Document:

exv10w11

 

EXHIBIT
10.11

 

 

Published CUSIP Number:                     

AMENDED AND RESTATED

CREDIT AGREEMENT

Dated as of September 5, 2006

among

A. M. CASTLE & CO.,

as U.S. Borrower,

A. M. CASTLE & CO. (CANADA) INC.,

as Canadian Borrower,

BANK OF AMERICA, N.A.,

as U.S. Agent, U.S. Swing Line Lender

and U.S. L/C Issuer,

BANK OF AMERICA, N.A., CANADA BRANCH,

as Canadian Agent and Canadian L/C Issuer

and

JPMORGAN CHASE BANK, N.A.,

as Syndication Agent,

LASALLE BUSINESS CREDIT, LLC,

as Documentation Agent,

The Other Lenders Party Hereto

BANC OF AMERICA SECURITIES LLC,

as Sole Lead Arranger and Sole Book Manager

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	 
	 	 	 	 
	ARTICLE I            DEFINITIONS AND ACCOUNTING TERMS
	 	 	1	 
	 
	 	 	 	 
	1.01. Defined Terms
	 	 	1	 
	1.02. Other Interpretive Provisions
	 	 	43	 
	1.03. Accounting Terms
	 	 	44	 
	(a) Generally
	 	 	44	 
	(b) Changes in GAAP
	 	 	44	 
	1.04. Rounding
	 	 	45	 
	1.05. Times of Day
	 	 	45	 
	1.06. Letter of Credit Amounts
	 	 	45	 
	1.07. Classification of Loans and Borrowings
	 	 	45	 
	1.08. Currencies; Exchange Rates
	 	 	45	 
	1.09. Pension Protection Act of 2006
	 	 	45	 
	 
	 	 	 	 
	ARTICLE II            THE COMMITMENTS AND CREDIT EXTENSIONS
	 	 	46	 
	 
	 	 	 	 
	2.01. The Loans
	 	 	46	 
	(a) The Term A Borrowing
	 	 	46	 
	(b) U.S. Revolving Credit Loans
	 	 	46	 
	(c) Canadian Committed Loans
	 	 	46	 
	2.02. Borrowings, Conversions and Continuations of Committed Loans
	 	 	47	 
	2.03. Acceptances
	 	 	49	 
	(a) Acceptance Commitment
	 	 	49	 
	(b) Terms of Acceptance
	 	 	49	 
	(c) Notice of Drawing and Discount of Acceptances
	 	 	49	 
	(d) Sale of Acceptances
	 	 	51	 
	(e) Acceptance Obligation
	 	 	51	 
	(f) Supply of Drafts and Power of Attorney
	 	 	52	 
	(g) Exculpation
	 	 	53	 
	(h) Rights of Canadian Lender as to Acceptances
	 	 	53	 
	(i) Acceptance Equivalent Loans
	 	 	53	 
	(j) Terms Applicable to Discount Notes
	 	 	53	 
	(k) Prepayment of Acceptances and Discount Notes
	 	 	54	 
	(l) Depository Bills and Notes Act
	 	 	54	 
	(m) Circumstances Making Acceptances Unavailable
	 	 	54	 
	2.04. Letters of Credit
	 	 	55	 
	(a) The Letter of Credit Commitment
	 	 	55	 
	(b) Procedures for Issuance and Amendment of Letters of
Credit; Auto-Extension Letters of Credit
	 	 	58	 
	(c) Drawings and Reimbursements; Funding of Participations
	 	 	60	 
	(d) Repayment of Participations
	 	 	62	 
	(e) Obligations Absolute
	 	 	63	 
	(f) Role of L/C Issuers
	 	 	64	 
	(g) Cash Collateral
	 	 	65	 

i

 

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	(h) Applicability of ISP and UCP
	 	 	65	 
	(i) L/C Fees
	 	 	65	 
	(j) Fronting Fee and Documentary and Processing Charges
Payable to L/C Issuers
	 	 	66	 
	(k) Conflict with Issuer Documents
	 	 	66	 
	(l) Letters of Credit Issued for Subsidiaries
	 	 	66	 
	2.05. U.S. Swing Line Loans
	 	 	66	 
	(a) The U.S. Swing Line
	 	 	66	 
	(b) Borrowing Procedures
	 	 	67	 
	(c) Refinancing of U.S. Swing Line Loans.
	 	 	68	 
	(d) Repayment of Participations
	 	 	69	 
	(e) Interest for Account of U.S. Swing Line Lender
	 	 	70	 
	(f) Payments Directly to U.S. Swing Line Lender
	 	 	70	 
	2.06. Prepayments
	 	 	70	 
	(a) Optional
	 	 	70	 
	(b) Mandatory
	 	 	71	 
	2.07. Termination or Reduction of Commitments
	 	 	74	 
	(a) Optional
	 	 	74	 
	(b) Mandatory
	 	 	75	 
	2.08. Repayment of Loans
	 	 	75	 
	(a) Term A Loans
	 	 	75	 
	(b) U.S. Revolving Credit Loans
	 	 	75	 
	(c) U.S. Swing Line Loans
	 	 	75	 
	(d) Canadian Committed Loans
	 	 	75	 
	2.09. Interest
	 	 	75	 
	2.10. Fees
	 	 	76	 
	(a) Commitment Fee
	 	 	76	 
	(b) Agent’s Fees
	 	 	77	 
	(c) Lenders’ Upfront Fee
	 	 	77	 
	(d) Acceptance Fees
	 	 	77	 
	2.11. Computation of Interest and Fees
	 	 	77	 
	2.12. Evidence of Debt
	 	 	78	 
	2.13. Payments Generally; Agent’s Clawback
	 	 	78	 
	(a) General
	 	 	78	 
	(b) Failure to Satisfy Conditions Precedent
	 	 	80	 
	(c) Obligations of Lenders Several
	 	 	80	 
	(d) Funding Source
	 	 	81	 
	2.14. Sharing of Payments
	 	 	81	 
	(a) U.S. Lenders
	 	 	81	 
	(b) Canadian Lenders
	 	 	82	 
	 
	 	 	 	 
	ARTICLE III            TAXES, YIELD PROTECTION AND ILLEGALITY
	 	 	82	 
	 
	 	 	 	 
	3.01. Taxes
	 	 	82	 
	(a) Payments Free of Taxes
	 	 	82	 
	(b) Payment of Other Taxes by Borrowers
	 	 	83	 
	(c) Indemnification by Borrowers
	 	 	83	 

ii

 

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	(d) Evidence of Payments
	 	 	83	 
	(e) Status of U.S. Lenders
	 	 	83	 
	(f) Treatment of Certain Refunds
	 	 	84	 
	3.02. Illegality
	 	 	85	 
	3.03. Inability to Determine Rates
	 	 	85	 
	3.04. Increased Costs
	 	 	85	 
	(a) Increased Costs Generally
	 	 	85	 
	(b) Capital Requirements
	 	 	86	 
	(c) Certificates for Reimbursement
	 	 	87	 
	(d) Delay in Requests
	 	 	87	 
	3.05. Compensation for Losses
	 	 	87	 
	3.06. Mitigation Obligations
	 	 	88	 
	3.07. Replacement of Lenders
	 	 	88	 
	3.08. Survival
	 	 	88	 
	 
	 	 	 	 
	ARTICLE IV            CONDITIONS PRECEDENT TO CREDIT EXTENSIONS
	 	 	88	 
	 
	 	 	 	 
	4.01. Conditions of Initial Credit Extension
	 	 	88	 
	4.02. Conditions to all Credit Extensions
	 	 	91	 
	 
	 	 	 	 
	ARTICLE V            REPRESENTATIONS AND WARRANTIES
	 	 	91	 
	 
	 	 	 	 
	5.01. Existence, Qualification and Power
	 	 	91	 
	5.02. Authorization; No Contravention
	 	 	92	 
	5.03. Governmental Authorization; Other Consents
	 	 	92	 
	5.04. Binding Effect
	 	 	92	 
	5.05. Financial Statements; No Material Adverse Effect; No Internal Control Event
	 	 	92	 
	5.06. Litigation
	 	 	93	 
	5.07. No Default
	 	 	93	 
	5.08. Ownership of Property; Liens
	 	 	93	 
	5.09. Environmental Compliance
	 	 	93	 
	5.10. Insurance
	 	 	94	 
	5.11. Taxes
	 	 	94	 
	5.12. ERISA Compliance
	 	 	94	 
	5.13. Subsidiaries
	 	 	95	 
	5.14. Margin Regulations; Investment Company Act; Public Utility Holding
Company Act
	 	 	95	 
	5.15. Disclosure
	 	 	95	 
	5.16. Compliance with Laws
	 	 	95	 
	5.17. Intellectual Property; Licenses, Etc
	 	 	96	 
	5.18. Compliance with Other Senior Debt Documents
	 	 	96	 
	5.19. Solvency
	 	 	96	 
	5.20. Taxpayer Identification Number
	 	 	96	 
	 
	 	 	 	 
	ARTICLE VI            AFFIRMATIVE COVENANTS
	 	 	96	 
	 
	 	 	 	 
	6.01. Corporate Existence
	 	 	96	 
	6.02. Insurance
	 	 	97	 

iii

 

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	6.03. Taxes, Claims for Labor and Materials
	 	 	97	 
	6.04. Maintenance of Properties
	 	 	97	 
	6.05. Maintenance of Records
	 	 	97	 
	6.06. Financial Information and Reports
	 	 	97	 
	6.07. Notices
	 	 	101	 
	6.08. Inspection of Properties and Records
	 	 	101	 
	(a) Inspection Generally
	 	 	101	 
	(b) Collateral Monitoring and Review
	 	 	101	 
	6.09. ERISA
	 	 	102	 
	6.10. Compliance with Laws
	 	 	103	 
	6.11. Maintenance of Most Favored Lender Status
	 	 	103	 
	6.12. Subsequent Guarantors
	 	 	103	 
	6.13. Collateral Covenant
	 	 	104	 
	6.14. Compliance with Terms of Leaseholds
	 	 	105	 
	6.15. Material Contracts
	 	 	105	 
	6.16. Use of Proceeds
	 	 	105	 
	6.17. Security Interests
	 	 	105	 
	6.18. Bank Accounts
	 	 	105	 
	 
	 	 	 	 
	ARTICLE VII            NEGATIVE COVENANTS
	 	 	106	 
	 
	 	 	 	 
	7.01. Adjusted Consolidated Net Worth
	 	 	106	 
	7.02. Consolidated Debt
	 	 	106	 
	7.03. Net Working Capital
	 	 	106	 
	7.04. Liens
	 	 	106	 
	7.05. Merger or Consolidation
	 	 	108	 
	7.06. Sale of Assets
	 	 	109	 
	7.07. Disposition of Stock of Subsidiary
	 	 	109	 
	7.08. Investments
	 	 	110	 
	7.09. Leases
	 	 	112	 
	7.10. Transactions with Affiliates
	 	 	112	 
	7.11. Off-Balance Sheet Liabilities
	 	 	113	 
	7.12. Nature of Business
	 	 	113	 
	7.13. Accounting Changes
	 	 	113	 
	 
	 	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT AND REMEDIES
	 	 	113	 
	 
	 	 	 	 
	8.01. Events of Default
	 	 	113	 
	(a) Non-Payment of Interest and Other Amounts
	 	 	113	 
	(b) Non-Payment of Principal
	 	 	113	 
	(c) Cross-Default
	 	 	113	 
	(d) Specific Covenants
	 	 	113	 
	(e) Other Defaults
	 	 	113	 
	(f) Representations and Warranties
	 	 	114	 
	(g) Judgments
	 	 	114	 
	(h) Insolvency
	 	 	114	 
	(i) Guarantor Obligations
	 	 	115	 
	(j) Other Representations and Warranties
	 	 	115	 

iv

 

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	(k) Collateral Documents
	 	 	115	 
	(l) Receivables Purchase Agreement
	 	 	115	 
	(m) Intercreditor Agreement
	 	 	115	 
	8.02. Remedies Upon Event of Default
	 	 	116	 
	8.03. Application of Funds
	 	 	116	 
	(a) U.S. Obligations
	 	 	116	 
	(b) Canadian Obligations
	 	 	117	 
	8.04. Notice of Default
	 	 	118	 
	 
	 	 	 	 
	ARTICLE IX            AGENTS
	 	 	119	 
	 
	 	 	 	 
	9.01. Appointment and Authorization of Agents
	 	 	119	 
	9.02. Rights as a Lender
	 	 	119	 
	9.03. Exculpatory Provisions
	 	 	119	 
	9.04. Reliance by Agents
	 	 	120	 
	9.05. Delegation of Duties
	 	 	121	 
	9.06. Resignation of an Agent
	 	 	121	 
	9.07. Non-Reliance on Agents and Other Lenders
	 	 	122	 
	9.08. No Other Duties, Etc
	 	 	122	 
	9.09. Agents May File Proofs of Claim
	 	 	122	 
	9.10. Guaranty Matters
	 	 	123	 
	9.11. Collateral Matters
	 	 	123	 
	9.12. Canadian Agent Matters
	 	 	126	 
	9.13. Authorizations and Directions
	 	 	127	 
	 
	 	 	 	 
	ARTICLE X            MISCELLANEOUS
	 	 	127	 
	 
	 	 	 	 
	10.01. Amendments, Etc
	 	 	127	 
	10.02. Notices; Effectiveness; Electronic Communications
	 	 	129	 
	(a) Notices Generally
	 	 	129	 
	(b) Electronic Communications
	 	 	130	 
	(c) The Platform
	 	 	130	 
	(d) Change of Address, Etc
	 	 	131	 
	(e) Reliance by Agents, L/C Issuers and Lenders
	 	 	131	 
	10.03. No Waiver; Cumulative Remedies
	 	 	131	 
	10.04. Expenses; Indemnity; Damage Waiver
	 	 	131	 
	(a) Costs and Expenses
	 	 	131	 
	(b) Indemnification by Borrowers
	 	 	132	 
	(c) Reimbursement by Lenders
	 	 	134	 
	(d) Waiver of Consequential Damages, Etc
	 	 	135	 
	(e) Payments
	 	 	135	 
	(f) Survival
	 	 	135	 
	10.05. Payments Set Aside
	 	 	135	 
	10.06. Successors and Assigns
	 	 	136	 
	(a) Successors and Assigns Generally
	 	 	136	 
	(b) Assignments by Lenders
	 	 	136	 
	(c) Register
	 	 	139	 
	(d) Participations
	 	 	139	 

v

 

	 	 	 	 	 
	ARTICLE	 	PAGE	 
	(e) Limitations upon Participant Rights
	 	 	140	 
	(f) Certain Pledges
	 	 	140	 
	(g) Electronic Execution of Assignments
	 	 	140	 
	(h) Deemed Consent of Borrowers
	 	 	140	 
	(i) Resignation as L/C Issuer or U.S. Swing Line Lender.
	 	 	141	 
	(j) Canadian Lenders
	 	 	142	 
	(k) Collateral Agency and Intercreditor Agreement
	 	 	142	 
	10.07. Treatment of Certain Information; Confidentiality
	 	 	142	 
	10.08. Right of Setoff
	 	 	143	 
	10.09. Interest Rate Limitations
	 	 	143	 
	10.10. Counterparts; Integration; Effectiveness
	 	 	144	 
	10.11. Survival of Representations and Warranties
	 	 	145	 
	10.12. Severability
	 	 	145	 
	10.13. Replacement of Lenders
	 	 	145	 
	10.14. Governing Law; Jurisdiction; Etc.
	 	 	146	 
	(a) GOVERNING LAW
	 	 	146	 
	(b) SUBMISSION TO JURISDICTION
	 	 	146	 
	(c) WAIVER OF VENUE
	 	 	146	 
	(d) SERVICE OF PROCESS
	 	 	147	 
	10.15. Waiver of Right to Trial by Jury
	 	 	147	 
	10.16. No Advisory or Fiduciary Responsibility
	 	 	147	 
	10.17. USA PATRIOT Act Notice
	 	 	148	 
	10.18. Time of the Essence
	 	 	148	 

vi

 

	 	 	 
	SCHEDULES	 	 
	1.01

	 	Permitted Investments
	2.01

	 	Commitments and Applicable Percentages
	2.04

	 	Existing Letters of Credit
	5.06

	 	Litigation
	5.09

	 	Environmental Matters
	5.13

	 	Subsidiaries and Other Equity Investments
	7.04

	 	Existing Liens
	7.11

	 	Off-Balance Sheet Arrangements
	10.02

	 	Agents’ Offices, Certain Addresses for Notices

	 	 	 
	EXHIBITS	 	 
	Form of

	 	 
	A

	 	U.S. Committed Loan Notice
	B

	 	Canadian Committed Loan Notice
	C

	 	U.S. Swing Line Loan Notice
	D

	 	Note
	E

	 	Compliance Certificate
	F

	 	Discount Note
	G

	 	Notice of Drawing
	H

	 	Assignment and Assumption
	I

	 	Borrowing Base Certificate

vii

 

AMENDED AND RESTATED

CREDIT AGREEMENT

     AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”) is entered into as of September 5,
2006, among A. M. CASTLE & CO., a Maryland corporation (“U.S. Borrower”), A. M. CASTLE & CO.
(CANADA) INC., a corporation organized under the laws of the Province of Ontario, Canada (“Canadian
Borrower”), each lender from time to time party hereto, BANK OF AMERICA, N.A., as U.S. Agent, U.S.
Swing Line Lender and U.S. L/C Issuer and BANK OF AMERICA, N.A., CANADA BRANCH, as Canadian Agent
and Canadian L/C Issuer.

     U.S. Borrower, Canadian Borrower, U.S. Agent, Canadian Agent and a syndicate of lenders
entered into a Credit Agreement, dated as of July 29, 2005 (the “Prior Credit Agreement”), pursuant
to which certain Lenders provided a revolving credit facility. U.S. Borrower and Canadian Borrower
have requested that the Prior Credit Agreement be amended and restated as provided herein and
Lenders are willing to do so on the terms and conditions set forth herein. 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:

     “Acceptance” means a Draft drawn by Canadian Borrower on a Canadian Lender conforming
to the requirements of Section 2.03 and accepted by such Canadian Lender in
accordance with Section 2.03(c). As the context shall require, “Acceptance” shall
also have the meaning ascribed to it in Section 2.03(j).

     “Acceptance Equivalent Loan” means an advance made under this Agreement by a Canadian
Lender evidenced by a Discount Note.

     “Acceptance Fee” has the meaning assigned to it in Section 2.10(d).

     “Acceptance Exposure” means, at any time, the aggregate face amount of the outstanding
Acceptances and Acceptance Equivalent Loans at such time. The Acceptance Exposure of any
Canadian Lender at any time shall be its Applicable Percentage of the aggregate Acceptance
Exposure at such time.

     “Account” means a Receivable (as defined in the Collateral Agency and Intercreditor
Agreement) and any account receivable, book debt or other similar chose in action however
defined or referenced in any of the Canadian Security Documents.

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

 

 

     “Adjusted Consolidated Net Worth” means Consolidated Stockholders’ Equity less all
Restricted Investments that exceed, in the aggregate, 10% of Consolidated Stockholders’
Equity.

     “Administrative Agents” or “Agents” means U.S. Agent and Canadian Agent.

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

     “Affiliate” of any Person means any Person (other than a Subsidiary) (i) who is a
director or executive officer of such Person or any Subsidiary, (ii) which directly or
indirectly through one or more intermediaries controls, or is controlled by, or is under
common control with, such Person, (iii) which beneficially owns or holds securities
representing 10% or more of the combined voting power of the Voting Stock of such Person, or
(iv) of which securities representing 10% or more of the combined voting power of its Voting
Stock (or in the case of a Person not a corporation, 10% or more of its equity) is
beneficially owned or held by such Person or any Subsidiary. The term “control” means the
possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of a Person, whether through the ownership of voting securities, by
contract or otherwise.

     “Agent Fee Letter” has the meaning specified in Section 2.10(b).

     “Agent’s Office” means the U.S. Agent’s Office in the case of the U.S. Agent and the
Canadian Agent’s Office in the case of the Canadian Agent.

     “Agents” means, collectively, the U.S. Agent and the Canadian Agent.

     “Aggregate Canadian Commitments” means the Canadian Commitments of all Canadian
Lenders.

     “Aggregate Commitments” means the Commitments of all Lenders.

     “Aggregate Revolving Credit Commitments” means the U.S. Revolving Credit Commitments of
all U.S. Lenders and the Aggregate Canadian Commitments of all Canadian Lenders.

     “Aggregate U.S. Commitments” means the U.S. Commitments of all U.S. Lenders.

     “Aggregate U.S. Revolving Credit Commitments” means the U.S. Revolving Credit
Commitments of all U.S. Lenders.

     “Agreement” means this Amended and Restated Credit Agreement.

     “Applicable Percentage” means (a) in respect of the Term A Facility, with respect to
any Term A Lender at any time, the percentage (carried out to the ninth

2

 

decimal place) of the Term A Facility represented by (i) on or prior to the Closing
Date, such Term A Lender’s Term A Commitment at such time and (ii) thereafter, the principal
amount of such Term A Lender’s Term A Loans at such time, (b) in respect of the U.S.
Revolving Credit Facility, with respect to any U.S. Revolving Credit Lender at any time, the
percentage (carried out to the ninth decimal place) of the U.S. Revolving Credit Facility
represented by such U.S. Revolving Credit Lender’s U.S. Revolving Credit Commitment at such
time and (c) in respect of the Canadian Committed Loan Facility, with respect to any
Canadian Lender at any time, the percentage (carried out to the ninth decimal place) of the
Canadian Committed Loan Facility represented by such Canadian Lender’s Canadian Commitment
at such time. If the commitment of each U.S. Revolving Credit Lender to make U.S. Revolving
Credit Loans and the obligation of the U.S. L/C Issuer to make U.S. L/C Credit Extensions
have been terminated pursuant to Section 8.02, or if the U.S. Revolving Credit
Commitments have expired, then the Applicable Percentage of each U.S. Revolving Credit
Lender in respect of the U.S. Revolving Credit Facility shall be determined based on the
Applicable Percentage of such U.S. Revolving Credit Lender in respect of the U.S. Revolving
Credit Facility most recently in effect, giving effect to any subsequent assignments. If
the commitment of each Canadian Lender to make Canadian Committed Loans and the obligation
of the Canadian L/C Issuer to make Canadian L/C Credit Extensions have been terminated
pursuant to Section 8.02 or if the Canadian Commitments have expired, then the
Applicable Percentage of each Canadian Lender in respect of the Canadian Committed Loan
Facility shall be determined based on the Applicable Percentage of such Canadian Lender in
respect of the Canadian Committed Loan Facility most recently in effect, giving effect to
any subsequent assignments. The initial Applicable Percentage of each Lender in respect of
each Facility 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.

     “Applicable Rate” means, from time to time, the following percentages per annum, based
upon the ratio of Consolidated Debt to Consolidated Total Capitalization (the “Debt to
Capitalization Ratio”) as set forth in the most recent Compliance Certificate received by
Agents pursuant to Section 6.06(c):

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Applicable Rate
	 	 	 	 	 	 	 	 	 	 	Eurodollar Rate	 	Base Rate
	 	 	 	 	 	 	 	 	 	 	+	 	+
	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Consolidated Debt to	 	 	 	 	 	Acceptance Fee	 	Canadian Prime
	Pricing	 	Consolidated Total	 	Commitment	 	 	 	Rate
	Level	 	Capitalization Ratio	 	Fee	 	L/C Fee	 	+
	 	1	 	 	350%
	 	 	0.40	%	 	 	1.75	%	 	 	0.75	%
	 	2	 	 	340% but <50%
	 	 	0.35	%	 	 	1.25	%	 	 	0.25	%
	 	3	 	 	330% but <40%
	 	 	0.30	%	 	 	1.00	%	 	 	0	%
	 	4	 	 	<30%
	 	 	0.25	%	 	 	0.875	%	 	 	0	%

     Any increase or decrease in the Applicable Rate resulting from a change in the
Debt to Capitalization Ratio shall become effective commencing on the 5th
Business Day

3

 

immediately following the date a Compliance Certificate is delivered pursuant
to Section 6.06(c); provided, however, that if no Compliance
Certificate is delivered when due in accordance with such Section, then Pricing Level 1
shall apply commencing on the 5th Business Day following the date such Compliance
Certificate was required to have been delivered and the Applicable Rate will not be eligible
for decrease until the 5th Business Day immediately following the date such
Compliance Certificate is delivered pursuant to Section 6.06(c). The Applicable
Rate in effect from the Closing Date through the earlier of (i) the date the Compliance
Certificate for the fiscal quarter ending December 31, 2006 is delivered pursuant to
Section 6.06(c), or (ii) the date the Compliance Certificate for the fiscal quarter
ending December 31, 2006 is required to be delivered pursuant to Section 6.06(c)
shall be determined based upon Pricing Level 1.

     “Applicable Revolving Credit/Committed Loan Percentage” means, with respect to any U.S.
Revolving Credit Lender at any time, such U.S. Revolving Credit Lender’s Applicable
Percentage in respect of the U.S. Revolving Credit Facility at such time and, with respect
to any Canadian Lender at any time, such Canadian Lender’s Applicable Percentage in respect
of the Canadian Committed Loan Facility at such time.

     “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 Affiliate of an entity that administers or
manages a Lender.

     “Arranger” means Banc of America Securities LLC, in its capacity as sole lead arranger
and sole book manager.

     “Assignee Group” means two or more Eligible Assignees that are Affiliates of one
another or two or more Approved Funds managed by the same investment advisor.

     “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 applicable Agent, in substantially the form of Exhibit
H or any other form approved by the applicable Agent.

     “Audited Financial Statements” means the audited consolidated balance sheet of U.S.
Borrower and its Subsidiaries for the fiscal year ended December 31, 2005, and the related
consolidated statements of income or operations, shareholders’ equity and cash flows for
such fiscal year of U.S. 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 Aggregate Revolving
Credit Commitments pursuant to Section 2.07, and (c) the date of termination of the
commitment of each U.S. Revolving Credit Lender to make U.S. Revolving Credit Loans and the
commitment of each Canadian Lender to make Canadian Committed Loans and of the obligation of
U.S. L/C Issuer to make U.S. L/C Credit Extensions and Canadian L/C Issuer to make Canadian
L/C Credit Extensions, pursuant to Section 8.02.

4

 

     “Bank of America” means Bank of America, N.A. and its successors.

     “Bank of America Canada” means Bank of America, N.A., Canada Branch and its successors.

     “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% and (b) the rate of interest in effect for
such day as publicly announced from time to time by Bank of America as its “prime rate.”
The “prime rate” is a rate set by Bank of America based upon various factors including Bank
of America’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 Bank of America shall take effect
at the opening of business on the day specified in the public announcement of such change.

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

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

     “Base Rate U.S. Revolving Credit Loan” means a U.S. Revolving Credit Loan that is a
Base Rate Loan.

     “Book Value” means, with respect to any Eligible Inventory, an amount equal to (i) the
book value of such Eligible Inventory determined in accordance with GAAP plus (ii)
the LIFO Reserve, if any, established with respect to such Eligible Inventory in accordance
with GAAP minus (iii) without duplication to amounts deducted pursuant to the
definition of “Eligible Inventory”, any reserves established by the applicable Loan Party
with respect to such Eligible Inventory in accordance with GAAP.

     “Borrowers” means, collectively, U.S. Borrower and Canadian Borrower.

     “Borrower Materials” has the meaning specified in Section 6.06.

     “Borrowing” means a Committed Borrowing or a U.S. Swing Line Borrowing, as the context
may require.

     “Borrowing Base Certificate” means a certificate, signed by a Senior Financial Officer
of the applicable Borrower, in the form of Exhibit I or another form which is
acceptable to Agents in their discretion exercised in a commercially reasonable manner.

     “Business Day” means, as the context shall require, a U.S. Business Day, a Canadian
Business Day, or both.

     “Canadian Agent” means Bank of America Canada, in its capacity as administrative agent
for Canadian Lenders hereunder, together with its successors and assigns.

5

 

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

     “Canadian Availability” means the amount by which the lesser of the Aggregate Canadian
Commitments and the Canadian Borrowing Base, exceeds the Canadian Total Outstandings.

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

     “Canadian Borrowing Base” means, at any time, the sum, expressed in U.S. Dollars, of
(a) 80% of Canadian Borrower’s Eligible Accounts at such time, plus (b) 50% of the
Book Value of Canadian Borrower’s Eligible Inventory, plus (c) (i) through and
including July 28, 2007, 20% of the Net PP&E of Canadian Borrower, (ii) from July 29, 2007
through and including July 28, 2008, 10% of the Net PP&E of Canadian Borrower, and (iv) from
and after July 29, 2008, 0% of the Net PP&E of Canadian Borrower, minus (d) the
principal amount of all secured Indebtedness of Canadian Borrower, other than the
Obligations, minus, (e) at such time as Canadian Borrower’s Obligations are not
Secured, the sum of (x) 50% of Canadian Borrower’s aggregate accounts payable (other than
such accounts payable, if any, which serve as the basis for causing all or any part of any
Account of Canadian Borrower to fail to qualify as an Eligible Account), plus, (y)
the outstanding principal amount of all unsecured Indebtedness of Canadian Borrower, other
than the Obligations, with the amounts referred to in clauses (a), (b) and (c) above
determined by reference to the most recent Borrowing Base Certificate and applicable
financial statements delivered to Canadian Agent by Canadian Borrower.

     “Canadian Borrowing” means a Borrowing comprised of Canadian Loans.

     “Canadian 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 province where Canadian Agent’s Office is located and, if such day relates to any
Eurodollar Rate Loan, means any such day on which dealings in U.S. Dollar deposits are
conducted by and between banks in the London interbank eurodollar market.

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

     “Canadian Committed Borrowing” means a borrowing consisting of simultaneous Canadian
Committed Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by each Canadian Lender pursuant to Section 2.01(c), and shall be deemed to include the acceptance and purchase of
Acceptances, where applicable.

6

 

     “Canadian Committed Loan” has the meaning specified in Section 2.01(c).

     “Canadian Committed Loan Facility” means, at any time, the aggregate amount of the
Canadian Lenders’ Canadian Commitments at such time.

     “Canadian Dollar Equivalent” means, with respect to an amount of U.S. Dollars on any
date, the amount of Canadian Dollars that may be purchased with such amount of U.S. Dollars
at the Exchange Rate with respect to U.S. Dollars on such date.

     “Canadian Dollars” and the symbol “Cdn.$” mean the lawful currency of Canada.

     “Canadian Hypothec” means a deed of hypothec granted by Canadian Borrower in favor of
Canadian Agent with respect to the universality of its moveable property in the province of
Quebec, and any bonds or debentures, pledges of bonds or debentures and other documentation
related thereto.

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

     “Canadian L/C Issuer” means Bank of America Canada in its capacity as issuer of
Canadian Letters of Credit hereunder, or any successor issuer of Canadian Letters of Credit
hereunder.

     “Canadian L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding Canadian Letters of Credit plus the aggregate
of all Unreimbursed Amounts, including all L/C Borrowings in respect of Canadian Letters of
Credit. For purposes of computing the amount available to be drawn under any Letter of
Credit, the amount of such Canadian 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.

     “Canadian L/C Sublimit” means an amount equal to Cdn. $2,000,000. The Canadian L/C
Sublimit is part of, and not in addition to, the Aggregate Canadian Commitments.

     “Canadian Lender” means any Lender that has a Canadian Commitment or any portion of the
Total Canadian Outstandings. The initial Canadian Lenders are listed on Schedule
2.01 under the caption “Canadian Lenders”.

7

 

     “Canadian Letter of Credit” means any letter of credit issued by Canadian L/C Issuer
hereunder. A Canadian Letter of Credit may be a commercial letter of credit or a standby
letter of credit.

     “Canadian Loan” means an extension of credit by a Canadian Lender to Canadian Borrower
under Article II in the form of a Canadian Committed Loan and includes Acceptances.

     “Canadian Obligations” means all Obligations relating to Canadian Loans or Canadian
Letters of Credit or Swap Contracts between Canadian Borrower and any Canadian Lender or any
Affiliate of any Canadian Lender or Treasury Management Obligations of Canadian Borrower to
a Canadian Lender or an Affiliate of a Canadian Lender.

     “Canadian Prime” means, when used in reference to any Loan or Borrowing, that such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Canadian Prime Rate.

     “Canadian Prime Rate” means, for any day, a rate per annum equal to the higher of (i)
the rate per annum publicly announced from time to time by Bank of America Canada as its
prime rate in effect for Canadian Dollar denominated loans made at its principal office in
Toronto and (ii) the one-month CDOR Rate plus fifty bps (.50%) per annum. Each change in
the Canadian Prime Rate shall be effective on the date after such change is publicly
announced.

     “Canadian Security Documents” means each security agreement, hypothec, debenture,
assignment or other security document, by or between Canadian Borrower and Canadian Agent,
for the benefit of Canadian Agent and Canadian Lenders, including each Canadian Hypothec,
securing the Canadian Obligations, as any of the foregoing may be amended, restated or
otherwise modified from time to time.

     “Canadian Supermajority Lenders” means, as of any date of determination, Canadian
Lenders having more than 66-2/3% of the Aggregate Canadian Commitments or, if the commitment
of each Canadian Lender to make Canadian Loans and the obligation of Canadian L/C Issuer to
make Canadian L/C Credit Extensions have been terminated pursuant to Section 8.02,
Canadian Lenders holding in the aggregate more than 66-2/3% of the Canadian Total
Outstandings (with the aggregate amount of each Canadian Lender’s risk participation and
funded participation in Canadian L/C Obligations being deemed “held” by such Canadian Lender
for purposes of this definition); provided that the Canadian Commitment of, and the portion
of the Canadian Total Outstandings held or deemed held by, any Defaulting Lender shall be
excluded for purposes of making a determination of Canadian Supermajority Lenders. For
purposes of determining Canadian Supermajority Lenders, any amounts denominated in Canadian
Dollars shall be translated into the U.S. Dollar Equivalent at the Exchange Rate in effect
on the date of determination thereof.

8

 

     “Canadian Total Outstandings” means the aggregate Outstanding Amount of all Canadian
Loans and all Canadian L/C Obligations.

     “Capital Expenditures” means, with respect to any Person for any period, any
expenditure in respect of the purchase or other acquisition of any fixed or capital asset
(excluding normal replacements and maintenance which are properly charged to current
operations).

     “Capitalized Lease” means any lease the obligation for Rentals with respect to which,
in accordance with GAAP, would be required to be capitalized on a balance sheet of the
lessee or for which the amount of the asset and liability thereunder, as if so capitalized,
would be required to be disclosed in a note to such balance sheet.

     “Capitalized Lease Obligations” means any amounts required to be capitalized under any
Capitalized Lease.

     “Cash Collateralize” has the meaning specified in Section 2.04(g).

     “Cash Equivalents” means any of the following types of Investments, to the extent owned
by U.S. Borrower or any of its Subsidiaries free and clear of all Liens (other than Liens
created under the Collateral Documents and other Liens permitted hereunder):

     (a) Investments in (A) commercial paper of a domestic issuer maturing in 270 days or
less from the date of issuance which is rated P-2 or better by Moody’s or A-2 or better by
S&P, (B) certificates of deposit or banker’s acceptances issued by commercial banks or trust
companies located in the United States of America and organized under its laws or the laws
of any state thereof each having a combined capital, surplus and undivided profits of
$100,000,000 or more, (C) obligations of or fully guaranteed by the United States of America
or an agency thereof maturing within three years from the date of acquisition, (D) municipal
securities maturing within three years from the date of acquisition which are rated in one
of the top two rating classifications by at least one national rating agency, or (E) money
market instrument programs which are classified as current assets in accordance with GAAP;
and

     (b) Participations in notes maturing within 60 days which are rated P-2 or better by
Moody’s or A-2 or better by S&P.

     “CC” means the Civil Code of Quebec.

     “CDOR Rate” means, on any day, the annual discount rate which is the rate determined by
Canadian Agent as being the arithmetic average (rounded upward to the nearest multiple of
0.01%) of the rates applicable to Canadian Dollar bankers’ acceptances for the applicable
period displayed and identified as such on the “Reuters’ Screen CDOR Page” at approximately
10:00 A. M. (Toronto time) on such day for Schedule I chartered banks, or if such day is not
a Canadian Business Day then on the immediately preceding Canadian Business Day (as adjusted
by a Canadian bank after 10:00 A. M. (Toronto time) to reflect any error in a posted discount rate or in the
posted average annual discount rate).

9

 

     “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.

     “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Canadian Loans or U.S. Loans, and when used in
reference to any Commitment, refers to whether such Commitment is a Canadian Commitment or
U.S. Commitment.

     “Closing Date” means the first date 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, as amended.

     “Collateral” means any and all assets and rights and interests in or to property of
Borrowers and each of the other Loan Parties, whether real or personal, tangible or
intangible, in which a Lien is granted or purported to be granted pursuant to the Collateral
Documents.

     “Collateral Access Agreement” means any landlord waiver or other agreement, in form and
substance reasonably satisfactory to the applicable Agent, between such Agent and any third
party (including any bailee, consignee, customs broker, or other similar Person) in
possession of any Collateral or any landlord of any Loan Party for any real property where
any Collateral is located, as such landlord waiver or other agreement may be amended,
restated, or otherwise modified from time to time.

     “Collateral Agency and Intercreditor Agreement” means the Amended and Restated
Collateral Agency and Intercreditor Agreement, dated as of September 5, 2006, by and among
Collateral Agent, Bank of America, the Noteholders (as defined therein), The Northern Trust
Company, U.S. Borrower and the Subsidiary Guarantors, as amended, restated, supplemented or
otherwise modified from time to time.

     “Collateral Agent” means Bank of America, in its capacity as Collateral Agent under the
Collateral Agency and Intercreditor Agreement, together with its successors and assigns.

     “Collateral Documents” means, collectively, the U.S. Security Documents and the
Canadian Security Documents.

     “Commitments” means, collectively, each Canadian Commitment and each U.S. Commitment.

10

 

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

     “Committed Loan” means either a U.S. Committed Loan or a Canadian Committed Loan.

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

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

     “Consolidated Debt” means Debt of U.S. Borrower and its Subsidiaries consolidated in
accordance with GAAP.

     “Consolidated EBITDA” means, for any period, the sum of (a) Consolidated Net Income for
such period; plus (b) to the extent, and only to the extent, that such aggregate amount was
deducted in the computation of such Consolidated Net Income, the aggregate amount of (i)
income tax expense of U.S. Borrower and its Subsidiaries for such period, plus (ii) charges
for depreciation, amortization and other non-cash charges of U.S. Borrower and its
Subsidiaries for such period, plus (iii) Interest Charges for such period.

     “Consolidated Net Income” means, for any period, the net income (or deficit) of U.S.
Borrower and its Subsidiaries for such period determined on a consolidated basis in
accordance with GAAP.

     “Consolidated Stockholders’ Equity” means the stockholders’ equity of U.S. Borrower and
its Subsidiaries determined on a consolidated basis in accordance with GAAP.

     “Consolidated Total Assets” means, at any time, all assets of U.S. Borrower and its
Subsidiaries which would be reflected on a consolidated balance sheet of such Persons at
such time prepared in accordance with GAAP .

     “Consolidated Total Capitalization” means the sum of (i) Consolidated Stockholders’
Equity, (ii) 50% of the LIFO Reserve, and (iii) Consolidated Debt, less Restricted
Investments in excess of 10% of Consolidated Stockholders’ Equity.

     “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.

11

 

     “Credit Extension” means each of the following: (a) a Borrowing and (b) an L/C Credit
Extension.

     “Current Debt” means, at any time and with respect to any Person, all Indebtedness of
such Person outstanding at such time other than Funded Debt of such Person.

     “Current Maturities of Funded Debt” means (without duplication), at any time and with
respect to any item of Funded Debt, the portion of such Funded Debt outstanding at such time
which by the terms of such Funded Debt or the terms of any instrument or agreement relating
thereto (a) is due on demand or within 365 days from such time (whether by sinking fund,
other required prepayment or final payment at maturity) and (b) (i) is not directly or
indirectly renewable, extendible or refundable at the option of the obligor under an
agreement or firm commitment in effect at such time to a date 365 days or more from such
time or (ii) if so renewable, extendible or refundable at the option of the obligor, the
obligor shall have agreed that it will not renew, extend or refund to a date 365 days or
more from such time.

     “Debt” means all Indebtedness (excluding obligations with respect to bankers’
acceptances and trade acceptance financings to the extent such obligations, in the
aggregate, are less than $5,000,000, but including any such obligations, in the aggregate,
in excess of such amount) of U.S. Borrower or any Subsidiary.

     “Debtor Relief Laws” means the Bankruptcy Code of the United States, the Companies
Creditors Arrangement Act (Canada), the Bankruptcy and Insolvency Act (Canada), 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, Canada or any province or territory thereof or other
applicable jurisdictions from time to time in effect and affecting the rights of creditors
generally.

     “Default” means any event which, with the lapse of time or the giving of notice, or
both, would become an Event of Default.

     “Default Rate” means (a) when used with respect to Obligations other than L/C Fees an
interest rate equal to (i) the Base Rate or the Canadian Prime Rate, as the case may be,
plus (ii) the Applicable Rate, if any, applicable to Base Rate Loans or Canadian
Prime Rate Loans, as the case may be, plus (iii) 2% per annum; provided,
however, that (x) with respect to a Eurodollar Rate Loan, the Default Rate shall be
an interest rate equal to the interest rate (including any Applicable Rate) otherwise
applicable to such Loan plus 2% per annum and (y) with respect to Acceptances, the Default
Rate shall be the Applicable Rate plus 2% per annum, and (b) when used with respect to L/C
Fees, a rate equal to the Applicable Rate plus 2% per annum.

