIVE CLAIM, LITIGATION, INVESTIGATION OR PROCEEDING RELATING TO ANY OF THE
FOREGOING, WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY, WHETHER BROUGHT BY A THIRD PARTY OR
BY SUCH PLEDGOR OR ANY OTHER LOAN PARTY, AND REGARDLESS OF WHETHER ANY INDEMNITEE IS A PARTY
THERETO, IN ALL CASES, WHETHER OR NOT CAUSED BY OR ARISING, IN WHOLE OR IN PART, OUT OF THE
COMPARATIVE,

17

 

CONTRIBUTORY OR SOLE NEGLIGENCE OF THE INDEMNITEE; PROVIDED THAT SUCH INDEMNITY SHALL
NOT, AS TO ANY INDEMNITEE, BE AVAILABLE TO THE EXTENT THAT SUCH LOSSES, CLAIMS, DAMAGES,
LIABILITIES OR RELATED EXPENSES (Y) ARE DETERMINED BY A COURT OF COMPETENT JURISDICTION BY FINAL
AND NONAPPEALABLE JUDGMENT TO HAVE RESULTED FROM THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
INDEMNITEE OR (Z) RESULT FROM A CLAIM BROUGHT BY SUCH PLEDGOR OR ANY OTHER LOAN PARTY AGAINST AN
INDEMNITEE FOR BREACH IN BAD FAITH OF SUCH INDEMNITEE’S OBLIGATIONS HEREUNDER, IF SUCH PLEDGOR OR
SUCH LOAN PARTY HAS OBTAINED A FINAL AND NONAPPEALABLE JUDGMENT IN ITS FAVOR ON SUCH CLAIM AS
DETERMINED BY A COURT OF COMPETENT JURISDICTION. THIS SECTION 5.7 SHALL SURVIVE THE
TERMINATION OF THIS AGREEMENT, AND ANY SATISFACTION AND DISCHARGE OF ANY PLEDGOR BY VIRTUE OF ANY
PAYMENT, COURT ORDER, OR LAW.

ARTICLE VI

MISCELLANEOUS

     6.1. Waiver of Subrogation. Until the Release Date, no Pledgor shall assert, enforce, or
otherwise exercise (a) any right of subrogation to any of the rights or Liens of Secured Party, any
other Creditor or any Person acting for the benefit of Secured Party or any other Creditor against
any other Loan Party or any Collateral or other security, or (b) any right of recourse,
reimbursement, contribution, indemnification, or similar right against any other Loan Party on all
or any part of the Obligations or any other Loan Party, in each case arising out of the enforcement
of this Agreement. This Section 6.1 shall survive the termination of this Agreement, and
any satisfaction and discharge of each Pledgor by virtue of any payment, court order, or Law.

     6.2. Cumulative Rights. All rights of Secured Party and each other Creditor under the Loan
Documents are cumulative of each other and of every other right which Secured Party and each other
Creditor may otherwise have at Law or in equity or under any other agreement. The exercise of one
or more rights shall not prejudice or impair the concurrent or subsequent exercise of other rights.

     6.3. Amendments; Waivers. No amendment or waiver of any provision of this Agreement, and no
consent to any departure by any Pledgor, shall be effective unless in writing signed by the Secured
Party and each Pledgor, and each such waiver or consent shall be effective only in the specific
instance and for the specific purpose for which given. No election not to exercise, failure to
exercise or delay in exercising any right, nor any course of dealing or performance, shall operate
as a waiver of any right of Secured Party or any Creditor under this Agreement or applicable Laws,
nor shall any single or partial exercise of any such right preclude any other or further exercise
thereof or the exercise of any other right of Secured Party or any Creditor under this Agreement or
applicable Laws.

     6.4. Continuing Security Interest; Release. This Agreement creates a continuing security
interest in the Collateral and shall (a) remain in full force and effect until the Release Date,
(b) be binding upon each Pledgor, its successors and assigns, and (c) inure to the benefit of,