     “Defaulting Lender” means any Lender that (a) has failed to fund any portion of the
Committed Loans, participations in L/C Obligations or participations in U.S. Swing

12

 

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 applicable 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.

     “Discount Note” means a non-interest bearing, non-negotiable promissory note
denominated in Canadian Dollars, issued by Canadian Borrower to a Non-Acceptance Canadian
Lender, substantially in the form of Exhibit F.

     “Discount Proceeds” means proceeds in respect of any Acceptance to be purchased by a
Lender under Section 2.03 on any day, in an amount (rounded to the nearest whole
Canadian cent, and with one-half of one Canadian cent being rounded up) calculated on such
day by dividing:

	 	(a)	 	the face amount of such Acceptance; by
	 
	 	(b)	 	the sum of one plus the product of:

	 	(i)	 	the Discount Rate (expressed as a decimal)
applicable to such Acceptance; and
	 
	 	(ii)	 	a fraction, the numerator of which is the
number of days in the term of such Acceptance commencing on the date of
acceptance of the Acceptance and ending on, but excluding, the maturity
date of such Acceptance, and the denominator of which is 365;

with such product being rounded up or down to the fifth decimal place and .000005 being
rounded up.

     “Discount Rate” with respect to an issue of Acceptances with the same maturity date,
(a) for a Canadian Lender which is a Schedule I Lender, the CDOR Rate for banker’s
acceptances with the applicable term and face value and (b) for a Canadian Lender which is
not a Schedule I Lender, the rate determined by Canadian Agent based on the arithmetic
average (rounded upwards to the nearest multiple of 0.01%) of the actual discount rates,
calculated on the basis of a year of 365 days, for Acceptances for such term and face value
accepted by such Lender established in accordance with their normal practices at or about
10:00 A. M. (Toronto time) on the date of issuance of such Acceptances, but not to exceed
the actual rate of discount applicable to Acceptances established pursuant to clause (a) for
the same Acceptances issued plus ten bps (0.10%) per annum or the rate that would be
applicable to such Acceptances if there were a Schedule I Lender.

     “Disposition” has the meaning specified in Section 7.06.

13

 

     “DPS OPCO Inventory” means Inventory of the Transtar Loan Parties (other than INCO
Inventory) the records of which are maintained by the Transtar Loan Parties using the DPS
software package.

     “Draft” means a depository bill as defined and issued in accordance with the Depository
Bills and Notes Act (Canada) or a bill of exchange in the form used from time to time by
each Canadian Lender, respectively, in connection with the creation of bankers’ acceptances
in accordance with the provisions of Section 2.03 and payable in Canadian Dollars.

     “Eligible Accounts” means, at any time, the Accounts of the applicable Loan Party
except any Account:

     (a) which, at any time that the Obligations are Secured, is not subject to a first
priority perfected security interest in favor of Collateral Agent, in the case of Accounts
of U.S. Borrower or a Subsidiary Guarantor, or Canadian Agent, in the case of Accounts of
Canadian Borrower;

     (b) which is subject to any Lien other than (i) a Lien in favor of Collateral Agent, in
the case of Accounts of U.S. Borrower or a Subsidiary Guarantor, or Canadian Agent, in the
case of Accounts of Canadian Borrower and (ii) a Permitted Encumbrance which does not have
priority over the Lien, if any, in favor of Collateral Agent, in the case of Accounts of
U.S. Borrower or a Subsidiary Guarantor, or Canadian Agent, in the case of Accounts of
Canadian Borrower;

     (c) with respect to which more than 90 days have elapsed since the date of the original
invoice therefor or which is more than 60 days past due;

     (d) with respect to which any of the representations, warranties, covenants, and
agreements contained in the Collateral Documents are incorrect or have been breached;

     (e) with respect to which Account (or any other Account due from such Account Debtor),
in whole or in part, a check, promissory note, draft, trade acceptance or other instrument
for the payment of money has been received, presented for payment and returned uncollected
for any reason;

     (f) which represents a progress billing (as hereinafter defined) or as to which the
applicable Loan Party has extended the time for payment without the consent of the
applicable Agent; for the purposes hereof, “progress billing” means any invoice for goods
sold or leased or services rendered under a contract or agreement pursuant to which the
Account Debtor’s obligation to pay such invoice is conditioned upon the applicable Loan
Party’s completion of any further performance under the contract or agreement;

     (g) with respect to which any one or more of the following events has occurred to the
Account Debtor on such Account: death or judicial declaration of

14

 

incompetency of an Account Debtor who is an individual; the filing by or against the
Account Debtor of a request or petition for liquidation, reorganization, arrangement,
adjustment of debts, adjudication as a bankrupt, winding-up, or other relief under the
bankruptcy, insolvency, or similar laws of the United States, Canada, any state, province or
territory thereof, or any foreign jurisdiction, now or hereafter in effect; the making of
any general assignment by the Account Debtor for the benefit of creditors; the appointment
of a receiver, trustee, receiver and manager, custodian or liquidator for the Account Debtor
or for any of the assets of the Account Debtor, including, without limitation, the
appointment of or taking possession by a “custodian,” as defined in the Federal Bankruptcy
Code of the United States; the institution by or against the Account Debtor of any other
type of insolvency proceeding (under the bankruptcy laws of the United States, Canada or
otherwise) or of any formal or informal proceeding for the dissolution or liquidation of,
settlement of claims against, or winding up of affairs of, the Account Debtor; the sale,
assignment, or transfer of all or any material part of the assets of the Account Debtor; the
nonpayment generally by the Account Debtor of its debts as they become due; or the cessation
of the business of the Account Debtor as a going concern;

     (h) which is owed by an Account Debtor with respect to which twenty-five percent (25%)
or more of the aggregate U.S. Dollar amount of outstanding Accounts owed at such time by
such Account Debtor are classified as ineligible under clause (c) above;

     (i) owed by an Account Debtor which: (i) does not maintain its chief executive office
in the United States of America or Canada; or (ii) is not organized under the laws of the
United States of America or Canada or any state or province thereof unless either (x) such
Account is fully backed by an irrevocable letter of credit on terms, and issued by a
financial institution, acceptable to the applicable Agent, or (y) such Receivables are
covered by credit insurance issued by an insurance company and having terms and conditions
acceptable to the applicable Agent;

     (j) owed by an Account Debtor which is an Affiliate or employee of either Borrower;

     (k) except as provided in clause (m) below, with respect to which either the
perfection, enforceability, or validity of the Collateral Agent’s Liens or the Canadian
Agent’s Liens, as the case may be, in such Account, or the Collateral Agent’s or the
Canadian Agent’s, as the case may be, right or ability to obtain direct payment to the
Collateral Agent or the Canadian Agent of the proceeds of such Account, is governed by any
federal, state, or local statutory requirements other than those of the UCC, the PPSA or the
CC;

     (l) owed by an Account Debtor to which the applicable Borrower or any of its
Subsidiaries is indebted in any way, or which is subject to any right of setoff or
recoupment by the Account Debtor, unless the Account Debtor has entered into an agreement
acceptable to U.S. Agent or Canadian Agent, as the case may be, to waive

15

 

setoff rights; or if the Account Debtor thereon has disputed liability or made any
claim with respect to any other Account due from such Account Debtor; but in each such case
only to the extent of such indebtedness, setoff, recoupment, dispute, or claim;

     (m) which is owed by (i) the government (or any department, agency, public corporation,
or instrumentality thereof) of any country other than the U.S. or Canada unless such Account
is backed by a letter of credit or other credit support acceptable to such Agent, or (ii)
the government of the U.S. or Canada, or any department, agency, public corporation, or
instrumentality thereof, unless the Federal Assignment of Claims Act of 1940, as amended (31
U.S.C. § 3727 et seq. and 41 U.S.C. § 15 et seq.), or Part
VII of the Financial Administration Act (Canada) relating to the assignment of federal Crown
debts, and any other steps necessary to perfect the Lien of the Collateral Agent in the case
of Accounts of U.S. Borrower or a Subsidiary Guarantor, or Canadian Agent, in the case of
Accounts of Canadian Borrower, in such Account have been complied with to such Person’s
satisfaction;

     (n) which represents a sale on a bill-and-hold, guaranteed sale, sale and return, sale
on approval, consignment, or other repurchase or return basis or is issued on a cash on
delivery basis;

     (o) which is evidenced by a promissory note or other instrument or by chattel paper;

     (p) if the U.S. Agent or the Canadian Agent, as the case may be, believes, in the
exercise of its reasonable judgment, that the prospect of collection of such Account is
impaired or that the Account may not be paid by reason of the Account Debtor’s financial
inability to pay;

     (q) with respect to which the Account Debtor is located in any State of the United
States requiring the filing of a Notice of Business Activities Report or similar report in
order to permit the applicable Loan Party to seek judicial enforcement in such State of
payment of such Account, unless U.S. Borrower has qualified to do business in such state or
has filed a Notice of Business Activities Report or equivalent report for the then current
year and except to the extent U.S. Borrower may qualify subsequently as a foreign entity
authorized to transact business in such U.S. State and gain access to courts in such State
to seek judicial enforcement of such Account, without incurring any cost or penalty
reasonably viewed by U.S. Agent to be material in amount, and such later qualification
permits judicial enforcement by such Loan Party of payment of such Account;

     (r) which arises out of a sale not made in the ordinary course of the applicable Loan
Party’s business;

     (s) with respect to which the goods giving rise to such Account have not been shipped
and delivered to and accepted by the Account Debtor or the services giving rise to such
Account have not been performed by the applicable Loan Party, and, if applicable, accepted by the Account Debtor, or the Account Debtor revokes its
acceptance of such goods or services; or

16

 

     (t) owed by an Account Debtor which is obligated in respect of Accounts the aggregate
unpaid balance of which exceeds fifteen percent (15%) of the aggregate unpaid balance of all
Accounts owed to U.S. Borrower and the Subsidiary Guarantors as a whole or to Canadian
Borrower, as applicable, at such time, but only to the extent of such excess.

     “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)).

     “Eligible Inventory” means, at any time, the Inventory owned by the applicable Loan
Party except any Inventory:

     (a) which at any time that the Obligations are Secured is not subject to a first
priority (except for any prior landlord’s liens) perfected Lien in favor of Collateral
Agent, in the case of Inventory of U.S. Borrower, or Canadian Agent, in the case of
Inventory of Canadian Borrower;

     (b) which is subject to any Lien other than (i) a Lien in favor of Collateral Agent in
the case of Inventory of U.S. Borrower, or Canadian Agent in the case of Inventory of
Canadian Borrower and (ii) a Permitted Encumbrance that does not have priority (except for
any prior landlords’ liens) over the Lien, if any, in favor of Collateral Agent, in the case
of Inventory of U.S. Borrower, or Canadian Agent, in the case of Inventory of Canadian
Borrower;

     (c) that is not owned by the applicable Borrower;

     (d) that does not consist of finished goods, mill products or raw materials;

     (e) that consists of scrap metal, work-in-process, chemicals, samples, prototypes,
supplies, or packing and shipping materials;

     (f) that is not currently either usable or salable in the normal course of the
applicable Borrower’s business, or that is slow moving (other than INCO Inventory), obsolete
or stale;

     (g) that is located outside the United States of America or Canada (or that is
in-transit from vendors or suppliers, not including any Loan Party);

     (h) which is located in any location leased by the applicable Borrower unless (i) the
lessor has delivered to the Collateral Agent or Canadian Agent, as applicable, a Collateral
Access Agreement or (ii) a reserve for two months rent, charges, and other amounts due or to
become due with respect to such facility has been established by such Agent in its Permitted
Discretion;

17

 

     (i) which contains or bears any intellectual property rights licensed to Borrowers
unless the applicable Agent is satisfied that it may sell or otherwise dispose of such
Inventory without (i) infringing the rights of such licensor, (ii) violating any contract
with such licensor, or (iii) incurring any liability with respect to payment of royalties
other than royalties incurred pursuant to sale of such Inventory under the current licensing
agreement;

     (j) that is located at any location in the United States at which the total Inventory
at such location has a value of less than $350,000;

     (k) that is Inventory placed on consignment; or

     (l) that represents Inventory not reflected on the applicable Loan Party’s general
ledger.

     “Environmental Laws” means all laws relating to environmental matters, including those
relating to (i) fines, orders, injunctions, penalties, damages, contribution, cost recovery
compensation, losses or injuries resulting from the Release or threatened Release of
Hazardous Materials and to the generation, use, storage, importation, or disposal of
Hazardous Materials, in any manner applicable to U.S. Borrower or any of its Subsidiaries or
any of their respective properties, including, without limitation, the Comprehensive
Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et
seq.), the Hazardous Material Transportation Act (49 U.S.C. § 1801 et
seq.), the Resource Conservation and Recovery Act (42 U.S.C. § 6901 et
seq.), the Federal Water Pollution Control Act (33 U.S.C. § 1251 et
seq.), the Safe Drinking Water Act (42 U.S.C. § 300f et seq.), the
Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act
(15 U.S.C. § 2601 et seq.), the Occupational Safety and Health Act (29
U.S.C. § 651 et seq.), and the Emergency Planning and Community
Right-to-Know Act (42 U.S.C. § 11001 et seq.), and (ii) environmental
protection, including the National Environmental Policy Act (42 U.S.C. § 4321 et
seq.), and comparable state, provincial, territorial and foreign laws, each as
amended or supplemented, and any similar or analogous local, state, federal and foreign
statutes and regulations promulgated pursuant thereto, each as in effect as of the date of
determination.

     “Equity Interests” means, with respect to any Person, all of the shares of capital
stock of (or other ownership or profit interests 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 or profit interests in) such Person, all of the
securities convertible into or exchangeable for shares of capital stock of (or other
ownership or profit interests 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 or profit interests 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.

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

18

 

     “ERISA Affiliate” means U.S. Borrower and (i) any corporation that is a member of a
controlled group of corporations within the meaning of Section 414(b) of the Code of which
U.S. Borrower is a member; (ii) any trade or business (whether or not incorporated) which is
a member of a group of trades or businesses under common control within the meaning of
Section 414(c) of the Code of which U.S. Borrower is a member; and (iii) any member of an
affiliated service group within the meaning of Section 414(m) or (o) of the Code of which
U.S. Borrower, any corporation described in clause (i) above or any trade or business
described in clause (ii) above is a member.

     “ERISA Event” means (a) a Reportable Event with respect to a Pension Plan; (b) a
withdrawal by a 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 under
Section 4062(e) of ERISA; (c) a complete or partial withdrawal by U.S. 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 U.S. Borrower or any ERISA Affiliate.

     “Eurodollar Base Rate” has the meaning specified in the definition of Eurodollar Rate.

     “Eurodollar Rate” means for any Interest Period with respect to a Eurodollar Rate Loan,
a rate per annum determined by the applicable Agent pursuant to the following formula:

	 	 	 
	Eurodollar Rate  =

	 	Eurodollar Base Rate
	 	 
 1.00
– Eurodollar Reserve Percentage

Where,

     “Eurodollar Base Rate” means, for such Interest Period the rate per annum equal to the
British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other
commercially available source providing quotations of BBA LIBOR as designated by Agent from
time to time) at approximately 11:00 A. M., London time, two Business Days prior to the
commencement of such Interest Period, for U.S. Dollar deposits (for delivery on the first
day of such Interest Period) with a term equivalent to such Interest Period. If such rate
is not available at such time for any reason, then the “Eurodollar Base Rate” for such
Interest Period shall be the rate per annum determined by the applicable Agent to be the
rate at which deposits in U.S. Dollars for delivery on the first day of such Interest Period
in same day funds in the approximate amount of the

19

 

Eurodollar Rate Loan being made, continued or converted by Bank of America or Bank of
America Canada, as applicable, and with a term equivalent to such Interest Period would be
offered by Bank of America’s London Branch to major banks in the London interbank eurodollar
market at their request at approximately 11:00 A. M. (London time) two Business Days prior
to the commencement of such Interest Period.

     “Eurodollar Rate Loan” means a Committed Loan that bears interest at a rate based on
the Eurodollar Rate.

     “Eurodollar Reserve Percentage” means, for any day during any Interest Period, the
reserve percentage (expressed as a decimal, carried out to five decimal places) in effect on
such day, whether or not applicable to any Lender, under regulations issued from time to
time by the FRB for determining the maximum reserve requirement (including any emergency,
supplemental or other marginal reserve requirement) with respect to Eurocurrency funding
(currently referred to as “Eurocurrency liabilities”). The Eurodollar Rate for each
outstanding Eurodollar Rate Loan shall be adjusted automatically as of the effective date of
any change in the Eurodollar Reserve Percentage.

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

     “Excess Cash Flow” means, for any fiscal year of U.S. Borrower, the excess (if any) of
(a) Consolidated EBITDA for such fiscal year less (b) the sum (for such fiscal year)
of (i) Interest Charges actually paid in cash by U.S. Borrower and its Subsidiaries, (ii)
scheduled principal repayments, to the extent actually made, of Term A Loans pursuant to
Section 2.08(a), (iii) optional and mandatory prepayments of Term A Loans made
pursuant to Section 2.06, (iv) scheduled principal payments, to the extent actually
made, of the Noteholder Indebtedness, (v) optional prepayments of the Noteholder
Indebtedness made pursuant Section 4B. of the Note Agreement, (vi) all principal payments
and principal prepayments of Indebtedness of the type described in clauses (i), (iii) and
(iv) of the definition of Indebtedness (other than that described in the foregoing clauses
(ii), (iii), (iv) and (v)) which provides for non-revolving installment payments of
principal, (vii) all income taxes actually paid in cash by U.S. Borrower and its
Subsidiaries, (viii) Capital Expenditures actually made by U.S. Borrower and its
Subsidiaries in such fiscal year, (ix) dividends paid by U.S. Borrower on its Equity
Interests not to exceed $0.15 per share in any fiscal quarter and (x) amounts paid to effect
repurchases of U.S. Borrower’s Equity Interests not to exceed $3,000,000 in any fiscal year.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Exchange Rate” means, on any day, (a) with respect to Canadian Dollars in relation to
U.S. Dollars, the spot rate at which U.S. Dollars are offered on such day by Bank of America
in New York City for Canadian Dollars at approximately 12:00 p.m. (New York City time), and
(b) with respect to U.S. Dollars in relation to Canadian Dollars, the spot rate at which
Canadian Dollars are offered on such day by Bank of America in New York City for U.S. Dollars at approximately 12:00 p.m. (New York City
time), as quoted generally to customers of Bank of America.

20

 

     “Excluded Collateral” means (i) any property (whether currently existing or
subsequently acquired) subject to a Lien permitted under Section 7.04, to the extent
the agreement creating such Lien prohibits additional Liens on such property; (ii) cash
sufficient to secure U.S. Borrower’s or any of its Subsidiary’s obligations to pay its
workmen’s compensation benefits including obligations to any Person providing surety,
insurance, letters of credit or other credit support so long as such cash does not secure
any obligation for any other purpose; (iii) all properties and assets of Canadian Borrower
and any successor holder of such assets; (iv) all property purchased with proceeds of the
note issued pursuant to the Loan Agreement, dated as of November 1, 1994, between U.S.
Borrower and the City of Hammond, Indiana; (v) other property with a de minimis fair market
value, that individually or in the aggregate with all other such property, is not material
to the continued business operations of U.S. Borrower or the Subsidiary which owns such
property; and (vi) any leasehold interest in any real property leased by U.S. Borrower or
any Subsidiary the termination of which would not result in a Material Adverse Effect.

     “Excluded Taxes” means, with respect to Agents, any Lender, any L/C Issuer or any other
recipient of any payment to be made by or on account of any obligation of Borrowers
hereunder or under any other Loan Document, (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, has a permanent establishment or in which its principal office
is located or, in the case of any Lender, in which its applicable Lending Office is located,
and (b) any branch profits taxes imposed by the United States or any similar tax imposed by
Canada or any other jurisdiction in which a Borrower is located, and (c) any withholding tax
that is imposed by the United States, Canada or any other jurisdiction in which a Borrower
is located to the extent such tax (i) is in effect and would apply as of the date such
Agent, Lender or L/C Issuer becomes a party to this Agreement or (ii) relates to such
payments that would be made to any new applicable lending office designated by such Lender
and is in effect and would apply as of the time of such designation, and (d) any withholding
tax that is attributable to such Lender’s or L/C Issuer’s failure to comply with Section
3.01(e), as applicable, except (i) as a result of any Change in Law, or (ii) to the
extent the relevant Lender (or its assignee) was entitled, at the time of designation of a
new lending office (or at the time of assignment) to receive additional amounts from the
relevant Borrower with respect to such withholding tax pursuant to Section 3.01(a).

     “Existing Letters of Credit” means the letters of credit listed on Schedule
2.04.

     “Extraordinary Receipt” means any cash received by or paid to or for the account of any
Person not in the ordinary course of business in respect of proceeds of insurance (other
than proceeds of business interruption insurance to the extent such proceeds constitute compensation for lost earnings) or condemnation awards (and
payments in lieu thereof).

21

 

     “Facility” means the Term A Facility, the U.S. Revolving Credit Facility or the
Canadian Committed Loan Facility, as the context may require.

     “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 1%) charged to Bank of America on such day on such
transactions as determined by U.S. Agent.

     “Financial Covenant” means any covenant (or substantially equivalent default provision)
which requires U.S. Borrower to attain or maintain a prescribed level of financial
condition, financial achievement or results of operations or cash flow or prohibits U.S.
Borrower from taking specified actions (such as incurring Debt, selling assets, making
distributions or making investments) unless it will be in compliance with such a prescribed
level immediately thereafter, including, without limitation, covenants of the type contained
in Article VII.

     “Foreign Lender” means any Lender that is organized under the laws of a jurisdiction
other than that in which U.S. 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 a Subsidiary organized or formed under the laws of a
jurisdiction other than a State of the United States or the District of Columbia.

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

     “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.

     “Funded Debt” means with respect to any Person, all Debt which would, in accordance
with GAAP, be required to be classified as a long term liability on the balance sheet of
such Person prepared in accordance with GAAP, and without limiting the generality of the
foregoing shall also include, without limitation (i) any Indebtedness which by its terms or
by the terms of any instrument or agreement relating thereto matures, or which is otherwise
payable or unpaid, more than 365 days from the date of

22

 

creation thereof, (ii) any Indebtedness outstanding under a revolving credit or similar
agreement providing for borrowings (and renewals and extensions thereof) which would, in
accordance with GAAP, be required to be classified as a long term liability of such Person,
and (iii) any Guaranties of such Person with respect to Funded Debt of another Person.

     “GAAP” means generally accepted accounting principles in effect from time to time in
the United States.

     “Governmental Authority” means (a) the government of (i) the United States of America
or any State or other political subdivision thereof, or (ii) any jurisdiction in which U.S.
Borrower or any Subsidiary, including Canadian Borrower, conducts all or any part of its
business, or which asserts jurisdiction over any properties of U.S. Borrower or any
Subsidiary, including Canadian Borrower, or (b) any entity exercising executive,
legislative, judicial, regulatory or administrative functions of, or pertaining to, any such
government.

     “Guaranties” means all obligations (other than endorsements in the ordinary course of
business of negotiable instruments for deposit or collection) of a Person guaranteeing, or
in effect guaranteeing, any Indebtedness, dividend or other obligation of any other Person
in any manner, whether directly or indirectly, including, without limitation, all
obligations incurred through an agreement, contingent or otherwise, by such Person: (i) to
purchase such Indebtedness or obligation or any property or assets constituting security
therefor; (ii) to advance or supply funds (x) for the purchase or payment of such
Indebtedness or obligation, (y) to maintain working capital or other balance sheet
condition, or (z) otherwise to advance or make available funds for the purchase or payment
of such Indebtedness or obligation; (iii) to lease property or to purchase securities or
other property or services primarily for the purpose of assuring the owner of such
Indebtedness or obligation against loss in respect thereof; or (iv) otherwise to assure the
owner of the Indebtedness or obligation against loss in respect thereof. For the purposes
of all computations made under this Agreement, Guaranties in respect of any Indebtedness for
borrowed money shall be deemed to be Indebtedness equal to the principal amount of such
Indebtedness for borrowed money which has been guaranteed, and Guaranties in respect of any
other obligation or liability or any dividend shall be deemed to be Indebtedness equal to
the maximum aggregate amount of such obligation, liability or dividend.

     “Hammond Letter of Credit” means the letter of credit issued in connection with the
transactions contemplated by the Operative Documents.

     “Hazardous Materials” means (i) any chemical, material or substance defined as or
included in the definition of “hazardous substances,” “hazardous wastes,” “hazardous
materials,” “extremely hazardous waste,” “restricted hazardous waste,” or “toxic substances”
or “pollutant” or words of similar import under any Environmental Laws; (ii) any oil,
petroleum or petroleum derived substance, any drilling fluid, produced water or other waste
associated with the exploration, development or production of crude oil, any

23

 

flammable substance or explosive, any radioactive material, any hazardous waste or
substance, any toxic waste or substance or any other material or pollutant that (x) poses a
hazard to any property of U.S. Borrower or any of its Subsidiaries or to Persons on or about
such property, or (y) causes such property to be in violation of any Environmental Law;
(iii) any friable asbestos, urea formaldehyde foam insulation, electrical equipment which
contains any oil or electric fluid with levels of polychlorinated biphenyls in excess of
fifty parts per million; and (iv) any other chemical, material or substance, exposure to
which is prohibited, limited or regulated by any governmental authority.

     “INCO Inventory” means pre-2000 extrusion and tubing inventory that was obtained by the
Transtar Loan Parties through the acquisition of Tiernay Metals.

     “Indebtedness” means for any Person, without duplication, all (i) obligations for
borrowed money or to pay the deferred purchase price of property or assets (except trade
account payables), (ii) obligations secured by any Lien upon property or assets owned by
such Person, whether or not such Person has assumed or become liable for the payment of such
obligations, (iii) obligations created or arising under any conditional sale or other title
retention agreement with respect to property acquired, notwithstanding the fact that the
rights and remedies of the seller, lender or lessor under such agreement in the event of
default are limited to repossession or sale of property, (iv) Capitalized Lease Obligations,
and (v) Guaranties of obligations of others of the character referred to in the foregoing
clauses (i) through (iv).

     “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.

     “Interbank Reference Rate” means, in respect of any currency, the interest rate
expressed as a percentage per annum which is customarily used by Canadian Agent when
calculating interest due by it or owing to it arising from correction of errors in
transactions in that currency between it and other banks.

     “Interest Charges” means, with respect to any period, the sum (without duplication) of
the following (in each case, eliminating all offsetting debits and credits between U.S.
Borrower and its Subsidiaries and all other items required to be eliminated in the course of
the preparation of consolidated financial statements of U.S. Borrower and its Subsidiaries
in accordance with GAAP): (a) all interest in respect of Debt of U.S. Borrower and its
Subsidiaries (including, without limitation, imputed interest on Capitalized Lease
Obligations) deducted in determining Consolidated Net Income for such period, together with
all interest capitalized or deferred during such period and not deducted in determining
Consolidated Net Income for such period, and (b) all debt discount and expense amortized or
required to be amortized in the determination of Consolidated Net Income for such period.

24

 

     “Interest Payment Date” means, (a) as to any Loan other than a Base Rate Loan or a
Canadian Prime 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
Eurodollar 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 or a Canadian Prime Rate Loan (including a U.S. Swing Line Loan), the
last Business Day of each March, June, September and December and the Maturity Date.

     “Interest Period” means, as to each Eurodollar Rate Loan, the period commencing on the
date such Eurodollar Rate Loan is disbursed or converted to or continued as a Eurodollar
Rate Loan and ending on the date one, two, three or six months thereafter, as selected by a
Borrower in its Committed 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 fraud that involves management or other employees who
have a significant role in U.S. Borrower’s internal controls over financial reporting.

     “Inventory” means inventory as defined in the Uniform Commercial Code of the State of
Illinois and in the Canadian Security Documents.

     “Investment Grade” means in respect of any obligation that such obligation (i) has a
rating of Baa3 or greater by Moody’s or a rating of BBB- or greater by S&P; or (ii) in the
judgment of Required U.S. Lenders and the Other Senior Creditors constituting “Majority
Secured Parties” (as defined in the Collateral Agency and Intercreditor Agreement), has a
credit quality equal to or better than one which would be afforded by either of the ratings
described in clause (i) of this definition.

     “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 Equity
Interests 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 interest in,
another 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 or all or a

25

 

substantial part of the business of, such Person. 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.

     “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 L/C Application, and
any other document, agreement and instrument entered into by a L/C Issuer and a Borrower (or
any Subsidiary) or in favor of the applicable L/C Issuer and relating to such Letter of
Credit.

     “JDE OPCO Inventory” means Inventory of the Transtar Loan Parties (other than the INCO
Inventory) the records of which are maintained by the Transtar Loan Parties using the JD
Edwards software package.

     “Laws” means, collectively, all international, foreign, Federal, state and local
statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof
by any Governmental Authority charged with the enforcement, interpretation or administration
thereof, and all applicable administrative orders, directed duties, requests, licenses,
authorizations, standards, requirements, policies, directives, orders, judgments, decrees,
awards, notices, requests and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law.

     “L/C Advance” means, with respect to each U.S. Revolving Credit Lender and each
Canadian Lender, such Lender’s funding of its participation in any L/C Borrowing in
accordance with its Applicable Percentage of the U.S. Revolving Credit Facility, in the case
of U.S. Lenders, or its Applicable Percentage of the Canadian Committed Loan Facility, in
the case of Canadian Lenders.

     “L/C Application” means an application and agreement for the issuance or amendment of a
Letter of Credit in the form from time to time in use by the applicable L/C Issuer.

     “L/C 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 Committed
Borrowing on such date.

     “L/C 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.

26

 

     “L/C Expiration Date” means the day that is thirty days prior to the Maturity Date then
in effect (or, if such day is not a Business Day, the next preceding Business Day).

     “L/C Fee” has the meaning specified in Section 2.04(i).

     “L/C Issuers” means, collectively, U.S. L/C Issuer and Canadian L/C Issuer.

     “L/C Obligations” means, collectively, the Canadian L/C Obligations and the U.S. L/C
Obligations.

     “Lenders” means U.S. Lenders and Canadian Lenders.

     “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 Borrowers and Agents.

     “Letter of Credit” means a U.S. Letter of Credit or a Canadian Letter of Credit.

     “Lien” means any mortgage, pledge, security interest, encumbrance, lien, hypothec or
charge of any kind; including any agreement to grant any of the foregoing, any conditional
sale or other title retention agreement, any lease in the nature thereof, including a
Capitalized Lease, and the filing of or agreement to file any financing or similar statement
under the UCC, PPSA or CC in connection with any of the foregoing.

     “LIFO Reserve” means the difference between the cost of inventory using the last-in,
first-out (“LIFO”) method of valuing inventory under GAAP and the cost of inventory using
the replacement cost method under GAAP, so long as U.S. Borrower and its Subsidiaries are
reporting the value of their inventory under the LIFO method for purposes of GAAP.

     “Loan Documents” means this Agreement, each Note, each Acceptance, Draft or Discount
Note, each Issuer Document, the Agent Fee Letter, the Collateral Agency and Intercreditor
Agreement, each Collateral Document, the Subsidiary Guarantee and the Parent Guaranty.

     “Loan Parties” means, collectively, Borrowers and each Subsidiary Guarantor.

     “Loans” means the Canadian Loans (including Acceptances) and the U.S. Loans.

     “Material Adverse Effect” means (i) a material adverse effect on the business, assets,
properties, profits, prospects, operations or condition, financial or otherwise, of U.S.
Borrower and its Subsidiaries, on a consolidated basis, (ii) the impairment of the ability
of U.S. Borrower or Canadian Borrower to perform their respective obligations under this
Agreement, or (iii) the impairment of the ability of Agents and Lenders to enforce
Borrowers’ and the other Loan Parties’ obligations under this Agreement or any Loan Document
to which it is a party.

27

 

     “Material Contract” means, with respect to any Person, 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, properties or prospects of such Person.

     “Maturity Date” means September 5, 2011; provided, however that if such
date is not a Business Day, the Maturity Date shall be the next preceding Business Day.

     “Moodys” means Moody’s Investor Services, Inc.

     “Multiemployer Plan” means any employee benefit plan of the type described in Section
4001(a)(3) of ERISA, to which U.S. 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 any Disposition by any Loan Party (other than Canadian Borrower) or
any of its Subsidiaries (other than any Foreign Subsidiary), or any Extraordinary Receipt
received or paid to the account of any Loan Party (other than Canadian Borrower) or any of
its Subsidiaries (other than any Foreign Subsidiary), the excess, if any, of (i) the sum of
cash and Cash Equivalents received in connection with such transaction (including any cash
or Cash Equivalents 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 secured by the applicable asset and that is
required to be repaid in connection with such transaction (other than Indebtedness under the
Loan Documents), (B) the reasonable and customary out-of-pocket expenses incurred by such
Loan Party or such Subsidiary in connection with such transaction and (C) income taxes
reasonably estimated to be actually payable within two years of the date of the relevant
transaction as a result of any gain recognized in connection therewith; provided
that, if the amount of any estimated taxes pursuant to subclause (C) exceeds the amount of
taxes actually required to be paid in cash in respect of such Disposition, the aggregate
amount of such excess shall constitute Net Cash Proceeds; and

     (b) with respect to the sale or issuance of any Equity Interest by U.S. Borrower or any
of its Subsidiaries (other than any Foreign Subsidiary), or the incurrence or issuance of
any Indebtedness by any Loan Party (other than Canadian Borrower) or any of its Subsidiaries
(other than any Foreign Subsidiary), the excess of (i) the sum of the cash and Cash
Equivalents received in connection with such transaction over (ii) the underwriting
discounts and commissions, and other reasonable and customary out-of-pocket expenses,
incurred by such Loan Party or such Subsidiary in connection therewith.

     “Net PP&E” means, at any time, the net book value of the applicable Borrower’s
property, plant and equipment determined in accordance with GAAP as set forth in the most
recent financial statements delivered pursuant to Section 6.06.

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     “Net Working Capital” means the sum of (i) the consolidated current assets of U.S.
Borrower and its Subsidiaries determined in accordance with GAAP and (ii) 75% of the LIFO
Reserve, less the consolidated current liabilities (excluding Current Debt and Current
Maturities of Funded Debt) of U.S. Borrower and its Subsidiaries determined in accordance
with GAAP.

     “Non-Acceptance Canadian Lender” has the meaning specified in Section 2.03(i).

     “Non-U.S. Plan” means any pension, retirement, superannuation or similar policy or
arrangement sponsored, maintained or contributed to by either Borrower or any Subsidiary
Guarantor in a jurisdiction other than the United States.

     “Note” means a promissory note made by a Borrower in favor of a Lender evidencing Loans
made by such Lender, substantially in the form of Exhibit D.

     “Note Agreement” shall mean the Note Agreement, dated as of November 17, 2005, among
U.S. Borrower The Prudential Insurance Company of America and Prudential Retirement
Insurance and Annuity Company, as the same may be amended, restated or otherwise modified
from time to time.

     “Noteholder Indebtedness” shall mean the indebtedness of U.S. Borrower under the Notes
issued by the Company pursuant to the Note Agreement.

     “Notice of Drawing” has the meaning specified in Section 2.03(c).

     “Obligations” means all advances to, and debts, liabilities, obligations, covenants and
duties of, any Loan Party arising under any Loan Document or otherwise with respect to any
Loan or Letter of Credit or under any Swap Contract with any Lender or any Affiliate of any
Lender and also including Treasury Management Obligations, whether direct or indirect
(including those acquired by assumption), absolute or contingent, due or to become due, now
existing or hereafter arising and including interest and fees that accrue after the
commencement by or against any Loan Party or any Affiliate thereof of any proceeding under
any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of
whether such interest and fees are allowed claims in such proceeding.

     “Off-Balance Sheet Liabilities” means any transaction, agreement or other contractual
arrangement to which an entity unconsolidated with U.S. Borrower is a party, under which the
U.S. Borrower or any Subsidiary has:

     (a) any obligation under a guarantee contract that has any of the characteristics
identified in paragraph 3 of FASB Interpretation No. 45, Guarantor’s Accounting and
Disclosure Requirements for Guarantees, including Indirect Guarantees of Indebtedness of
Others (November 2002) (“FIN 45”), as may be modified or supplemented, and that is not
excluded from the initial recognition and measurement provisions of FIN 45 pursuant to
paragraphs 6 or 7 of that Interpretation;

29

 

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

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

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

     “Operative Documents” means (i) the Trust Indenture, dated as of November 1, 1994,
naming NBD Bank, N.A., a national banking association of Detroit, Michigan, as trustee (the
“Trustee”), and NBD Bank, N.A., a national banking association of Indianapolis, as
co-trustee, and the City of Hammond, Indiana, as issuer (the “Issuer”) of the Issuers
Adjustable Rate Economic Development Revenue Bonds (A. M. Castle & Co. Project), Series 1994
(the “Bonds”), (ii) the Loan Agreement, dated as of November 1, 1994, between U.S. Borrower
and the Issuer, (iii) the Pledge and Security Agreement, dated as November 1, 1994, among
U.S. Borrower, Bank of America (assignee of the successor by merger of NBD Bank, N.A.) and
the Trustee and each other agreement or instrument related thereto, as the same have been
and may in the future be assigned, amended, modified, supplemented or restated.

     “Organization Documents” means, (a) with respect to any corporation, the certificate or
articles of incorporation and the bylaws and shareholders declaration or unanimous
shareholders agreement (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 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 Senior Creditors” means the following parties or their permitted successor
and/or assigns: (i) The Prudential Insurance Company of America, (ii)

30

 

Prudential Retirement Insurance and Annuity Company, (iii) The Northern Trust Company,
and (iv) any other holders of Debt of U.S. Borrower incurred after the Closing Date in
compliance with Section 7.02.

     “Other Senior Debt” means Debt of U.S. Borrower and/or its Subsidiaries (i) owed
pursuant to the Note Agreement, dated as of November 17, 2005, among U.S. Borrower, The
Prudential Insurance Company of America and Prudential Retirement Insurance and Annuity
Company, as amended by a First Amendment to Note Agreement, dated as of September 5, 2006,
as amended, restated, supplemented or otherwise modified from time to time, in an aggregate
principal amount not in excess of $75,000,000, (ii) owed pursuant to the Amended and
Restated Trade Acceptance Purchase Agreement, dated as of September 5, 2006, between U.S.
Borrower and The Northern Trust Company, as amended, restated, supplemented or otherwise
modified from time to time, in an aggregate principal amount not in excess of $10,000,000,
and (iii) Debt of U.S. Borrower incurred after the Closing Date in compliance with
Section 7.02.

     “Other Taxes” means all present or future stamp, intangible 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.

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

     “Parent Guarantee Agreement” means the Guarantee Agreement, dated as of the date
hereof, by U.S. Borrower in favor of Canadian Agent, Canadian L/C Issuer and Canadian
Lenders.

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

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

     “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 U.S. Borrower or any ERISA Affiliate or to which
U.S. 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, and any similar Canadian plan.

31

 

     “Permitted Discretion” means a determination made by an Agent in its discretion
exercised in a commercially reasonable manner.

     “Permitted Encumbrance” means Liens permitted by Section 7.04.

     “Person” means any individual, corporation, partnership, joint venture, limited
liability company, association, joint-stock company, trust, unincorporated organization or
government or any governmental authority, agency or political subdivision.

     “Plan” means any employee pension benefit plan, as defined in Section 3(2) of ERISA,
that has been established by, or contributed to, or is maintained by U.S. Borrower, any
Subsidiary or any ERISA Affiliate.

     “Platform” has the meaning specified in Section 6.06.

     “PPSA” means the Personal Property Security Act as in effect in any applicable
jurisdiction.

     “Pro Rata Share” means, as to any U.S. Lender, the percentage which the sum of (i) such
U.S. Lender’s U.S. Revolving Credit Commitment, plus (ii) the outstanding principal amount
of the Term A Loans of such U.S. Lender represents of the sum of (x) all U.S. Revolving
Credit Commitments, plus (y) the outstanding principal amount of all Term A Loans.

     “Public Lender” has the meaning specified in Section 6.06.

     “Receivables Purchase Agreement” means any agreement pursuant to which one or more of
U.S. Borrower or any Subsidiary sells its accounts receivable as a means of providing it
working capital for its business operations.

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

     “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.

     “Release” means any release, spill, emission, leaking, pumping, pouring, emptying,
dumping, injection, escaping, deposit, disposal, discharge, dispersal, leaching or migration
into the indoor or outdoor environment (including the abandonment or disposal of any barrel,
container or other closed receptacle containing any Hazardous Material), or into or out of
any Facility, including the movement of any Hazardous Material through the air, soil,
surface water, groundwater or property.

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     “Rentals” means as of the date of any determination thereof, all fixed payments
(including all payments which the lessee is obligated to make to the lessor on termination
of the lease or surrender of the property) payable by U.S. Borrower or a Subsidiary, as
lessee or sublessee under a lease of real or personal property, but exclusive of any amounts
required to be paid by U.S. Borrower or a Subsidiary (whether or not designated as rents or
additional rents) on account of maintenance, repairs, insurance, taxes, assessments,
amortization and similar charges. Fixed rents under any so-called “percentage leases” shall
be computed on the basis of the minimum rents, if any, required to be paid by the lessee,
regardless of sales volume or gross revenues.

     “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 Committed Loans, a Committed Loan Notice, (b) with respect to an L/C Credit
Extension, a L/C Application, and (c) with respect to a U.S. Swing Line Loan, a Swing Line
Loan Notice.

     “Required Canadian Lenders” means, as of any date of determination, Canadian Lenders
having more than 50% of the Aggregate Canadian Commitments or, if the commitment of each
Canadian Lender to make Loans and the obligation of Canadian L/C Issuer to make Canadian L/C
Credit Extensions have been terminated pursuant to Section 8.02, Canadian Lenders
holding in the aggregate more than 50% of the Total Canadian Outstandings (with the
aggregate amount of each Canadian Lender’s risk participation and funded participation in
Canadian L/C Obligations being deemed “held” by such Canadian Lender for purposes of this
definition); provided that the Commitment of, and the portion of the Total Canadian
Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required Canadian Lenders.

     “Required Lenders” means, as of any date of determination, Lenders having more than 50%
of the Aggregate Commitments or, if the commitment of each Lender to make Loans and the
obligation of each L/C Issuer to make L/C Credit Extensions have been terminated pursuant to
Section 8.02, Lenders holding in the aggregate more than 50% of the Total
Outstandings (with the aggregate amount of each Lender’s risk participation and funded
participation in L/C Obligations and U.S. 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. For purposes of determining
Required Lenders, any amounts denominated in Canadian Dollars shall be translated into the
U.S. Dollar Equivalent at the Exchange Rate in effect on the date of determination thereof.

     “Required Term A Lenders” means, as of any date of determination, U.S. Lenders holding
more than 50% of the outstanding principal amount of the Term A Loans.

33

 

     “Required U.S. Lenders” means, as of any date of determination, U.S. Lenders holding
more than 50% of the sum of (a) Total U.S. Outstandings (with the aggregate amount of each
U.S. Revolving Credit Lender’s risk participation and funded participation in U.S. L/C
Obligations and U.S. Swing Line Loans being deemed “held” by such U.S. Revolving Credit
Lender for purposes of this definition) and (b) the aggregate unused U.S. Revolving Credit
Commitments; provided that the Commitment of, and the portion of the Total U.S.
Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of Required U.S. Lenders.

     “Required U.S. Revolving Credit Lenders” means, as of any date of determination, U.S.
Lenders holding more than 50% of the sum of (a) Total U.S. Revolving Credit Outstandings
(with the aggregate amount of each U.S. Revolving Credit Lender’s risk participation and
funded participation in U.S. L/C Obligations and U.S. Swing Line Loans being deemed “held”
by such U.S. Revolving Credit Lender for purposes of this definition) and (b) the aggregate
unused U.S. Revolving Credit Commitments; provided that the Commitment of, and the
portion of the Total U.S. Revolving Credit Outstandings held or deemed held by, any
Defaulting Lender shall be excluded for purposes of making a determination of Required U.S.
Revolving Credit Lenders.

     “Responsible Officer” means the chief executive officer, president, chief financial
officer, treasurer or assistant treasurer of a Loan Party. Any document 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 Investments” means any Investments of U.S. Borrower and its Subsidiaries
other than:

     (a) Investments in existing and hereafter created or designated Subsidiaries and any
Person that concurrently with such Investment becomes a Subsidiary;

     (b) Investments in (A) commercial paper of a domestic issuer maturing in 270 days or
less from the date of issuance which is rated P-2 or better by Moody’s or A-2 or better by
S&P, (B) certificates of deposit or banker’s acceptances issued by commercial banks or trust
companies located in the United States of America and organized under its laws or the laws
of any state thereof each having a combined capital, surplus and undivided profits of
$100,000,000 or more, (C) obligations of or fully guaranteed by the United States of America
or an agency thereof maturing within three years from the date of acquisition, (D) municipal
securities maturing within three years from the date of acquisition which are rated in one
of the top two rating classifications by at least one national rating agency, or (E) money
market instrument programs which are classified as current assets in accordance with GAAP;

34

 

     (c) Extensions of credit in the nature of accounts receivable or notes receivable
arising from the sale of goods and services in the ordinary course of business;

     (d) Shares of stock, obligations or other securities received in settlement of claims
arising in the ordinary course of business;

     (e) Participations in notes maturing within 60 days which are rated P-2 or better by
Moody’s or A-2 or better by S&P;

     (f) Advances to officers, employees, subcontractors or suppliers not exceeding
$5,000,000 in the aggregate; and

     (g) Investments existing as of the date of this Agreement and described in the attached
Schedule 1.01.

     “Revolving Loan Facility” means a loan agreement or similar facility pursuant to which
a lender or lenders provides revolving loans to U.S. Borrower or any Subsidiary for the
primary purpose of financing such Person’s ongoing business operations, whether such
agreement or facility is secured or unsecured. For the avoidance of doubt, no Receivables
Purchase Agreement shall constitute a Revolving Loan Facility.

     “Schedule I Lender” means any Canadian Lender named on Schedule I to the Bank Act
(Canada).

     “SEC” means the Securities and Exchange Commission, or any United States governmental
authority succeeding to any of its principal functions.

     “Secured” means (i) in the case of U.S. Borrower, the U.S. Obligations of U.S. Borrower
are secured by Liens on property of U.S. Borrower and Significant Subsidiaries pursuant to
U.S. Security Documents executed and delivered by U.S. Borrower and Significant Subsidiaries
pursuant to the Collateral Agency and Intercreditor Agreement, and (ii) in the case of
Canadian Borrower, the Obligations of Canadian Borrower are secured by Liens on property of
Canadian Borrower in favor of Canadian Agent pursuant to Canadian Security Documents
executed and delivered by Canadian Borrower.

     “Senior Financial Officer” means the chief financial officer, principal accounting
officer, treasurer or comptroller of U.S. Borrower.

     “Significant Subsidiary” means all Subsidiaries of U.S. Borrower other than: (i)
Foreign Subsidiaries, and (ii) any other Subsidiary of U.S. Borrower which is not required
to be a Subsidiary Guarantor pursuant to the provisions of the first sentence of Section
6.12 so long as such Subsidiary described in the foregoing has not guaranteed any Debt
of U.S. Borrower or any other Subsidiary Guarantor (other than the Debt outstanding under
this Agreement and the Other Senior Debt).

     “Solvent” and “Solvency” mean, with respect to any Person on any date of determination,
that on such date (a) the fair value of the property of such Person is greater

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than the total amount of liabilities, including contingent liabilities, of such Person,
(b) the present fair salable value of the assets of such Person is not less than the amount
that will be required to pay the probable liability of such Person on its debts as they
become absolute and matured, (c) such Person does not intend to, and does not believe that
it will, incur debts or liabilities beyond such Person’s ability to pay such debts and
liabilities as they mature, (d) such Person is not engaged in business or a transaction, and
is not about to engage in business or a transaction, for which such Person’s property would
constitute an unreasonably small capital, and (e) such Person is able to pay its debts and
liabilities, contingent obligations and other commitments as they mature in the ordinary
course of business. The amount of contingent liabilities at any time shall be computed as
the amount that, in the 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.

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

     “Subsidiary” means any Person a majority or more of the shares of Voting Stock of
which, or in the case of a Person which is not a corporation a majority or more of the
equity of which, is owned or controlled, directly or indirectly, by U.S. Borrower. Unless
otherwise specified, all references herein to a “Subsidiary” or “Subsidiaries” shall refer
to a Subsidiary or Subsidiaries of either Borrower.

     “Subsidiary Guarantee Agreement” means the Guarantee Agreement, dated as of the date
hereof, by Subsidiary Guarantors in favor of U.S. Agent, U.S. L/C Issuer and U.S. Lenders,
as amended, restated, supplemented or otherwise modified from time to time.

     “Subsidiary Guarantor” means any Subsidiary that is a party to the Subsidiary Guarantee
Agreement as of the Closing Date and each other Person which delivers a joinder agreement to
the Subsidiary Guarantee Agreement pursuant to Section 6.12 hereof, together with
the respective successors and assignee of each of the foregoing entities, unless and until
released in accordance with the terms of this Agreement or the Subsidiary Guarantee
Agreement.

     “Supermajority Lenders” means, as of any date of determination, Lenders having more
than 66-2/3% of the Aggregate Commitments or, if the commitment of each Lender to make Loans
and the obligation of each L/C Issuer to make L/C Credit Extensions have been terminated
pursuant to Section 8.02, Lenders holding in the aggregate more than 66-2/3% of the
Total Outstandings (with the aggregate amount of each Lender’s risk participation and funded
participation in L/C Obligations and U.S. 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 Supermajority Lenders. For purposes of determining
Supermajority

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Lenders, any amounts denominated in Canadian Dollars shall be translated into the U.S.
Dollar Equivalent at the Exchange Rate in effect on the date of determination thereof.

     “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
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 master agreement
(any such master agreement, together with any related schedules, a “Master Agreement”),
including any such obligations or liabilities under any Master Agreement.

     “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.

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

     “Term A Commitment” means, as to each Term A Lender, its obligation to make Term A
Loans to the U.S. Borrower pursuant to Section 2.01(a) in an aggregate principal amount at
any one time outstanding not to exceed the amount set forth opposite such Term A Lender’s
name on Schedule 2.01 under the caption “Term A Commitment” or opposite such caption
in the Assignment and Assumption pursuant to which such Term A Lender becomes a party
hereto, as applicable, as such amount may be adjusted from time to time in accordance with
this Agreement.

     “Term A Facility” means, at any time, (a) on or prior to the Closing Date, the
aggregate amount of the Term A Commitments at such time and (b) thereafter, the aggregate
principal amount of the Term A Loans of all Term A Lenders outstanding at such time.

     “Term A Lender” means (a) at any time on or prior to the Closing Date, any U.S. Lender
that has a Term A Commitment at such time and (b) at any time after the Closing Date, any
U.S. Lender that holds Term A Loans at such time. The initial Term A Lenders are listed on
Schedule 2.01 under the caption “Term A Lenders”.

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     “Term A Loan” means an advance made by any Term A Lender under the Term A Facility.

     “Term A Note” means a promissory note made by the Borrower in favor of a Term A Lender
evidencing Term A Loans made by such Term A Lender, substantially in the form of Exhibit
C-1.

     “Total Canadian Outstandings” means the aggregate Outstanding Amount of all Canadian
Loans and all Canadian L/C Obligations.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans and all L/C
Obligations.

     “Total U.S. Outstandings” means the aggregate Outstanding Amount of all U.S. Loans and
U.S. L/C Obligations.

     “Total U.S. Revolving Credit Outstandings” means the aggregate Outstanding Amount of
all U.S. Revolving Credit Loans, U.S. Swing Line Loans and U.S. L/C Obligations.

     “Transtar Acquisition” means the purchase by the U.S. Borrower of 100% of the
outstanding Equity Interests of Transtar Intermediate Holdings #2, Inc., pursuant to the
Transtar Stock Purchase Agreement.

     “Transtar Loan Parties” means, collectively, Transtar Intermediate Holdings #2, Inc.,
Transtar Metals Holdings, Inc., Transtar Inventory Corp., Transtar Metals Corp. and Transtar
Marine Corp., and their successors.

     “Transtar Stock Purchase Agreement” means that certain Stock Purchase Agreement, dated
as of August 12, 2006, among Transtar Holdings #2, LLC, as seller, and the U.S. Borrower, as
buyer.

     “Treasury Management Obligations” means all obligations, liabilities and indebtedness
of any Loan Party to any Lender or any Affiliate of any Lender with respect to treasury
management, depositary, cash management or similar services provided to any such Loan Party
by such Lender or its Affiliate.

     “Type” means, with respect to a Committed Loan, its character as a Base Rate Loan or a
Eurodollar Rate Loan or a Canadian Prime Rate Loan or an Acceptance.

     “UCC” means the Uniform Commercial Code as in effect in any applicable jurisdiction.

     “Undrawn Availability” means, as of any date of determination thereof, an amount equal
to (a) the lesser of (i) the U.S. Borrowing Base or (ii) the Aggregate U.S. Revolving Credit
Commitments, plus (b) the sum of (i) all cash on deposit by any Loan Party with any
bank or other financial institution as of the last day of the immediately

38

 

preceding calendar month, plus (ii) Undrawn Canadian Availability,
minus (c) the sum of (i) the outstanding principal balances of U.S. Revolving Credit
Loans, U.S. Swing Line Loans and Term A Loan and the face amount of all outstanding U.S.
Letters of Credit, plus (ii) all amounts due and owing to Borrowers’ and their
Subsidiaries’ trade creditors which are outstanding beyond normal trade terms, plus
(iii) all fees and expenses relating to the Acquisition and the other transactions
contemplated by this Agreement to occur on the Closing Date which have not been paid.

     “Undrawn Canadian Availability” means, as of any date of determination thereof, an
amount equal to (a) the lesser of (i) the Canadian Borrowing Base or (ii) the Aggregate
Canadian Commitments, minus (b) the sum of the outstanding principal balances of
Canadian Committed Loans and the face amount of all outstanding Canadian Letters of Credit.

     “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 2.04(c)(i).

     “U.S. Agent” means Bank of America, in its capacity as administrative agent for U.S.
Lenders hereunder, together with its successors and assigns.

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

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

     “U.S. Borrowing” means a Borrowing comprised of U.S. Loans.

     “U.S. Borrowing Base” means, at any time, the sum, expressed in U.S. Dollars, of:

     (a) 80% of U.S. Borrower’s and each Subsidiary Guarantors’ (other than the Transtar
Loan Parties’) Eligible Accounts at such time; plus

     (b) 85% of the Transtar Loan Parties’ Eligible Accounts at such time; plus

     (c) 50% of the Book Value of U.S. Borrower’s and each Subsidiary Guarantors’ (other
than the Transtar Loan Parties’) Eligible Inventory; plus

     (d) 65% of the Book Value of the Transtar Loan Parties’ Eligible Inventory that is
comprised of DPS OPCO Inventory; plus

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     (e) 50% of the Book Value of the Transtar Loan Parties’ Eligible Inventory that is
comprised of JDE OPCO Inventory; plus

     (f) 90% of the scrap value (determined in accordance with the Transtar Loan Parties’
past practices utilizing customary reserve percentages as outlined in the Project Transtar
ABL report dated August 4, 2006 prepared by KPMG LLP) of the Transtar Loan Parties’ Eligible
Inventory that is comprised of INCO Inventory; plus

     (g) (i) through and including July 28, 2007, 20% of the Net PP&E of U.S. Borrower and
each Subsidiary Guarantor, (ii) from July 29, 2007 through and including July 28, 2008, 10%
of the Net PP&E of U.S. Borrower and each Subsidiary Guarantor, and (iii) from and after
July 29, 2008, 0% of the Net PP&E of U.S. Borrower and each Subsidiary Guarantor;
plus

     (h) an amount equal to $12,500,000 less, as of any date of determination, an amount
equal to all principal payments and prepayments made with respect to the Term A Loans until
such time as the amount provided for in this clause (h) has been reduced to zero;
minus

     (i) the outstanding principal amount of all secured Indebtedness of U.S. Borrower, its
domestic Subsidiaries and Castle Metals de Mexico, S.A. de C.V., other than the U.S.
Revolving Credit Obligations and, with respect to Castle Metals de Mexico, S.A. de C.V.,
other than secured Indebtedness owing to any Person that is not a Lender or an Affiliate of
a Lender; minus

     (j) at such time as U.S. Borrower’s Obligations are not Secured, the sum of (x) 50% of
U.S. Borrower’s and each Subsidiary Guarantors’ aggregate accounts payable (other than
accounts payable, if any, that serve as the basis for causing all or any part of any Account
of U.S. Borrower or any Subsidiary Guarantor to fail to qualify as an Eligible Account),
plus (y) the outstanding principal amount of all unsecured Indebtedness of U.S.
Borrower, its domestic Subsidiaries and Castle Metals de Mexico, S.A. de C.V., other than
the Obligations and, with respect to Castle Metals de Mexico, S.A. de C.V., other than
unsecured Indebtedness owing to any Person that is not a Lender or an Affiliate of a Lender,

with the amounts referred to in clauses (a), (b), (c), (d), (e), (f) and (g) above
determined by reference to the most recent Borrowing Base Certificate and applicable
financial statements delivered to U.S. Agent by U.S. Borrower.

     “U.S. 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 U.S. Agent’s Office is located and, if such day relates to any Eurodollar Rate
Loan, means any such day on which dealings in U.S. Dollar deposits are conducted by and
between banks in the London interbank eurodollar market.

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     “U.S. Commitment” means, as to each U.S. Lender, its obligation to (a) make Term Loan A
Loans to U.S. Borrower pursuant to Section 2.01(a), (b) make U.S. Revolving Credit
Loans to U.S. Borrower pursuant to Section 2.01(b), (c) purchase participations in
U.S. L/C Obligations, and (d) purchase participations in U.S. 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 U.S. Lender becomes a party hereto, as applicable, as such amount may
be adjusted from time to time in accordance with this Agreement.

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

     “U.S. Committed Loan” means a Term Loan A Loan or a U.S. Revolving Credit Loan.

     “U.S. Dollar Equivalent” means, with respect to an amount of Canadian Dollars on any
date the amount of U.S. Dollars that may be purchased with such amount of Canadian Dollars
at the Exchange Rate with respect to Canadian Dollars on such date.

     “U.S. Dollars” and the symbol “US $” mean the lawful currency of the United States.

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

     “U.S. L/C Issuer” means Bank of America in its capacity as issuer of U.S. Letters of
Credit hereunder, or any successor issuer of U.S. Letters of Credit hereunder.

     “U.S. L/C Obligations” means, as at any date of determination, the aggregate amount
available to be drawn under all outstanding U.S. Letters of Credit plus the aggregate of all
Unreimbursed Amounts, including all L/C Borrowings in respect of U.S. Letters of Credit. For
purposes of computing the amount available to be drawn under any U.S. 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.

     “U.S. L/C Sublimit” means an amount equal to U.S. $15,000,000. The U.S. L/C Sublimit
is part of, and not in addition to, the Aggregate U.S. Commitments.

     “U.S. Lender” means any Lender that has a U.S. Commitment or any portion of the Total
U.S. Outstandings and, as the context requires, includes U.S. Swing Line Lender. The initial U.S. Lenders are listed on Schedule 2.01 under the caption
“U.S. Lenders”.

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     “U.S. Letter of Credit” means any letter of credit issued by U.S. L/C Issuer hereunder
and shall include the Existing Letters of Credit. A U.S. Letter of Credit may be a
commercial letter of credit or a standby letter of credit.

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

     “U.S. Obligations” means all Obligations relating to U.S. Loans or U.S. Letters of
Credit or Swap Contracts between U.S. Borrower and any U.S. Lender or any Affiliate of any
U.S. Lender or Treasury Management Obligations of a Loan Party to a U.S. Lender or Affiliate
of a U.S. Lender.

     “U.S. Revolving Credit Commitment” means, as to each U.S. Revolving Credit Lender, its
obligation to (a) make U.S. Revolving Credit Loans to U.S. Borrower pursuant to Section
2.01(b), (b) purchase participations in U.S. L/C Obligations, and (c) purchase
participations in U.S. 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.

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

     “U.S. Revolving Credit Lender” means any U.S. Lender that has a U.S. Revolving Credit
Commitment or any portion of the Total U.S. Revolving Credit Outstandings and, as the
context requires, include U.S. Swing Line Lender. The initial U.S. Revolving Credit Lenders
are listed on Schedule 2.01 under the caption “U.S. Revolving Credit Lenders”.

     “U.S. Revolving Credit Loan” has the meaning specified in Section 2.01(b).

     “U.S. Revolving Credit Obligations” means all Obligations relating to U.S. Revolving
Credit Loans, U.S. Swing Line Loans and U.S. L/C Obligations.

     “U.S. Security Agreement” means the Amended and Restated Security Agreement, dated as
of September 5, 2006, among U.S. Borrower, certain of its Subsidiaries and Collateral Agent,
as amended, restated, supplemented or otherwise modified from time to time.

     “U.S. Security Documents” means each of the “Security Documents”, as such term is
defined in the Collateral Agency and Intercreditor Agreement.

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     “U.S. Supermajority Lenders” means, as of any date of determination, U.S. Lenders
holding more than 66-2/3% of the sum of (a) Total U.S. Outstandings (with the aggregate
amount of each U.S. Revolving Credit Lender’s risk participation and funded participation in
U.S. L/C Obligations and U.S. Swing Line Loans being deemed “held” by such U.S. Revolving
Credit Lender for purposes of this definition) and (b) the aggregate unused U.S.
Commitments; provided that the U.S. Commitment of, and the portion of the Total U.S.
Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of
making a determination of U.S. Supermajority Lenders.

     “U.S. Swing Line” means the revolving credit facility made available by U.S. Swing Line
Lender pursuant to Section 2.05.

     “U.S. Swing Line Borrowing” means a borrowing of a U.S. Swing Line Loan pursuant to
Section 2.05.

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

     “U.S. Swing Line Loan” has the meaning specified in Section 2.05.

     “U.S. Swing Line Loan Notice” means a notice of a U.S. Swing Line Borrowing pursuant to
Section 2.05, which, if in writing, shall be substantially in the form of
Exhibit C.

     “U.S. Swing Line Sublimit” means an amount equal to the lesser of (a) $15,000,000 and
(b) the Aggregate U.S. Commitments. The U.S. Swing Line Sublimit is part of (although
uncommitted), and not in addition to, the Aggregate U.S. Commitments.

     “Voting Stock” means capital stock of any class of a corporation having power under
ordinary circumstances to vote for the election of members of the board of directors of such
corporation, or persons performing similar functions.

     “Wholly-Owned” means when applied to a Subsidiary, any Subsidiary 100% of the Voting
Stock or other equity interests of which is owned by U.S. Borrower and/or its Wholly-Owned
Subsidiaries, other than directors’ qualifying shares or, in the case of Subsidiaries
organized under the laws of a jurisdiction other than the United States or a state thereof,
nominal shares held by foreign nationals in accordance with local law.

     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

43

 

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 or otherwise modified (subject to any restrictions
on such amendments, supplements or modifications set forth herein or in any other Loan
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, re-enacting 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, supplemented or re-enacted
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
a Borrower or Required Lenders shall so request, Agents, Lenders and Borrowers 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 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) Borrowers shall provide to
Agents and Lenders financial statements and other documents required under this Agreement or
as reasonably requested hereunder setting forth a reconciliation

44

 

between calculations of such ratio or requirement made before and after giving effect
to such change in GAAP.

     1.04. Rounding. Any financial ratios required to be maintained by Borrowers 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 Central 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.

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

     1.08. Currencies; Exchange Rates. If, at any time, any amount denominated in Canadian
Dollars is required pursuant to any Loan Document to be expressed in U.S. Dollars, then such amount
shall be expressed at the U.S. Dollar Equivalent determined by U.S. Agent based on the Exchange
Rate then in effect, unless the Exchange Rate is required to be determined as of another date. If,
at any time, any amount denominated in U.S. Dollars is required pursuant to any Loan Document to be
expressed in Canadian Dollars, then such amount shall be expressed at the Canadian Dollar
Equivalent determined by U.S. Agent based on the Exchange Rate then in effect, unless the Exchange
Rate is required to be determined as of another date. Any such determinations by U.S. Agent shall
be conclusive absent manifest error.

     1.09. Pension Protection Act of 2006. In the event that compliance with the
provisions of the Pension Protection Act of 2006 by U.S. Borrower and its Subsidiaries results in
non-cash charges which are reflected on U.S. Borrower’s balance sheets or income statements, such
charges shall be disregarded for purposes of calculating Adjusted Consolidated Net Worth, the ratio
of Consolidated Debt to Consolidated Total Capitalization and the ratio of Net Working Capital to
Consolidated Debt hereunder.

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ARTICLE II

THE COMMITMENTS AND CREDIT EXTENSIONS

     2.01. The Loans.

     (a) The Term A Borrowing. Subject to the terms and conditions set forth
herein, each Term A Lender severally agrees to make a single loan to the U.S. Borrower on
the Closing Date in an amount not to exceed such Term A Lender’s Term A Commitment
Percentage of the Term A Facility. The Term A Borrowing shall consist of Term A Loans made
simultaneously by the Term A Lenders in accordance with their respective Applicable
Percentage of the Term A Facility. Amounts borrowed under this Section 2.01(a) and
repaid or prepaid may not be reborrowed. Term A Loans shall be denominated in U.S. Dollars
and may be Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

     (b) U.S. Revolving Credit Loans. Subject to the terms and conditions set forth
herein, each U.S. Lender severally agrees to make loans (each such loan, a “U.S. Revolving
Credit Loan”) to U.S. Borrower from time to time, on any U.S. Business Day during the
Availability Period, in an aggregate amount not to exceed at any time outstanding the amount
of such U.S. Lender’s U.S. Revolving Credit Commitment; provided, however,
that after giving effect to any U.S. Committed Borrowing, (i) the Total U.S. Revolving
Credit Outstandings shall not exceed the lesser of (x) the Aggregate U.S. Revolving Credit
Commitments, or (y) the U.S. Borrowing Base, and (ii) the aggregate Outstanding Amount of
the U.S. Revolving Credit Loans of any U.S. Lender, plus such U.S. Lender’s Applicable
Percentage of the Outstanding Amount of all U.S. L/C Obligations, plus such Lender’s
Applicable Revolving Credit/Committed Loan Percentage of the Outstanding Amount of all U.S.
Swing Line Loans shall not exceed such U.S. Lender’s U.S. Revolving Credit Commitment.
Within the limits of each U.S. Lender’s U.S. Revolving Credit Commitment, and subject to the
other terms and conditions hereof, U.S. Borrower may borrow under this Section
2.01(b), prepay under Section 2.06, and reborrow under this Section
2.01(b). U.S. Revolving Credit Loans shall be denominated in U.S. Dollars and may be
comprised of Base Rate Loans or Eurodollar Rate Loans, as further provided herein.

     (c) Canadian Committed Loans. Subject to the terms and conditions set forth
herein, each Canadian Lender severally agrees to make loans (each such loan, a “Canadian
Committed Loan”) to Canadian Borrower from time to time, on any Canadian Business Day during
the Availability Period, in an aggregate amount not to exceed at any time outstanding the
amount of such Canadian Lender’s Canadian Commitment; provided, however,
that after giving effect to any Canadian Committed Borrowing, (i) the Total Canadian
Outstandings shall not exceed the lesser of (x) the Aggregate Canadian Commitments, or (y)
the Canadian Borrowing Base, and (ii) the aggregate Outstanding Amount of the Canadian
Committed Loans of any Canadian Lender, plus such Canadian Lender’s Applicable Revolving
Credit/Committed Loan Percentage of the Outstanding Amount of all Canadian L/C Obligations
shall not exceed

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such Canadian Lender’s Canadian Commitment. Within the limits of each Canadian
Lender’s Canadian Commitment, and subject to the other terms and conditions hereof, Canadian
Borrower may borrow under this Section 2.01(c), prepay under Section 2.06,
and reborrow under this Section 2.01(c). Canadian Committed Loans shall be either
(A) denominated in U.S. Dollars and comprised entirely of Base Rate Loans or Eurodollar Rate
Loans, as further provided herein, or (B) denominated in Canadian Dollars and comprised
entirely of Canadian Prime Loans or Acceptances, as further provided herein.

     2.02. Borrowings, Conversions and Continuations of Committed Loans.

     (a) Each Committed Borrowing (other than Acceptances), each conversion of Committed
Loans (other than Acceptances) from one Type to the other, and each continuation of
Eurodollar Rate Loans shall be made upon the applicable Borrower’s irrevocable written
Committed Loan Notice to the applicable Agent, which may be given by facsimile. Each such
notice must be received by the applicable Agent not later than 10:00 A. M. (i) three
Business Days prior to the requested date of any Borrowing of, conversion to or continuation
of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to Base Rate
Committed Loans, (ii) one Business Day prior to the requested date of any Canadian Borrowing
of Base Rate Committed Loans or Canadian Prime Loans and (iii) on the requested date of any
U.S. Borrowing of Base Rate Committed Loans. Each such written Committed Loan Notice must
be appropriately completed and signed by a Responsible Officer of the applicable Borrower.
Each Borrowing of, conversion to or continuation of Eurodollar Rate Loans shall be in a
principal amount of U.S. $500,000 or a whole multiple of U.S. $100,000 in excess thereof.
Except as provided in Sections 2.03(c) and 2.04(c), each Borrowing of or
conversion to Base Rate Committed Loans or Canadian Prime Committed Loans shall be in a
principal amount of U.S. $500,000 or a whole multiple of U.S. $100,000 in excess thereof
with respect to Base Rate Committed Loans or Cdn. $500,000 or a whole multiple of Cdn.
$100,000 in excess thereof with respect to Canadian Prime Committed Loans. Each Committed
Loan Notice shall specify (i) whether the applicable Borrower is requesting a Committed
Borrowing, a conversion of Committed Loans from one Type to the other, or a continuation of
Eurodollar 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 Committed
Loans to be borrowed, converted or continued, (iv) the Class and Type of Committed Loans to
be borrowed or to which existing Committed Loans are to be converted, and (v) if applicable,
the duration of the Interest Period with respect thereto. If the applicable Borrower fails
to specify a Type of Committed Loan in a Committed Loan Notice or if the applicable Borrower
fails to give a timely notice requesting a conversion or continuation, then the applicable
Committed 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 Eurodollar Rate Loans. If a Borrower requests
a Borrowing of, conversion to, or continuation of Eurodollar Rate Loans in any such
Committed Loan Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month. Canadian Prime Rate Borrowings may only be
converted into a Borrowing by way of Acceptances in accordance with Section 2.03. This Section 2.02(a) shall not be construed to permit any
conversion of the currency in which a Borrowing is denominated.

47

 

     (b) Following receipt of a Committed Loan Notice, the applicable Agent shall promptly
notify each applicable Lender of the amount of its Applicable Percentage of the applicable
Committed Loans, and if no timely notice of a conversion or continuation is provided by the
applicable Borrower, the applicable Agent shall notify each applicable Lender of the details
of any automatic conversion to Base Rate Loans described in the preceding subsection. In
the case of a Committed Borrowing, each applicable Lender shall make the amount of its
Committed Loan available to the applicable Agent in immediately available funds at the
applicable Agent’s Office not later than 1:00 p.m. on the Business Day specified in the
applicable Committed 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 applicable Agent shall make all funds so received available to the applicable
Borrower in like funds as received by the applicable Agent either by (i) crediting the
account of the applicable Borrower on the books of Bank of America or Bank of America
Canada, as the case may be, 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 applicable Agent by the applicable Borrower; provided, however, that if, on the date
the Committed Loan Notice with respect to such Borrowing is given by a Borrower, there are
L/C Borrowings of such Borrower outstanding, then the proceeds of such Borrowing first,
shall be applied to the payment in full of any such L/C Borrowings, and second, shall be
made available to the applicable Borrower as provided above.

     (c) Except as otherwise provided herein, a Eurodollar Rate Loan may be continued or
converted only on the last day of an Interest Period for such Eurodollar Rate Loan. During
the existence of a Default no Loans may be requested as, converted to or continued as
Eurodollar Rate Loans or a Borrowing by way of Acceptances without the consent of Required
Lenders, and Required Lenders may demand that any or all of the then outstanding Eurodollar
Rate Loans be converted immediately to Base Rate Committed Loans and all Acceptances be
converted immediately upon their maturity to Canadian Prime Committed Loans and each
Borrower agrees to pay all amounts due under Section 3.05 in accordance with the
terms thereof due to any such conversion.

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

     (e) After giving effect to all Committed Borrowings, all conversions of Committed Loans
from one Type to the other, and all continuations of Committed Loans as the same Type, there
shall not be more than five Interest Periods in effect with respect to Eurodollar Rate Loans
to U.S. Borrower, three Interest Periods in effect with respect to Eurodollar Rate Loans to
Canadian Borrower and three Borrowings in effect by way of Acceptances.

48

 

     2.03. Acceptances.

     (a) Acceptance Commitment. Subject to the terms and conditions set forth
herein, each Canadian Lender severally agrees that Canadian Borrower may, at any time and
from time to time during the Availability Period, issue Acceptances denominated in Canadian
Dollars, in minimum denominations of Cdn. $100,000 or a whole multiple thereof and in
minimum aggregate face amounts in connection with any Notice of Drawing of Cdn. $1,000,000
or any greater whole multiple of Cdn. $100,000, each in accordance with the provisions of
this Section 2.03 and in an aggregate face amount that will not result in (i) such
Lender’s Applicable Percentage of Total Canadian Outstandings exceeding such Lender’s
Canadian Commitment, (ii) the Total Canadian Outstandings exceeding the Aggregate Canadian
Commitments, or (iii) the Total Canadian Outstandings exceeding an amount that equals the
Canadian Borrowing Base then in effect; provided that at all times the outstanding
aggregate face amount of all Acceptances made by a Canadian Lender shall equal its
Applicable Revolving Credit/Committed Loan Percentage of the outstanding face amount of all
Acceptances made by all Canadian Lenders. For purposes of this Agreement, the full face
value of an Acceptance, without discount, shall be used when calculations are made to
determine the outstanding amount of a Canadian Lender’s Acceptances; provided that
in computing the face amount of Acceptances outstanding, the face amount of an Acceptance in
respect of which the Obligations with respect to such Acceptance have been cash
collateralized by Canadian Borrower and received by Canadian Lender that created the same in
accordance with the terms of this Agreement shall not be included.

     (b) Terms of Acceptance. Each Draft shall be accepted by a Canadian Lender,
upon the written request of Canadian Borrower given in accordance with paragraph (c), by the
completion and acceptance by such Canadian Lender of a Draft (i) payable in Canadian
Dollars, drawn by Canadian Borrower on such Canadian Lender in accordance with this
Agreement, to the order of such Canadian Lender and (ii) maturing prior to the Maturity Date
on a day not less than 28 days nor more than 180 days after the date of such Draft (and in
integral maturities of one month, two months, three months or six months, or, from time to
time, such other nonstandard periods as Canadian Agent and the affected Canadian Lender(s)
may agree), excluding days of grace, all as specified in the relevant Notice of Drawing to
be delivered under paragraph (c) of this Section; provided that any maturity date
that would otherwise fall on a day that is not a Canadian Business Day shall be extended to
the next succeeding Canadian Business Day in accordance with the provisions of Section
2.13(a) mutatis mutandis.

     (c) Notice of Drawing and Discount of Acceptances.

     (i) With respect to each requested acceptance of Drafts, Canadian Borrower
shall give Canadian Agent a Notice of Drawing, substantially in the form of
Exhibit G (a “Notice of Drawing”) (which shall be irrevocable and may be
given by facsimile) to be received prior to 11:00 A. M., at least one day that is
both a Canadian Business Day and a U.S. Business Day prior to the date of the
requested acceptance, specifying:

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	 	A.	 	the date on which such Drafts are requested to
be accepted as Acceptances, which shall be a day that is both a
Canadian Business Day and a U.S. Business Day;
	 
	 	B.	 	the aggregate face amount of such Acceptances;
	 
	 	C.	 	the proposed maturity date of such Acceptances;
	 
	 	D.	 	whether Canadian Lenders must purchase or
arrange for the purchase of the Acceptances;
	 
	 	E.	 	the principal amount of the Canadian Prime
Loans, if any, to be converted to such Acceptances;
	 
	 	F.	 	the Canadian Availability (after giving effect
to such Acceptances); and
	 
	 	G.	 	such additional information as Canadian Agent
or any Canadian Lender may reasonably from time to time request to be
included in such notices.
	 
	 	H.	 	In the event that any Notice of Drawing fails
to satisfy the requirements set forth in clauses A., B. and C. above,
any requested Canadian Committed Loan in the form of an Acceptance
shall be made as or converted to a Canadian Prime Loan.

     (ii) Upon receipt of a Notice of Drawing Canadian Agent shall promptly notify
each Canadian Lender of the contents thereof and of such Canadian Lender’s ratable
share of the Acceptances requested thereunder. The aggregate face amount of the
Drafts to be accepted by a Canadian Lender shall be determined by Canadian Agent by
reference to the respective Applicable Revolving Credit/Committed Loan Percentage of
Canadian Lenders; provided that, if the face amount of an Acceptance which would
otherwise be accepted by a Canadian Lender is not Cdn.$100,000, or a whole multiple
thereof, the face amount shall be increased or reduced by Canadian Agent, in its
sole discretion, to Cdn.$100,000, or the nearest integral multiple thereof, as
appropriate.

     (iii) On each date upon which Acceptances are to be accepted, Canadian Agent
shall advise Canadian Borrower of the applicable Discount Rate for each of the
Canadian Lenders. Not later than 10:00 A. M., on such date each Canadian Lender
shall, subject to the fulfillment of the applicable conditions precedent specified
in Section 4.02 and subject to each Non-Acceptance Canadian Lender’s making
Acceptance Equivalent Loans pursuant to paragraph (i) of Section 2.03(i),
(A) on the basis of the information supplied by Canadian Agent, as aforesaid,
complete a Draft or Drafts of Canadian Borrower by filling in the amount, date and
maturity date thereof in accordance with the applicable Notice of Drawing, (B) duly
accept such Draft or Drafts, (C) discount such Acceptance

50

 

or Acceptances at the applicable Discount Rate, (D) give Canadian Agent
facsimile notice of such Canadian Lender’s acceptance of such Draft or Drafts and
confirming the amount paid to Canadian Agent for the account of Canadian Borrower
and (E) (except to the extent such Discount Proceeds are being applied to repay
maturing Acceptances in accordance with Section 2.03(e) or Canadian Prime
Loans to be converted in accordance with Section 2.03(c)(i)) remit to
Canadian Agent in Canadian Dollars in immediately available funds an amount equal to
the Discount Proceeds less the Acceptance Fee. Upon receipt by Canadian Agent of
such sums from Canadian Lenders, Canadian Agent shall make the aggregate amount
thereof available to Canadian Borrower either by (i) crediting the account of
Canadian Borrower on the books of Bank of America Canada 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) Canadian Agent by Canadian
Borrower; provided, however, that if, on the date the Notice of Drawing is given by
Canadian Borrower, there are L/C Borrowings of Canadian Borrower outstanding, then
such funds first, shall be applied to the payment in full of any such L/C
Borrowings, and second, shall be made available to Canadian Borrower as provided
above.

     (iv) Each extension of credit hereunder through the acceptance of Drafts shall
be made simultaneously and pro rata by Canadian Lenders in accordance with their
respective Canadian Commitments.

     (d) Sale of Acceptances. Canadian Borrower shall have the right to sell any
Acceptance. Canadian Lenders shall purchase or arrange for the purchase of all of the
Acceptances in the market and each Canadian Lender shall (except to the extent such Discount
Proceeds are being applied to repay maturing Acceptances in accordance with Section
2.03(e) or Canadian Prime Loans to be converted in accordance with Section
2.03(c)(i)) provide to Canadian Agent the Discount Proceeds for the account of Canadian
Borrower. The Acceptance Fee in respect of such Acceptances may, at the option of Canadian
Lender, be set off against the discount proceeds payable by Canadian Lender hereunder.

     (e) Acceptance Obligation. Canadian Borrower is obligated, and hereby
unconditionally agrees, to pay to each Canadian Lender the face amount of each Acceptance
accepted by such Canadian Lender in accordance with a Notice of Drawing pursuant to
paragraph (c) on the maturity date thereof, or on such earlier date as may be required
pursuant to provisions of this Agreement. With respect to each Acceptance which is
outstanding hereunder, Canadian Borrower shall notify Canadian Agent prior to 11:00 A. M.
one Canadian Business Day prior to the maturity date of such Acceptance (which notice shall
be irrevocable) of Canadian Borrower’s intention to issue Acceptances on such maturity date
to provide for the payment of such maturing Acceptance and shall deliver a Notice of Drawing
to Canadian Agent or that Canadian Borrower intends to repay the maturing Acceptances on the
maturity date. Any repayment of an Acceptance must be made in accordance with Section
2.13(a) on the maturity date of such Acceptance. If Canadian Borrower fails to provide
such notice to

51

 

Canadian Agent or Canadian Borrower fails to repay the maturing Acceptances, or if a
Default or an Event of Default has occurred and is continuing on such maturity date,
Canadian Borrower’s obligations in respect of the maturing Acceptances shall be deemed to
have been converted on the maturity date thereof into a Canadian Prime Loan in an amount
equal to the face amount of the maturing Acceptances. Canadian Borrower waives presentment
for payment and any other defense to payment of any amounts due to a Canadian Lender in
respect of any Acceptances accepted by such Canadian Lender under this Agreement which might
exist solely by reason of those Acceptances being held, at the maturity thereof, by that
Canadian Lender in its own right and Canadian Borrower agrees not to claim any days of grace
if that Canadian Lender, as holder, sues Canadian Borrower on those Acceptances for payment
of the amounts payable by Canadian Borrower thereunder.