18

 

and be enforceable by, Secured Party and its successors, transferees and assigns. Upon the
occurrence of the Release Date, this Agreement and all obligations (other than those expressly
stated to survive such termination) of Secured Party and each Pledgor hereunder shall terminate,
all without delivery of any instrument or performance of any act by any party, and all rights to
the Collateral shall revert to the granting parties and Secured Party will, at each Pledgor’s
expense, execute and deliver to each Pledgor such documents (including without limitation UCC
termination statements) as such Pledgor shall reasonably request to evidence such termination and
shall deliver to such Pledgor any Collateral held by Secured Party hereunder. If any of the
Collateral is Disposed of in a transaction permitted by the Credit Agreement, Secured Party will,
at such Pledgor’s expense, authenticate and file any amendments to filings made pursuant to the UCC
and execute and deliver to such Pledgor such other documents as such Pledgor may reasonably request
to evidence such release of such Collateral from the Lien of this Agreement and shall deliver to
such Pledgor any such Collateral held by Secured Party hereunder. Each Pledgor agrees that to the
extent that Secured Party or any other Creditor receives any payment or benefit and such payment or
benefit, or any part thereof, is subsequently invalidated, declared to be fraudulent or
preferential, set aside or is required to be repaid to a trustee, receiver, or any other Person
under any Bankruptcy Law, common law or equitable cause, then to the extent of such payment or
benefit, the Obligations or part thereof intended to be satisfied shall be revived and continued in
full force and effect as if such payment or benefit had not been made and, further, any such
repayment by Secured Party or any other Creditor, to the extent that Secured Party or any other
Creditor did not directly receive a corresponding cash payment, shall be added to and be additional
Obligations payable upon demand by Secured Party or any other Creditor and secured hereby, and, if
the Lien and security interest, any power of attorney, proxy or license hereof shall have been
released, such Lien and security interest, power of attorney, proxy and license shall be reinstated
with the same effect and priority as on the date of execution hereof all as if no release of such
Lien or security interest, power of attorney, proxy or license had ever occurred. This Section
6.4 shall survive the termination of this Agreement, and any satisfaction and discharge of each
Pledgor by virtue of any payment, court order, or Law.

     6.5. GOVERNING LAW; WAIVER OF JURY TRIAL; CONSENT TO JURISDICTION AND SERVICE OF PROCESS.

     (a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE
STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, EXCEPT
TO THE EXTENT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS HEREUNDER OR THE REMEDIES
HEREUNDER, IN RESPECT OF ANY COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER THAN TEXAS;
PROVIDED, THAT SECURED PARTY AND EACH CREDITOR SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW.

     (b) EACH PLEDGOR, SECURED PARTY AND EACH CREDITOR IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR
ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS
SITTING IN DALLAS COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF TEXAS,
AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT, OR FOR RECOGNITION OR ENFORCEMENT

19

 

OF ANY JUDGMENT, AND EACH PLEDGOR, SECURED PARTY AND EACH CREDITOR IRREVOCABLY AND
UNCONDITIONALLY AGREES THAT ALL CLAIMS IN RESPECT OF ANY SUCH ACTION OR PROCEEDING MAY BE HEARD AND
DETERMINED IN SUCH TEXAS STATE COURT OR, TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, IN
SUCH FEDERAL COURT. EACH PLEDGOR, SECURED PARTY AND EACH CREDITOR, AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS AGREEMENT SHALL
AFFECT ANY RIGHT THAT SECURED PARTY OR ANY CREDITOR MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT AGAINST ANY PLEDGOR OR ITS PROPERTIES IN THE COURTS OF OR ANY
JURISDICTION.

     (c) EACH PLEDGOR, SECURED PARTY AND EACH CREDITOR, IRREVOCABLY AND UNCONDITIONALLY WAIVES, TO
THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR HEREAFTER
HAVE TO THE LAYING OF VENUE OF ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT IN ANY COURT REFERRED TO IN SECTION 6.5(b). EACH PLEDGOR, SECURED PARTY AND EACH
CREDITOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, THE
DEFENSE OF AN INCONVENIENT FORUM TO THE MAINTENANCE OF SUCH ACTION OR PROCEEDING IN ANY SUCH COURT.
THIS SECTION 6.5 SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT, AND ANY SATISFACTION AND
DISCHARGE OF EACH PLEDGOR BY VIRTUE OF ANY PAYMENT, COURT ORDER, OR LAW.

     6.6. Waiver of Right to Trial by Jury. EACH PLEDGOR, SECURED PARTY AND EACH CREDITOR HEREBY
EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING
UNDER THIS AGREEMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE
PARTIES HERETO, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER
ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PLEDGOR, SECURED PARTY AND
EACH CREDITOR HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION
SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN
ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF
THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. THIS SECTION 6.6
SHALL SURVIVE THE TERMINATION OF THIS AGREEMENT, AND ANY SATISFACTION AND DISCHARGE OF EACH PLEDGOR
BY VIRTUE OF ANY PAYMENT, COURT ORDER, OR LAW.