     (f) Supply of Drafts and Power of Attorney. To facilitate availment of the
Borrowings by way of Acceptances, Canadian Borrower hereby appoints each Canadian Lender as
its attorney to sign and endorse on its behalf (for the purpose of acceptance and purchase
of Acceptances pursuant to this Agreement), in handwriting or by facsimile or mechanical
signature as and when deemed necessary by such Canadian Lender, blank forms of Acceptances.
In this respect, it is each Canadian Lender’s responsibility to maintain an adequate supply
of blank forms of Acceptances for acceptance under this Agreement. Canadian Borrower
recognizes and agrees that all Acceptances signed and/or endorsed on its behalf by a
Canadian Lender shall bind Canadian Borrower as fully and effectually as if signed in the
handwriting of and duly issued by the proper signing officers of Canadian Borrower. Each
Canadian Lender is hereby authorized (for the purpose of acceptance and purchase of
Acceptances pursuant to this Agreement) to issue such Acceptances endorsed in blank in such
face amounts as may be determined by such Canadian Lender; provided that the aggregate
amount thereof is equal to the aggregate amount of Acceptances required to be accepted and
purchased by such Canadian Lender in accordance with the applicable Notice of Drawing. No
Canadian Lender shall be liable for any damage, loss or other claim arising by reason of any
loss or improper use of any such instrument except the gross negligence or willful
misconduct of Canadian Lender or its officers, employees, agents or representatives. On
request by Canadian Borrower, a Canadian Lender shall cancel all forms of Acceptances which
have been pre-signed or pre-endorsed by or on behalf of Canadian Borrower and which are held
by such Canadian Lender and have not yet been issued in accordance herewith. Each Canadian
Lender further agrees to retain such records in the manner and/or the statutory periods
provided in the various Canadian provincial or federal statutes and regulations which apply
to such Canadian Lender. Each Canadian Lender shall maintain a record with respect to
Acceptances held by it in blank hereunder, voided by it for any reason, accepted and
purchased by it hereunder, and cancelled at their respective maturities. Each Canadian
Lender agrees to provide such records to Canadian Borrower at Canadian Borrower’s expense
upon request. Drafts drawn by Canadian Borrower to be accepted as Acceptances shall be
signed by a duly authorized officer or officers of Canadian Borrower or by its
attorney-in-fact including any attorney-in-fact appointed pursuant to this Section
2.03(f). Canadian Borrower hereby authorizes and requests each Canadian Lender in
accordance with each Notice of Drawing received from Canadian

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Borrower pursuant to paragraph (c) to take the measures with respect to a Draft or
Drafts of Canadian Borrower then in possession of such Canadian Lender specified in
paragraph (c)(iii) of this Section. In case any authorized signatory of Canadian Borrower
whose signature shall appear on any Draft shall cease to have such authority before the
acceptance of a Draft with respect to such Draft, the obligations of Canadian Borrower
hereunder and under such Acceptance shall nevertheless be valid for all purposes as if such
authority had remained in force until such creation.

     (g) Exculpation. No Canadian Lender shall be responsible or liable for its
failure to accept a Draft if the cause of such failure is, in whole or in part, due to the
failure of Canadian Borrower to provide the Drafts or the power of attorney described in
paragraph (f) above to such Canadian Lender on a timely basis nor shall any Canadian Lender
be liable for any damage, loss or other claim arising by reason of any loss or improper use
of any such Draft except loss or improper use arising by reason of the gross negligence or
willful misconduct of such Canadian Lender.

     (h) Rights of Canadian Lender as to Acceptances. Neither Canadian Agent nor
any Canadian Lender shall have any responsibility as to the application of the proceeds by
Canadian Borrower of any discount of any Acceptances. For greater certainty, each Canadian
Lender may, at any time, purchase Acceptances issued by Canadian Borrower and may at any
time and from time to time hold, sell, rediscount or otherwise dispose of any or all
Acceptances accepted and/or purchased by it.

     (i) Acceptance Equivalent Loans. Whenever Canadian Borrower delivers a Notice
of Drawing to Canadian Agent under this Agreement requesting Canadian Lenders to accept
Drafts, a Canadian Lender, other than a Schedule I Lender, which cannot or does not accept
Drafts (a “Non-Acceptance Canadian Lender”) shall, in lieu of accepting Drafts, make an
Acceptance Equivalent Loan. On each date on which Drafts are to be accepted, subject to the
same terms and conditions applicable to the acceptance of Drafts, any Non-Acceptance
Canadian Lender that makes an Acceptance Equivalent Loan, upon delivery by Canadian Borrower
of an executed Discount Note payable to the order of such Non-Acceptance Canadian Lender,
will remit to Canadian Agent in immediately available funds for the account of Canadian
Borrower the Acceptance equivalent discount proceeds in respect of the Discount Notes issued
by Canadian Borrower to the Non-Acceptance Canadian Lender. Each Non-Acceptance Canadian
Lender may agree, in lieu of receiving any Discount Notes, that such Discount Notes may be
uncertificated and the applicable Acceptance Equivalent Loan shall be evidenced by a loan
account which such Non-Acceptance Canadian Lender shall maintain in its name, subject to
Section 2.12, and reference to such uncertificated Discount Notes elsewhere in this
Agreement shall be deemed to include reference to the relevant Acceptance Equivalent Loan or
loan account, as applicable.

     (j) Terms Applicable to Discount Notes. The term “Acceptance” when used in
this Agreement shall be construed to include Discount Notes and all terms of this Agreement
applicable to Acceptances shall apply equally to Discount Notes evidencing Acceptance
Equivalent Loans with such changes as may in the context be necessary

53

 

(except that no Discount Note may be sold, rediscounted or otherwise disposed of by the
Non-Acceptance Canadian Lender making Acceptance Equivalent Loans). For greater certainty:

     (i) a Discount Note shall mature and be due and payable on the same date as the
maturity date for Acceptances specified in the applicable Notice of Drawing;

     (ii) an Acceptance Fee will be payable in respect of a Discount Note and shall
be calculated at the same rate and in the same manner as the Acceptance Fee in
respect of an Acceptance;

     (iii) a discount applicable to a Discount Note shall be calculated in the same
manner and at the Discount Rate that would be applicable to Acceptances accepted by
a Lender that is not a Schedule I Lender pursuant to the applicable Notice of
Drawing;

     (iv) an Acceptance Equivalent Loan made by a Non-Acceptance Canadian Lender
will be considered to be part of a Non-Acceptance Canadian Lender’s outstanding
Acceptances for all purposes of this Agreement; and

     (v) Canadian Borrower shall deliver Discount Notes to each Non-Acceptance
Canadian Lender and grants to each Non-Acceptance Canadian Lender a power of
attorney in respect of the completion and execution of Discount Notes, each in
accordance with Section 2.03(f).

     (k) Prepayment of Acceptances and Discount Notes. No Acceptance or Discount
Note may be repaid or prepaid prior to the maturity date of such Acceptance or Discount
Note, except in accordance with the provisions of Article VIII.

     (l) Depository Bills and Notes Act. At the option of Canadian Borrower and any
Canadian Lender, Acceptances and Discount Notes under this Agreement to be accepted by such
Canadian Lender may be issued in the form of depository bills and depository notes,
respectively, for deposit with The Canadian Depository for Securities Limited pursuant to
the Depository Bills and Notes Act (Canada). All depository bills and depository notes so
issued shall be governed by the Depository Bills and Notes Act (Canada) and the provisions
of this Section 2.03.

     (m) Circumstances Making Acceptances Unavailable. If Canadian Agent or
Required Canadian Lenders determines in good faith, which determination shall be final,
conclusive and binding upon Canadian Borrower, and notifies Canadian Borrower that, by
reason of circumstances affecting the money market there is no market for Acceptances or the
demand for Acceptances is insufficient to allow the sale or trading of the Acceptances
created hereunder, then:

     (i) the right of Canadian Borrower to request the acceptance and purchase of
Acceptances shall be suspended until Canadian Agent or Required

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Canadian Lenders determines that the circumstances causing such suspension no
longer exist and Canadian Agent so notifies Canadian Borrower; and

     (ii) any Notice of Drawing in respect of an Acceptance which is outstanding
shall be cancelled and such notice shall (at the option of Canadian Borrower) be
deemed to be a request for a Borrowing of or conversion to a Canadian Prime Rate
Loan in principal amount equal to the Discount Proceeds that would have been payable
in respect of the requested Acceptance less the Acceptance Fee that would have been
payable in respect thereof.

Canadian Agent shall promptly notify Canadian Borrower of the suspension of Canadian
Borrower’s right to request acceptance and purchase of Acceptances and of the termination of
any such suspension.

2.04. Letters of Credit.

(a) The Letter of Credit Commitment.

     (i) Subject to the terms and conditions set forth herein, (A) U.S. L/C Issuer
and Canadian L/C Issuer agree, in reliance upon the agreements of the other Lenders
set forth in this Section 2.04, (1) from time to time on any Business Day
during the period from the Closing Date until the L/C Expiration Date, to issue
Letters of Credit for the account of U.S. Borrower and Canadian Borrower,
respectively, and to amend or extend Letters of Credit previously issued by them, in
accordance with subsection (b) below, and (2) to honor drawings under the Letters of
Credit; (B) U.S. Revolving Credit Lenders severally agree to participate in U.S.
Letters of Credit issued for the account of U.S. Borrower and any drawings
thereunder; provided that after giving effect to any U.S. L/C Credit
Extension with respect to any U.S. Letter of Credit, (x) the Total U.S. Revolving
Credit Outstandings shall not exceed the lesser of (I) Aggregate U.S. Revolving
Credit Commitments, or (II) the U.S. Borrowing Base, (y) the aggregate Outstanding
Amount of the U.S. Revolving Credit Loans of any Lender, plus such Lender’s
Applicable Revolving Credit/Committed Loan Percentage of the Outstanding Amount of
all U.S. L/C Obligations, plus such U.S. Lender’s Applicable Revolving
Credit/Committed Loan Percentage of the Outstanding Amount of all U.S. Swing Line
Loans shall not exceed such U.S. Lender’s Revolving Credit Commitment, and (z) the
Outstanding Amount of the U.S. L/C Obligations shall not exceed the U.S. L/C
Sublimit; and (C) Canadian Lenders severally agree to participate in Canadian
Letters of Credit issued for the account of Canadian Borrower and any drawings
thereunder; provided that after giving effect to any Canadian L/C Credit Extension
with respect to any Canadian Letter of Credit, (x) the Total Canadian Outstandings
shall not exceed the lesser of (I) the Aggregate Canadian Commitments, or (II) the
Canadian Borrowing Base, (y) the aggregate Outstanding Amount of the Canadian
Committed Loans of any Canadian Lender, plus such Canadian Lender’s Applicable
Revolving Credit/Committed Loan Percentage of the Outstanding Amount of all Canadian

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L/C Obligations shall not exceed such Canadian Lender’s Commitment, and (z) the
Outstanding Amount of the Canadian L/C Obligations shall not exceed the Canadian L/C
Sublimit. Each request by a Borrower for the issuance or amendment of a Letter of
Credit shall be deemed to be a representation by such Borrower that the applicable
L/C 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, each Borrower’s ability to obtain Letters of Credit
shall be fully revolving, and accordingly each 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. All Existing Letters of Credit shall be
deemed to have been issued pursuant hereto, shall constitute U.S. Letters of Credit
issued at the request of U.S. Borrower, and from and after the Closing Date shall be
subject to and governed by the terms and conditions hereof.

     (ii) Neither L/C Issuer shall issue any Letter of Credit, if:

	 	A.	 	subject to Section 2.04(b)(iv), the
expiry date of such requested Letter of Credit would occur more than
twelve months after the date of issuance or last extension, unless
Required Lenders have approved such expiry date; or
	 
	 	B.	 	the expiry date of such requested Letter of
Credit would occur after the L/C Expiration Date, unless, in the case
of a U.S. Letter of Credit, all U.S. Lenders or, in the case of a
Canadian Letter of Credit, all Canadian Lenders, have approved such
expiry date.

     (iii) Neither L/C Issuer shall 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 applicable L/C Issuer from issuing such Letter
of Credit, or any Law applicable to such L/C Issuer or any request or
directive (whether or not having the force of law) from any
Governmental Authority with jurisdiction over the applicable L/C Issuer
shall prohibit, or request that such L/C Issuer refrain from, the
issuance of letters of credit generally or such Letter of Credit in
particular or shall impose upon such L/C Issuer with respect to such
Letter of Credit any restriction, reserve or capital requirement (for
which such L/C Issuer is not otherwise compensated hereunder) not in
effect on the Closing Date, or shall impose upon such L/C Issuer any
unreimbursed loss, cost or expense which was not applicable on the
Closing Date and which such L/C Issuer in good faith deems material to
it;

56

 

	 	B.	 	the issuance of such Letter of Credit would
violate one or more policies of the applicable L/C Issuer applicable to
letters of credit generally;
	 
	 	C.	 	except as otherwise agreed by the applicable
Agent and the applicable L/C Issuer, such Letter of Credit is in an
initial stated amount less than (i) U.S. $100,000, in the case of a
commercial U.S. Letter of Credit, or U.S. $100,000, in the case of a
standby U.S. Letter of Credit or (ii) Cdn. $100,000 in the case of a
commercial Canadian Letter of Credit or Cdn. $100,000 in the case of a
standby Canadian Letter of Credit;
	 
	 	D.	 	any U.S. Letter of Credit is to be denominated
in a currency other than U.S. Dollars or any Canadian Letter of Credit
is to be denominated in a currency other than U.S. Dollars or Canadian
Dollars;
	 
	 	E.	 	a default of any Lender’s obligations to fund
under Section 2.04(c) exists or any Lender is at such time a
Defaulting Lender hereunder, unless the applicable L/C Issuer has
entered into satisfactory arrangements with the applicable Borrower or
such Lender to eliminate such L/C Issuer’s risk with respect to such
Lender; or
	 
	 	F.	 	unless specifically provided for in this
Agreement, such Letter of Credit contains any provisions for automatic
reinstatement of the stated amount after any drawing thereunder.

     (iv) Neither L/C Issuer shall amend any Letter of Credit if such L/C Issuer
would not be permitted at such time to issue such Letter of Credit in its amended
form under the terms hereof.

     (v) Neither L/C Issuer shall be under any obligation to amend any Letter of
Credit if (A) such L/C 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) U.S. L/C Issuer shall act on behalf of U.S. Lenders and Canadian L/C
Issuer shall act on behalf of Canadian Lenders with respect to any Letters of Credit
issued by it and the documents associated therewith, and each L/C Issuer shall have
all of the benefits and immunities (A) provided to Agents in Article IX with respect
to any acts taken or omissions suffered by either L/C 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”
or “Agent” as used in Article IX included each L/C Issuer

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with respect to such acts or omissions, and (B) as additionally provided herein
with respect to L/C Issuer.

     (b) Procedures for Issuance and Amendment of Letters of Credit; Auto-Extension
Letters of Credit.

     (i) Each Letter of Credit shall be issued or amended, as the case may be, upon
the request of U.S. Borrower delivered to U.S. L/C Issuer (with a copy to U.S.
Agent) or upon the request of Canadian Borrower delivered to Canadian L/C Issuer
(with a copy to Canadian Agent) in the form of a L/C Application, appropriately
completed and signed by a Responsible Officer of the applicable Borrower. Such L/C
Application must be received by the applicable L/C Issuer and the applicable Agent
not later than 10:00 A. M. at least two Business Days (or such later date and time
as the applicable Agent and the applicable L/C 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 L/C Application shall specify in form and detail
satisfactory to the applicable L/C Issuer: (A) the proposed issuance date of the
requested Letter of Credit (which shall be a Business Day); (B) the amount thereof;
(C) in the case of Canadian Letters of Credit, whether the Letter of Credit is to be
denominated in U.S. Dollars or Canadian Dollars, (D) the expiry date thereof; (E)
the name and address of the beneficiary thereof; (F) the documents to be presented
by such beneficiary in case of any drawing thereunder; (G) the full text of any
certificate to be presented by such beneficiary in case of any drawing thereunder;
and (H) such other matters as the applicable L/C Issuer may require. In the case of
a request for an amendment of any outstanding Letter of Credit, such L/C Application
shall specify in form and detail satisfactory to the applicable L/C Issuer (A) the
Letter of Credit to be amended; (B) the proposed date of amendment thereof (which
shall be a Business Day); (C) the nature of the proposed amendment; and (D) such
other matters as the applicable L/C Issuer may require. Additionally, the
applicable Borrower shall furnish to the applicable L/C Issuer and the applicable
Agent such other documents and information pertaining to such requested Letter of
Credit issuance or amendment, including any Issuer Documents, as such L/C Issuer or
such Agent may reasonably require.

     (ii) Promptly after receipt of any L/C Application at the address set forth in
Section 10.02 for receiving L/C Applications and related correspondence, the
applicable L/C Issuer will confirm with the applicable Agent (by telephone or in
writing) that the applicable Agent has received a copy of such L/C Application from
the applicable Borrower and, if not, such L/C Issuer will provide the applicable
Agent with a copy thereof. Unless (x) in the case of U.S. Letters of Credit the
U.S. L/C Issuer has received written notice from any U.S. Lender, U.S. Agent or any
U.S. Loan Party, or (y) in the case of Canadian Letters of Credit, Canadian L/C
Issuer has received written notice from any Canadian Lender, Canadian Agent or any
Canadian Loan Party, in either case at least one Business Day prior to the requested
date of issuance or amendment of the applicable Letter

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of Credit, that one or more applicable conditions in Article IV shall not then
be satisfied, then, subject to the terms and conditions hereof, the applicable L/C
Issuer shall, on the requested date, issue a Letter of Credit for the account of
Borrower requesting the Letter of Credit or enter into the applicable amendment, as
the case may be, in each case in accordance with such L/C Issuer’s usual and
customary business practices. Immediately upon the issuance of each Letter of
Credit, each U.S. Lender, in the case of a U.S. Letter of Credit, and each Canadian
Lender, in the case of a Canadian Letter of Credit, shall be deemed to, and hereby
irrevocably and unconditionally agrees to, purchase from the applicable L/C Issuer a
risk participation in such Letter of Credit in an amount equal to the product of
such Lender’s Applicable Revolving Credit/Committed Loan 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, U.S. L/C Issuer, in the case of a U.S. Letter of Credit, will also deliver
to U.S. Borrower and U.S. Agent and Canadian L/C Issuer, in the case of a Canadian
Letter of Credit, will also deliver to Canadian Borrower and Canadian Agent a true
and complete copy of such Letter of Credit or amendment.

     (iv) If either Borrower so requests in any applicable L/C Application, the
applicable L/C Issuer may, in its sole and absolute discretion, agree to issue a
Letter of Credit that has automatic extension provisions (each, an “Auto-Extension
Letter of Credit”); provided that any such Auto-Extension Letter of Credit
must permit the applicable L/C Issuer to prevent any such extension at least once in
each twelve-month period (commencing with the date of issuance of such Letter of
Credit) by giving prior notice to the beneficiary thereof not later than a day (the
“Non-Extension Notice Date”) in each such twelve-month period to be agreed upon at
the time such Letter of Credit is issued. Unless otherwise directed by the
applicable L/C Issuer, the applicable Borrower shall not be required to make a
specific request to such L/C Issuer for any such extension. Once an Auto-Extension
Letter of Credit has been issued, U.S. Lenders, in the case of a U.S. Letter of
Credit, and Canadian Lenders, in the case of a Canadian Letter of Credit, shall be
deemed to have authorized (but may not require) the applicable L/C Issuer to permit
the extension of such Letter of Credit at any time to an expiry date not later than
the L/C Expiration Date; provided, however, that the applicable L/C
Issuer shall not permit any such extension if (A) such L/C Issuer has determined
that it would not be permitted, or would have no obligation, at such time to issue
such Letter of Credit in its revised form (as extended) under the terms hereof (by
reason of the provisions of clause (ii) or (iii) of Section 2.04(a) or
otherwise), or (B) it has received notice (which may be by telephone or in writing)
on or before the day that is five Business Days before the Non-Extension Notice Date
(1) from, in the case of a U.S. Letter of Credit, U.S. Agent that Required U.S.
Lenders have elected not to permit such extension or, in the case of a Canadian
Letter of Credit, Canadian Agent that Required Canadian Lenders have elected not to
permit such extension or (2) in the case of a U.S.

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Letter of Credit from U.S. Agent, any U.S. Lender or U.S. Borrower, or in the
case of a Canadian Letter of Credit, from Canadian Agent, any Canadian Lender or
Canadian Borrower, that one or more of the applicable conditions specified in
Section 4.02 is not then satisfied and directing the applicable L/C Issuer
not to permit such extension.

     (v) If either Borrower so requests in any applicable Letter of Credit
Application, the applicable L/C Issuer may, in its sole and absolute discretion,
agree to issue a Letter of Credit that permits the automatic reinstatement of all or
a portion of the stated amount thereof after any drawing thereunder (each, an
“Auto-Reinstatement Letter of Credit”). Unless otherwise directed by the applicable
L/C Issuer, the applicable Borrower shall not be required to make a specific request
to such L/C Issuer to permit such reinstatement. Once an Auto-Reinstatement Letter
of Credit has been issued, except as provided in the following sentence, U.S.
Lenders, in the case of a U.S. Letter of Credit, and Canadian Lenders, in the case
of a Canadian Letter of Credit, shall be deemed to have authorized (but may not
require) the applicable L/C Issuer to reinstate all or a portion of the stated
amount thereof in accordance with the provisions of such Letter of Credit.
Notwithstanding the foregoing, if such Auto-Reinstatement Letter of Credit permits
the applicable L/C Issuer to decline to reinstate all or any portion of the stated
amount thereof after a drawing thereunder by giving notice of such non-reinstatement
within a specified number of days after such drawing (the “Non-Reinstatement
Deadline”), the applicable L/C Issuer shall not permit such reinstatement if it has
received a notice (which may be by telephone or in writing) on or before the day
that is five Business Days before the Non-Reinstatement Deadline (A) in the case of
a U.S. Letter of Credit, from U.S. Agent that U.S. Required Lenders have elected not
to permit such reinstatement, or in the case of a Canadian Letter of Credit, from
Canadian Agent that Required Canadian Lenders have elected not to permit such
reinstatement or (B) in the case of a U.S. Letter of Credit, from U.S. Agent, any
U.S. Lender or U.S. Borrower, or, in the case of a Canadian Letter of Credit, from
Canadian Agent, any Canadian Lender or Canadian Borrower, that one or more of the
applicable conditions specified in Section 4.02 is not then satisfied
(treating such reinstatement as an L/C Credit Extension for purposes of this clause)
and, in each case, directing the applicable L/C Issuer not to permit such
reinstatement.

     (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 applicable L/C Issuer shall, in the case
of a U.S. Letter of Credit, notify U.S. Borrower and U.S. Agent thereof, or, in the
case of a Canadian Letter of Credit, notify Canadian Borrower and Canadian Agent
thereof. On the date of any payment by the applicable L/C Issuer under a Letter of
Credit (each such date, an “Honor Date”), U.S. Agent shall promptly notify each U.S.
Lender, in the case of a U.S. Letter of Credit, or Canadian Agent shall notify each
Canadian Lender, in the case of a Canadian

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Letter of Credit, of the Honor Date, the amount of the drawing (the
“Unreimbursed Amount”), and the amount of such Lender’s Applicable Revolving
Credit/Committed Loan Percentage thereof. On the Honor Date, the applicable
Borrower shall be deemed to have requested a Committed Borrowing of Base Rate Loans,
in the case of a Letter of Credit denominated in U.S. Dollars, or Canadian Prime
Loans, in the case of a Letter of Credit denominated in Canadian Dollars, to be
disbursed 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 or Canadian Prime Loans, as applicable, but subject to the amount of
the unutilized portion of the Aggregate Commitments and the conditions set forth in
Section 4.02 (other than the delivery of a Committed Loan Notice). Any
notice given by either L/C Issuer or either 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 applicable Lender shall upon any notice pursuant to Section
2.03(c)(i) make funds available to the applicable Agent for the account of the
applicable L/C Issuer at the applicable Agent’s Office in an amount equal to its
Applicable Revolving Credit/Committed Loan Percentage of the Unreimbursed Amount not
later than 12:00 noon on the Business Day specified in such notice by the applicable
Agent, whereupon, subject to the provisions of Section 2.04(c)(iii), each
Lender that so makes funds available shall be deemed to have made a Base Rate
Committed Loan or a Canadian Prime Committed Loan, as applicable, to the applicable
Borrower in such amount. The applicable Agent shall remit the funds so received to
the applicable L/C Issuer.

     (iii) With respect to any Unreimbursed Amount that is not fully refinanced (i)
by a Committed Borrowing of Base Rate Loans in the case of a U.S. Letter of Credit,
or (ii) by a Committed Borrowing of Canadian Prime Loans in the case of a Canadian
Letter of Credit because the conditions set forth in Section 4.02 cannot be
satisfied or for any other reason, the applicable Borrower shall be deemed to have
incurred from the applicable L/C Issuer an L/C Borrowing in the amount of the
Unreimbursed Amount that is not so refinanced, which L/C 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 Agent for the account of L/C Issuer
pursuant to Section 2.03(c)(ii) shall be deemed payment in respect of its
participation in such L/C Borrowing and shall constitute an L/C Advance from such
Lender in satisfaction of its participation obligation under this Section
2.04.

     (iv) Until each Lender funds its Committed Loan or L/C Advance pursuant to this
Section 2.04(c) to reimburse L/C Issuer for any amount drawn under any
Letter of Credit, interest in respect of such Lender’s Applicable Revolving
Credit/Committed Loan Percentage of such amount shall be solely for the account of
the applicable L/C Issuer.

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     (v) Each Lender’s obligation to make Committed Loans or L/C Advances to
reimburse the applicable L/C Issuer for amounts drawn under Letters of Credit, as
contemplated by 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 applicable L/C Issuer, the applicable 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 Committed
Loans pursuant to this Section 2.04(c) is subject to the conditions set
forth in Section 4.02 (other than delivery by the applicable Borrower of a
Committed Loan Notice). No such making of an L/C Advance shall relieve or otherwise
impair the obligation of any Borrower to reimburse the applicable L/C Issuer for the
amount of any payment made by the applicable L/C Issuer under any Letter of Credit,
together with interest as provided herein.

     (vi) If any Lender fails to make available to U.S. Agent, in the case of a U.S.
Letter of Credit, or Canadian Agent, in the case of a Canadian Letter of Credit, for
the account of the applicable L/C Issuer any amount required to be paid by such
Lender pursuant to the foregoing provisions of this Section 2.04(c) by the
time specified in Section 2.04(c)(ii), the applicable L/C Issuer shall be
entitled to recover from such Lender (acting through the applicable 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 such L/C
Issuer at a rate per annum equal to the greater of (A) the Federal Funds Rate or the
Interbank Reference Rate, as applicable, and (B) a rate determined by such L/C
issuer in accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by such L/C 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 Committed Loan
included in the relevant Committed Borrowing or L/C Advance in respect of the
relevant L/C Borrowing, as the case may be. A certificate of the applicable L/C
Issuer submitted to any Lender (through the applicable 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 either L/C Issuer has made a payment under any Letter of
Credit and has received from any Lender such Lender’s L/C Advance in respect of such
payment in accordance with Section 2.04(c), if the applicable Agent receives
for the account of such L/C Issuer any payment in respect of the related
Unreimbursed Amount or interest thereon (whether directly from the applicable
Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the
applicable Agent), the applicable Agent will distribute to such

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Lender its Applicable Revolving Credit/Committed Loan Percentage thereof in the
same funds as those received by Agent.

     (ii) If any payment received by an Agent for the account of a L/C Issuer
pursuant to Section 2.04(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 such L/C Issuer in its discretion), each U.S. Lender, in
the case of a U.S. Letter of Credit, and each Canadian Lender, in the case of a
Canadian Letter of Credit, shall pay to the applicable Agent for the account of the
applicable L/C Issuer its Applicable Revolving Credit/Committed Loan Percentage
thereof on demand of such 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 or the Interbank Reference Rate, as applicable, from time to time
in effect. The obligations of 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 a Borrower to reimburse the
applicable L/C Issuer for each drawing under each Letter of Credit and to repay each L/C
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 such 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), L/C 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 or invalid 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 a L/C 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 a L/C 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

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of Credit, including any arising in connection with any proceeding under any
Debtor Relief 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, a Borrower or any Subsidiary.

     Each 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 such
Borrower’s instructions or other irregularity, such Borrower will immediately notify the applicable
L/C Issuer. Each Borrower shall be conclusively deemed to have waived any such claim against the
applicable L/C Issuer and its correspondents unless such notice is given as aforesaid.

     (f) Role of L/C Issuers. Each Lender and each Borrower agree that, in paying
any drawing under a Letter of Credit, the applicable L/C 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 L/C Issuers, Agents, any of their respective
Related Parties nor any correspondent, participant or assignee of any L/C 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 Lenders or 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. Each 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 any 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 L/C Issuers,
Agents, any of their respective Related Parties nor any correspondent, participant or
assignee of a L/C Issuer, shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.04(e); provided, however, that
anything in such clauses to the contrary notwithstanding, a Borrower may have a claim
against the applicable L/C Issuer, and the applicable L/C Issuer may be liable to a
Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential
or exemplary, damages suffered by such Borrower which such Borrower proves were caused by
such L/C Issuer’s willful misconduct or gross negligence or such L/C 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, each L/C 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 L/C
Issuers 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

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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 U.S. Agent, in the case of a U.S.
Letter of Credit, or Canadian Agent, in the case of a Canadian Letter of Credit, (i) if the
applicable L/C Issuer has honored any full or partial drawing request under any Letter of
Credit and such drawing has resulted in an L/C Borrowing, or (ii) if, as of the L/C
Expiration Date, any L/C Obligation for any reason remains outstanding, U.S. Borrower, in
the case of a U.S. Letter of Credit, or Canadian Borrower, in the case of a Canadian Letter
of Credit, shall, in each case, immediately Cash Collateralize the then Outstanding Amount
of all L/C Obligations. Sections 2.06 and 8.02(c) set forth certain
additional requirements to deliver Cash Collateral hereunder. For purposes hereof, “Cash
Collateralize” means to pledge and deposit with or deliver to the applicable Agent, for the
benefit of the applicable L/C Issuer and the applicable Lenders, as collateral for the L/C
Obligations, cash or deposit account balances pursuant to documentation in form and
substance satisfactory to the applicable Agent and the applicable L/C Issuer (which
documents are hereby consented to by the applicable Lenders). Derivatives of such term have
corresponding meanings. U.S. Borrower hereby grants to U.S. Agent, for the benefit of U.S.
L/C Issuer and U.S. 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 Bank of America or Bank of America Canada,
as applicable. All amounts of cash or deposit account balances under this clause
(g), to the extent not applied to the Obligations in accordance with the terms of this
Agreement, shall be returned to the applicable Borrower within three (3) Business Days after
all L/C Borrowings of such Borrower have been paid, all Events of Default shall have been
waived or cured and such Borrower has provided a written request for the return of such
funds.

     (h) Applicability of ISP and UCP. Unless otherwise expressly agreed by the
applicable L/C Issuer and the applicable Borrower when a Letter of Credit is issued
(including any such agreement applicable to an Existing Letter of Credit), (i) the rules of
the ISP shall apply to each standby Letter of Credit, and (ii) the rules of the Uniform
Customs and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce (the “ICC”) at the time of issuance shall apply to each
commercial Letter of Credit.

     (i) L/C Fees. U.S. Borrower shall pay to U.S. Agent for the account of each
U.S. Lender, and Canadian Borrower shall pay to Canadian Agent for the account of each
Canadian Lender, in accordance with its Applicable Percentage a Letter of Credit fee (the
“L/C Fee”) (i) for each commercial Letter of Credit equal to the Applicable Rate
times the daily amount available to be drawn under such Letter of Credit, and (ii)
for each standby Letter of Credit equal to the Applicable Rate times the daily amount
available to be drawn under such 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. L/C Fees shall be (i) due and
payable on the last Business Day of each March, June, September and December,

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commencing with the first such date to occur after the issuance of such Letter of
Credit, on the L/C Expiration Date and thereafter on demand and (ii) computed on a quarterly
basis in arrears. If there is any change in the Applicable Rate during any quarter, the
daily amount available to be drawn under each Letter of Credit shall be computed and
multiplied by the Applicable Rate separately for each period during such quarter that such
Applicable Rate was in effect. Notwithstanding anything to the contrary contained herein,
upon the request of the Required Lenders, while any Event of Default exists, all L/C Fees
shall accrue at the Default Rate.

     (j) Fronting Fee and Documentary and Processing Charges Payable to L/C Issuers.
Each Borrower shall pay directly to L/C Issuers for their own respective accounts a
fronting fee (i) with respect to each commercial Letter of Credit, at the rate of 0.125%,
computed on the amount of such Letter of Credit, and payable upon the issuance thereof, (ii)
with respect to any amendment of a commercial Letter of Credit increasing the amount of such
Letter of Credit, at a rate separately agreed between the applicable Borrower and the
applicable L/C Issuer, computed on the amount of such increase, and payable upon the
effectiveness of such amendment, and (iii) with respect to each standby Letter of Credit,
at the rate per annum equal to 0.125%, computed on the daily amount available to be drawn
under such Letter of Credit on a quarterly basis in arrears Such fronting fee shall be due
and payable on the tenth Business Day after the end of each March, June, September and
December in respect of the most recently-ended quarterly period (or portion thereof, in the
case of the first payment), commencing with the first such date to occur after the issuance
of such Letter of Credit, on the L/C Expiration Date and thereafter on demand. 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. In
addition, each Borrower shall pay directly to the applicable L/C Issuer for its own account
the customary issuance, presentation, amendment and other processing fees, and other
standard costs and charges, of such L/C 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 Documents, the terms hereof shall control.

     (l) Letters of Credit Issued for Subsidiaries. Notwithstanding that a U.S.
Letter of Credit issued or outstanding hereunder is in support of any obligations of, or is
for the account of, a Subsidiary, U.S. Borrower shall be obligated to reimburse U.S. L/C
Issuer hereunder for any and all drawings under such U.S. Letter of Credit. U.S. Borrower
hereby acknowledges that the issuance of U.S. Letters of Credit for the account of
Subsidiaries inures to the benefit of U.S. Borrower, and that U.S. Borrower’s business
derives substantial benefits from the businesses of such Subsidiaries.

     2.05. U.S. Swing Line Loans.

     (a) The U.S. Swing Line. Subject to the terms and conditions set forth herein,
U.S. Swing Line Lender agrees, in reliance upon the agreements of the other U.S.

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Lenders set forth in this Section 2.05, to make loans (each such loan, a “U.S.
Swing Line Loan”) to U.S. Borrower from time to time on any U.S. Business Day during the
Availability Period in an aggregate amount not to exceed at any time outstanding the amount
of the U.S. Swing Line Sublimit, notwithstanding the fact that such U.S. Swing Line Loans,
when aggregated with the Applicable Revolving Credit/Committed Loan Percentage of the
Outstanding Amount of U.S. Committed Loans and U.S. L/C Obligations of U.S. Lender acting as
U.S. Swing Line Lender, may exceed the amount of such U.S. Lender’s Commitment;
provided, however, that after giving effect to any U.S. Swing Line Loan, (i)
the Total U.S. Revolving Credit Outstandings shall not exceed the lesser of (x) the
Aggregate U.S. Revolving Credit Commitments or (y) the U.S. Borrowing Base, and (ii) the
aggregate Outstanding Amount of the U.S. Revolving Credit Loans of any U.S. Lender, plus
such U.S. Lender’s Applicable Revolving Credit/Committed Loan Percentage of the Outstanding
Amount of all U.S. L/C Obligations, plus such U.S. Lender’s Applicable Revolving
Credit/Committed Loan Percentage of the Outstanding Amount of all U.S. Swing Line Loans
shall not exceed such U.S. Lender’s U.S. Revolving Credit Commitment, and provided,
further, that U.S. Borrower shall not use the proceeds of any U.S. Swing Ling Loan
to refinance any outstanding U.S. Swing Line Loan. Within the foregoing limits, and subject
to the other terms and conditions hereof, U.S. Borrower may borrow under this Section
2.05, prepay under Section 2.06 and reborrow under this Section 2.05.
Each U.S. Swing Line Loan shall be a Base Rate Loan. Immediately upon the making of a U.S.
Swing Line Loan, each U.S. Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from U.S. Swing Line Lender a risk participation in such
U.S. Swing Line Loan in an amount equal to the product of such U.S. Lender’s Applicable
Revolving Credit/Committed Loan Percentage times the amount of such U.S. Swing Line Loan.

     (b) Borrowing Procedures. Each U.S. Swing Line Borrowing shall be made upon
U.S. Borrower’s irrevocable written Swing Line Loan Notice to U.S. Swing Line Lender and
U.S. Agent, which may be given by facsimile. Each such written Swing Line Loan Notice must
be received by U.S. Swing Line Lender and U.S. 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 $200,000, and (ii) the requested borrowing date, which shall be a U.S. Business
Day. Each such written Swing Line Loan Notice must be appropriately completed and signed by
a Responsible Officer of U.S. Borrower. Promptly after receipt by U.S. Swing Line Lender of
any Swing Line Loan Notice, U.S. Swing Line Lender will confirm with U.S. Agent (by
telephone or in writing) that U.S. Agent has also received such Swing Line Loan Notice and,
if not, U.S. Swing Line Lender will notify U.S. Agent (by telephone or in writing) of the
contents thereof. Unless U.S. Swing Line Lender has received notice (by telephone or in
writing) from U.S. Agent (including at the request of any U.S. Lender) prior to 2:00 p.m. on
the date of the proposed U.S. Swing Line Borrowing (A) directing U.S. 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 2.05(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, U.S. 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 U.S. Swing Line Loan
available to U.S.

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Borrower at its office by crediting the account of U.S. Borrower on the books of U.S.
Swing Line Lender in immediately available funds. U.S. Revolving Credit Lenders agree that
U.S. Swing Line Lender may agree to modify the borrowing procedures used in connection with
the U.S. Swing Line in its discretion and without affecting any of the obligations of U.S.
Revolving Credit Lenders hereunder other than notifying U.S. Agent of a Swing Line Loan
Notice.

     (c) Refinancing of U.S. Swing Line Loans.

     (i) U.S. Swing Line Lender at any time in its sole and absolute discretion may
request, on behalf of U.S. Borrower (which hereby irrevocably authorizes U.S. Swing
Line Lender to so request on its behalf), that each U.S. Lender make a Base Rate
U.S. Revolving Credit Loan in an amount equal to such U.S. Lender’s Applicable
Revolving Credit/Committed Loan Percentage of the amount of U.S. Swing Line Loans
then outstanding. Such request shall be made in writing (which written request
shall be deemed to be a Committed 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 Aggregate Revolving Credit Commitments and the
conditions set forth in Section 4.02. U.S. Swing Line Lender shall furnish
U.S. Borrower with a copy of the applicable Committed Loan Notice promptly after
delivering such notice to U.S. Agent. Each U.S. Lender shall make an amount equal
to its Applicable Revolving Credit/Committed Loan Percentage of the amount specified
in such Committed Loan Notice available to U.S. Agent in immediately available funds
for the account of U.S. Swing Line Lender at U.S. Agent’s Office not later than 1:00
p.m. on the day specified in such Committed Loan Notice, whereupon, subject to
Section 2.05(c)(ii), each U.S. Lender that so makes funds available shall be
deemed to have made a Base Rate U.S. Revolving Credit Loan to U.S. Borrower in such
amount. U.S. Agent shall remit the funds so received to U.S. Swing Line Lender.

     (ii) If for any reason any U.S. Swing Line Loan cannot be refinanced by such a
Committed Borrowing in accordance with Section 2.05(c)(i), the request for
Base Rate U.S. Revolving Credit Loans submitted by U.S. Swing Line Lender as set
forth herein shall be deemed to be a request by U.S. Swing Line Lender that each of
the U.S. Lenders fund its risk participation in the relevant U.S. Swing Line Loan
and each U.S. Lender’s payment to U.S. Agent for the account of U.S. Swing Line
Lender pursuant to Section 2.05(c)(i) shall be deemed payment in respect of
such participation.

     (iii) If any U.S. Lender fails to make available to U.S. Agent for the account
of U.S. Swing Line Lender any amount required to be paid by such U.S. Lender
pursuant to the foregoing provisions of this Section 2.05(c) by the time
specified in Section 2.05(c)(i), U.S. Swing Line Lender shall be entitled to
recover from such U.S. Lender (acting through U.S. Agent), on demand, such

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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 U.S. Swing
Line Lender at a rate per annum equal to the greater of the Federal Funds Rate and a
rate determined by U.S. Swing Line Lender in accordance with banking industry rules
on interbank compensation, plus any administrative, processing or similar fees
customarily charged by U.S. 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 Committed Loan included in the relevant
Committed Borrowing or funded participation in the relevant U.S. Swing Line Loan, as
the case may be. A certificate of U.S. Swing Line Lender submitted to any U.S.
Lender (through U.S. Agent) with respect to any amounts owing under this clause
(iii) shall be conclusive absent manifest error.

     (iv) Each U.S. Lender’s obligation to make U.S. Revolving Credit Loans or to
purchase and fund risk participations in U.S. Swing Line Loans pursuant to this
Section 2.05(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 U.S. Lender may have against U.S. Swing Line
Lender, U.S. 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 U.S. Lender’s obligation to make U.S. Revolving Credit
Loans pursuant to this Section 2.05(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 U.S. Borrower to repay U.S. Swing Line Loans,
together with interest as provided herein.

     (d) Repayment of Participations.

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

     (ii) If any payment received by U.S. Swing Line Lender in respect of principal
or interest on any U.S. Swing Line Loan is required to be returned by U.S. Swing
Line Lender under any of the circumstances described in Section 10.05
(including pursuant to any settlement entered into by U.S. Swing Line Lender in its
discretion), each U.S. Lender shall pay to U.S. Swing Line Lender its Applicable
Revolving Credit/Committed Loan Percentage thereof on demand of U.S. 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. U.S. Agent will make such
demand upon the request of U.S. Swing Line Lender.

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

     (e) Interest for Account of U.S. Swing Line Lender. U.S. Swing Line Lender
shall be responsible for invoicing U.S. Borrower for interest on the U.S. Swing Line Loans.
Until each U.S. Lender funds its Base Rate U.S. Revolving Credit Loan or risk participation
pursuant to this Section 2.05 to refinance such U.S. Lender’s Applicable Revolving
Credit/Committed Loan Percentage of any U.S. Swing Line Loan, interest in respect of such
Applicable Revolving Credit/Committed Loan Percentage shall be solely for the account of
U.S. Swing Line Lender.

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

     2.06. Prepayments.

     (a) Optional. (i) Borrowers may, upon notice to U.S. Agent, in the case of
U.S. Committed Loans, or to Canadian Agent, in the case of Canadian Committed Loans, at any
time or from time to time voluntarily prepay Committed Loans in whole or in part without
premium or penalty; provided that (i) such notice must be received by the applicable
Agent not later than 10:00 A. M. (A) three Business Days prior to any date of prepayment of
Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Committed Loans or
Canadian Prime Loans; (ii) any prepayment of Eurodollar Rate Loans shall be in a principal
amount of $1,000,000 or a whole multiple of $500,000 in excess thereof; (iii) any prepayment
of Base Rate Committed Loans shall be in a principal amount of U.S. $500,000 or a whole
multiple of $100,000 in excess thereof and (iv) any prepayment of Canadian Prime Committed
Loans shall be in a principal amount of Cdn. $500,000 or a whole multiple of Cdn. $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
Class(es) and the Type(s) of Committed Loans and the Facility to be prepaid and, if
Eurodollar Rate Committed Loans are to be prepaid, the Interest Period(s) of such Loans.
U.S. Agent, in the case of prepayment of U.S. Committed Loans, and Canadian Agent, in the
case of prepayment of Canadian Committed Loans (other than Acceptances or Discount Notes),
will promptly notify each applicable Lender of its receipt of each such notice, and of the
amount of such Lender’s ratable portion of such prepayment (based on such Lender’s
Applicable Percentage in respect of the relevant Facility). If such notice is given by a
Borrower, such 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
Eurodollar 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 Committed Loans of the applicable Lenders in accordance
with their respective Applicable Percentages of the relevant Facility being prepaid.

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     (ii) U.S. Borrower may, upon notice to U.S. Swing Line Lender (with a copy to U.S.
Agent), at any time or from time to time, voluntarily prepay U.S. Swing Line Loans in whole
or in part without premium or penalty; provided that (i) such notice must be
received by the U.S. Swing Line Lender and U.S. 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
U.S. $100,000 or, if less, the entire principal amount thereof then outstanding. Each such
notice shall specify the date and amount of such prepayment. If such notice is given by
U.S. Borrower, U.S. Borrower shall make such prepayment and the payment amount specified in
such notice shall be due and payable on the date specified therein.

     (b) Mandatory. (i) Commencing with the fiscal year ending December 31, 2007,
within five Business Days after financial statements have been delivered pursuant to
Section 6.06(b) and the related Compliance Certificate has been delivered pursuant
to Section 6.06(c), U.S. Borrower shall prepay an aggregate principal amount of Term
A Loans equal to 25% of Excess Cash Flow for the fiscal year covered by such financial
statements.

     (ii) If any Loan Party or any of its Subsidiaries (other than any
Foreign Subsidiary) disposes of any property with the consent of Required Lenders
(other than any Disposition of any property permitted by Section 7.06), which
results in the realization by such Person of Net Cash Proceeds, U.S. Borrower shall
prepay an aggregate principal amount of Term A Loans equal to 100% of such Net Cash
Proceeds immediately upon receipt thereof by such Person (such prepayments to be
applied as set forth in clause (vi) below); provided, however, that,
with respect to any Net Cash Proceeds realized under a Disposition described in this
Section 2.06(b)(ii), at the election of U.S. Borrower (as notified by U.S.
Borrower to U.S. Agent on or prior to the date of such Disposition), and so long as
no Default shall have occurred and be continuing, such Loan Party or such Subsidiary
may reinvest all or any portion of such Net Cash Proceeds in productive assets as
provided in Section 7.06; and provided further,
however, that any Net Cash Proceeds not so reinvested within the time period
specified in Section 7.06 shall be immediately applied to the prepayment of
the Term A Loans as set forth in this Section 2.06(b)(ii).

     (iii) Upon the sale or issuance by any Loan Party or any of its
Subsidiaries (other than any Foreign Subsidiary) of any of its Equity Interests
(other than any sales or issuances of Equity Interests to another Loan Party and
other than the issuance of Equity Interest by U.S. Borrower as a result of the
exercise of stock options where the Net Cash Proceeds received by U.S. Borrower
during the term of this Agreement do not exceed $6,000,000), U.S. Borrower shall
prepay an aggregate principal amount of Term A Loans equal to 100% of all Net Cash
Proceeds received therefrom immediately upon receipt thereof by such Loan Party or
such Subsidiary (such prepayments to be applied as set forth in clause (vi) below).

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     (iv) Upon the incurrence or issuance by any Loan Party or any of its
Subsidiaries (other than any Foreign Subsidiary) of any Indebtedness (other than
Indebtedness expressly permitted to be incurred or issued pursuant to Section
7.02), U.S. Borrower shall prepay an aggregate principal amount of Term A Loans
equal to 100% of all Net Cash Proceeds received therefrom immediately upon receipt
thereof by such Loan Party or such Subsidiary (such prepayments to be applied as set
forth in clause (vi).

     (v) Upon any Extraordinary Receipt received by or paid to or for the
account of any Loan Party or any of its Subsidiaries (other than any Foreign
Subsidiary), and not otherwise included in clause (ii), (iii) or (iv) of this
Section 2.06(b), U.S. Borrower shall prepay an aggregate principal amount of
Term A Loans equal to 100% of all Net Cash Proceeds received therefrom immediately
upon receipt thereof by such Loan Party or such Subsidiary (such prepayments to be
applied as set forth in clause (vi) below); provided, however, that
with respect to any proceeds of insurance or condemnation awards (or payments in
lieu thereof), at the election of U.S. Borrower (as notified by U.S. Borrower to the
U.S. Agent on or prior to the date of receipt of such insurance proceeds or
condemnation awards (or payments in lieu thereof)), and so long as no Default shall
have occurred and be continuing, such Loan Party or such Subsidiary may apply such
Net Cash Proceeds within 180 days after the receipt thereof to replace or repair the
equipment, fixed assets or real property in respect of which such cash proceeds were
received; and provided, further, however, that any cash
proceeds not so applied shall be immediately applied to the prepayment of Term A
Loans as set forth in this Section 2.06(b)(v).

     (vi) Each prepayment of Loans pursuant to the foregoing provisions of
this Section 2.06(b) shall be applied to the Term A Facility and to the
principal repayment installments thereof on a pro-rata basis until the Term A
Facility has been paid in full. Upon payment in full of the Term A Facility, no
further mandatory prepayments shall be required under clauses (i), (ii), (iii), (iv)
or (v) of this Section 2.06(b).

     (vii) Notwithstanding any of the other provisions of clause (ii),
(iii), (iv) or (v) of this Section 2.06(b), so long as no Default shall have
occurred and be continuing, if, on any date on which a prepayment would otherwise be
required to be made pursuant to clause (ii), (iii), (iv) or (v) of this Section
2.06(b), the aggregate amount of Net Cash Proceeds required by such clause to be
applied to prepay Term A Loans on such date is less than or equal to $1,000,000,
U.S. Borrower may defer such prepayment until the first date on which the aggregate
amount of Net Cash Proceeds or other amounts otherwise required under clause (ii),
(iii), (iv) or (v) of this Section 2.06(b) to be applied to prepay Loans
exceeds $1,000,000. During such deferral period U.S. Borrower may apply all or any
part of such aggregate amount to prepay U.S. Revolving Credit Loans and may, subject
to the fulfillment of the applicable conditions set forth in Article IV,
reborrow such amounts (which amounts, to the extent originally constituting Net

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Cash Proceeds, shall be deemed to retain their original character as Net Cash
Proceeds when so reborrowed) for application as required by this Section
2.06(b). Upon the occurrence of a Default during any such deferral period, U.S.
Borrower shall immediately prepay the Term A Loans in the amount of all Net Cash
Proceeds received by U.S. Borrower and other amounts, as applicable, that are
required to be applied to prepay Term A Loans under this Section 2.06(b)
(without giving effect to the first and second sentences of this clause (vii)) but
which have not previously been so applied.

     (viii) Notwithstanding the provisions of clauses (ii) and (v) of this
Section 2.06(b) to the contrary, so long as the Collateral Agency and
Intercreditor Agreement is in effect, any Net Cash Proceeds of a Disposition
referred to in clause (ii) or an Extraordinary Receipt referred to in clause (v)
shall, to the extent provided in the Collateral Agency and Intercreditor Agreement,
be distributed as provided therein and not as provided for in this Section
2.06(b); provided, however, if any portion of an “Offered
Repayment” (as such term is defined in the Collateral Agreement and Intercreditor
Agreement) relating to a Disposition referred to in clause (ii) or an Extraordinary
Receipt referred to in clause (v) is paid to a Loan Party as a result of the
rejection of all or a portion of an Offered Repayment by any Other Senior Creditor,
U.S. Borrower shall prepay an aggregate principal amount of Term A Loans equal to
the amount of the Offered Repayment so paid to the applicable Loan Party.
Notwithstanding the provisions of clauses (i), (ii), (iii), (iv) and (v) of this
Section 2.06(b) to the contrary, if and to the extent that following the
occurrence and during the continuance of an “Event of Default” (as defined in the
Note Agreement) any Loan Party makes a prepayment of Noteholder Indebtedness
pursuant to the Note Agreement as in effect on the Closing Date from any of (i)
Excess Cash Flow which is otherwise subject to the prepayment obligations under
clause (i) of this Section 2.06(b), (ii) the Net Cash Proceeds received from
a Disposition, which Net Cash Proceeds are otherwise subject to the prepayment
obligations under clause (ii) of this Section 2.06(b), (iii) the Net Cash
Proceeds received from the issuance or sale of Equity Interests which Net Cash
Proceeds are otherwise subject to the prepayment obligations under clause (iii) of
this Section 2.06(b), (iv) the Net Cash Proceeds received from the
incurrence or issuance of any Indebtedness which Net Cash Proceeds are otherwise
subject to the prepayment obligations under clause (iv) of this Section
2.06(b), or (v) the Net Cash Proceeds received upon any Extraordinary Receipt
which Net Cash Proceeds are otherwise subject to the prepayment obligations under
clause (v) of this Section 2.06(b), then in such event the amounts of the
mandatory prepayments required under clauses (i), (ii), (iii), (iv) and (v) of this
Section 2.06(b) with respect to any such circumstances shall be reduced (but
not below the Credit Agreement Debt Pro Rata Share, as defined below, of such
mandatory prepayment amount otherwise required by this Section 2.06(b)) by
the amount of the applicable prepayment of Noteholder Indebtedness. For purposes of
this Section 2.06(b)(viii), the term “Credit Agreement Debt Pro Rata Share”
shall mean, as of any date of determination thereof, a percentage equal to the ratio
of the outstanding principal amount of the

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Term A Loans to the sum of (x) the outstanding principal amount of the Term A
Loans, plus (y) the outstanding principal amount of the Noteholder Indebtedness.

     (ix) If for any reason the Total U.S. Revolving Credit Outstandings at any time
exceed the lesser of (i) the Aggregate U.S. Revolving Credit Commitments then in
effect, or (ii) the U.S. Borrowing Base, U.S. Borrower shall immediately prepay U.S.
Revolving Credit Loans and/or Cash Collateralize the U.S. L/C Obligations in an
aggregate amount equal to such excess; provided, however, that U.S.
Borrower shall not be required to Cash Collateralize the U.S. L/C Obligations
pursuant to this Section 2.06(b)(ix) unless after the prepayment in full of
the U.S. Revolving Credit Loans the Total U.S. Revolving Credit Outstandings exceed
the lesser of (i) the Aggregate U.S. Revolving Credit Commitments then in effect or
(ii) the U.S. Borrowing Base. If for any reason the Total Canadian Outstandings at
any time exceed the lesser of (i) the Aggregate Canadian Commitments then in effect
or (ii) the Canadian Borrowing Base, Canadian Borrower shall immediately prepay
Canadian Loans and/or Cash Collateralize the Canadian L/C Obligations in an
aggregate amount equal to such excess; provided, however, that
Canadian Borrower shall not be required to Cash Collateralize the Canadian L/C
Obligations pursuant to this Section 2.06(c) unless after the prepayment in
full of the Canadian Loans the Total Canadian Outstandings exceed the lesser of (i)
the Aggregate Canadian Commitments then in effect or (ii) the Canadian Borrowing
Base.

     2.07. Termination or Reduction of Commitments.

     (a) Optional. U.S. Borrower may, upon notice to U.S. Agent and Canadian
Borrower may, upon notice to Canadian Agent, terminate the Aggregate U.S. Revolving Credit
Commitments, or the Aggregate Canadian Commitments, as the case may be, or from time to time
permanently reduce the Aggregate U.S. Revolving Credit Commitments, or the Aggregate
Canadian Commitments, as the case may be; provided that (i) any such notice shall be
received by the applicable Agent not later than 10:00 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 $1,000,000 or any whole multiple of $500,000 in excess thereof, (iii) Borrowers
shall not terminate or reduce the Aggregate U.S. Revolving Credit Commitments or the
Aggregate Canadian Commitments if, after giving effect thereto and to any concurrent
prepayments hereunder, the Total U.S. Revolving Credit Outstandings would exceed the
Aggregate U.S. Revolving Credit Commitments, or the Total Canadian Outstandings would exceed
the Aggregate Canadian Commitments, (iv) if, after giving effect to any reduction of the
Aggregate U.S. Revolving Credit Commitments, the U.S. L/C Sublimit or the U.S. Swing Line
Sublimit exceeds the amount of the Aggregate U.S. Revolving Credit Commitments, such
Sublimit shall be automatically reduced by the amount of such excess; and (v) if, after
giving effect to any reduction of the Aggregate Canadian Commitments, the Canadian L/C
Sublimit exceeds the amount of the Aggregate Canadian Commitments, such Sublimit shall be
automatically reduced by the amount of such excess. The applicable Agent will promptly
notify the applicable Lenders of any such notice of termination or reduction of

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the Aggregate U.S. Revolving Credit Commitments or the Aggregate Canadian Commitments.
Any reduction of the Aggregate U.S. Revolving Credit Commitments shall be applied to the
U.S. Revolving Credit Commitment of each U.S. Lender according to its Applicable Revolving
Credit/Committed Loan Percentage and any reduction of the Aggregate Canadian Commitments
shall be applied to the Canadian Commitment of each Canadian Lender according to its
Applicable Revolving Credit/Committed Loan Percentage. All fees accrued until the effective
date of any termination of the Aggregate U.S. Revolving Credit Commitments or the Aggregate
Canadian Commitments, as the case may be, shall be paid on the effective date of such
termination.

     (b) Mandatory. The aggregate Term A Commitments shall be automatically and
permanently reduced to zero on the date of the Term A Loan.

     2.08. Repayment of Loans.

     (a) Term A Loans. U.S. Borrower shall repay to Term A Lenders the aggregate
principal amount of all Term A Loans in quarterly principal installments of $1,500,000 each
commencing on December 1, 2006 and on the first day of each March, June, September and
December thereafter (which amounts shall be reduced as a result of the application of
prepayments in accordance with the order of priority set forth in Section
2.06(b)(vi)); provided, however, that the final principal installment of
the Term A Loans shall be repaid on the Maturity Date and in any event shall be in an amount
equal to the aggregate principal amount of all Term A Loans outstanding on such date.

     (b) U.S. Revolving Credit Loans. U.S. Borrower shall repay to U.S. Revolving
Credit Lenders on the Maturity Date the aggregate principal amount of U.S. Revolving Credit
Loans outstanding to U.S. Borrower on such date.

     (c) U.S. Swing Line Loans. U.S. Borrower shall repay to U.S. Swing Line Lender
each U.S. Swing Line Loan on the earlier to occur of (i) demand by U.S. Swing Line Lender
and (ii) the Maturity Date.

     (d) Canadian Committed Loans. Canadian Borrower shall repay to Canadian
Lenders on the Maturity Date the aggregate principal amount of Canadian Committed Loans
outstanding to Canadian Borrower on such date.

     2.09. Interest.

     (a) Subject to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan
shall bear interest on the outstanding principal amount thereof for each Interest Period at
a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable
Rate; (ii) each Base Rate Committed Loan shall bear interest on the outstanding principal
amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate
plus the Applicable Rate; (iii) each U.S. Swing Line Loan shall bear interest on the
outstanding principal amount thereof from the applicable borrowing date at a rate per annum
equal to the Base Rate plus the Applicable Rate; and

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(iv) each Canadian Prime Committed Loan shall bear interest on the outstanding
principal amount thereof from the applicable borrowing date at a rate per annum equal to the
Canadian Prime Rate plus the Applicable 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 either
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 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 Required Lenders, while any Event of Default exists,
Borrowers 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 (including interest on
past due interest) 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 Debtor Relief
Law.

     2.10. Fees. In addition to certain fees described in subsections (i) and (j) of
Section 2.04:

     (a) Commitment Fee. U.S. Borrower shall pay to U.S. Agent for the account of
each U.S. Lender in accordance with its Applicable Revolving Credit/Committed Loan
Percentage, a commitment fee equal to the Applicable Rate times the actual daily amount by
which the Aggregate U.S. Revolving Credit Commitments exceed the sum of (i) the Outstanding
Amount of U.S. Committed Loans and (ii) the Outstanding Amount of U.S. L/C Obligations.
Canadian Borrower shall pay to Canadian Agent for the account of each Canadian Lender in
accordance with its Applicable Revolving Credit/Committed Loan Percentage, a commitment fee
equal to the Applicable Rate times the actual daily amount by which the Aggregate Canadian
Commitments exceed the sum of (i) the Outstanding Amount of Canadian Committed Loans and
(ii) the Outstanding Amount of Canadian L/C Obligations. The commitment fees shall accrue
at all times during the Availability Period, including at any time during which one or more
of the conditions in

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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 fees shall be calculated quarterly in arrears, and if there is any change in the
Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied
by the Applicable Rate separately for each period during such quarter that such Applicable
Rate was in effect. For purposes of computing the commitment fee, U.S. Swing Line Loans
shall not be counted towards or considered usage of the Aggregate U.S. Revolving Credit
Commitments.

     (b) Agent’s Fees. U.S. Borrower shall pay to U.S. Agent for Agent’s own
account, fees in the amounts and at the times specified in the letter agreement, dated June
20, 2006 (the “Agent Fee Letter”), among U.S. Borrower, U.S. Agent and Banc of America
Securities LLC. Such fees shall be fully earned when paid and shall be nonrefundable for
any reason whatsoever.

     (c) Lenders’ Upfront Fee. On the Closing Date, U.S. Borrower shall pay to U.S.
Agent, for the account of each U.S. Lender an upfront fee in the amount specified in the
Agent Fee Letter. On the Closing Date, Canadian Borrower shall pay to Canadian Agent, for
the account of each Canadian Lender, an upfront fee in the amount specified in the Agent Fee
Letter. Such upfront fees are for the credit facilities committed by Lenders under this
Agreement and are fully earned on the date paid. The upfront fee paid to each Lender is
solely for its own account and is nonrefundable for any reason whatsoever.

     (d) Acceptance Fees. Canadian Borrower agrees to pay to each Canadian Lender a
fee (the “Acceptance Fee”) in advance, at a rate per annum equal to the Applicable Rate, on
the date of acceptance of each Acceptance. All Acceptance Fees shall be calculated on the
face amount of the Acceptance issued and computed on the basis of the actual number of days
in the term thereof and a year of 365 or 366 days, as the case may be, and shall be payable
in Canadian Dollars. The Acceptance Fee shall be in addition to any other fees payable to
each Canadian Lender in connection with the issuance or discounting of such Acceptance.

     2.11. Computation of Interest and Fees.

     (a) All computations of interest for Canadian Prime Loans shall be made on the basis of
a year of 365 or 366 days, as the case may be, and actual days elapsed. All other
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 2.13(a), bear interest for one
day. Each determination by either Agent of an interest rate or fee hereunder shall be
conclusive and binding for all purposes, absent manifest error.

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     (b) With respect to Canadian Loans and fees relating thereto, unless otherwise stated
herein, wherever reference is made to a rate of interest “per annum” or a similar
expression, such interest shall be calculated on the basis of a calendar year of 365 days or
366 days, as the case may be, and using the nominal rate method of calculation, and shall
not be calculated using the effective rate method of calculation or on any other basis that
gives effect to the principle of deemed reinvestment of interest.

     (c) For the purposes of the Interest Act (Canada) and disclosure thereunder, whenever
interest to be paid with respect to Canadian Loans or fees relating thereto is to be
calculated on the basis of a year of 360 days or any other period of time that is less than
a calendar year, the yearly rate of interest to which the rate determined pursuant to such
calculation is equivalent is the rate so determined multiplied by the actual number of days
in the calendar year in which the same is to be ascertained and divided by either 360 or
such other period of time, as the case may be.

     2.12. 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 applicable Agent in the ordinary
course of business. The accounts or records maintained by each Agent and each Lender shall
be conclusive absent manifest error of the amount of the Credit Extensions made by Lenders
to Borrowers 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 Borrowers
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 any Agent in respect of such matters, the accounts and records of such Agent
shall control in the absence of manifest error. Upon the request of any Lender made through
the applicable Agent, the applicable Borrower shall execute and deliver to such Lender
(through the applicable 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 each 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
U.S. Swing Line Loans. In the event of any conflict between the accounts and records
maintained by any Agent and the accounts and records of any Lender in respect of such
matters, the accounts and records of such Agent shall control in the absence of manifest
error.

     2.13. Payments Generally; Agent’s Clawback.

     (a) General. All payments to be made by each Borrower shall be made without
condition or deduction for any counterclaim, defense, recoupment or setoff. Except as
otherwise expressly provided herein, all payments by Borrowers hereunder

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shall be made to the applicable Agent, for the account of the respective Lenders to
which such payment is owed, at the applicable Agent’s Office in U.S. Dollars, in the case of
U.S. Borrower, or U.S. Dollars or Canadian Dollars, as the case may be, in the case of
Canadian Borrower and in immediately available funds not later than 11:00 A. M. on the date
specified herein. U.S. Agent will promptly distribute to each U.S. Lender and Canadian
Agent shall distribute to each Canadian Lender its Applicable 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 either Agent after 11:00
A. 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 either Borrower
shall come due on a day other than a U.S. Business Day, in the case of U.S. Borrower, or a
Canadian Business Day, in the case of Canadian Borrower, payment shall be made on the next
following U.S. Business Day or Canadian Business Day, as the case may be, and such extension
of time shall be reflected in computing interest or fees, as the case may be.

     (i) Funding by Lenders; Presumption by Agents. Unless the applicable
Agent shall have received notice from a Lender prior to the proposed date of any
Committed Borrowing of Eurodollar Rate Loans (or, in the case of any Committed
Borrowing of Base Rate Loans or Canadian Prime Loans, prior to 11:00 A. M. on the
date of such Committed Borrowing) that such Lender will not make available to the
applicable Agent such Lender’s share of such Committed Borrowing, the applicable
Agent may assume that such Lender has made such share available on such date in
accordance with Section 2.02 (or, in the case of a Committed Borrowing of
Base Rate Loans or Canadian Prime Loans, that such Lender has made such share
available in accordance with and at the time required by Section 2.02) and
may, in reliance upon such assumption, make available to the applicable Borrower a
corresponding amount. In such event, if a Lender has not in fact made its share of
the applicable Committed Borrowing available to the applicable Agent, then the
applicable Lender and the applicable Borrower severally agree to pay to the
applicable 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 applicable Borrower to but excluding the date of
payment to the applicable Agent, at (A) in the case of a payment to be made by such
U.S. Lender, the greater of the Federal Funds Rate and a rate determined by U.S.
Agent in accordance with banking industry rules on interbank compensation, plus any
administrative, processing or similar fees customarily charged by U.S. Agent in
connection with the foregoing; (B) in the case of a payment to be made by such
Canadian Lender, the Federal Funds Rate or the Interbank Reference Rate, as
applicable, plus any administrative, processing or similar fees customarily charged
by Canadian Agent in connection with the foregoing, (C) in the case of a payment to
be made by U.S. Borrower, in lieu of the rate applicable pursuant to Section
2.09, the interest rate applicable to Base Rate Loans, and (D) in the case of a
payment to be made by Canadian Borrower, in lieu of the rate applicable pursuant to
Section 2.09, the interest rate applicable to Canadian Prime Loans in the
case of Canadian Loans

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denominated in Canadian Dollars, or the interest rate applicable to Base Rate
Loans in the case of Canadian Loans denominated in U.S. Dollars. If the applicable
Borrower and the applicable Lender shall pay such interest to the applicable Agent
for the same or an overlapping period, the applicable Agent shall promptly remit to
the applicable Borrower the amount of such interest paid by such Borrower for such
period. If such Lender pays its share of the applicable Committed Borrowing to the
applicable Agent, then the amount so paid shall constitute such Lender’s Committed
Loan included in such Committed Borrowing. Any payment by the applicable Borrower
shall be without prejudice to any claim such Borrower may have against such Lender
that shall have failed to make such payment to the applicable Agent.

     (ii) Payments by a Borrower; Presumptions by Agents. Unless the
applicable Agent shall have received notice from the applicable Borrower prior to
the date on which any payment is due to such Agent for the account of the applicable
Lenders or the applicable L/C Issuer hereunder that such Borrower will not make such
payment, such Agent may assume that such Borrower has made such payment on such date
in accordance herewith and may, in reliance upon such assumption, distribute to the
applicable Lenders or the applicable L/C Issuer, as the case may be, the amount due.
In such event, if such Borrower has not in fact made such payment, then each of the
applicable Lenders or the applicable L/C Issuer, as the case may be, severally
agrees to repay to the applicable Agent forthwith on demand the amount so
distributed to such Lender or such L/C 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 applicable Agent, (i)
in the case of payments to U.S. Agent, at the greater of the Federal Funds Rate and
a rate determined by U.S. Agent in accordance with banking industry rules on
interbank compensation, or (ii) in the case of payments to Canadian Agent the
Federal Funds Rate or the Interbank Reference Rate, as applicable. A notice of the
applicable Agent to any Lender or the applicable Borrower with respect to any amount
owing under this subsection (b) shall be conclusive, absent manifest error.

     (b) Failure to Satisfy Conditions Precedent. If any Lender makes available to
the applicable 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
applicable Borrower by the applicable Agent because the conditions to the applicable Credit
Extension set forth in Article IV are not satisfied or waived in accordance with the terms
hereof, such Agent shall promptly return such funds (in like funds as received from such
Lender) to such Lender, without interest.

     (c) Obligations of Lenders Several. The obligations of U.S. Lenders hereunder
to make U.S. Committed Loans, to fund participations in U.S. Letters of Credit and U.S.
Swing Line Loans and to make payments under Section 10.04(c) are several and not
joint. The obligations of Canadian Lenders hereunder to make Canadian Committed Loans, to
fund participations in Canadian Letters of Credit and to make

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payments under Section 10.04(c) are several and not joint. The failure of any
Lender to make any Committed 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 Committed Loan, purchase its
participation or to make its payment under Section 10.04(c).

     (d) 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.

     2.14. Sharing of Payments.

     (a) U.S. Lenders. If any U.S. 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 U.S. Committed Loans made by it, or the participations in U.S. L/C Obligations or
in U.S. Swing Line Loans held by it resulting in such U.S. Lender’s receiving payment of a
proportion of the aggregate amount of such U.S. Committed Loans or participations and
accrued interest thereon greater than its pro rata share thereof as provided herein, then
the U.S. Lender receiving such greater proportion shall (a) notify U.S. Agent of such fact,
and (b) purchase (for cash at face value) participations in the U.S. Committed Loans and
subparticipations in U.S. L/C Obligations and U.S. Swing Line Loans of the other U.S.
Lenders, or make such other adjustments as shall be equitable, so that the benefit of all
such payments shall be shared by U.S. Lenders ratably in accordance with the aggregate
amount of principal of and accrued interest on their respective U.S. Committed 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 U.S. Borrower pursuant to and in accordance with the express terms
of this Agreement or (y) any payment obtained by a U.S. Lender as consideration for
the assignment of or sale of a participation in any of its U.S. Committed Loans or
subparticipations in U.S. L/C Obligations or U.S. Swing Line Loans to any assignee
or participant, other than to U.S. Borrower or any Subsidiary thereof (as to which
the provisions of this Section shall apply).

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under
applicable Law, that any U.S. Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

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     (b) Canadian Lenders. If any Canadian 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 Canadian Committed Loans made by it, or the participations in
Canadian L/C Obligations or Obligations in respect of Acceptances held by it resulting in
such Lender’s receiving payment of a proportion of the aggregate amount of such Canadian
Committed Loans or participations and accrued interest thereon greater than its pro rata
share thereof as provided herein, then the Canadian Lender receiving such greater proportion
shall (a) notify Canadian Agent of such fact, and (b) purchase (for cash at face value)
participations in the Canadian Committed Loans and subparticipations in Canadian L/C
Obligations and Obligations in respect of Acceptances of the other Canadian Lenders, or make
such other adjustments as shall be equitable, so that the benefit of all such payments shall
be shared by Canadian Lenders ratably in accordance with the aggregate amount of principal
of and accrued interest on their respective Canadian Committed 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 Canadian Borrower pursuant to and in accordance with the express
terms of this Agreement or (y) any payment obtained by a Canadian Lender as
consideration for the assignment of or sale of a participation in any of its
Canadian Committed Loans or subparticipations in Canadian L/C Obligations or in
Acceptance Obligations to any assignee or participant, other than to Canadian
Borrower or any Subsidiary thereof (as to which the provisions of this Section shall
apply).

Each Loan Party consents to the foregoing and agrees, to the extent it may effectively do so under
applicable law, that any Canadian Lender acquiring a participation pursuant to the foregoing
arrangements may exercise against such Loan Party rights of setoff and counterclaim with respect to
such participation as fully as if such Lender were a direct creditor of such Loan Party in the
amount of such participation.

ARTICLE III

TAXES, YIELD PROTECTION AND ILLEGALITY

     3.01. Taxes.

     (a) Payments Free of Taxes. Any and all payments by either Borrower to or on
account of any obligation of either 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 either Borrower shall be required by any applicable
law to deduct any Indemnified Taxes (including any Other Taxes) from

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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 applicable Agent, Lender or L/C 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 applicable Borrower shall make such deductions, and (iii) the applicable Borrower
shall timely pay the full amount deducted to the relevant Governmental Authority in
accordance with applicable law.

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

     (c) Indemnification by Borrowers. Each Borrower shall indemnify each Agent,
each Lender and each L/C 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 such Agent,
such Lender or such L/C Issuer, as the case may be, on or with respect to any payment by or
on account of any obligation of either Borrower hereunder 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 applicable Borrower by a Lender or a L/C Issuer (with a copy to
the applicable Agent), or by the applicable Agent on its own behalf or on behalf of a Lender
or a L/C Issuer, shall be conclusive absent manifest error. Notwithstanding the foregoing,
no Borrower shall be required to make any payments or reimburse any Agent, any Lender or any
L/C Issuer under this Section 3.01 with respect to any Taxes, Other Taxes or other
amounts imposed on and paid by such Agent, such Lender or such L/C Issuer more than nine (9)
months before the date on which a request for payment or reimbursement is delivered to such
Borrower (except that, if the Taxes or Other Taxes giving rise to such payment or
reimbursement is retroactive, then the nine-month period referred to above shall be extended
to include the period of retroactive effect thereof).

     (d) Evidence of Payments. As soon as practicable after any payment of
Indemnified Taxes or Other Taxes by a Borrower to a Governmental Authority, such Borrower
shall deliver to the applicable 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 such Agent.

     (e) Status of U.S. Lenders. Any Foreign Lender that is entitled to an
exemption from or reduction of withholding tax under the law of the jurisdiction in which
U.S. 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
U.S. Borrower (with a copy to U.S. Agent), at the time or times prescribed by applicable law
or reasonably requested by U.S. Borrower or U.S. Agent, such properly

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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 U.S. Lender, if requested by U.S. Borrower or U.S. Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by U.S. Borrower or U.S.
Agent as will enable U.S. Borrower or U.S. Agent to determine whether or not such U.S.
Lender is subject to backup withholding or information reporting requirements.

     Without limiting the generality of the foregoing, in the event that U.S. Borrower is resident
for tax purposes in the United States, any Foreign Lender shall deliver to U.S. Borrower and U.S.
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 U.S. Lender under this Agreement (and from time to time
thereafter upon the request of U.S. Borrower or U.S. 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 U.S. 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 U.S. Borrower to determine the withholding or deduction
required to be made.

     (f) Treatment of Certain Refunds. If an Agent, any Lender or a L/C Issuer
determines, in its sole discretion, that it has received a refund or credit of any Taxes or
Other Taxes as to which it has been indemnified by a Borrower or with respect to which a
Borrower has paid additional amounts pursuant to this Section, it shall pay to such Borrower
an amount equal to such refund or credit (but only to the extent of indemnity payments made,
or additional amounts paid, by such Borrower under this Section with respect to the Taxes or
Other Taxes giving rise to such refund or credit), net of all reasonable out-of-pocket
expenses of the applicable Agent, such Lender or the applicable L/C Issuer, as the case may
be, and without interest (other than any interest paid by the relevant Governmental
Authority with respect to such refund or credit), provided that such Borrower, upon the
request of the applicable Agent, such Lender or the applicable

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L/C Issuer, agrees to repay the amount paid over to such Borrower (plus any penalties,
interest or other charges imposed by the relevant Governmental Authority) to the applicable
Agent, such Lender or the applicable L/C Issuer in the event the applicable Agent, such
Lender or the applicable L/C Issuer is required to repay such refund or credit to such
Governmental Authority. This subsection shall not be construed to require either Agent, any
Lender or either L/C Issuer to make available its tax returns (or any other information
relating to its taxes that it deems confidential) to any 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 Eurodollar Rate Loans, or to determine or charge interest
rates based upon the Eurodollar Rate, or any Governmental Authority has imposed material
restrictions on the authority of such Lender to purchase or sell, or to take deposits of, U.S.
Dollars in the London interbank market, then, on notice thereof by such Lender to the applicable
Borrower through the applicable Agent, any obligation of such Lender to make or continue Eurodollar
Rate Loans or to convert Base Rate Committed Loans to Eurodollar Rate Loans shall be suspended
until such Lender notifies the applicable Agent and the applicable Borrower that the circumstances
giving rise to such determination no longer exist. Upon receipt of such notice, the applicable
Borrower shall, upon demand from such Lender (with a copy to the applicable Agent), prepay or, if
applicable, convert all Eurodollar 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
Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully continue to
maintain such Eurodollar Rate Loans. Upon any such prepayment or conversion, the applicable
Borrower shall also pay accrued interest on the amount so prepaid or converted and all amounts due
under Section 3.05 in accordance with the terms thereof due to such prepayment or
conversion.

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

     3.04. Increased Costs.

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

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     (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 reflected in the Eurodollar Rate) or any L/C Issuer;

     (ii) subject any Lender or any L/C 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 Eurodollar Rate Loan made by it, or change the basis of taxation of
payments to such Lender or such L/C 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 L/C
Issuer); or

     (iii) impose on any Lender or any L/C Issuer or the London interbank market any
other condition, cost or expense affecting this Agreement or Eurodollar 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 Eurodollar Rate Loan (or of maintaining its obligation to make any such Loan), or
to increase the cost to such Lender or such L/C 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 such L/C
Issuer hereunder (whether of principal, interest or any other amount) then, upon request of such
Lender or such L/C Issuer, U.S. Borrower (if such Lender or L/C Issuer is a U.S. Lender or U.S. L/C
Issuer) or Canadian Borrower (if such Lender or L/C Issuer is a Canadian Lender or Canadian L/C
Issuer) will pay to such Lender or such L/C Issuer, as the case may be, such additional amount or
amounts as will compensate such Lender or such L/C Issuer, as the case may be, for such additional
costs incurred or reduction suffered.

     (b) Capital Requirements. If any Lender or any L/C Issuer determines that any
Change in Law affecting such Lender or such L/C Issuer or any Lending Office of such Lender
or such Lender’s or such L/C 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
such L/C Issuer’s capital or on the capital of such Lender’s or such L/C 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 such L/C Issuer, to a level below that which such Lender or such L/C
Issuer or such Lender’s or such L/C Issuer’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s or such L/C Issuer’s policies
and the policies of such Lender’s or such L/C Issuer’s holding company with respect to
capital adequacy), then from time to time U.S. Borrower (if such Lender or L/C Issuer is a
U.S. Lender or U.S. L/C Issuer) or Canadian Borrower (if such Lender or L/C Issuer is a
Canadian Lender or Canadian L/C Issuer) will pay to such Lender or such L/C Issuer, as the
case may be, such additional amount or amounts

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as will compensate such Lender or such L/C Issuer or such Lender’s or such L/C Issuer’s
holding company for any such reduction suffered.

     (c) Certificates for Reimbursement. A certificate of a Lender or a L/C Issuer
setting forth the amount or amounts necessary to compensate such Lender or such L/C Issuer
or its holding company, as the case may be, as specified in subsection (a) or (b) of this
Section and delivered to the applicable Borrower shall be conclusive absent manifest error.
The applicable Borrower shall pay such Lender or such L/C 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 any L/C
Issuer to demand compensation pursuant to the foregoing provisions of this Section shall not
constitute a waiver of such Lender’s or such L/C Issuer’s right to demand such compensation,
provided that no Borrower shall be required to compensate a Lender or a L/C 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 such L/C Issuer, as the
case may be, notifies the applicable Borrower of the Change in Law giving rise to such
increased costs or reductions and of such Lender’s or such L/C 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).

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

     (a) any continuation, conversion, payment or prepayment of any Loan other than a Base
Rate Loan or Canadian Prime 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); or

     (b) any failure by the applicable 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 or Canadian Prime Rate Loan on the date or in the amount notified by Borrower;

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 applicable Borrower shall also pay any customary
administrative fees charged by such Lender in connection with the foregoing. Notwithstanding the
foregoing, no Borrower shall be required to make any payments or reimburse any Lender under this
Section 3.05 with respect to any loss, cost or expense incurred by and known to such Lender
more than nine (9) months before the date on which a request for

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payment or reimbursement is delivered to such Borrower. For purposes of calculating amounts
payable by the applicable Borrower to Lenders under this Section 3.05, each Lender shall be
deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in
determining the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the
London interbank eurodollar market for a comparable amount and for a comparable period, whether or
not such Eurodollar Rate Loan was in fact so funded.

     3.06. Mitigation Obligations. If any Lender requests compensation under Section
3.04, or either 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. Borrowers hereby agree to pay all reasonable costs
and expenses incurred by any Lender in connection with any such designation or assignment.

     3.07. Replacement of Lenders. If any Lender requests compensation under Section
3.04, or if either 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 notice pursuant to Section 3.02 with respect to an occurrence or state of
affairs not applicable to all Lenders, the applicable Borrower may replace such Lender in
accordance with Section 10.13.

     3.08. Survival. All of Borrowers’ obligations under this Article III shall survive
termination of the Aggregate Commitments and repayment of all other Obligations hereunder.

ARTICLE IV

CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

     4.01. Conditions of Initial Credit Extension. The obligation of each L/C Issuer and
each Lender to make its initial Credit Extension hereunder is subject to satisfaction of the
following conditions precedent:

     (a) Agents’ 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 Agents and each of the Lenders:

     (i) executed counterparts of this Agreement, the Collateral Agency and
Intercreditor Agreement, all Collateral Documents, the Subsidiary Guarantee

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and the Parent Guarantee, sufficient in number for distribution to Agents, each
Lender and Borrowers;

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

     (iii) such certificates of resolutions or other action, incumbency certificates
and/or other certificates of Responsible Officers of each Loan Party as Agents 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;

     (iv) such documents and certifications as Agents may reasonably require to
evidence that each Loan Party is duly organized or formed, and that each Loan Party
is validly existing, in good standing and qualified to engage in business in each
jurisdiction listed on the Schedule of Documents prepared by Agents’ counsel in
connection with this Agreement;

     (v) a favorable opinion of United States and Canadian counsel to the Loan
Parties acceptable to Agents addressed to the applicable Agent and each applicable
Lender, as to the matters set forth concerning the Loan Parties and the Loan
Documents in form and substance satisfactory to Agents;

     (vi) a certificate of a Responsible Officer of each Loan Party either (A)
stating that all consents, licenses and 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 have been obtained and are
in full force and effect and attaching to such certificate a listing of all such
consents, licenses and approvals, or (B) stating that no such consents, licenses or
approvals are so required;

     (vii) a certificate signed by a Responsible Officer of each 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 date
of the Audited Financial Statements that has had or could be reasonably expected to
have, either individually or in the aggregate, a Material Adverse Effect;

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

     (ix) a duly completed Compliance Certificate as of the last day of the fiscal
quarter of U.S. Borrower ended June 30, 2006, signed by a Responsible Officer of
U.S. Borrower;

     (x) evidence that Bank of America has been appointed as Collateral Agent under
the Collateral Agency and Intercreditor Agreement;

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     (xi) a certificate of U.S. Borrower confirming that all conditions precedent to
the Transtar Acquisition have been satisfied or waived by the applicable Persons;

     (xii) evidence that all commitments under the Financing Agreement, dated as of
December 14, 2004, as amended, among Transtar Inventory Corp., Transtar Metals
Corp., U.S. Bank National Association, as Agent, and the other lenders party thereto
(the “Existing Credit Facilities Agreement”) have been or concurrently with the
Closing Date are being terminated, and all outstanding amounts thereunder paid in
full and all Liens securing obligations under the Existing Credit Facilities
Agreement have been or concurrently with the Closing Date are being released;

     (xiii) Borrowing Base Certificates of each Borrower dated as of June 30, 2006;

     (xiv) evidence that after giving effect to the U.S. Revolving Credit Loans on
the Closing Date Undrawn Availability is not less than $15,000,000;

     (xv) evidence that (i) the Consolidated EBITDA of U.S. Borrower and its
Subsidiaries (with Subsidiaries being determined after giving effect to the
consummation of the Acquisition) for the 12 months ended June 30, 2006 was not less
than $105,000,000, and (ii) the ratio of Consolidated Debt to Consolidated EBITDA of
U.S. Borrower and its Subsidiaries (with Subsidiaries being determined after giving
effect to the consummation of the Acquisition and with EBITDA being calculated for
the 12 months ended June 30, 2006) as of the Closing Date is not greater than 2.75
to 1.0; and

     (xvi) such other assurances, certificates, documents, consents or opinions as
Agents, L/C Issuers, U.S. Swing Line Lender or Required Lenders reasonably may
require.