     6.7. Secured Party’s Right to Use Agents. Secured Party may exercise its rights under this
Agreement through an agent or other designee.

20

 

     6.8. No Interference, Compensation or Expense. Secured Party may exercise its rights under
this Agreement (a) without resistance or interference by any Pledgor and (b) without payment of any
rent, license fee, or compensation of any kind to any Pledgor.

     6.9. Waivers of Rights Inhibiting Enforcement. Each Pledgor waives (a) any claim that, as to
any part of the Collateral, a private sale, should Secured Party elect so to proceed, is, in and of
itself, not a commercially reasonable method of sale for such Collateral, (b) except as otherwise
provided in this Agreement, TO THE FULLEST EXTENT NOT PROHIBITED BY APPLICABLE LAW, NOTICE OR
JUDICIAL HEARING IN CONNECTION WITH SECURED PARTY’S DISPOSITION OF ANY OF THE COLLATERAL INCLUDING
ANY AND ALL PRIOR NOTICE AND HEARING FOR ANY PREJUDGMENT REMEDY OR REMEDIES AND ANY SUCH RIGHT THAT
SUCH PLEDGOR WOULD OTHERWISE HAVE UNDER ANY LAW AND ALL OTHER REQUIREMENTS AS TO THE TIME, PLACE
AND TERMS OF SALE OR OTHER REQUIREMENTS WITH RESPECT TO THE ENFORCEMENT OF SECURED PARTY’S OR
CREDITORS’ RIGHTS HEREUNDER and (c) all rights of redemption, appraisement or valuation.

     6.10. Obligations Not Affected. To the fullest extent not prohibited by applicable Laws, the
obligations of each Pledgor under this Agreement shall remain in full force and effect without
regard to, and shall not be impaired or affected by:

     (a) any amendment, addition, or supplement to, or restatement of any Loan Document or any
instrument delivered in connection therewith or any assignment or transfer thereof;

     (b) any exercise, non-exercise, or waiver by Secured Party or any other Creditor of any right,
remedy, power, or privilege under or in respect of, or any release of any guaranty, any collateral,
or the Collateral or any part thereof provided pursuant to, this Agreement, or any Loan Document;

     (c) any waiver, consent, extension, indulgence, or other action or inaction in respect of this
Agreement, any other Loan Document, or any assignment or transfer of any thereof;

     (d) any bankruptcy, insolvency, reorganization, arrangement, readjustment, composition,
liquidation, or the like of any Loan Party or any other Person, whether or not any Pledgor shall
have notice or knowledge of any of the foregoing; or

     (e) any other event which may give a Pledgor or any other Loan Party a defense to, or a
discharge of, any of its obligations under any Loan Document.

     6.11. Notices and Deliveries. All notices and other communications provided for herein shall
be effectuated in the manner provided for in the Credit Agreement; provided, that notices to each
Pledgor shall be addressed to such Pledgor’s address in Schedule 2.

     6.12. Severability. If any provision of this Agreement is held to be illegal, invalid, or
unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this
Agreement and the other Loan Documents shall not be affected or impaired thereby and (b) the
parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable
provisions with valid provisions the economic effect of which comes as close as possible to that

21

 

of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a
particular jurisdiction shall not invalidate or render unenforceable such provision in any other
jurisdiction.

     6.13. Successors and Assigns. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns (including,
as to each Pledgor, all Persons who may become bound as a Pledgor or a new Pledgor to this
Agreement); provided, no Pledgor may assign any of its rights or obligations under this Agreement.

     6.14. Additional Pledgors. Any Person who was not a “Pledgor” under this Agreement at the
time of initial execution hereof shall become a “Pledgor” hereunder if required pursuant to the
terms of the Loan Documents by executing and delivering to Secured Party a Joinder. Such Person
shall also deliver such items to Secured Party in connection with the execution of such Joinder as
required by the terms of the Loan Documents and this Agreement. Any such Person shall thereafter
be deemed a “Pledgor” for all purposes under this Agreement.

     6.15. Counterparts. This Agreement may be executed in any number of counterparts (and by
different parties hereto in different counterparts), each of which shall constitute an original,
but all of which when taken together shall constitute a single contract.