     (b) Any fees required to be paid on or before the Closing Date shall have been paid.

     (c) Borrowers shall have paid all fees, charges and disbursements of counsel to Agents
(directly to such counsel if required by either 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 Borrowers and Agents).

     (d) The Closing Date shall have occurred on or before September 30, 2006.

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

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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 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 is subject to the following conditions precedent:

     (a) The representations and warranties of Borrowers 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,
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 (b) and (a), respectively, of Section 6.06.

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

     (c) The applicable Agent and, if applicable, the applicable L/C Issuer or U.S. Swing
Line Lender shall have received a Request for Credit Extension in accordance with the
requirements hereof.

Each Request for Credit Extension submitted by a 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

     Borrowers represent and warrant to Agents and Lenders that:

     5.01. Existence, Qualification and Power. Each Loan Party and each Subsidiary thereof
(a) is duly organized or formed, validly existing and, as applicable, in good standing under the
Laws of the jurisdiction of organization or formation, (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, (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, and;
except in each case referred to in clause (b)(i) or (c), to the extent that failure to do so could
not reasonably be expected to have a Material Adverse Effect.

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     5.02. Authorization; No Contravention. The execution, delivery and performance by
each Loan Party of each Loan Document 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, except, in the cases of clauses (b) and (c), as could not
reasonably be expected to have a Material Adverse Effect. Each Loan Party and each Subsidiary
thereof is in compliance with all Contractual Obligations referred to in clause (b)(i), except to
the extent that failure to do so could not reasonably be expected to have a Material Adverse
Effect.

     5.03. Governmental Authorization; Other Consents. 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 or any other Loan Document except those
that either (a) have been obtained and are in full force and effect, or (b) are not required to be
obtained or made prior to the date this representation or warranty is made.

     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 except as enforceability may be limited by
applicable Debtor Relief Laws and by general equitable principles (whether enforcement is sought by
proceedings in equity or at law).

     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 in all material respects the financial condition of U.S.
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 all material
indebtedness and other liabilities, direct or contingent, of U.S. Borrower and its
Subsidiaries as of the date thereof, including liabilities for taxes, material commitments
and Indebtedness.

     (b) The unaudited consolidated balance sheets of U.S. Borrower and its Subsidiaries
dated June 30, 2006, and the related consolidated 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

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covered thereby, except as otherwise expressly noted therein, and (ii) fairly present
in all material respects the financial condition of U.S. 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.

     (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 could reasonably be
expected to have a Material Adverse Effect.

     (d) Since the date of the Audited Financial Statements, no Internal Control Event has
occurred.

     5.06. Litigation. There are no actions, suits, proceedings, claims or disputes
pending or, to the knowledge of Borrowers after, in the case of the representation and warranty
under this Section 5.06 as of the Closing Date only, due and diligent investigation,
threatened or contemplated, at law, in equity, in arbitration or before any Governmental Authority,
by or against either 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) except as specifically disclosed in Schedule
5.06, either individually or in the aggregate could reasonably be expected to have a Material
Adverse Effect, and there has been no material adverse change in the status, or financial effect on
any Loan Party or any Subsidiary thereof, of the matters described on Schedule 5.06.

     5.07. No Default. Neither of either Borrower nor any Subsidiary is in default under
or with respect to any Contractual Obligation that could, 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 each 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 could not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect. The property of each Borrower and its Subsidiaries is subject to no Liens, other
than Liens permitted by Section 7.04.

     5.09. Environmental Compliance. Each Borrower and its Subsidiaries conduct in the
ordinary course of business a review of the effect of existing Environmental Laws and claims
alleging potential liability or responsibility for violation of any Environmental Law on their
respective businesses, operations and properties, and as a result thereof each Borrower has
reasonably concluded that, except as specifically disclosed in Schedule 5.09, such
Environmental Laws and claims could not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect.

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     5.10. Insurance. The properties of each Borrower and its Subsidiaries are insured
with financially sound and reputable insurance companies not Affiliates of either Borrower, in such
amounts (after giving effect to any self-insurance compatible with the following standards), with
such deductibles and covering such risks as are customarily carried by companies engaged in similar
businesses and owning similar properties in localities where the applicable Borrower or the
applicable Subsidiary operates.

     5.11. Taxes. Each Borrower and its Subsidiaries have filed all Federal, state,
provincial, and other material tax returns and reports required to be filed, and have paid all
Federal, state, provincial, 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. There is no
proposed tax assessment against either Borrower or any Subsidiary that would, if made, have a
Material Adverse Effect.

     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 U.S. Borrower, nothing has occurred which would
prevent, or cause the loss of, such qualification. U.S. 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 Borrowers, threatened claims,
actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that
could be 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 could 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 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 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 Borrower nor any ERISA
Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of
ERISA, except, in each case referred to in clauses

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     (i) through (v) to the extent such occurrence could not reasonably be expected to have
a Material Adverse Effect.

     5.13. Subsidiaries. As of the Closing Date, U.S. 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
(to the extent applicable) and are owned by a Loan Party in the amounts specified on Part (a) of
Schedule 5.13 free and clear of all Liens, except Liens arising under the Collateral
Documents and as set forth on Part (a) of Schedule 5.13. U.S. Borrower has no equity
investments in any other corporation or entity other than those specifically disclosed in Part(b)
of Schedule 5.13. All of the outstanding Equity Interests in U.S. Borrower have been
validly issued and are fully paid and nonassessable.

     5.14. Margin Regulations; Investment Company Act; Energy Policy Act of 2005.

     (a) Neither Borrower is 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
purchasing or carrying margin stock.

     (b) None of either Borrower, any Person Controlling any Borrower, or any Subsidiary (i)
is a “holding company,” or a “subsidiary company” of a “holding company,” or an “affiliate”
of a “holding company” or of a “subsidiary company” of a “holding company,” within the
meaning of the Energy Policy Act of 2005, or (ii) is or is required to be registered as an
“investment company” under the Investment Company Act of 1940.

     5.15. Disclosure. Each Borrower has disclosed to Agents and Lenders 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, could 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, to the best knowledge of such
Loan Party, on behalf of any Loan Party to Agents 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 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, each Borrower
represents only that such information was prepared in good faith based upon assumptions believed to
be reasonable at the time.

     5.16. Compliance with Laws. Each of each Borrower and each Subsidiary 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, 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

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individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

     5.17. Intellectual Property; Licenses, Etc. Each 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 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 each Borrower, no slogan or other advertising
device, product, process, method, substance, part or other material now employed, or now
contemplated to be employed, by Borrowers or any Subsidiary infringes upon any rights held by any
other Person. No claim or litigation regarding any of the foregoing is pending or, to the best
knowledge of each Borrower, threatened, which, either individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect.

     5.18. Compliance with Other Senior Debt Documents. As of the Closing Date the
incurrence of the Obligations is in full compliance with the Credit Documents (as defined in the
Collateral Agency and Intercreditor Agreement) and the Collateral Agency and Intercreditor
Agreement.

     5.19. Solvency. Each Loan Party is, individually and together with its Subsidiaries
on a consolidated basis, Solvent.

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

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,
Borrowers covenant and agree that:

     6.01. Corporate Existence. Borrowers will maintain and preserve, and will cause each
Subsidiary to maintain and preserve, its corporate, limited liability company or partnership
existence and right to carry on its business and maintain, preserve, renew and extend all of its
rights, powers, privileges and franchises necessary to the proper conduct of its business;
provided, however, that the foregoing shall not prevent any transaction permitted by Section
7.05, Section 7.06 or Section 7.07, or the termination of the corporate or
partnership existence of any Subsidiary (other than Canadian Borrower) or of any right, power,
privilege or franchise of any Subsidiary (other than Canadian Borrower) if, in the reasonable good
faith opinion of the Board of Directors of U.S. Borrower, such termination is in the best interests
of U.S. Borrower, is not disadvantageous to any Agent or Lender or L/C Issuer, and is not otherwise
prohibited by this Agreement.

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     6.02. Insurance. Borrowers will, and will cause each Subsidiary to, maintain
insurance coverage with financially sound and reputable insurers in such forms and amounts, with
such deductibles and against such risks as are required by law or sound business practice and are
customary for corporations engaged in the same or similar businesses and owning and operating
similar properties as Borrowers and their Subsidiaries.

     6.03. Taxes, Claims for Labor and Materials. Borrowers will, and will cause each
Subsidiary to, file timely all tax returns required to be filed in any jurisdiction and pay and
discharge all taxes, assessments, fees and other governmental charges or levies imposed upon
Borrowers or any Subsidiary or upon any of their respective properties, including leased properties
(but only to the extent required to do so by the applicable lease), assets, income or franchises,
prior to the date on which penalties attach thereto, and all lawful claims which, if unpaid, might
become a Lien upon any of their respective properties or assets not permitted by Section
7.04, provided that neither either Borrower nor any Subsidiary shall be required to pay any
such tax, assessment, fee, charge, levy or claim, the payment of which is being contested in good
faith and by proper proceedings that will stay the collection thereof or the forfeiture or sale of
any property and with respect to which adequate reserves are maintained in accordance with GAAP.

     6.04. Maintenance of Properties. Borrowers will maintain, preserve and keep, and will
cause each Subsidiary to maintain, preserve and keep, its properties (whether owned in fee or a
leasehold interest), other than any property which is obsolete or, in the good faith judgment of
the applicable Borrower, no longer necessary for the operation of the business of such Borrower or
any Subsidiary, in good repair and working order, ordinary wear and tear excepted, and from time to
time will make all necessary repairs, replacements, renewals and additions thereto so that the
business carried on in connection therewith may be properly conducted.

     6.05. Maintenance of Records. Borrowers will keep, and will cause each Subsidiary to
keep, at all times proper books of record and account in which full, true and correct entries will
be made of all dealings or transactions of or in relation to the business and affairs of Borrowers
or such Subsidiary in accordance with GAAP consistently applied throughout the period involved
(except for such changes as are disclosed in such financial statements or in the notes thereto and
concurred in by U.S. Borrower’s independent certified public accountants), and Borrowers will, and
will cause each Subsidiary to, provide reasonable protection against loss or damage to such books
of record and account.

     6.06. Financial Information and Reports. Borrowers will furnish to the Agents (with
sufficient copies for each Lender) the following:

     (a) As soon as available and in any event within 45 days after the end of each of the
first three quarterly accounting periods of each fiscal year of U.S. Borrower, a
consolidated balance sheet of U.S. Borrower and its Subsidiaries as of the end of such
period and consolidated statements of income and cash flows of U.S. Borrower and its
Subsidiaries for the periods beginning on the first day of such fiscal year and the first
day of such quarterly accounting period (for the statements of income) and ending on the
date of such balance sheet, setting forth in comparative form the corresponding consolidated

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figures for the corresponding periods of the preceding fiscal year, all in reasonable
detail, prepared in accordance with GAAP consistently applied throughout the periods
involved and certified by the chief financial officer or chief accounting officer of U.S.
Borrower (i) outlining the basis of presentation, and (ii) stating that the information
presented in such financial statements contains all adjustments (consisting of only normal
recurring adjustments) necessary to present fairly the consolidated financial position of
U.S. Borrower and its Subsidiaries as of such dates and the consolidated results of their
operations and cash flows for the periods then ended, except that such financial statements
condense or omit certain footnotes pursuant to the rules and regulations of the SEC.
Delivery within the time period specified above of copies of U.S. Borrower’s Quarterly
Reports on Form 10-Q prepared in compliance with the requirements therefor and filed with
the SEC shall be deemed to satisfy the requirements of this Section 6.06(a).

     (b) As soon as available and in any event within 90 days after the last day of each
fiscal year, a consolidated balance sheet of U.S. Borrower and its Subsidiaries as of the
end of such fiscal year and the related consolidated statements of income, reinvested
earnings and cash flows for such fiscal year, in each case setting forth in comparative form
figures for the preceding fiscal year, all in reasonable detail, prepared in accordance with
GAAP consistently applied throughout the period involved (except for changes disclosed in
such financial statements or in the notes thereto and concurred in by U.S. Borrower’s
independent certified public accountants) and accompanied by a report as to the consolidated
balance sheet and the related consolidated statements of income, reinvested earnings and
cash flows unqualified as to scope of audit or with respect to the absence of any material
misstatement and unqualified as to going concern by a firm of independent public accountants
of recognized national standing selected by U.S. Borrower, to the effect that such financial
statements have been prepared in conformity with GAAP and present fairly, in all material
respects, the consolidated financial position and results of operations and cash flows of
U.S. Borrower and its Subsidiaries and that the examination of such financial statements by
such accounting firm has been made in accordance with generally accepted auditing standards.
Delivery within the time period specified above of U.S. Borrower’s Annual Report on Form
10-K for such fiscal year (together with U.S. Borrower’s annual report to shareholders
prepared pursuant to Rule 14a-3 under the Exchange Act) prepared in compliance with the
requirements therefor and filed with the SEC, together with the accountants certificate
described in this Section 6.06(b), shall be deemed to satisfy the requirements of
this Section 6.06(b).

     (c) Together with the consolidated financial statements delivered pursuant to
paragraphs (a) and (b) of this Section 6.06, a Compliance Certificate of the chief
financial officer, chief accounting officer or treasurer of U.S. Borrower, (i) to the effect
that such officer has re-examined the terms and provisions of this Agreement and that on the
date such calculations were made, during the periods covered by such financial reports and
as of the end of such periods Borrowers are not, or were not, in default in the fulfillment
of any of the terms, covenants, provisions and conditions of this Agreement and that no
Default or Event of Default is occurring or has occurred as of the date of such certificate,
during the periods covered by such financial statements and as of the end of such periods,

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or if such officer is aware of any Default or Event of Default, such officer shall
disclose in such statement the nature thereof, its period of existence and what action, if
any, Borrowers have taken or propose to take with respect thereto, and (ii) stating whether
Borrowers are in compliance with Sections 7.01 through 7.10 and setting
forth, in sufficient detail, the information and computations required to establish whether
or not Borrowers were in compliance with the requirements of Sections 7.01 through
7.08 during the periods covered by the financial statements then being furnished and
as of the end of such periods.

     (d) Together with the financial reports delivered pursuant to paragraph (b) of this
Section 6.06, a letter of U.S. Borrower’s independent certified public accountants
stating that they have reviewed this Agreement and stating whether, in making their audit,
they have become aware of any condition or event that then constitutes a Default or an Event
of Default, and, if they are aware that any such condition or event then exists, specifying
the nature and period of the existence thereof (it being understood that such accountants
shall not be liable, directly or indirectly, for any failure to obtain knowledge of any
Default or Event of Default unless such accountants should have obtained knowledge thereof
in making an audit in accordance with generally accepted auditing standards or did not make
such an audit).

     (e) As soon as available and in any event within 30 days after the end of each month, a
Borrowing Base Certificate for each Borrower setting forth (i) the Eligible Accounts of such
Borrower as of the end of such month, (ii) the Eligible Inventory of such Borrower as of the
end of such month and (iii) the Net PP&E of such Borrower as of the end of the most recently
completed fiscal quarter; provided, that each Borrower shall be permitted to deliver
updated Borrowing Base Certificates to the Agents at any time

     (f) Concurrently with notice filed with the SEC, notice of (i) the filing of any suit,
action, claim or counterclaim against U.S. Borrower or any Subsidiary in which the amount
claimed as damages against U.S. Borrower or any Subsidiary exceeds $5,000,000 after
deducting the amount which U.S. Borrower reasonably believes is covered by insurance, and
(ii) the entering of any judgment or decree against U.S. Borrower or any Subsidiary if the
aggregate amount of all judgments and decrees then outstanding against U.S. Borrower and all
Subsidiaries exceeds $2,500,000 after deducting the amount U.S. Borrower or any Subsidiary
(x) is insured therefor and with respect to which the insurer has assumed responsibility in
writing and (y) is otherwise indemnified therefor if the terms of such indemnification are
satisfactory to U.S. Agent.

     (g) As soon as available, copies of each financial statement, notice, report and proxy
statement which U.S. Borrower furnishes to its shareholders generally; within 15 days of
filing, copies of each registration statement and periodic report (without exhibits and
other than registration statements relating to employee benefit plans) which U.S. Borrower
files with the SEC, and any similar or successor agency of the Federal government
administering the Securities Act, the Exchange Act or the Trust Indenture Act of 1939, as
amended; without duplication, within 15 days of filing, copies of each report (other than
reports relating solely to the issuance of, or transactions by others

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involving, its securities) relating to U.S. Borrower or its securities which U.S.
Borrower files with any securities exchange on which any of U.S. Borrower’s securities may
be registered; copies of any orders applicable to either Borrower or a Subsidiary in any
material proceedings to which either Borrower or any Subsidiary is a party, issued by any
governmental agency, federal or state, having jurisdiction over either Borrower or any
Subsidiary and, at any time as U.S. Borrower is not a reporting company under Section 13 or
15(d) of the Exchange Act or has not complied with the requirements for the exemption from
registration under the Exchange Act set forth in Rule 12g-3-2(b), such financial or other
information as either Agent may reasonably request.

     (h) As soon as available, a copy of each other report submitted to U.S. Borrower or any
Subsidiary by independent accountants retained by U.S. Borrower or any Subsidiary in
connection with any special audit made by them of the books of U.S. Borrower or any
Subsidiary.

     (i) Promptly following any change in the composition of U.S. Borrower’s Subsidiaries
from that set forth in Schedule 5.13, as theretofore updated pursuant to this
paragraph, and also at the time of delivery of the financial statements referred to in
Section 6.06(b), an updated list setting forth the information specified in
Schedule 5.13.

     (j) Such additional information as either Agent may reasonably request concerning
Borrowers and their Subsidiaries, including, but not limited to, accounts receivable agings,
accounts payable schedules and inventory reports.

     (k) To the extent not otherwise provided herein, all information required to be
delivered by Borrowers or any of their Subsidiaries to the Other Senior Creditors pursuant
to the terms of any one or more agreements between or among any one or more of them and
Borrowers or any Subsidiary at the same time and in the same manner as delivered to such
Persons.

Borrowers hereby acknowledge that (a) Agents will make available to Lenders and L/C Issuers
materials and/or information provided by or on behalf of Borrowers hereunder (collectively,
“Borrower Materials”) by posting Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”) and (b) certain of the Lenders may be “public-side” Lenders (i.e., Lenders
that do not wish to receive material non-public information with respect to Borrowers or their
securities) (each, a “Public Lender”). Borrowers hereby agree that (w) all Borrower Materials that
are to be made available to Public Lenders shall be clearly and conspicuously marked “PUBLIC” so
long as U.S. Borrower is the issuer of any outstanding debt or equity securities that are
registered or issued pursuant to a private offering or is actively contemplating issuing any such
securities which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently on the
first page thereof; (x) by marking Borrower Materials “PUBLIC,” Borrowers shall be deemed to have
authorized Agents, L/C Issuers and Lenders to treat such Borrower Materials as not containing any
material non-public information with respect to Borrowers or their securities for purposes of
United States Federal and state securities laws (provided, however, that to the extent such
Borrower Materials constitute Information, they shall be treated as set forth in Section
10.07); (y) all Borrower Materials

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marked “PUBLIC” are permitted to be made available through a portion of the Platform designated
“Public Investor;” and (z) Agents shall be entitled to treat any Borrower Materials that are not
marked “PUBLIC” as being suitable only for posting on a portion of the Platform not designated
“Public Investor.

     6.07. Notices. Promptly notify the Agents and each Lender:

     (a) of the occurrence of any Default;

     (b) of any matter that has resulted or could reasonably be expected to result in a
Material Adverse Effect, including (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;

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

     (d) of the occurrence of any Internal Control Event.

     Each notice pursuant to this Section shall be accompanied by a statement of a Responsible
Officer of U.S. Borrower setting forth details of the occurrence referred to therein and stating
what action Borrowers have taken and propose to take with respect thereto. Each notice pursuant to
Section 6.07(a) shall describe with particularity any and all provisions of this Agreement
and any other Loan Document that have been breached.

     6.08. Inspection of Properties and Records.

     (a) Inspection Generally. Borrowers will allow, and will cause each Subsidiary
to allow, any representative of either Agent, to visit and inspect any of its properties, to
examine (and, if at the time thereof any Default or Event of Default has occurred and is
continuing, make copies and extracts of) its books of record and account and to discuss its
affairs, finances and accounts with its officers and its present and former public
accountants (and by this provision Borrowers authorize such accountants to discuss with
Agents Borrowers’ and any Subsidiary’s affairs, finances and accounts), all at such
reasonable times and upon such reasonable notice and as often as either Agent may reasonably
request and, if at the time thereof any Default or Event of Default has occurred and is
continuing, at Borrowers’ expense. Any Lender or its representatives may accompany either
Agent or any representative of either Agent on any such visit or inspection, at the sole
cost and expense of such Lender.

     (b) Collateral Monitoring and Review. At any time (but if no Event of Default
has occurred and is continuing, not more than once per calendar year) upon the reasonable
request of the U.S. Agent, permit each Agent or professionals (including, without
limitation, internal and third party consultants, accountants and appraisers)

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retained by such Agent or its professionals to conduct evaluations and appraisals (and
issue reports in respect thereof) of (i) the Borrowers’ practices in the computation of the
U.S. Borrowing Base and Canadian Borrowing Base and (ii) the assets included in the U.S.
Borrowing Base and Canadian Borrowing Base, and pay the reasonable fees and expenses in
connection therewith (including, without limitation, the reasonable and customary fees and
expenses associated with such reviews, as forth in Section 10.04).

     6.09. ERISA.

     (a) All assumptions and methods used to determine the actuarial valuation of employee
benefits, both vested and unvested, under any Plan subject to Title IV of ERISA, and each
such Plan, whether now existing or adopted after the date hereof, will comply in all
material respects with ERISA.

     (b) U.S. Borrower will not at any time permit any Plan to:

     (i) engage in any “prohibited transactions” as such term is defined in Section
4975 of the Code or in Section 406 of ERISA;

     (ii) incur any “accumulated funding deficiency” as such term is defined in
Section 302 of ERISA, whether or not waived; or

     (iii) be terminated under circumstances which are likely to result in the
imposition of a Lien on the property of U.S. Borrower or any ERISA Affiliate
pursuant to Section 4068 of ERISA;

if the event or condition described in clauses (i), (ii) or (iii) above is likely to
subject U.S. Borrower or an ERISA Affiliate to liabilities which, individually or in
the aggregate, would have a Material Adverse Effect.

     (c) Upon the request of U.S. Agent, U.S. Borrower will furnish a copy of the annual
report of each Plan (Form 5500) required to be filed with the Internal Revenue Service.

     (d) Within 5 days after obtaining knowledge of any event specified in clauses (I)
through (VII) below that would result in a Material Adverse Effect, Borrowers will give
Agents written notice of (I) a reportable event with respect to any Plan; (II) the
institution of any steps by any of Borrowers, any ERISA Affiliate or the PBGC to terminate
any Plan; (III) the institution of any steps by any of Borrowers or any ERISA Affiliate to
withdraw from any Plan; (IV) a prohibited transaction in connection with any Plan; (V) any
material increase in the contingent liability of U.S. Borrower or any Subsidiary with
respect to any post-retirement welfare liability; (VI) the incurrence of any unfunded
liability by a Non-U.S. Plan; or (VII) the taking of any action by the Internal Revenue
Service, the Department of Labor or the PBGC with respect to any of the foregoing.

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     6.10. Compliance with Laws.

     (a) Each Borrower will comply, and will cause each Subsidiary to comply, with all laws,
rules and regulations, including Environmental Laws, relating to its or their respective
businesses, other than laws, rules and regulations the failure to comply with which or the
sanctions and penalties resulting therefrom, individually or in the aggregate, would not
have a Material Adverse Effect.

     (b) Promptly upon the occurrence thereof, Borrowers will give Agents notice of the
institution of any proceedings against, or the receipt of written notice of potential
liability or responsibility of, either Borrower or any Subsidiary for violation, or the
alleged violation, of any Environmental Law which violation would give rise to a Material
Adverse Effect.

     6.11. Maintenance of Most Favored Lender Status. Borrowers hereby acknowledge and
agree that if either Borrower or any Subsidiary shall enter into or be a party to a Revolving Loan
Facility which contains for the benefit of any lender or other Person any Financial Covenants or
events of default in respect thereof that are more favorable to such lender than the Financial
Covenants and Events of Default in respect of such Financial Covenants contained in this Agreement
then, and in each and any such event, the Financial Covenants and Events of Default in this
Agreement shall be and shall be deemed to be, notwithstanding Section 10.01 and without any
further action on the part of either Borrower or any other Person being necessary or required,
amended to permanently afford (until so amended or waived pursuant to Section 10.01) Agents
and Lenders the same benefits and rights as so afforded to any such lender or Person (such deemed
amendment may be the addition of one or more new Financial Covenants and Events of Default in
respect thereto addressing matters not addressed by the then existing Financial Covenants and
Events of Default in respect thereto set forth herein, as well as modifications to such Financial
Covenants and Events of Default in respect thereto that are more favorable to such lender or
Person). Borrowers will promptly deliver to Agents a copy of each Revolving Loan Facility entered
into after the Closing Date. Without limiting the effectiveness of the first sentence of this
Section 6.11, Borrowers agree, no later than forty-five (45) days following the date either
Borrower or any Subsidiary shall have granted any such lender or Person any such benefits or
rights, to enter into such documentation as Agents may reasonably request to evidence the
amendments provided for in this Section 6.11.

     6.12. Subsequent Guarantors. U.S. Borrower covenants that at all times the assets of
U.S. Borrower and all Subsidiary Guarantors shall constitute at least 95% of Consolidated Total
Assets (excluding, for the purposes of this calculation, the assets of Foreign Subsidiaries of U.S.
Borrower (except (i) with respect to the Canadian Borrower, so long as the assets of the Canadian
Borrower do not constitute more than 20% of Consolidated Total Assets, (ii) with respect to Castle
Metals de Mexico, S.A. de C.V., so long as the assets of Castle Metals de Mexico, S.A. de C.V. do
not constitute more than 5% of Consolidated Total Assets and (iii) with respect to any other
Foreign Subsidiaries, so long as the assets of all such Foreign Subsidiaries do not constitute more
than 30% of Consolidated Total Assets)) and U.S. Borrower and the Subsidiary Guarantors shall have
contributed at least 95% of Consolidated EBITDA (excluding, for the purposes of this calculation,
the EBITDA of Foreign Subsidiaries of U.S. Borrower

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(except (i) with respect to the Canadian Subsidiary, so long as the assets of the Canadian
Subsidiary do not constitute more than 20% of Consolidated Total Assets, (ii) with respect to
Castle Metals de Mexico, S.A. de C.V., so long as the assets of Castle Metals de Mexico, S.A. de
C.V. do not constitute more than 5% of Consolidated Total Assets and (iii) with respect to any
other Foreign Subsidiaries, so long as the assets of all such Foreign Subsidiaries do not
constitute more than 30% of Consolidated Total Assets)) for the four quarters then most recently
ended. To the extent necessary to permit U.S. Borrower to comply with the foregoing U.S. Borrower
will cause one or more Significant Subsidiaries to become Subsidiary Guarantors and U.S. Borrower
will cause each such Significant Subsidiary to deliver to U.S. Agent (a) a joinder agreement to the
Subsidiary Guarantee Agreement, which joinder agreement is to be in the form of Exhibit A to the
Subsidiary Guarantee Agreement; (b) an opinion of counsel to such Person with respect to the
Subsidiary Guarantee Agreement and such joinder agreement which is in form and substance reasonably
acceptable to U.S. Agent; and (c) all applicable U.S. Security Documents and any other documents as
may be necessary or appropriate to permit U.S. Borrower to be in compliance with its obligations
set forth in this Section 6.12. The Subsidiary Guarantors shall be permitted to guaranty
all Other Senior Debt.

     6.13. Collateral Covenant. At any time on or after the Closing Date, at U.S.
Borrower’s expense:

     (a) U.S. Borrower will, and will cause each Subsidiary Guarantor to, execute and
deliver, within forty-five (45) days after any request therefor by U.S. Agent, all further
instruments and documents and take all further action that may be necessary, in order to
give effect to, and to aid in the exercise and enforcement of the Liens, rights and remedies
of U.S. Agent, U.S. Lenders and Collateral Agent under this Agreement, the U.S. Security
Documents and each other instrument and agreement executed in connection with any of the
foregoing.

     (b) U.S. Borrower will, and will cause each Subsidiary Guarantor to, take any and all
steps, and execute and deliver one or more U.S. Security Documents to insure that all
property of U.S. Borrower and its Significant Subsidiaries (other than Excluded Collateral)
will be subject to Liens in favor of Collateral Agent pursuant to one or more U.S. Security
Documents in form reasonably satisfactory to U.S. Agent.

     (c) Canadian Borrower will execute and deliver, within forty-five (45) days after any
request therefor by Canadian Agent, all further instruments and documents and take all
further action that may be necessary, in order to give effect to, and to aid in the exercise
and enforcement of the Liens, rights and remedies of Canadian Agent and Canadian Lenders
under this Agreement, the Canadian Security Documents and each other instrument and
agreement executed in connection with any of the foregoing.

     (d) Canadian Borrower will take any and all steps, and execute and deliver one or more
Canadian Security Documents to insure that all property of Canadian Borrower will be subject
to Liens in favor of Canadian Agent pursuant to one or more Canadian Security Documents in
form reasonably satisfactory to Canadian Agent.

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     6.14. Compliance with Terms of Leaseholds. Make all payments and otherwise perform
all obligations in respect of all leases of real property to which any Loan Party or any of its
Subsidiaries is a party, keep such leases in full force and effect and not allow such leases to
lapse or be terminated or any rights to renew such leases to be forfeited or cancelled, notify the
Agents of any default by any party with respect to such leases and cooperate with the Agents in all
respects to cure any such default, and cause each of its Subsidiaries to do so, except, in any
case, where the failure to do so, either individually or in the aggregate, could not be reasonably
likely to have a Material Adverse Effect.

     6.15. Material Contracts. Perform and observe all the terms and provisions of each
Material Contract to be performed or observed by it, maintain each such Material Contract in full
force and effect, enforce each such Material Contract in accordance with its terms, take all such
action to such end as may be from time to time requested by the Agents and, upon request of the
Agents, make to each other party to each such Material Contract such demands and requests for
information and reports or for action as any Loan Party or any of its Subsidiaries is entitled to
make under such Material Contract, and cause each of its Subsidiaries to do so, except, in any
case, where the failure to do so, either individually or in the aggregate, could not reasonably be
expected to have a Material Adverse Effect.

     6.16. Use of Proceeds. Borrowers will use the proceeds of the Credit Extensions for
general corporate purposes (including, without limitation, the acquisition of any Equity Interest
or other assets) not in contravention of any Law or of any Loan Document.

     6.17. Security Interests. Borrowers agree to, and to cause each other Loan Party to,
(a) defend the Collateral against all claims and demands of all Persons at any time claiming the
same or any interest therein (other than pursuant to the Collateral Agency and Intercreditor
Agreement), (b) comply with the requirements of all state, provincial, territorial and federal laws
in order to grant to Collateral Agent and/or Agents and Lenders valid and perfected first priority
security interests in the Collateral (subject to Permitted Encumbrances), and (c) do whatever
Agents may reasonably request, from time to time, to effect the purposes of this Agreement and the
other Loan Documents, including filing notices of liens, PPSA, CC or UCC financing statements or
applications for registration, fixture filings and amendments, renewals and continuations thereof;
cooperating with Agents’ representatives; and keeping stock records.

     6.18. Bank Accounts. In order to facilitate the administration of the credit
facilities provided under this Agreement, U.S. Borrower will maintain and will cause its domestic
Subsidiaries to maintain their primary operating accounts with Bank of America or one or more other
U.S. Lenders and Canadian Borrower will maintain its primary operating accounts with Bank of
America Canada or one or more other Canadian Lenders, unless, in each case, such Borrower requires
services not provided by such Lenders.

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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,
Borrowers agree that:

     7.01. Adjusted Consolidated Net Worth. U.S. Borrower will not permit its Adjusted
Consolidated Net Worth (calculated on the last day of each fiscal quarter) to be less than
$149,180,000 plus the cumulative sum of (x) 40% of Consolidated Net Income (but only if a
positive number), plus (y) 75% of the Net Cash Proceeds received by U.S. Borrower from the issuance
of Equity Interests by U.S. Borrower for (i) each completed fiscal year of U.S. Borrower ending
after December 31, 2005, and (ii) the period from the beginning of the then current fiscal year
through the end of the then most recently ended fiscal quarter which shall have been completed (if
any shall have been completed) in such then current fiscal year; provided, that at any time
U.S. Borrower or any Subsidiary incurs additional Indebtedness, immediately following and after
giving effect to the incurrence of such additional Indebtedness, the Adjusted Consolidated Net
Worth shall not be less than the minimum Adjusted Consolidated Net Worth that would have been
permitted as of the last day of the then most recently ended fiscal quarter.

     7.02. Consolidated Debt. U.S. Borrower will not permit the ratio (calculated on the
last day of each fiscal quarter) of Consolidated Debt to Consolidated Total Capitalization to
exceed 0.55 to 1.0; provided, that at any time U.S. Borrower or any Subsidiary incurs
additional Indebtedness, immediately following and after giving effect to the incurrence of such
additional Indebtedness, the ratio of Consolidated Debt to Consolidated Total Capitalization shall
not exceed 0.55 to 1.0 as of the then most recently ended fiscal quarter.

     7.03. Net Working Capital. U.S. Borrower will not permit the ratio (calculated on the
last day of each fiscal quarter) of Net Working Capital to Consolidated Debt to be less than 1.0 to
1.0.

     7.04. Liens. Borrowers will not, and will not permit any Subsidiary to, permit to
exist, create, assume or incur, directly or indirectly, any Lien on their properties or assets,
whether now owned or hereafter acquired, except:

     (a) Liens on property created substantially contemporaneously or within 180 days of the
acquisition thereof to secure or provide for all or a portion of the purchase price of such
property, provided that (i) such Liens do not extend to other property of either Borrower or
any Subsidiary, (ii) the aggregate principal amount of Indebtedness secured by each such
Lien does not exceed 80% of the purchase price at the time of acquisition of the property
subject to such Lien, and (iii) the Indebtedness secured by such Liens is otherwise
permitted by Section 7.02 and Section 7.03;

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     (b) Liens on assets existing at the time such assets are acquired by U.S. Borrower or a
Subsidiary; provided that (i) no such Lien is created in contemplation of or in
connection with such acquisition, (ii) no such Lien shall apply to any other property or
assets of U.S. Borrower or any Subsidiary other than improvements and accessions to the
subject assets and proceeds thereof and (iii) no such Lien shall secure obligations other
than those which it secures on the date of such acquisition and permitted extensions,
renewals and replacements thereof;

     (c) Liens for taxes, assessments or governmental charges not then due and delinquent or
the validity of which is being contested in good faith by appropriate proceedings and as to
which the applicable Borrower has established adequate reserves therefor on its books in
accordance with GAAP;

     (d) Liens arising in connection with court proceedings, provided the execution of such
Liens is effectively stayed, such Liens are being contested in good faith by appropriate
proceedings and U.S. Borrower has established adequate reserves therefor on its books in
accordance with GAAP;

     (e) Liens arising in the ordinary course of business and not incurred in connection
with the borrowing of money (including mechanic’s and materialmen’s liens and minor survey
exceptions on real property) that in the aggregate do not materially interfere with the
conduct of the business of the applicable Borrower or any Subsidiary or materially impair
the value of the property or assets subject to such Liens;

     (f) Liens in connection with workers’ compensation, unemployment insurance or other
social security laws to secure the public or statutory obligations of the applicable
Borrower or any Subsidiary;

     (g) Liens securing Indebtedness of a Subsidiary to either Borrower;

     (h) Liens existing on property or assets of Borrowers or any Subsidiary as of the date
of this Agreement that are described in the attached Schedule 7.04;

     (i) Liens in favor of Collateral Agent to secure the obligations and liabilities of
U.S. Borrower and the Subsidiary Guarantors under this Agreement and the Other Senior Debt
as provided in the U.S. Security Documents and the Collateral Agency and Intercreditor
Agreement;

     (j) Liens attaching solely to the property and assets of Canadian Borrower to secure
Debt of Canadian Borrower and no other Debt;

     (k) Liens attaching solely to the property and assets of any Foreign Subsidiary which
is not a Loan Party securing Indebtedness for borrowed money of any such Foreign Subsidiary
of not more than U.S. $15,000,000 in the aggregate at any time outstanding for all such
Foreign Subsidiaries;

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     (l) (i) If the obligations of U.S. Borrower under this Agreement are not Secured, Liens
not otherwise permitted by paragraphs (a) through (k) of this Section 7.04 created,
assumed or incurred subsequent to the Closing Date to secure Indebtedness, provided
that at the time of creating, assuming or incurring such additional Indebtedness and after
giving effect thereto and to the application of the proceeds therefrom the sum (without
duplication) of the aggregate principal amount of outstanding Consolidated Indebtedness
secured by Liens permitted by this Section 7.04(l) does not exceed 10% of Adjusted
Consolidated Net Worth and (ii) if the obligations of U.S. Borrower under this Agreement are
Secured, Existing First Priority Liens (as such term is defined in the Collateral Agency and
Intercreditor Agreement) and Future Acquired Liens (as such term is defined in the
Collateral Agency and Intercreditor Agreement).

     7.05. Merger or Consolidation. Borrowers will not, and will not permit any Subsidiary
to, merge, amalgamate or consolidate with, or convey, transfer or lease all or substantially all of
its assets in a single transaction or series of transactions to, any Person (other than
Dispositions permitted under Section 7.06 and sales, transfers and other dispositions
permitted under Section 7.07), except that:

     (a) U.S. Borrower may merge into or consolidate with, or sell all or substantially all
of its assets to, any Person or permit any Person to merge into or consolidate with it,
provided that immediately after giving effect thereto, (A) U.S. Borrower is the
successor corporation or, if U.S. Borrower is not the successor corporation, the successor
corporation is a solvent corporation organized under the laws of a state of the United
States of America or the District of Columbia and expressly assumes in writing U.S.
Borrower’s obligations under this Agreement; and (B) there shall exist no Default or Event
of Default.

     (b) Canadian Borrower may merge into or consolidate with, or sell all or substantially
all of its assets to, any Person or permit any Person to merge into or consolidate with it,
provided that immediately after giving effect thereto, (A) Canadian Borrower is the
successor corporation or, if Canadian Borrower is not the successor corporation, the
successor corporation is a solvent corporation organized under the laws of Canada or a
province thereof and expressly assumes in writing Canadian Borrower’s obligations under this
Agreement; and (B) there shall exist no Default or Event of Default.

     (c) Any Subsidiary (other than Canadian Borrower) may (i) merge into U.S. Borrower or a
Wholly-Owned Subsidiary, (ii) convey, transfer or lease all or any part of its assets to
U.S. Borrower or a Wholly-Owned Subsidiary, and (iii) merge with any Person which, as a
result of such merger, becomes a Wholly-Owned Subsidiary; provided in each instance
set forth in clauses (i) through (iii) that immediately before and after giving effect
thereto, there shall exist no Default or Event of Default; provided,
however, that if any Subsidiary Guarantor merges into any other Person in compliance
with the terms hereof or conveys or transfers all or any part of its assets in compliance
with the terms hereof and following such conveyance or transfer such Subsidiary Guarantor no
longer constitutes a Significant Subsidiary, then U.S. Agent will promptly take all

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necessary action to cause such Subsidiary Guarantor to be released from the Subsidiary
Guarantee Agreement as of the time of such sale, conveyance or transfer.

     7.06. Sale of Assets. Borrowers will not, and will not permit any Subsidiary to,
sell, lease, transfer or otherwise dispose of, including by way of merger or amalgamation
(collectively a “Disposition”), any assets, including capital stock or equity interests of
Subsidiaries, in one or a series of transactions, other than in the ordinary course of business, to
any Person, except to U.S. Borrower or a Wholly-Owned Subsidiary, (i) if, in any fiscal year, after
giving effect to such Disposition, the aggregate net book value of assets subject to Dispositions
during such fiscal year would exceed $5,000,000, or (ii) if a Default or Event of Default exists or
would exist. Notwithstanding the foregoing, U.S. Borrower may, or may permit a Subsidiary to, make
a Disposition and the assets subject to such Disposition shall not be subject to or included in the
foregoing limitation and computation contained in clause (i) of the preceding sentence to the
extent that the net proceeds from such Disposition are (1) reinvested in productive assets of U.S.
Borrower or a Subsidiary of at least equivalent value within 180 days of the date of such
Disposition, or (2) subject to the provisions of Section 2.06(b)(ii), applied to the
payment or prepayment of outstanding senior Indebtedness.

If U.S. Borrower or any Significant Subsidiary gives notice that it intends to sell, lease,
transfer or otherwise dispose of any assets in compliance with the terms of this Section
7.06, U.S. Agent, pursuant to the terms of the Collateral Agency and Intercreditor Agreement,
will promptly take such action requested by U.S. Borrower to instruct Collateral Agent to release
such assets from the Liens granted pursuant to the U.S. Security Documents as of the time of such
sale, lease, transfer or other disposition made in compliance with the terms of this Section
7.06.

     7.07. Disposition of Stock of Subsidiary. U.S. Borrower will not permit any
Subsidiary to issue its capital stock or other equity interests, or any warrants, rights or options
to purchase, or securities convertible into or exchangeable for, such capital stock or other equity
interests, to any Person other than U.S. Borrower or a Wholly-Owned Subsidiary. U.S. Borrower will
not, and will not permit any Subsidiary to, sell, transfer or otherwise dispose of (other than to
U.S. Borrower or a Wholly-Owned Subsidiary) any capital stock or other equity interests (including
any warrants, rights or options to purchase, or securities convertible into or exchangeable for,
capital stock or other equity interests) or Indebtedness of any Subsidiary, unless, as to any
Subsidiary other than Canadian Borrower:

     (a) simultaneously therewith all Investments in such Subsidiary owned by U.S. Borrower
and every other Subsidiary are disposed of as an entirety;

     (b) such Subsidiary does not have any continuing Investment in U.S. Borrower or any
other Subsidiary not being simultaneously disposed of; and

     (c) such sale, transfer or other disposition is permitted by Section 7.06;

provided, however, that if U.S. Borrower gives notice that it intends to sell,
transfer or otherwise dispose of the capital stock of a Subsidiary Guarantor in compliance
with the terms of this Section 7.07, U.S. Agent will promptly take all necessary
action to cause

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such Subsidiary Guarantor to be released from the Subsidiary Guarantee Agreement and shall
instruct Collateral Agent to release the assets of such Subsidiary Guarantor from the Liens
granted pursuant to the U.S. Security Documents, in each case, as of the time of any sale,
transfer or other disposition made in compliance with the terms of this Section
7.07.

     7.08. Investments. Borrowers will not, and will not permit any Subsidiary to make or
hold any Investments, except:

     (a) Investments held by Borrowers and their Subsidiaries in the form of Cash
Equivalents;

     (b) Short-term Investments of Foreign Subsidiaries acquired by Foreign Subsidiaries in
the ordinary course of business and of a credit quality similar to Cash Equivalents;

     (c) advances to officers, directors and employees of Borrowers and their Subsidiaries
in an aggregate amount not to exceed $1,000,000 at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes;

     (d) (i) Investments by Borrowers and their Subsidiaries in their respective
Subsidiaries outstanding on the date hereof, (ii) additional Investments by Borrowers and
their Subsidiaries in Loan Parties, (iii) additional Investments by Subsidiaries of U.S.
Borrower that are not Loan Parties in other Subsidiaries that are not Loan Parties and (iv)
so long as no Default has occurred and is continuing or would result from such Investment,
additional Investments by the Loan Parties in wholly-owned Subsidiaries that are not Loan
Parties in an aggregate amount invested from the date hereof not to exceed $5,000,000;

     (e) Investments consisting of extensions of credit 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;

     (f) Guarantees by a Loan Party of the obligations, liabilities or indebtedness of
another Loan Party;

     (g) the Parent Guarantee Agreement and the Subsidiary Guarantee Agreement;

     (h) Guarantees by any Foreign Subsidiary (other than Canadian Borrower) of the
obligations, liabilities or indebtedness of any other Foreign Subsidiary (other than
Canadian Borrower);

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     (i) Guarantees by U.S. Borrower of the obligations, liabilities or indebtedness of any
Subsidiary which is not a Loan Party not exceeding $7,500,000 in the aggregate at any time
outstanding;

     (j) the Transtar Acquisition;

     (k) Investments existing on the date hereof (other than those referred to in
Section 7.08(d)(i));

     (l) the purchase or other acquisition of all of the Equity Interests in, or all or
substantially all of the property of, any Person that, upon the consummation thereof, will
be wholly-owned directly by U.S. Borrower or one or more of its wholly-owned Subsidiaries
(including as a result of a merger or consolidation); provided that, with respect to
each purchase or other acquisition made pursuant to this Section 7.08(l):

     (i) the Term A Facility has been paid in full;

     (ii) any such newly-created or acquired Subsidiary shall comply with the
requirements of Section 6.12;

     (iii) the lines of business of the Person to be (or the property of which is to
be) so purchased or otherwise acquired shall be substantially the same lines of
business as one or more of the principal businesses of U.S. Borrower and its
Subsidiaries in the ordinary course;

     (iv) the prior, effective consent or approval to such purchase shall have been
granted by the Board of Directors or equivalent governing body of the acquiree;

     (v) such purchase or other acquisition shall not include or result in any
contingent liabilities that could reasonably be expected to be material to the
business, financial condition, operations or prospects of U.S. Borrower and its
Subsidiaries, taken as a whole (as determined in good faith by the board of
directors (or the persons performing similar functions) of U.S. Borrower or such
Subsidiary if the board of directors is otherwise approving such transaction and, in
each other case, by a Responsible Officer);

     (vi) the total cash and noncash consideration (including the fair market value
of all Equity Interests issued or transferred to the sellers thereof (other than
Equity Interests of U.S. Borrower), all indemnities, earnouts and other contingent
payment obligations to (with the amount thereof being determined by reference to the
amount reflected on U.S. Borrower’s or the applicable Subsidiary’s balance sheet as
of the first date after the consummation of the applicable Investment), and the
aggregate amounts paid or to be paid under noncompete, consulting and other
affiliated agreements with, the sellers thereof and all assumptions of debt,
liabilities and other obligations in connection therewith) paid by or on behalf of
U.S. Borrower and its Subsidiaries for any such purchase or other acquisition,

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when aggregated with the total cash and noncash consideration paid by or on
behalf of U.S. Borrower and its Subsidiaries for all other purchases and other
acquisitions made by U.S. Borrower and its Subsidiaries pursuant to this Section
7.08(l) during the immediately preceding 12 months, shall not exceed
$50,000,000;

     (vii) (A) immediately before and immediately after giving pro forma effect to
any such purchase or other acquisition, no Default shall have occurred and be
continuing and (B) immediately after giving effect to such purchase or other
acquisition, U.S. Borrower and its Subsidiaries shall be in pro forma compliance
with all of the covenants set forth in Sections 7.01, 7.02 and 7.03, such
compliance to be determined on the basis of the financial information most recently
delivered to the Agents and the Lenders pursuant to Section 6.06(a) or
(b) as though such purchase or other acquisition had been consummated as of
the first day of the fiscal period covered thereby; and

     (viii) the U.S. Borrower shall have delivered to the Agents and each Lender, at
least five Business Days prior to the date on which any such purchase or other
acquisition is to be consummated, a certificate of a Responsible Officer, in form
and substance reasonably satisfactory to the Agents and the Required Lenders,
certifying that all of the requirements set forth in this Section 7.08(l)
have been satisfied or will be satisfied on or prior to the consummation of such
purchase or other acquisition;

     (m) Investments in promissory notes issued as all or a portion of the purchase price
paid in connection with any Disposition permitted by Section 7.06 or any sale
permitted by Section 7.07, not exceeding (i) $10,000,000 in aggregate principal
amount at any time outstanding with respect to Dispositions of U.S. Borrower’s interests in
joint ventures in existence on the Closing Date, or (ii) $1,000,000 with respect to any
other such Disposition or sale.

     (n) Investments made after the Closing Date in joint ventures not exceeding $7,500,000
in the aggregate at any time outstanding.

     7.09. Leases. Borrowers will not, and will not permit any Subsidiary to, enter into
or permit to exist any Capitalized Lease which requires the payment during the remaining term
thereof by U.S. Borrower or any Subsidiary of Capitalized Lease Obligations which, after giving
effect thereto, and to any other Capitalized Lease Obligations of U.S. Borrower and its
Subsidiaries on a consolidated basis, exceed in the aggregate 10% of Consolidated Total
Capitalization.

     7.10. Transactions with Affiliates. Borrowers will not, and will not permit any
Subsidiary to, enter into any transaction (including the furnishing of goods or services) with an
Affiliate, except on terms and conditions no less favorable to the applicable Borrower or such
Subsidiary than would be obtained in a comparable arm’s-length transaction with a Person not an

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Affiliate, except for benefit and compensation plans and arrangements approved by a majority
of the disinterested members of the Board of Directors of U.S. Borrower or any Subsidiary.

     7.11. Off-Balance Sheet Liabilities. U.S. Borrower will not, and will not permit any
Subsidiary to incur or suffer to exist any Off-Balance Sheet Liabilities, except for existing
Off-Balance Sheet Liabilities described in the attached Schedule 7.11.

     7.12. Nature of Business. Borrowers will not, and will not permit any Subsidiary to,
engage in any business if, as a result thereof, the business then to be conducted by Borrowers and
their Subsidiaries, taken as a whole, would be substantially changed from the business conducted on
the Closing Date.

     7.13. Accounting Changes. Borrowers will not, and will not permit any Subsidiary to,
make any change in (a) accounting policies or reporting practices for purposes of this Agreement or
SEC reporting requirements, except as required by GAAP, or (b) fiscal year.

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 of Interest and Other Amounts. Any default by either Borrower
in the payment of interest when due on any Loan or L/C Obligation, any fee due hereunder or
any other amount (other than principal of any Loan or L/C Obligation) payable hereunder or
under any other Loan Document and continuance of such default for a period of five Business
Days;

     (b) Non-Payment of Principal. Any default by either Borrower in the payment of
the principal of any Loan or L/C Obligation when due, whether at maturity, upon acceleration
of maturity or at any date fixed for payment;

     (c) Cross-Default. (i) Any default in the payment of the principal of, or
interest or premium on, any other Debt of either Borrower and its Subsidiaries aggregating
in excess of $3,000,000 as and when due and payable (whether by lapse of time, declaration,
call for redemption or otherwise) and the continuation of such default beyond the period of
grace, if any, allowed with respect thereto, or (ii) any default (other than a payment
default) under any mortgages, agreements or other instruments of either Borrower and its
Subsidiaries under or pursuant to which Debt aggregating in excess of $3,000,000 is issued
and the continuation of such default beyond the period of grace, if any, allowed with
respect thereto;

     (d) Specific Covenants. Any default in the observance or performance of
Sections 7.01 through 7.13 or in Section 8.04;

     (e) Other Defaults. Any default in the observance or performance of (i)
Section 6.06(e) which is not remedied within seven days after the date on which the

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Borrowers learn of such default, or (ii) any other covenant or provision of this
Agreement or any other Loan Document which is not remedied within 30 days after the date on
which the Borrowers learn of such default;

     (f) Representations and Warranties. Any representation or warranty made by
either Borrower in this Agreement or any other Loan Document, or made by either Borrower in
any written statement or certificate furnished by either Borrower pursuant to this
Agreement, proves incorrect in any material respect as of the date of the making or issuance
thereof;

     (g) Judgments. Any judgment, decree, writ or warrant of attachment or any
similar process in an aggregate amount in excess of $5,000,000 shall be entered or filed
against either Borrower or any Subsidiary or against any property or assets of either
Borrower or any Subsidiary and remain unpaid, unvacated, unbonded or unstayed (through
appeal or otherwise) for a period of 60 days after either Borrower or any Subsidiary
receives notice thereof, except for any judgment, decree, writ or warrant of attachment or
any similar process to the extent that either Borrower or any Subsidiary (i) is insured
therefor and with respect to which the insurer has assumed responsibility in writing, or
(ii) is indemnified therefor, provided the terms of such indemnification are satisfactory to
Required Lenders;

     (h) Insolvency. Either Borrower or any Subsidiary shall

     (i) generally not pay its debts as they become due or admit in writing its
inability to pay its debts generally as they become due;

     (ii) file a petition in bankruptcy or for reorganization or for the adoption of
an arrangement under the Federal Bankruptcy Code of the United States, or any
similar applicable bankruptcy or insolvency law (or, with respect to Canadian
Borrower, any other Debtor Relief Law), as now or in the future amended (herein
collectively called “Bankruptcy Laws”); file an answer or other pleading admitting
or failing to deny the material allegations of such a petition; fail to obtain the
dismissal of such a petition within 60 days of its filing or be subject to an order
for relief or a decree approving such a petition; or file an answer or other
pleading seeking, consenting to or acquiescing in relief provided for under the
Bankruptcy Laws;

     (iii) make an assignment of all or a substantial part of its property for
the benefit of its creditors;

     (iv) seek or consent to or acquiesce in the appointment of a receiver,
liquidator, custodian or trustee of it or for all or a substantial part of its
property;

     (v) be finally adjudicated bankrupt or insolvent;

     (vi) be subject to the entry of a court order which shall not be vacated, set
aside or stayed within 60 days of the date of entry, (A) appointing a receiver,

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liquidator, custodian or trustee of it or for all or a substantial part of its
property, (B) for relief pursuant to an involuntary case brought under, or effecting
an arrangement in, bankruptcy, (C) for a reorganization pursuant to the Bankruptcy
Laws, or (D) for any other judicial modification or alteration of the rights of
creditors; or

     (vii) be subject to the assumption of custody or sequestration by a court
of competent jurisdiction of all or a substantial part of its property, which
custody or sequestration shall not be suspended or terminated within 60 days from
its inception.

     (i) Guarantor Obligations. Except as otherwise provided in this Agreement
including, without limitation, in Section 6.12, Section 7.05, Section
7.06, Section 7.07 and Section 7.08 the obligations of any Subsidiary
Guarantor contained in the Subsidiary Guarantee Agreement, any of the Security Documents or
the Collateral Agency and Intercreditor Agreement shall cease to be in full force and effect
or shall be declared by a court or governmental authority of competent jurisdiction to be
void, voidable or unenforceable against any such Subsidiary Guarantor; (ii) U.S. Borrower or
any Subsidiary Guarantor shall contest the validity or enforceability of the Subsidiary
Guarantee Agreement, any of the U.S. Security Documents or the Collateral Agency and
Intercreditor Agreement against any such Subsidiary Guarantor, or (iii) U.S. Borrower or any
Subsidiary Guarantor shall deny that such Subsidiary Guarantor has any further liability or
obligation under the Subsidiary Guarantee Agreement or any of the U.S. Security Documents;
or

     (j) Other Representations and Warranties. Any representation or warranty made
in writing by or on behalf of U.S. Borrower or any Subsidiary Guarantor or by any officer of
U.S. Borrower or any Subsidiary Guarantor in the Subsidiary Guarantee Agreement, any U.S.
Security Document or the Collateral Agency and Intercreditor Agreement or in any writing
furnished in connection therewith or pursuant to the terms thereof proves to have been false
or incorrect in any material respect on the date as of which made; or

     (k) Collateral Documents. Except as otherwise provided in this Agreement,
including, without limitation in Section 6.12, Section 7.05, Section
7.06, Section 7.07 and Section 7.08 (i) any Collateral Document shall
cease to be in full force and effect (other than in accordance with its terms) or shall be
declared by any court or governmental authority of competent jurisdiction to be void,
voidable or unenforceable against the grantor thereunder; or (ii) the validity or
enforceability of any Collateral Document against the grantor thereof shall be contested by
such grantor; or

     (l) Receivables Purchase Agreement. U.S. Borrower or any Subsidiary shall
enter into a Receivables Purchase Agreement; or

     (m) Intercreditor Agreement. Any default by U.S. Borrower or any Subsidiary
Guarantor in the performance or observance of any covenant or provision of

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the Collateral Agency and Intercreditor Agreement, the Subsidiary Guarantee Agreement
or any of the U.S. Security Documents and such default shall continue for more than thirty
(30) days after the first date on which a Senior Officer (as defined in the Collateral
Agency and Intercreditor Agreement) shall have become aware of such default.

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

     (a) declare the commitment of each Lender to make Loans and purchase Acceptances and
any obligation of L/C Issuers to make L/C Credit Extensions to be terminated, whereupon such
commitments and obligations shall be terminated;

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

     (c) require that Borrowers Cash Collateralize the L/C Obligations (in an amount equal
to the then Outstanding Amount thereof); and

     (d) exercise on behalf of themselves, the Lenders and the L/C Issuers all rights and
remedies available to them, the Lenders and the L/C Issuers under the Loan Documents;

provided, however, that upon the occurrence of an Event of Default described in
Section 8.01(h), the obligation of each Lender to make Loans and any obligation of each L/C
Issuer to make L/C Credit Extensions shall automatically terminate, the unpaid principal amount of
all outstanding Loans, all Acceptance Exposure and all interest and other amounts as aforesaid
shall automatically become due and payable, and the obligation of Borrowers to Cash Collateralize
the L/C Obligations as aforesaid shall automatically become effective, in each case without further
act of either Agent or any Lender.

     8.03. Application of Funds.

     (a) U.S. Obligations. After the exercise of remedies provided for in
Section 8.02 (or after the U.S. Loans have automatically become immediately due and
payable and the U.S. L/C 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 U.S. Obligations shall be applied by U.S. Agent in the following order:

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

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Second, to payment of that portion of the U.S. Obligations constituting fees, indemnities and other
amounts (other than principal, interest and L/C Fees) payable to U.S. Lenders and U.S. L/C Issuer
(including fees, charges and disbursements of counsel to U.S. Lender and U.S. L/C 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 U.S. Obligations constituting accrued and unpaid L/C Fees
and interest on the U.S. Loans, L/C Borrowings and other U.S. Obligations, ratably among U.S.
Lenders and U.S. L/C Issuer in proportion to the respective amounts described in this clause Third
payable to them;

Fourth, to payment of that portion of the U.S. Obligations constituting unpaid principal of the
U.S. Loans, and L/C Borrowings, ratably among U.S. Lenders and U.S. L/C Issuer in proportion to the
respective amounts described in this clause Fourth held by them;

Fifth, to U.S. Agent for the account of U.S. L/C Issuer, to Cash Collateralize that portion of U.S.
L/C Obligations comprised of the aggregate undrawn amount of U.S. Letters of Credit;

Sixth, to payment of that portion of the U.S. Obligations constituting amounts payable by U.S.
Borrower in connection with any Swap Contract between U.S. Borrower and any U.S. Lender or any
Affiliate of any U.S. Lender and all amounts constituting Treasury Management Obligations of a Loan
Party to a U.S. Lender or an Affiliate of a U.S. Lender;

Seventh, to Canadian Agent for application to Canadian Obligations in the order set forth in
Section 8.03(b); and

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

Subject to Section 2.04(c), amounts used to Cash Collateralize the aggregate undrawn amount
of U.S. Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings under
such U.S. Letters of Credit as they occur; provided, however, that if U.S. Borrower
is required to Cash Collateralize any U.S. L/C Obligations following an Event of Default, such
amount (to the extent not already applied as provided herein, and not otherwise required to be
maintained as Cash Collateral pursuant to the terms of this Agreement in the absence of such Event
of Default) shall be returned to U.S. Borrower after such Event of Default has been cured or waived
so long as no other Default then exists. If any amount remains on deposit as Cash Collateral after
all U.S. Letters of Credit have either been fully drawn or expired, such remaining amount shall be
applied to the other U.S. Obligations, if any, in the order set forth above.

     (b) Canadian Obligations. After the exercise of remedies provided for in
Section 8.02 (or after the Canadian Loans have automatically become immediately due
and payable and the Canadian L/C 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 Canadian Obligations shall be applied by Canadian Agent in the following
order:

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

Second, to payment of that portion of the Canadian Obligations constituting fees, indemnities and
other amounts (other than principal, interest and L/C Fees) payable to Canadian Lenders and
Canadian L/C Issuer (including fees, charges and disbursements of counsel to Canadian Lenders and
Canadian L/C 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 Canadian Obligations constituting accrued and unpaid L/C
Fees and interest on the Canadian Loans, L/C Borrowings and other Canadian Obligations, ratably
among Canadian Lenders and Canadian L/C Issuer in proportion to the respective amounts described in
this clause Third payable to them;

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

Fifth, to Canadian Agent for the account of Canadian L/C Issuer, to Cash Collateralize that portion
of Canadian L/C Obligations comprised of the aggregate undrawn amount of Canadian Letters of Credit
and all amounts constituting Treasury Management Obligations of Canadian Borrower to a Canadian
Lender or an Affiliate of a Canadian Lender;

Sixth, to payment of that portion of the Canadian Obligations constituting amounts payable by
Canadian Borrower in connection with any Swap Contract between Canadian Borrower and any Canadian
Lender or any Affiliate of any Canadian Lender; and

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

Subject to Section 2.04(c), amounts used to Cash Collateralize the aggregate undrawn amount
of Canadian Letters of Credit pursuant to clause Fifth above shall be applied to satisfy drawings
under such Canadian Letters of Credit as they occur; provided, however, that if
Canadian Borrower is required to Cash Collateralize any Canadian L/C Obligations following an Event
of Default, such amount (to the extent not already applied as provided herein, and not otherwise
required to be maintained as Cash Collateral pursuant to the terms of this Agreement in the absence
of such Event of Default) shall be returned to Canadian Borrower after such Event of Default has
been cured or waived so long as no other Default then exists. If any amount remains on deposit as
Cash Collateral after all Canadian Letters of Credit have either been fully drawn or expired, such
remaining amount shall be applied to the other Canadian Obligations, if any, in the order set forth
above.

     8.04. Notice of Default. With respect to Defaults, Events of Default or claimed
defaults, Borrowers will give the following notices:

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     (a) Borrowers promptly will furnish to U.S. Agent, Canadian Agent, U.S. L/C Issuer,
U.S. Swing Line Lender, Canadian L/C Issuer and each Lender written notice of the occurrence
of a Default or an Event of Default. Such notice shall specify the nature of such default,
the period of existence thereof and what action Borrowers have taken or are taking or
propose to take with respect thereto.

     (b) If U.S. Agent, Canadian Agent, any Lender or the holder of any other evidence of
Debt of either Borrower or any Subsidiary gives any notice or takes any other action with
respect to a claimed default, Borrowers will forthwith give written notice thereof to U.S.
Agent, Canadian Agent, U.S. L/C Issuer, U.S. Swing Line Lender, Canadian L/C Issuer and each
Lender, describing the notice or action and the nature of the claimed default.

ARTICLE IX

AGENTS

     9.01. Appointment and Authorization of Agents. Each of U.S. Lenders and U.S. L/C
Issuers hereby irrevocably appoints Bank of America to act on its behalf as U.S. Agent hereunder
and under the other Loan Documents and authorizes U.S. Agent to take such actions on its behalf and
to exercise such powers as are delegated to U.S. Agent by the terms hereof and thereof, together
with such actions and powers as are reasonably incidental thereto. Each of Canadian Lenders and
Canadian L/C Issuer hereby appoints Bank of America Canada to act on its behalf as Canadian Agent
hereunder and under the other Loan Documents and authorizes Canadian Agent to take such actions on
its behalf and to exercise such powers as are delegated to Canadian Agent by the terms hereof and
thereof, together with such actions and powers as are reasonably incidental thereto. The provisions
of this Article are solely for the benefit of Agents, Lenders and L/C Issuers, and neither
Borrowers nor any other Loan Party shall have rights as a third party beneficiary of any of such
provisions.

     9.02. Rights as a Lender. The Persons serving as Agents hereunder shall have the same
rights and powers in their capacity as a Lender as any other Lender and may exercise the same as
though they were not Agents and the term “Lender” or “Lenders” shall, unless otherwise expressly
indicated or unless the context otherwise requires, include the Persons serving as Agents hereunder
in its individual capacity. Such Persons and their 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 Borrowers or any Subsidiary or other Affiliate thereof as if such Persons
were not Agents hereunder and without any duty to account therefor to Lenders.

     9.03. Exculpatory Provisions. Agents 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, Agents:

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

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     (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 Agents are required to exercise as directed in writing
by Required Lenders (or such other number or percentage of Lenders as shall be expressly
provided for herein or in the other Loan Documents), provided that neither Agent shall be
required to take any action that, in its opinion or the opinion of its counsel, may expose
such 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 Borrowers or any of their Affiliates that is communicated to or
obtained by the Person serving as Agent or any of its Affiliates in any capacity.

     (d) Agents shall not be liable for any action taken or not taken by them (i) with the
consent or at the request of Required Lenders (or such other number or percentage of Lenders
as shall be necessary, or as the applicable Agent shall believe in good faith shall be
necessary, under the circumstances as provided in Sections 8.02 and 10.01)
or (ii) in the absence of its own gross negligence or willful misconduct. Agents shall be
deemed not to have knowledge of any Default unless and until written notice describing such
Default is given to Agents by Borrowers, a Lender or a L/C Issuer. Agents 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
the creation, perfection or priority of any Lien purported to be created by the Collateral
Documents, (v) the value or sufficiency of any Collateral, or (vi) 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 Agents.

     9.04. Reliance by Agents. Agents 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. Agents also may rely upon any statement made to them orally or
by telephone and believed by them 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 a L/C Issuer, Agents may presume that such condition is satisfactory to
such Lender or such L/C Issuer unless the applicable Agent shall have received notice to the
contrary from such Lender or such L/C Issuer prior to the making of such Loan or the issuance of
such Letter of Credit. Agents may consult with legal counsel (who may be

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counsel for Borrowers), independent accountants and other experts selected by them, and shall
not be liable for any action taken or not taken by them in accordance with the advice of any such
counsel, accountants or experts.

     9.05. Delegation of Duties. Agents may perform any and all of their duties and
exercise their rights and powers hereunder or under any other Loan Document by or through any one
or more sub agents appointed by the applicable Agent. Agents and any such sub agent may perform
any and all of their duties and exercise their 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 each 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 an Agent.

     9.06. Resignation of an Agent. An Agent may at any time give notice of its
resignation to Lenders, the other Agent, L/C Issuer and Borrowers. Upon receipt of any such notice
of resignation, the applicable Required Lenders shall have the right, in consultation with
Borrowers, to appoint a successor, which in the case of U.S. Agent, 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 and in
the case of Canadian Agent shall be a bank with an office in Canada that accepts deposits. If no
such successor shall have been so appointed by the applicable Required Lenders and shall have
accepted such appointment within 30 days after the retiring Agent gives notice of its resignation,
then the retiring Agent may on behalf of the applicable Lenders and the applicable L/C Issuer,
appoint a successor Agent meeting the qualifications set forth above; provided that if the retiring
Agent shall notify Borrowers and Lenders that no qualifying Person has accepted such appointment,
then such resignation shall nonetheless become effective in accordance with such notice and (1) the
retiring Agent shall be discharged from its duties and obligations hereunder and under the other
Loan Documents (except that in the case of any collateral security held by Agent on behalf of
Lenders or L/C Issuers under any of the Loan Documents, the retiring Agent shall continue to hold
such collateral security until such time as a successor Agent is appointed) and (2) all payments,
communications and determinations provided to be made by, to or through the retiring Agent shall
instead be made by or to each Lender and L/C Issuer directly, until such time as the applicable
Required Lenders appoint a successor Agent as provided for above in this Section. Upon the
acceptance of a successor’s appointment as Agent hereunder, such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the retiring (or retired)
Agent, and the retiring 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 Borrowers to a successor Agent shall be the same as those payable to
its predecessor unless otherwise agreed between Borrowers and such successor. After the retiring
Agent’s resignation 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 Agent, its sub
agents and their respective Related Parties in respect of any actions taken or omitted to be taken
by any of them while the retiring Agent was acting as Agent.

Any resignation by Bank of America as U.S. Agent pursuant to this Section shall also constitute its
resignation as U.S. L/C Issuer and U.S. Swing Line Lender. Any resignation by Bank of

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America Canada as Canadian Agent pursuant to this Section shall also constitute its resignation as
Canadian L/C Issuer. Upon the acceptance of a successor’s appointment as Agent hereunder, (a) such
successor shall succeed to and become vested with all of the rights, powers, privileges and duties
of the retiring L/C Issuer and Swing Line Lender, (b) the retiring L/C 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 L/C 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 L/C Issuer to effectively assume the obligations of
the retiring L/C Issuer with respect to such Letters of Credit.

     9.07. Non-Reliance on Agents and Other Lenders. Each Lender and each L/C Issuer
acknowledges that it has, independently and without reliance upon either 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 each L/C Issuer also acknowledges that it will, independently and without reliance upon either
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, none of
the Bookrunners, Arrangers or any Lender holding a title listed on the cover page hereof shall have
any powers, duties or responsibilities under this Agreement or any of the other Loan Documents,
except in its capacity, as applicable, as Agent, a Lender or L/C Issuer hereunder.

     9.09. Agents May File Proofs of Claim. In case of the pendency of any proceeding
under any Debtor Relief Law or any other judicial proceeding relative to any Loan Party, Agents
(irrespective of whether the principal of any Loan or L/C Obligation or any Acceptance shall then
be due and payable as herein expressed or by declaration or otherwise and irrespective of whether
Agents shall have made any demand on Borrowers) 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, L/C Obligations, Acceptances 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 Lenders, L/C Issuers and Agents (including any claim for the
reasonable compensation, expenses, disbursements and advances of Lenders, L/C Issuers and
Agents and their respective agents and counsel and all other amounts due Lenders, L/C Issuer
and Agent under Sections 2.04(i) and (j), 2.10 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, receiver and manager, assignee, trustee, liquidator, sequestrator or
other similar official in any such judicial proceeding is hereby authorized by each Lender and

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each L/C Issuer to make such payments to Agents and, in the event that Agents shall consent to the
making of such payments directly to Lenders and L/C Issuers, to pay to Agents any amount due for
the reasonable compensation, expenses, disbursements and advances of Agents and their agents and
counsel, and any other amounts due Agents under Sections 2.10 and 10.04. Nothing
contained herein shall be deemed to authorize Agents to authorize or consent to or accept or adopt
on behalf of any Lender or any L/C Issuer any plan of reorganization, arrangement, adjustment or
composition affecting the Obligations or the rights of any Lender or to authorize Agents to vote in
respect of the claim of any Lender or any L/C Issuer in any such proceeding.

     9.10. Guaranty Matters. Each U.S. Lender and U.S. L/C Issuer hereby irrevocably
authorizes U.S. Agent to, so long as no Default or Event of Default shall have occurred or be
continuing, and U.S. Agent shall, upon the request of U.S. Borrower so long as no Default or Event
of Default shall have occurred and be continuing, release any Subsidiary Guarantor from its
obligations under the Subsidiary Guarantee Agreement if such Person ceases to be a Significant
Subsidiary as a result of a transaction permitted hereunder. Upon request by U.S. Agent at any
time, each U.S. Lender and U.S. L/C Issuer will confirm in writing U.S. Agent’s authority to
release any Subsidiary Guarantor from its obligations under the Subsidiary Guarantee Agreement
pursuant to this Section 9.10.

     9.11. Collateral Matters.

     (a) Each Lender and each L/C Issuer hereby irrevocably authorizes and directs each
Agent to enter into the Collateral Documents for the benefit of such Lender and such L/C
Issuer. Each U.S. Lender and U.S. L/C Issuer hereby irrevocably authorizes U.S. Agent to
enter into the Collateral Agency and Intercreditor Agreement for the benefit of such U.S.
Lender and U.S. L/C Issuer. Each Lender and each L/C Issuer hereby agrees, and each holder
of any Note by the acceptance thereof will be deemed to agree, that, except as otherwise set
forth in Section 10.01, any action taken by Required Lenders, in accordance with the
provisions of this Agreement or the Collateral Documents, and the exercise by Required
Lenders of the powers set forth herein or therein, together with such other powers as are
reasonably incidental thereto, shall be authorized and binding upon all of Lenders and L/C
Issuers. Agents are hereby authorized (but not obligated) on behalf of all of Lenders and
L/C Issuers, without the necessity of any notice to or further consent from any Lender or
any L/C Issuer from time to time prior to, an Event of Default, to take any action with
respect to any Collateral or Collateral Documents which may be necessary to perfect and
maintain perfected the Liens upon the Collateral granted pursuant to the Collateral
Documents.

     (b) Each U.S. Lender and U.S. L/C issuer hereby irrevocably authorize U.S. Agent, at
its option and in its discretion,

     (i) to authorize Collateral Agent to release any Lien on any property granted
to or held by Collateral Agent under any U.S. Security Document (A) upon termination
of the Aggregate U.S. Commitments and payment in full of all U.S. Obligations (other
than contingent indemnification obligations) and the expiration or termination of
all U.S. Letters of Credit, (B) that is sold or to be sold

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as part of or in connection with any sale or other disposition permitted
hereunder or under any other Loan Document, (C) subject to Section 10.01, if
approved, authorized or ratified in writing by U.S. Supermajority Lenders, or (D) in
connection with any foreclosure sale or other disposition of Collateral after the
occurrence of an Event of Default; and

     (ii) to authorize Collateral Agent to subordinate any Lien on any property
granted to or held by Collateral Agent under any U.S. Security Document to the
holder of any Lien on such property that is permitted by this Agreement or any other
Loan Document.

Upon request by U.S. Agent at any time, each U.S. Lender and U.S. L/C Issuer will confirm in
writing U.S. Agent’s authority to so authorize Collateral Agent to release or subordinate its
interest in particular types or items of Collateral pursuant to this Section 9.11(b).

     (c) Each Canadian Lender and Canadian L/C issuer hereby irrevocably authorize Canadian
Agent, at its option and in its discretion,

     (i) to release any Lien on any property granted to or held by Canadian Agent
under any Loan Document (A) upon termination of the Aggregate Canadian Commitments
and payment in full of all Canadian Obligations (other than contingent
indemnification obligations) and the expiration or termination of all Canadian
Letters of Credit, (B) that is sold or to be sold as part of or in connection with
any sale or other disposition permitted hereunder or under any other Loan Document,
(C) subject to Section 10.01, if approved, authorized or ratified in writing
by Canadian Supermajority Lenders, or (D) in connection with any foreclosure sale or
other disposition of Collateral after the occurrence of an Event of Default; and

     (ii) to subordinate any Lien on any property granted to or held by Canadian
Agent under any Loan Document to the holder of any Lien on such property that is
permitted by this Agreement or any other Loan Document.

Upon request by Canadian Agent at any time, each Canadian Lender and Canadian L/C Issuer will
confirm in writing Canadian Agent’s authority to so authorize Collateral Agent to release or
subordinate its interest in particular types or items of Collateral pursuant to this Section
9.11(c).

     (d) Subject to clauses (b) and (c) above, each Agent shall (and is hereby irrevocably
authorized by each Lender and each L/C Issuer), to execute such documents as may be
necessary to evidence the release or subordination of the Liens granted to such Agent for
the benefit of such Agent and the applicable Lenders and the applicable L/C Issuer herein or
pursuant hereto upon the applicable Collateral; provided that (i) such Agent shall
not be required to execute any such document on terms which, in such Agent’s opinion, would
expose such Agent to or create any liability or entail any consequence other than the
release or subordination of such Liens without recourse or warranty and (ii) such release or
subordination shall not in any manner discharge, affect

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or impair the Obligations or any Liens upon (or obligations of Borrowers or any other
Loan Party in respect of) all interests retained by either Borrower or any other Loan Party,
including the proceeds of the sale, all of which shall continue to constitute part of the
Collateral. In the event of any sale or transfer of Collateral, or any foreclosure with
respect to any of the Collateral, the applicable Agent shall be authorized to deduct all
expenses reasonably incurred by the applicable Agent from the proceeds of any such sale,
transfer or foreclosure.

     (e) Agents shall have no obligation whatsoever to any Lender, any L/C Issuer or any
other Person to assure that the Collateral exists or is owned by either Borrower or any
other Loan Party or is cared for, protected or insured or that the Liens granted to Agents
herein or in any of the Collateral Documents or pursuant hereto or thereto have been
properly or sufficiently or lawfully created, perfected, protected or enforced or are
entitled to any particular priority, or to exercise or to continue exercising at all or in
any manner or under any duty of care, disclosure or fidelity any of the rights, authorities
and powers granted or available to Agents in this Section 9.11 or in any of the
Collateral Documents, it being understood and agreed that in respect of the Collateral, or
any act, omission or event related thereto, each Agent may act in any manner it may deem
appropriate, in its sole discretion, given such Agent’s own interest in the Collateral as
one of Lenders and that such Agent shall have no duty or liability whatsoever to Lenders or
L/C Issuer.

     (f) Each Lender and each L/C Issuer hereby appoints each other Lender as agent for the
purpose of perfecting Lenders’ and L/C Issuers’ security interest in assets which, in
accordance with the applicable PPSA, the CC or Article 9 of the UCC can be perfected only by
possession. Should any Lender or either L/C Issuer (other than an Agent) obtain possession
of any such Collateral, such Lender or L/C Issuer shall notify Agents thereof, and, promptly
upon Agents’ request therefor shall deliver such Collateral to Agents or in accordance with
Agents’ instructions.

     (g) U.S. Agent hereby agrees that at such time as Required U.S. Lenders have received
evidence reasonably satisfactory to them that U.S. Borrower’s unsecured debt obligations are
Investment Grade and this Agreement is then in effect U.S. Agent will on behalf of U.S.
Lenders deliver to Collateral Agent a notice stating that U.S. Borrower’s unsecured debt
obligations are Investment Grade. U.S. Lenders hereby consent and agree to the giving of
such notice by U.S. Agent and agree to execute and deliver any documentation related thereto
as may be required under the Collateral Agency and Intercreditor Agreement. U.S. Lenders
agree that prior to providing any notice or determination to U.S. Agent or Collateral Agent
regarding the characterization of U.S. Borrower’s unsecured debt obligations as Investment
Grade pursuant to clause (ii) of the definition of Investment Grade, each U.S. Lender will
consult with each other U.S. Lender regarding such characterization of U.S. Borrower’s
unsecured debt obligations. At such time as Canadian Agent receives evidence reasonably
satisfactory to it that each of the conditions set forth in Section 13.5 of the Collateral
Agency and Intercreditor Agreement have been satisfied, Canadian Agent shall, at Canadian
Borrower’s expense, cause to be prepared and executed and delivered to Canadian Borrower
such discharges,

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releases, terminations or other documents and instruments as shall be reasonably
necessary in order to release all of Canadian Agent’s Liens in the Collateral of Canadian
Borrower. Canadian Lenders hereby consent and agree to such discharge and release of
Canadian Agent’s Liens in the Collateral of Canadian Borrower.

     (h) Notwithstanding anything to the contrary in this Agreement or any other Loan
Document, in the event that any term or provision of the Collateral Agency and Intercreditor
Agreement conflicts with any term or provision of this Agreement or any other Loan Document,
the relevant terms and provisions of the Collateral Agency and Intercreditor Agreement shall
supersede the relevant term or provision of this Agreement or any such other Loan Document
and govern and control the subject matter of such conflicting term or provision of this
Agreement or such other Loan Document.

     (i) Each U.S. Lender acknowledges and agrees that (i) U.S. Agent will be executing the
Collateral Agency and Intercreditor Agreement as U.S. Agent on behalf of U.S. Lenders (and
each U.S. Lender hereby authorizes and directs the U.S. Agent to so execute the Collateral
Agency and Intercreditor Agreement), (ii) that the U.S. Agent and U.S. Lenders will be bound
by all of the terms and provisions of the Collateral Agency and Intercreditor Agreement,
(iii) that U.S. Agent will take any action and perform any obligation it may have under the
Collateral Agency and Intercreditor Agreement in accordance with the terms and conditions
thereof, including any action required to be taken or obligation to be performed by a
“Secured Party” or a holder of “Additional Future Debt” or a “Secured Obligation” (as each
such term is defined in the Collateral Agency and Intercreditor Agreement) and (iv) any
request, demand, authorization, direction, notice, consent, waiver or other action permitted
or required or permitted to be made or given by U.S. Agent under the Collateral Agency and
Intercreditor Agreement as a “Secured Party” or by holders of “Bank Credit Agreement Debt”
thereunder shall be made or given by U.S. Agent on behalf of U.S. Lenders as directed by
each U.S. Lender so that the direction of each U.S. Lender to U.S. Agent is separately taken
into account in connection with any such request, demand, authorization, direction, notice,
consent, waiver or other action.

     9.12. Canadian Agent Matters. For greater certainty, and without limiting the powers
of Agents or any other Person acting as an agent, attorney-in-fact or mandatary for Agents under
this Agreement or under any of the other Loan Documents, each Canadian Lender, hereby (a)
irrevocably constitutes, to the extent necessary, Canadian Agent as the holder of an irrevocable
power of attorney (fondé de pouvoir within the meaning of Article 2692 of the Civil Code of Québec)
for the purposes of holding any Liens, including hypothecs, granted or to be granted by Canadian
Borrower on movable or immovable property pursuant to the laws of the Province of Quebec to secure
obligations of Canadian Borrower under any bond issued by Canadian Borrower; and (b) appoints and
agrees that Canadian Agent, acting as agent for Canadian Lenders shall be the holder and depository
of the bonds and debentures issued by Canadian Borrower for the benefit of Canadian Lenders, may
act as the bondholder or debentureholder and mandatary with respect to any bond that may be issued
and pledged from time to time for the benefit of Canadian Lenders.

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     The said constitution of the fondé de pouvoir (within the meaning of Article 2692 of the Civil
Code of Quebec) as the holder of such irrevocable power of attorney and of Canadian Agent as
bondholder or debentureholder and mandatary with respect to any bond or debenture that may be
issued and pledged from time to time for the benefit of Canadian Lenders shall be deemed to have
been ratified and confirmed by any Assignee by the execution of an Assignment and Assumption.