     6.16. Amendment and Restatement. This Agreement is an amendment and restatement of, but not a
release or novation of, the Existing Pledge Agreement. Each Pledgor affirms its grant of a
security interest, pledge and assignment in the Existing Pledge Agreement and agrees that the Liens
created by the Existing Pledge Agreement in the Collateral shall remain valid, binding, and
enforceable Liens in favor of Secured Party for the benefit of each Creditor, but shall hereafter
be governed by this Agreement that amends and restates the Existing Pledge Agreement in its
entirety. This Agreement is not intended as, and shall not be construed as, a release or novation
of any Lien granted or any obligation of any Pledgor pursuant to the Existing Pledge Agreement.

     6.17. 2017 Pledge Agreement. The Secured Party and the other Creditors acknowledge that in
connection with the 2017 Notes Offering, the Borrower and the other Pledgors have entered into the
2017 Pledge Agreement which provides for a second priority lien in the Collateral and, subject to
the Intercreditor Agreement, provides the secured parties under the 2017 Pledge Agreement with
rights substantially equivalent to those in this Agreement. The Secured Party and the other
Creditors acknowledge that the granting of such rights and performance by the Pledgors of their
obligations in respect of the exercise of such rights by the secured parties under the 2017 Pledge
Agreement will not of itself constitute a breach of this Agreement.

     6.18. ENTIRE AGREEMENT. THIS AGREEMENT AND EACH RELATED AGREEMENT REPRESENT THE FINAL
AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE
PARTIES.

The Remainder of This Page Is Intentionally Left Blank.

22

 

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

	 	 	 	 	 
	 	PLEDGORS:

PENSON WORLDWIDE, INC.

 	 
	 	By:  	/s/ Daniel P. Son
 	 
	 	 	Name:  	Daniel P. Son 	 
	 	 	Title:  	President 	 
	 
	 	SAI HOLDINGS, INC.

 	 
	 	By:  	/s/ Daniel P. Son
 	 
	 	 	Name:  	Daniel P. Son       	 
	 	 	Title:  	President 	 
	 
	 	PENSON HOLDINGS, INC.

 	 
	 	By:  	/s/ Daniel P. Son
 	 
	 	 	Name:  	Daniel P. Son       	 
	 	 	Title:  	Vice Chairman 	 
	 

Amended and Restated Pledge Agreement Signature Page

 

 

	 	 	 	 	 
	 	SECURED PARTY:

REGIONS BANK, as Secured Party and Administrative Agent

 	 
	 	By:  	/s/ Robin Ingari
 	 
	 	 	Name:  	Robin Ingari 	 
	 	 	Title:  	Sr. Vice President 	 
	 

Amended and Restated Pledge Agreement Signature Page

 

 

SCHEDULE 1

ORGANIZATION AND NAMES

Penson Worldwide, Inc.

	(a)	 	Name: Penson Worldwide, Inc.
	 
	(b)	 	Jurisdiction of organization: Delaware
	 
	(c)	 	Entity type: Corporation
	 
	(d)	 	Changes in jurisdiction of organization, name or entity type in the 5 years prior to the
Closing Date: None.
	 
	(e)	 	Other names: None.
	 
	(f)	 	Federal Taxpayer Identification Number: 75-2896356
	 
	(g)	 	Charter No.: 3281693
	 
	(h)	 	UCC Filing Office: Delaware

SAI Holdings, Inc.

	(a)	 	Name: SAI Holdings, Inc.
	 
	(b)	 	Jurisdiction of organization: Texas
	 
	(c)	 	Entity type: Corporation
	 
	(d)	 	Changes in jurisdiction of organization, name or entity type in the 5 years prior to the
Closing Date: None.
	 
	(e)	 	Other names: None.
	 
	(f)	 	Federal Taxpayer Identification Number: 74-2763657
	 
	(g)	 	Filing No.: 137703200
	 
	(h)	 	UCC Filing Office: Texas

 

 

Penson Holdings, Inc.

	(a)	 	Name: Penson Holdings, Inc.
	 
	(b)	 	Jurisdiction of organization: Delaware
	 
	(c)	 	Entity type: Corporation
	 
	(d)	 	Changes in jurisdiction of organization, name or entity type in the 5 years prior to the
Closing Date: None.
	 
	(e)	 	Other names: None.
	 
	(f)	 	Federal Taxpayer Identification Number: 75-2944821
	 
	(g)	 	Charter No.: 3200526
	 
	(h)	 	UCC Filing Office: Delaware

 

 

SCHEDULE 2

ADDRESSES

(a) Chief Executive Office for each Pledgor for the past 5 years:

	 	 	 	 	 
	Name	 	Address	 	County
	Penson Worldwide, Inc.

	 	1700 Pacific Avenue, Suite 1400
Dallas, TX 75201
	 	Dallas
	 
	 	 	 	 
	SAI Holdings, Inc.

	 	1700 Pacific Avenue, Suite 1400
Dallas, TX 75201
	 	Dallas
	 
	 	 	 	 
	Penson Holdings, Inc.

	 	1700 Pacific Avenue, Suite 1400
Dallas, TX 75201
	 	Dallas

 

 

SCHEDULE 3

EQUITY INTERESTS

Penson Worldwide, Inc.

Equity Interests

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Shares	 	 	Shares Issued	 	 	 	 	 	 	 
	Company Name	 	Jurisdiction	 	 	Authorized	 	 	and Outstanding	 	 	Ownership Interest	 	 	Interest Pledged	 
	SAI Holdings, Inc.
	 	Texas	 	 	100,000	 	 	 	1,000	 	 	 	100	%	 	 	100	%

	 	•	 	Equity interest in SAI Holdings, Inc. is evidenced by Stock Certificate No. 01, issued
by SAI Holdings, Inc. on February 11, 2002.

SAI Holdings, Inc.

Equity Interests

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 		Shares Issued			 	 			 	
	Company Name	 	Jurisdiction	 	Shares Authorized		and Outstanding		Ownership Interest		Interest Pledged
	Penson Financial Services, Inc.
	 	North Carolina	 	Common Stock: 1,000		 	Common Stock: 1,000	 			100	% 			100	% 
	 
	 	 	 	 		 	 	 			 	 			 	
	 
	 	 	 	Series A Preferred Stock: 100,000		 	None	 			N/A	 			N/A	
	 
	 	 	 	 		 	 	 			 	 			 	
	 
	 	 	 	Series B Preferred Stock:  900,000		 	150,000	 			0	% 			N/A	
	 
	 	 	 	 		 	 	 			 	 			 	
	GHP1, Inc.
	 	Texas	 	1,000		 	1,000	 			100	% 			100	% 
	 
	 	 	 	 		 	 	 			 	 			 	
	Penson Holdings, Inc.
	 	Delaware	 	Common Stock: 1000		 	1000	 			100	% 			100	% 

	 	•	 	Equity interest in Penson Financial Services, Inc. is evidenced by Stock Certificate No.
007, issued by Penson Financial Services, Inc. on March 1, 2003.
	 
	 	•	 	Equity interest in GHP1, Inc. is evidenced by Stock Certificate No. CS-01, issued by
GHP1, Inc. on November 3, 2006.
	 
	 	•	 	Equity interest in Penson Holdings, Inc. is evidenced by Stock Certificate No. C003,
issued by Penson Holdings, Inc. on July 20, 2001.

 

 

Penson Holdings, Inc.

Equity Interests

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Shares	 	 	Shares Issued	 	 	 	 	 	 	 
	Company Name	 	Jurisdiction	 	 	Authorized	 	 	and Outstanding	 	 	Ownership Interest	 	 	Interest Pledged	 
	Penson Financial
Services Canada
Inc.
	 	Canada	 	Unlimited	 	 	200,000	 	 	 	100	%	 	 	65	%

	 	•	 	Equity interest in Penson Financial Services Canada Inc. is evidenced by Stock
Certificate No C0-7, issued by Penson Financial Services Canada Inc. on April 28, 2009.

 

 

EXHIBIT A

PLEDGE AGREEMENT JOINDER

     This PLEDGE AGREEMENT JOINDER (this “Joinder”) dated as of _______________, to the Amended and
Restated Pledge Agreement dated as of May 6, 2010 (such agreement, together will all amendments and
restatements and Joinders, the “Pledge Agreement”), among the initial signatories thereto and each
other Person who from time to time thereafter became a party thereto pursuant to Section
6.14 thereof (each, individually, a “Pledgor” and collectively, the “Pledgors”), in favor of
REGIONS BANK, in its capacity as Administrative Agent for the benefit of each Creditor
(Administrative Agent in such capacity, “Secured Party”).

BACKGROUND.

     Capitalized terms not otherwise defined herein have the meaning specified in the Pledge
Agreement. The Pledge Agreement provides that additional parties may become Pledgors under the
Pledge Agreement by execution and delivery of this form of Joinder. Pursuant to the provisions of
Section 6.14 of the Pledge Agreement, the undersigned is becoming a Pledgor under the
Pledge Agreement. The undersigned desires to become a Pledgor under the Pledge Agreement in order
to induce Creditors to continue to make and maintain financial accommodations under the Loan
Documents.

AGREEMENT.

     NOW, THEREFORE, in consideration of the premises set forth herein and for other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and in order
to induce Creditors to continue to make and maintain financial accommodations under the Loan
Documents, the undersigned hereby agrees with Secured Party, for the benefit of Creditors, as
follows:

     1. Joinder. In accordance with the Pledge Agreement, the undersigned hereby becomes a Pledgor
under the Pledge Agreement with the same force and effect as if it were an original signatory
thereto as a Pledgor and the undersigned hereby (a) agrees to all the terms and provisions of the
Pledge Agreement applicable to it as a Pledgor thereunder and (b) represents and warrants that the
representations and warranties made by it as a Pledgor thereunder are true and correct on and as of
the date hereof. Each reference to a “Pledgor” in the Pledge Agreement shall be deemed to include
the undersigned.

     2. Assignment and Grant of Security Interest. As security for the payment and performance, as
the case may be, in full of the Obligations, the undersigned hereby assigns to, and pledges and
grants to Secured Party, for the benefit of Creditors, a security interest in the entire right,
title, and interest of the undersigned in and to all Collateral, whether now or hereafter existing,
owned, arising or acquired.

     3. Representations and Warranties. On and as of the date hereof or each Schedule Effective
Date, as appropriate, the undersigned hereby makes each representation and warranty set forth in
Article III of the Pledge Agreement to the same extent as each other Pledgor.

1

 

     4. Notices. All communications and notices hereunder shall be in writing and given as
provided in Section 6.11 of the Pledge Agreement.

     5. Governing Law. THIS JOINDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF TEXAS APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH
STATE, EXCEPT TO THE EXTENT THE VALIDITY OR PERFECTION OF THE SECURITY INTERESTS HEREUNDER OR THE
REMEDIES HEREUNDER, IN RESPECT OF ANY COLLATERAL ARE GOVERNED BY THE LAW OF A JURISDICTION OTHER
THAN TEXAS; PROVIDED, THAT SECURED PARTY AND EACH CREDITOR SHALL RETAIN ALL RIGHTS ARISING UNDER
FEDERAL LAW.

     6. Full Force of Pledge Agreement. Except as expressly supplemented hereby, the Pledge
Agreement remains in full force and effect in accordance with its terms.

     7. Schedules. Schedules 1 through 3 to the Pledge Agreement shall be
supplemented by the addition of Schedules 1 through 3 attached hereto as to the
undersigned.

     8. Severability. If any provision of this Joinder is held to be illegal, invalid, or
unenforceable under present or future Laws during the term thereof, such provision shall be fully
severable, this Joinder shall be construed and enforced as if such illegal, invalid, or
unenforceable provision had never comprised a part hereof, and the remaining provisions hereof
shall remain in full force and effect and shall not be affected by the illegal, invalid, or
unenforceable provision or by its severance herefrom. Furthermore, in lieu of such illegal,
invalid, or unenforceable provision there shall be added automatically as a part of this Joinder a
legal, valid, and enforceable provision as similar in terms to the illegal, invalid, or
unenforceable provision as may be possible.

     9. Counterparts. This Joinder may be executed in any number of counterparts (and by different
parties hereto in different counterparts), each of which shall constitute an original, but all of
which when taken together shall constitute a single contract.

     10. ENTIRE AGREEMENT. THIS JOINDER AND EACH RELATED AGREEMENT REPRESENT THE FINAL AGREEMENT
AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

The Remainder of This Page Is Intentionally Left Blank.

2

 

     IN WITNESS WHEREOF, the undersigned has caused this Joinder to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 
	 	 	 
	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Joinder Agreement (Pledge Agreement) — Signature Page

 

 

ACCEPTED BY:

	 	 	 	 	 	 	 

	REGIONS BANK, as Secured Party and Administrative Agent	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Joinder Agreement (Pledge Agreement) — Signature Page

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00176-of-00352.parquet"}]]