     Notwithstanding the provisions of Section 32 of An Act respecting the special powers of legal
persons (Quebec), Canadian Agent may purchase, acquire and be the holder of any bond or debenture
issued by Canadian Borrower. Canadian Borrower hereby acknowledges that any such bond or debenture
shall constitute a title of indebtedness, as such term is used in Article 2692 of the Civil Code of
Quebec.

     Canadian Agent in its capacity as fondé de pouvoir shall have the same rights, powers and
immunities as the Agents as stipulated in this Article IX, which shall apply mutatis
mutandis. Without limitation, the provisions of this Article IX shall apply mutatis
mutandis to the resignation and appointment of a successor to Canadian Agent acting as fondé de
pouvoir.

     Notwithstanding the provisions of Section 10.14, the provisions of this Section
9.12 shall be governed by the laws of the Province of Quebec and the federal laws of Canada
applicable therein.

     9.13. Authorizations and Directions. The authorizations and directions granted by the
Lenders hereunder are granted solely in their capacities as a Lender under this Agreement and not
in the capacity of an Other Senior Creditor.

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 either Borrower or any other Loan Party
therefrom, shall be effective unless in writing signed by Required Lenders and Borrowers or the
applicable Loan Party, as the case may be, and acknowledged by Agents, 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 without the written consent
of each Lender; provided, however, in the sole discretion of Agents, only a
waiver by Agents shall be required with respect to immaterial matters or items specified in
Section 4.01(a)(iii) or (iv) with respect to which Borrowers have given
assurances satisfactory to Agents that such items shall be delivered promptly following the
Closing Date;

     (b) without limiting the generality of clause (a) above, waive any condition set forth
in Section 4.02 as to any Credit Extension under a particular Facility without the

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written consent of the Required U.S. Revolving Credit Lenders, the Required Term A
Lenders or the Required Canadian Lenders, as the case may be;

     (c) 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;

     (d) postpone any date fixed by this Agreement or any other Loan Document for any
payment of principal, interest, fees or other amounts due to Lenders (or any of them)
hereunder or under any other Loan Document without the written consent of each Lender
entitled to such payment;

     (e) reduce the principal of, or the rate of interest specified herein on, any Loan or
L/C 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 entitled to such amount; provided,
however, that only the consent of Supermajority Lenders shall be necessary (i) to
amend the definition of “Default Rate” or to waive any obligation of Borrowers to pay
interest or L/C Fees at the Default Rate or (ii) to amend any financial covenant hereunder
(or any defined term used therein) even if the effect of such amendment would be to reduce
the rate of interest on any Loan or L/C Borrowing or to reduce any fee payable hereunder;

     (f) change Section 2.14 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;

     (g) increase the advance rates or components of the U.S. Borrowing Base or Canadian
Borrowing Base if such increase would increase the amount available for borrowing hereunder
by either Borrower or include additional categories of Collateral set forth in the
definition of U.S. Borrowing Base or Canadian Borrowing Base if such inclusion would
increase the amount available for borrowing hereunder by either Borrower, in each case (i)
without the written consent of each Lender if there are less than six U.S. Lenders or (ii)
without the consent of Supermajority Lenders if there are six or more U.S. Lenders;

     (h) change (i) any provision of this Section 10.01 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 (other than the definitions specified in clause
(ii) of this Section 10.1(h)), without the written consent of each Lender or (ii)
the definition of “Required U.S. Revolving Credit Lenders,” “Required Term A Lenders,” or
“Required Canadian Lenders” without the written consent of each Lender under the applicable
Facility;

     (i) (i) except as provided in Section 9.10, release any Subsidiary Guarantor
from the Subsidiary Guarantee Agreement or release U.S. Borrower from the Parent Guarantee
Agreement or, (ii) except as otherwise provided in Section 9.11 (a) consent to

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the release of the Liens on all or substantially all of the Collateral subject to the
U.S. Security Documents in any transaction or series of related transactions, except as
required by the Collateral Agency and Intercreditor Agreement or otherwise in accordance
with the terms of any Loan Document, without the written consent of each U.S. Lender, or (b)
release of the Liens on all or substantially all of the Collateral subject to the Canadian
Security Documents in any transaction or series of related transactions, except in
accordance with the terms of any Loan Document, without the written consent of each Canadian
Lender; or

     (j) amend the provisions of Section 9.11(i)(iv);

and, provided further, that (i) no amendment, waiver or consent shall, unless in
writing and signed by L/C Issuers in addition to Lenders required above, affect the rights or
duties of L/C Issuers 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 U.S. Swing Line Lender in addition to Lenders required above, affect the rights or duties
of U.S. Swing Line Lender under this Agreement; (iii) no amendment, waiver or consent shall, unless
in writing and signed by Agents in addition to Lenders required above, affect the rights or duties
of Agents under this Agreement or any other Loan Document; and (iv) the Agent 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 Communications.

     (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 Borrowers, Agents, L/C Issuers or U.S. 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 hours for the recipient, shall be
deemed to have been given at the opening of business on the next business day for the

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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 Lenders and
L/C Issuers hereunder may be delivered or furnished by electronic communication (including
e-mail and Internet or intranet websites) pursuant to procedures approved by Agents,
provided that the foregoing shall not apply to notices to any Lender or any L/C Issuer
pursuant to Article II if such Lender or such L/C Issuer, as applicable has notified the
Agents that it is incapable of receiving notices under such Article by electronic
communication. Agents or Borrowers may, in their discretion, agree to accept notices and
other communications to it hereunder by electronic communications pursuant to procedures
approved by them, provided that approval of such procedures may be limited to particular
notices or communications. Unless Agents otherwise prescribe, (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) The Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.” THE
AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE BORROWER
MATERIALS OR THE ADEQUACY OF THE PLATFORM, AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS IN OR
OMISSIONS FROM THE BORROWER MATERIALS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR
STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE,
NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS
MADE BY ANY AGENT PARTY IN CONNECTION WITH THE BORROWER MATERIALS OR THE PLATFORM. In no
event shall either Agent or any of its Related Parties (collectively, the “Agent Parties”)
have any liability to Borrowers, any Lender, L/C Issuers or any other Person for losses,
claims, damages, liabilities or expenses of any kind (whether in tort, contract or
otherwise) arising out of Borrowers’ or Agents’ transmission of Borrower Materials through
the Internet, except to the extent that such losses, claims, damages, liabilities or
expenses are determined by a court of competent jurisdiction by a final and nonappealable
judgment to have resulted from the gross negligence or willful misconduct of such Agent
Party; provided, however, that in no event shall any Agent Party have any liability to
Borrowers, any Lender, L/C Issuers or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

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     (d) Change of Address, Etc. Each of Borrowers, Agents, L/C Issuers and U.S.
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 Borrowers, Agents, L/C Issuers and U.S. Swing Line Lender. In
addition, each Lender agrees to notify Agents from time to time to ensure that Agents have
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.

     (e) Reliance by Agents, L/C Issuers and Lenders. Agents, L/C Issuers and
Lenders shall be entitled to rely and act upon any notices (including telephonic Committed
Loan Notices and Swing Line Loan Notices) purportedly given by or on behalf of Borrowers
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
thereof, as understood by the recipient, varied from any confirmation thereof. Borrowers
shall indemnify Agents, L/C Issuers, 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 either Borrower. All telephonic notices
to and other telephonic communications with Agents may be recorded by Agents, and each of
the parties hereto hereby consents to such recording.

     10.03. No Waiver; Cumulative Remedies. No failure by any Lender, any L/C Issuer or
Agents to exercise, and no delay by any such Person in exercising, any right, remedy, power or
privilege hereunder or under any other Loan Document 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, and provided under each other Loan
Document, 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.

     (i) U.S. Borrower shall pay (i) all reasonable out of pocket expenses incurred
by U.S. Agent and its Affiliates (including the reasonable fees, charges and
disbursements of counsel for U.S. Agent), in connection with the syndication of the
credit facilities provided for herein, the preparation, negotiation, execution and
delivery 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
reasonable out-of-pocket expenses incurred by U.S. L/C Issuer in connection with the
issuance, amendment, renewal or extension of any U.S. Letter of Credit or any demand
for payment thereunder and (iii) all out-of-

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pocket expenses incurred by U.S. Agent, any U.S. Lender or U.S. L/C Issuer
(including the fees, charges and disbursements of any counsel for U.S. Agent, any
U.S. Lender or U.S. L/C 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. U.S. Agent will provide to U.S. Borrower written invoices for
all amounts payable under this clause (i) at the time any such payment is requested.

     (ii) Canadian Borrower shall pay (i) all reasonable out of pocket expenses
incurred by Canadian Agent and its Affiliates (including the reasonable fees,
charges and disbursements of counsel for Canadian Agent), in connection with the
syndication of the credit facilities provided for herein, the preparation,
negotiation, execution and delivery 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 reasonable out of pocket expenses incurred by Canadian L/C
Issuer in connection with the issuance, amendment, renewal or extension of any
Canadian Letter of Credit or any demand for payment thereunder and (iii) all out of
pocket expenses incurred by Canadian Agent, any Canadian Lender or Canadian L/C
Issuer (including the fees, charges and disbursements of any counsel for Canadian
Agent, any Canadian Lender or Canadian L/C Issuer), and shall pay all fees and time
charges for barristers, solicitors or attorneys who may be employees of Canadian
Agent, any Canadian Lender or Canadian L/C 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. Canadian Agent will
provide to Canadian Borrower written invoices for all amounts payable under this
clause (ii) at the time any such payment is requested.

     (b) Indemnification by Borrowers.

     (i) U.S. Borrower shall indemnify U.S. Agent (and any sub-agent thereof), each
U.S. Lender and U.S. L/C Issuer, and each Related Party of any of the foregoing
Persons (each such Person being called a “U.S. Indemnitee”) against, and hold each
U.S. Indemnitee harmless from, any and all losses, claims, damages, liabilities and
related expenses (including the fees, charges and disbursements of any counsel for
any U.S. Indemnitee), incurred by any U.S. Indemnitee or asserted against any U.S.
Indemnitee by any third party or by either Borrower or any other Loan Party arising
out of, in connection with, or as a result of (i) the execution or delivery of this
Agreement, any other Loan Document or any agreement or instrument contemplated
hereby or thereby, the performance by

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the parties hereto of their respective obligations hereunder or thereunder, the
consummation of the transactions contemplated hereby or thereby, or, in the case of
U.S. 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 U.S. L/C 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 Borrowers or any
of their Subsidiaries, or any Environmental Liability related in any way to
Borrowers or any of their Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether
based on contract, tort or any other theory, whether brought by a third party or by
a 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 Borrowers 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 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.

     (ii) Canadian Borrower shall indemnify Canadian Agent (and any sub-agent
thereof), each Canadian Lender and Canadian L/C Issuer, and each Related Party of
any of the foregoing Persons (each such Person being called a “Canadian Indemnitee”
and collectively with the U.S. Indemnitees, the “Indemnitees”) against, and hold
each Canadian Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses (including the fees, charges and disbursements of
any counsel for any Canadian Indemnitee), incurred by any Canadian Indemnitee or
asserted against any Canadian Indemnitee by any third party or by either Borrower or
any other Loan Party arising out of, in connection with, or as a result of (i) the
execution or delivery of 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, or the consummation of the
transactions contemplated hereby or thereby, or, in the case of Canadian 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 Canadian L/C
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

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of Hazardous Materials on or from any property owned or operated by Borrowers
or any of their Subsidiaries, or any Environmental Liability related in any way to
Borrowers or any of their Subsidiaries, or (iv) any actual or prospective claim,
litigation, investigation or proceeding relating to any of the foregoing, whether
based on contract, tort or any other theory, whether brought by a third party or by
Borrowers 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 Borrowers 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 Borrowers 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.

     (i) To the extent that U.S. 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
U.S. Agent (or any sub-agent thereof), U.S. L/C Issuer or any Related Party of any
of the foregoing, each U.S. Lender severally agrees to pay to U.S. Agent (or any
such sub-agent), U.S. L/C Issuer or such Related Party, as the case may be, such
U.S. Lender’s Pro Rata Share (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 U.S. Agent
(or any such sub-agent) or U.S. L/C Issuer in its capacity as such, or against any
Related Party of any of the foregoing acting for U.S. Agent (or any such sub-agent)
or U.S. L/C Issuer in connection with such capacity. The obligations of U.S.
Lenders under this subsection (c) are subject to the provisions of Section
2.13(d).

     (ii) To the extent that Canadian 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 Canadian Agent (or any sub-agent thereof), Canadian L/C Issuer or any Related
Party of any of the foregoing, each Canadian Lender severally agrees to pay to
Canadian Agent (or any such sub-agent), Canadian L/C Issuer or such Related Party,
as the case may be, such Lender’s Applicable Percentage (determined as of the time
that the applicable unreimbursed expense or indemnity payment is sought) of such
unpaid amount, provided that the unreimbursed expense or indemnified loss, claim,
damage, liability or related expense, as the case may be, was incurred by or
asserted against Canadian Agent (or any such sub-agent) or Canadian L/C Issuer in
its capacity as such, or against

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any Related Party of any of the foregoing acting for Canadian Agent (or any
such sub-agent) or Canadian L/C Issuer in connection with such capacity. The
obligations of Canadian Lenders under this subsection (c) are subject to the
provisions of Section 2.13(d).

     (d) Waiver of Consequential Damages, Etc. To the fullest extent permitted by
applicable law, Borrowers shall not assert, and hereby waive, any claim against any U.S.
Indemnitee or Canadian Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of,
in connection with, or as a result of, this Agreement, 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 direct or actual damages resulting
from the gross negligence or willful misconduct of such Indemnitee as determined by 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 of
each Agent, the L/C Issuers and the U.S. Swing Line Lender, the replacement of any Lender,
the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of
all the other Obligations.

     10.05. Payments Set Aside.

     (a) To the extent that any payment by or on behalf of U.S. Borrower is made to U.S.
Agent, U.S. L/C Issuer or any U.S. Lender, or U.S. Agent, U.S. L/C Issuer or any U.S. 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 U.S. Agent, U.S. L/C Issuer
or such U.S. Lender in its discretion) to be repaid to a trustee, receiver or any other
party, in connection with any proceeding under any Debtor Relief Law or otherwise, then (i)
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 (ii) each U.S. Lender and U.S. L/C Issuer
severally agrees to pay to U.S. Agent upon demand its applicable share (without duplication)
of any amount so recovered from or repaid by U.S. 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 U.S. Lenders and U.S. L/C Issuer
under clause (ii) of the preceding

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sentence shall survive the payment in full of the Obligations and the termination of
this Agreement.

     (b) To the extent that any payment by or on behalf of Canadian Borrower is made to
Canadian Agent, Canadian L/C Issuer or any Canadian Lender, or Canadian Agent, Canadian L/C
Issuer or any Canadian 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 Canadian Agent, Canadian L/C Issuer or such Canadian Lender in its
discretion) to be repaid to a trustee, receiver or any other party, in connection with any
proceeding under any Debtor Relief Law or otherwise, then (i) 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 (ii) each Canadian Lender and Canadian L/C Issuer severally
agrees to pay to Canadian Agent upon demand its applicable share (without duplication) of
any amount so recovered from or repaid by Canadian 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
Canadian Prime Rate from time to time in effect. The obligations of Canadian Lenders and
Canadian L/C Issuer under clause (ii) 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 Borrower nor any other Loan
Party may assign or otherwise transfer any of its rights or obligations hereunder without
the prior written consent of Agents, L/C Issuers 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, (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 Agents, L/C Issuers and 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 L/C Obligations and in U.S. Swing Line Loans) at

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the time owing to it); provided that any such assignment shall be subject to
the following conditions:

     (i) Minimum Amounts.

	 	A.	 	in the case of an assignment of the entire
remaining amount of the assigning Lender’s Commitment under any
Facility and the Loans at the time owing to it under such Facility or
in the case of an assignment to a Lender, an Affiliate of a Lender or
an Approved Fund, no minimum amount need be assigned; and
	 
	 	B.	 	in any case not described in subsection
(b)(i)(A) of this Section, 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 $5,000,000, in the case of any assignment
in respect of the U.S. Revolving Credit Facility, or $1,000,000, in the
case of any assignment in respect of the Term A Facility or the
Canadian Committed Loan Facility, unless each of the U.S. Agent, in the
case of the U.S. Revolving Credit Facility and Term A Facility, or
Canadian Agent, in the case of the Canadian Credit Facility, and, so
long as no Event of Default has occurred and is continuing, U.S.
Borrower otherwise consents (each such consent not to be unreasonably
withheld or delayed); provided, however, that
concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group)
will be treated as a single assignment for purposes of determining
whether such minimum amount has been met;

     (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 (A) apply to the U.S. Swing Line
Lender’s rights and obligations in respect of U.S. Swing Line Loans or (B) prohibit
any Lender from assigning all or a portion of its rights and obligations among
separate Facilities on a non-pro rata basis;

     (iii) Required Consents. No consent shall be required for any
assignment except to the extent required by subsection (b)(i)(B) of this Section
and, in addition:

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	 	A.	 	the consent of U.S. 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;
	 
	 	B.	 	the consent of the U.S. Agent (such consent not
to be unreasonably withheld or delayed) shall be required for
assignments in respect of (i) any Term A Commitment or any U.S.
Revolving Credit Commitment if such assignment is to a Person that is
not a Lender with a Commitment in respect of the applicable Facility,
an Affiliate of such Lender or an Approved Fund with respect to such
Lender or (ii) any Term A Loan to a Person that is not a Lender, an
Affiliate of a Lender or an Approved Fund;
	 
	 	C.	 	the consent of the Canadian Agent (such consent
not to be unreasonably withheld or delayed) shall be required for
assignments in respect of any Canadian Commitment if such assignment is
to a Person that is not a Lender with a Commitment in respect of the
applicable Facility, an Affiliate of such Lender or an Approved Fund
with respect to such Lender;
	 
	 	D.	 	the consent of the U.S. L/C 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 U.S. Letters of Credit
(whether or not then outstanding);
	 
	 	E.	 	the consent of the Canadian L/C 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 Canadian Letters of Credit
(whether or not then outstanding); and
	 
	 	F.	 	the consent of the U.S. Swing Line Lender (such
consent not to be unreasonably withheld or delayed) shall be required
for any assignment in respect of the U.S. Revolving Credit Facility.

     (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 $2,500;
provided, however, that 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 shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire.

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     (v) No Assignment to Borrower. No such assignment shall be made to a
Borrower or any of any 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 applicable 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 applicable 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. Upon the request of Borrowers, and following the effectiveness of
any Assignment, the assignor Lender will cancel and return to Borrowers any Note held by such
assignor Lender.

     (c) Register. Canadian Agent shall furnish to U.S. Agent a copy of each
Assignment and Assumption with respect to a Canadian Commitment. U.S. Agent, acting solely
for this purpose as an agent of Borrowers, shall maintain at U.S. 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 Lenders, and the Commitments of, and principal amounts of the Loans
and L/C Obligations owing to, each Lender pursuant to the terms hereof from time to time
(the “Register”). The entries in the Register shall be conclusive, and Borrowers, Agents
and 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 each of Borrowers
and any Lenders, 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, Borrowers (except as set forth below) or Agents, sell participations to any
Person (other than a natural person or Borrower or any of Borrowers’ 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 L/C Obligations and/or U.S. 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) Borrowers, Agents, L/C Issuers and
Lenders shall continue to deal solely and directly with such Lender in

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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, Borrowers agree 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 2.14 as though it were a Lender. Each Lender agrees
to promptly notify Borrowers of any sale of a participation to a Participant, which notice
shall include the identity of the Participant and the principal amount thereof.

     (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
Borrower’s prior written consent.

     (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,
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. No such assignee or pledgee or other Person
acquiring rights under this Agreement from a Canadian Lender pursuant to such security shall
be entitled to the benefits of Sections 3.01 or 3.04.

     (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) Deemed Consent of Borrowers. If the consent of a Borrower to an assignment
to an Eligible Assignee is required hereunder (including a consent to an assignment which
does not meet the minimum assignment threshhold specified in Section
10.06(b)(i)(B)), such Borrower shall be deemed to have given its consent five Business
Days after the date notice thereof has been delivered to such Borrower by the

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assigning Lender (through Agent) unless such consent is expressly refused by such
Borrower prior to such fifth Business Day.

     (i) Resignation as L/C Issuer or U.S. Swing Line Lender.

     (i) (a) Notwithstanding anything to the contrary contained herein, if at any
time Bank of America assigns all of its U.S. Commitment and U.S. Loans pursuant to
subsection (b) above, Bank of America may, (i) upon 30 days’ notice to U.S. Borrower
and U.S. Lenders, resign as U.S. L/C Issuer and/or (ii) upon 30 days’ notice to U.S.
Borrower, resign as U.S. Swing Line Lender. In the event of any such resignation as
U.S. L/C Issuer or U.S. Swing Line Lender, U.S. Borrower shall be entitled to
appoint from among Lenders a successor U.S. L/C Issuer or U.S. Swing Line Lender
hereunder; provided, however, that no failure by U.S. Borrower to appoint any such
successor shall affect the resignation of Bank of America as U.S. L/C Issuer or U.S.
Swing Line Lender, as the case may be. If Bank of America resigns as U.S. L/C
Issuer, it shall retain all the rights, powers, privileges and duties of U.S. L/C
Issuer hereunder with respect to all U.S. Letters of Credit outstanding as of the
effective date of its resignation as U.S. L/C Issuer and all U.S. L/C Obligations
with respect thereto (including the right to require U.S. Lenders to make Base Rate
Committed Loans or fund risk participations in Unreimbursed Amounts pursuant to
Section 2.04(c)). If Bank of America resigns as U.S. Swing Line Lender, it
shall retain all the rights of U.S. Swing Line Lender provided for hereunder with
respect to U.S. Swing Line Loans made by it and outstanding as of the effective date
of such resignation, including the right to require U.S. Lenders to make Base Rate
Committed Loans or fund risk participations in outstanding U.S. Swing Line Loans
pursuant to Section 2.05(c). Upon the appointment of a successor U.S. L/C
Issuer and/or U.S. Swing Line Lender, (a) such successor shall succeed to and become
vested with all of the rights, powers, privileges and duties of the retiring U.S.
L/C Issuer or U.S. Swing Line Lender, as the case may be, and (b) the successor U.S.
L/C Issuer shall issue letters of credit in substitution for the U.S. Letters of
Credit, if any, outstanding at the time of such succession or make other
arrangements satisfactory to Bank of America to effectively assume the obligations
of Bank of America with respect to such U.S. Letters of Credit.

     (ii) (a) Notwithstanding anything to the contrary contained herein, if at any
time Bank of America Canada assigns all of its Canadian Commitment and Canadian
Loans pursuant to subsection (b) above, Bank of America Canada may, upon 30 days’
notice to Canadian Borrower and Canadian Lenders, resign as Canadian L/C Issuer. In
the event of any such resignation as Canadian L/C Issuer, Canadian Borrower shall be
entitled to appoint from among Canadian Lenders a successor Canadian L/C Issuer
hereunder; provided, however, that no failure by Canadian Borrower to appoint any
such successor shall affect the resignation of Bank of America Canada as Canadian
L/C Issuer. If Bank of America Canada resigns as Canadian L/C Issuer, it shall
retain all the rights, powers, privileges and duties of Canadian L/C Issuer
hereunder with respect to all

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Canadian Letters of Credit outstanding as of the effective date of its
resignation as Canadian L/C Issuer and all Canadian L/C Obligations with respect
thereto (including the right to require Canadian Lenders to make Canadian Prime
Committed Loans or Base Rate Loans or fund risk participations in Unreimbursed
Amounts pursuant to Section 2.03(c)). Upon the appointment of a successor
Canadian L/C Issuer, (a) such successor shall succeed to and become vested with all
of the rights, powers, privileges and duties of the retiring Canadian L/C Issuer,
and (b) the successor Canadian L/C Issuer shall issue letters of credit in
substitution for the Canadian Letters of Credit, if any, outstanding at the time of
such succession or make other arrangements satisfactory to Bank of America Canada to
effectively assume the obligations of Bank of America Canada with respect to such
Canadian Letters of Credit.

     (j) Canadian Lenders. Each Canadian Lender represents and warrants to Canadian
Borrower that such Canadian Lender is a resident or deemed resident of Canada within the
meaning of the Income Tax Act (Canada), for purposes of Part XIII of such Act. Each
Canadian Lender covenants and agrees with Canadian Borrower that (i) unless an Event of
Default has occurred and is continuing, such Canadian Lender will not assign all or any part
of its Canadian Commitment or Canadian Loans (including for purposes of this subsection (j)
participations in L/C Obligations) to an assignee, or sell any Participation in its Canadian
Commitment or Canadian Loans (including for purposes of this subsection (j) participations
in L/C Obligations) to any Person, that, in either event, is unable to make the
representation and warranty set forth in the first sentence of this paragraph, and (ii) such
Canadian Lender will promptly notify Canadian Borrower if such Canadian Lender at any time
becomes unable to make the representation and warranty set forth in the first sentence of
this paragraph.

     (k) Collateral Agency and Intercreditor Agreement. Each assignee of any Lender
and each Participant shall, upon the effective date of the applicable assignment or
purchase, hold their Commitment and Loans, in the case of an assignee, or their
participation interest, in the case of a Participant, subject to the terms of the Collateral
Agency and Intercreditor Agreement, if then in effect.

     10.07. Treatment of Certain Information; Confidentiality. Each of Agents, Lenders and
L/C Issuers agrees to maintain the confidentiality of the Information (as defined below), except
that Information may be disclosed (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

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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 either
Borrower and its obligations, (g) with the consent of U.S. 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 Agents, any Lender, L/C Issuers or any of their respective Affiliates on a
nonconfidential basis from a source other than Borrowers. For purposes of this Section,
“Information” means all information received from Borrowers or any Subsidiary relating to Borrowers
or any Subsidiary or any of their respective businesses, other than any such information that is
available to Agents, any Lender or L/C Issuers on a nonconfidential basis prior to disclosure by
Borrowers or any Subsidiary and other than any such information received from Borrowers or any
Subsidiary after the date hereof that is marked “PUBLIC” as provided in Section 6.06. Any
Person required to maintain the confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has exercised the same
degree of care to maintain the confidentiality of such Information as such Person would accord to
its own confidential information. Each of Agents, Lenders and L/C Issuers acknowledges that (a) the
Information may include material non-public information concerning Borrowers 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, provincial, territorial and state securities Laws.

     10.08. Right of Setoff. If an Event of Default shall have occurred and be continuing,
each Lender, each L/C 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, such L/C Issuer or any such Affiliate to or for the credit or the account of either
Borrower or any other Loan Party against any and all of the obligations of Borrowers or such Loan
Party now or hereafter existing under this Agreement or any other Loan Document to such Lender or
such L/C Issuer or any such Affiliate, irrespective of whether or not such Lender or such L/C
Issuer shall have made any demand under this Agreement or any other Loan Document and although such
obligations of such Borrower or such Loan Party may be contingent or unmatured or are owed to a
branch or office of such Lender or such L/C Issuer different from the branch or office holding such
deposit or obligated on such indebtedness. The rights of each Lender, such L/C Issuer and their
respective Affiliates under this Section are in addition to other rights and remedies (including
other rights of setoff) that such Lender, such L/C Issuer or their respective Affiliates may have.
Each Lender and each L/C Issuer agrees to notify the applicable Borrower and the applicable 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 Limitations.

     (a) 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 of non-usurious interest permitted by applicable Law (the

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“Maximum Rate”). If either 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 applicable Borrower. In
determining whether the interest contracted for, charged, or received by either 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.

     (b) If any provision of this Agreement or of any of the other Loan Documents would
obligate any Canadian Borrower to make any payment of interest or other amount payable to
any Canadian Lender in an amount or calculated at a rate which would be prohibited by law or
would result in a receipt by such Canadian Lender of interest at a criminal rate (as such
terms are construed under the Criminal Code (Canada)) then, notwithstanding such provisions,
such amount or rate shall be deemed to have been adjusted with retroactive effect to the
maximum amount or rate of interest, as the case may be, as would not be so prohibited by law
or so result in a receipt by such Canadian Lender of interest at a criminal rate, such
adjustment to be effected, to the extent necessary, as follows: (1) firstly, by reducing the
amount or rate of interest required to be paid to such Lender under Section 2.09,
and (2) thereafter, by reducing any fees, commissions, premiums and other amounts required
to be paid to such Canadian Lender which would constitute “interest” for purposes of Section
347 of the Criminal Code (Canada). Notwithstanding the foregoing, and after giving effect
to all adjustments contemplated thereby, if a Canadian Lender shall have received an amount
in excess of the maximum permitted by that section of the Criminal Code (Canada), Canadian
Borrower shall be entitled, by notice in writing to such Lender from Canadian Borrower, to
obtain reimbursement from such Canadian Lender in an amount equal to such excess and,
pending such reimbursement, such amount shall be deemed to be an amount payable by such
Canadian Lender to Canadian Borrower. Any amount or rate of interest referred to in this
Section 10.9 shall be determined in accordance with generally accepted actuarial
practices and principles as an effective annual rate of interest over the term that the
applicable Loan or Acceptance remains outstanding on the assumption that any charges, fees
or expenses that fall within the meaning of “interest” (as defined in the Criminal Code
(Canada)) shall, if they relate to a specific period of time, be pro-rated over that period
of time and otherwise be pro-rated over the period from the Closing Date to the Maturity
Date and, in the event of a dispute, a certificate of a Fellow of the Canadian Institute of
Actuaries appointed by Canadian Agent shall be conclusive for the purposes of such
determination.

     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

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Section 4.01, this Agreement shall become effective when it shall have been executed
by Agents and when Agents 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 each Agent and
each Lender, regardless of any investigation made by Agents or any Lender or on their behalf and
notwithstanding that Agents 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 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 either 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, if any
Lender is a Defaulting Lender or if any other circumstance exists hereunder that gives Borrowers
the right to replace a Lender as a party hereto, then Borrowers may, at their sole expense and
effort, upon notice to such Lender and U.S. Agent and Canadian 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) Borrowers shall have paid to the applicable 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 L/C 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 Borrowers (in the case of all other amounts);

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     (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 Borrowers 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 ILLINOIS.

     (b) SUBMISSION TO JURISDICTION. EACH BORROWER AND EACH OTHER LOAN PARTY
IRREVOCABLY AND UNCONDITIONALLY SUBMITS, FOR ITSELF AND ITS PROPERTY, TO THE NONEXCLUSIVE
JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS SITTING IN COOK COUNTY AND OF THE UNITED
STATES DISTRICT COURT OF THE NORTHERN DISTRICT OF ILLINOIS, 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 ILLINOIS 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 ANY AGENT, ANY LENDER OR ANY L/C ISSUER MAY OTHERWISE HAVE TO BRING ANY ACTION OR
PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AGAINST BORROWERS OR ANY
OTHER LOAN PARTY OR ITS PROPERTIES IN THE COURTS OF ANY JURISDICTION.

     (c) WAIVER OF VENUE. EACH 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

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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 Right to Trial by Jury. 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 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, Borrowers each acknowledge and agree, and acknowledge their
respective Affiliates’ understanding, that: (i) the credit facilities 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 Borrowers and their respective Affiliates, on the one hand, and the
Agents and the Arranger, on the other hand, and each of the Borrowers 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 Agents and the Arranger each is and has been acting solely as a principal and is not the
financial advisor, agent or fiduciary, for Borrowers or any of their respective Affiliates,
stockholders, creditors or employees or any other Person; (iii) neither the Agents nor the Arranger
has assumed or will assume an advisory, agency or fiduciary responsibility in favor of the Borrower
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 Agents or the Arranger has advised or is currently advising
the Borrowers or any of their respective Affiliates on other matters) and neither the
Administrative Agent nor the Arranger has any obligation to the

147

 

Borrowers 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 Agents and the Arranger and their respective Affiliates may be engaged in a broad range of
transactions that involve interests that differ from those of the Borrowers and their respective
Affiliates, and neither either Agent nor the Arranger has any obligation to disclose any of such
interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Agents and the
Arranger have 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 Borrower has consulted its own
legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. Each
Borrower hereby waives and releases, to the fullest extent permitted by law, any claims that it may
have against the Agents and the Arranger with respect to any breach or alleged breach of agency or
fiduciary duty.

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

     10.18. Time of the Essence. Time is of the essence of the Loan Documents.

[SIGNATURE PAGES FOLLOW]

148

 

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

	 	 	 	 	 
	 	A. M. CASTLE & CO., as U.S. Borrower

 	 
	 	By:  	/s/  Michael H. Goldberg
 	 
	 	 	Name:  	Michael H. Goldberg 	 
	 	 	Title:  	President & CEO 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	A. M. CASTLE & CO. (CANADA) INC., as Canadian Borrower

 	 
	 	By:  	/s/  Michael H. Goldberg
 	 
	 	 	Name:  	Michael H. Goldberg 	 
	 	 	Title:  	President & CEO 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as U.S. Agent

 	 
	 	By:  	/s/ David A. Johanson
 	 
	 	 	Name:  	David A. Johanson 	 
	 	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., CANADA BRANCH, as Canadian Agent

 	 
	 	By:  	/s/ Medina Sales De Andrade
 	 
	 	 	Name:  	Medina Sales De Andrade 	 
	 	 	Title:  	Assistant Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A., as U.S. Lender, U.S. L/C Issuer and U.S. Swing Line
Lender

 	 
	 	By:  	/s/ Craig M. McGuire
 	 
	 	 	Name:  	Craig W. McGuire 	 
	 	 	Title:  	Senior Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., as Syndication Agent and U.S. Lender

 	 
	 	By:  	/s/ Keith J. Foley
 	 
	 	 	Name:  	/s/ Keith J. Foley 	 
	 	 	Title:  	/s/ Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	LASALLE BUSINESS CREDIT, LLC, as Documentation Agent and U.S. Lender

 	 
	 	By:  	/s/ Monirah Masud
 	 
	 	 	Name:  	Monirah Masud 	 
	 	 	Title:  	/s/ Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	THE PRUDENTIAL INSURANCE COMPANY OF AMERICA, as U.S. Lender

 	 
	 	By:  	G. Anthony Coletta
 	 
	 	 	Name:  	G. Anthony Coletta 	 
	 	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	GENERAL ELECTRIC CAPITAL CORPORATION, as U.S. Lender

 	 
	 	By:  	/s/ Bond Harberts
 	 
	 	 	Name:  	Bon Harberts 	 
	 	 	Title:  	Duly Authorized Signatory 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION, as U.S. Lender

 	 
	 	By:  	/s/ Steven C. Gonzalez
 	 
	 	 	Name:  	Steven C. Gonzalez 	 
	 	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK, CHICAGO, as U.S. Lender

 	 
	 	By:  	/s/ Neil G. Mesch
 	 
	 	 	Name:  	Neil G. Mesch 	 
	 	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	THE NORTHERN TRUST COMPANY, as U.S. Lender

 	 
	 	By:  	/s/ Peter J. Hallan
 	 
	 	 	Name:  	Peter J. Hallan 	 
	 	 	Title:  	Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A. CANADA BRANCH, as Canadian Lender and Canadian L/C Issuer

 	 
	 	By:  	/s/ Medina Sales De Andrade
 	 
	 	 	Name:  	Medina Sales De Andrade 	 
	 	 	Title:  	Assistant Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A., TORONTO BRANCH, as Canadian Lender

 	 
	 	By:  	/s/ J. R. Voight
 	 
	 	 	Name:  	J. R. Voight 	 
	 	 	Title:  	Executive Vice President 	 
	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 
	 	LASALLE BUSINESS CREDIT, a Division of ABN AMRO BANK, N.V. CANADA BRANCH, as

Canadian Lender

 	 
	 	By:  	/s/ Darcy Mack
 	 
	 	 	Name:  	Darcy Mack 	 
	 	 	Title:  	First Vice President 	 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	 	 	 	 	 

SCHEDULE 2.01

COMMITMENTS

AND APPLICABLE PERCENTAGES

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Revolving Credit	 	Term A	 	Applicable
	U.S. Lenders	 	Commitment	 	Commitment	 	Percentage
	Bank of America, N.A.
	 	U.S.$	33,291,666	 	 	U.S.$	5,875,000	 	 	 	19.583333000	%
	JPMorgan Chase Bank, N.A.
	 	U.S.$	31,166,667	 	 	U.S.$	5,500,000	 	 	 	18.333333500	%
	LaSalle Business Credit, LLC
	 	U.S.$	31,166,667	 	 	U.S.$	5,500,000	 	 	 	18.333333500	%
	The Prudential Insurance
Company of America
	 	U.S.$	21,250,000	 	 	U.S.$	3,750,000	 	 	 	12.500000000	%
	General Electric Capital
Corporation
	 	U.S.$	16,150,000	 	 	U.S.$	2,850,000	 	 	 	9.500000000	%
	U.S. Bank National Association
	 	U.S.$	16,150,000	 	 	U.S.$	2,850,000	 	 	 	9.500000000	%
	Fifth Third Bank, Chicago
	 	U.S.$	16,150,000	 	 	U.S.$	2,850,000	 	 	 	9.500000000	%
	The Northern Trust Company
	 	U.S.$	4,675,000	 	 	U.S.$	825,000	 	 	 	2.750000000	%
	Total
	 	U.S.$	170,000,000	 	 	U.S.$	30,000,000	 	 	 	100.000000000	%

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable
	Canadian Lenders	 	Commitment	 	Percentage
	Bank of America, N.A. Canada Branch
	 	Cdn. $	3,704,000	 	 	 	33.333333334	%
	JPMorgan Chase Bank, N.A., Toronto
Branch
	 	Cdn. $	3,704,000	 	 	 	33.333333333	%
	LaSalle Business Credit, a
	 	 	 	 	 	 	 	 
	Division of ABN AMRO Bank, N.V.,
	 	 	 	 	 	 	 	 
	Canada Branch
	 	Cdn. $	3,704,000	 	 	 	33.333333333	%
	 
	 	 	 	 	 	 	 	 
	Total
	 	Cdn. $	11,112,000	 	 	 	100.000000000	%

Schedule 2.01- 1

 

EXHIBIT A

FORM OF U.S. COMMITTED LOAN NOTICE

Date:                     , _____

	To: Bank of America, N.A., as U.S. Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of September
5, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among A. M.
Castle & Co., a Maryland corporation (“U.S. Borrower”), A. M. Castle & Co. (Canada) Inc., a
corporation organized under the laws of the Province of Ontario, Canada (“Canadian Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as U.S. Agent, U.S. L/C Issuer and
U.S. Swing Line Lender, and Bank of America, N.A., Canada Branch, as Canadian Agent and Canadian
L/C Issuer.

The undersigned hereby requests (select one):

	 	 	 
	A Borrowing of U.S. Revolving Credit Loans [Term A Loans]

	 	A conversion or continuation
	 

	 	of U.S. Committed Loans

	 	1.	 	On                                                            (a Business Day).
	 
	 	2.	 	In the amount of U.S. $                                        .
	 
	 	3.	 	Comprised of [Base Rate Loans] [Eurodollar Rate Loans].
	 
	 	4.	 	For Eurodollar Rate Loans: with an Interest Period of months.

     The U.S. Committed Borrowing, if any, requested herein complies with the proviso to the first
sentence of Section 2.01(b) of the Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

A-1

 

EXHIBIT B

FORM OF CANADIAN COMMITTED LOAN NOTICE

Date:                     , _____

	To: Bank of America, N.A., Canada Branch, as Canadian Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of September
5, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among A. M.
Castle & Co., a Maryland corporation (“U.S. Borrower”), A. M. Castle & Co. (Canada) Inc., a
corporation organized under the laws of the Province of Ontario, Canada (“Canadian Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as U.S. Agent, U.S. L/C Issuer and
U.S. Swing Line Lender, and Bank of America, N.A., Canada Branch, as Canadian Agent and Canadian
L/C Issuer.

The undersigned hereby requests (select one):

	 	 	 
	A Borrowing of Canadian Committed Loans

	 	A conversion or continuation of
	 

	 	Canadian Committed Loans

	 	1.	 	On                                                              (a Business Day).
	 
	 	2.	 	Denominated in [U.S. Dollars] [Canadian Dollars].
	 
	 	3.	 	In the amount of [U.S.] Cdn. $                                        .
	 
	 	4.	 	Comprised of [Base Rate Loans] [Eurodollar Rate Loans] [Canadian Prime Loans].
	 
	 	5.	 	For Eurodollar Rate Loans: with an Interest Period of months.

     The Canadian Committed Borrowing, if any, requested herein complies with the proviso to the
first sentence of Section 2.01(c) of the Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO. (CANADA) INC.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

B-1

 

EXHIBIT C

FORM OF U.S. SWING LINE LOAN NOTICE

Date:                     , _____

	To: Bank of America, N.A., as U.S. Swing Line Lender
	 
	 	 	 	Bank of America, N.A., as U.S. Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of September
5, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among A. M.
Castle & Co., a Maryland corporation (“U.S. Borrower”), A. M. Castle & Co. (Canada) Inc., a
corporation organized under the laws of the Province of Ontario, Canada (“Canadian Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as U.S. Agent, U.S. L/C Issuer and
U.S. Swing Line Lender, and Bank of America, N.A., Canada Branch, as Canadian Agent and Canadian
L/C Issuer.

The undersigned hereby requests a U.S. Swing Line Loan:

	 	1.	 	On                                                             (a Business Day).
	 
	 	2.	 	In the amount of U.S. $                                        .

     The U.S. Swing Line Borrowing requested herein complies with the requirements of the provisos
to the first sentence of Section 2.05 of the Agreement.

	 	 	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

C-1

 

EXHIBIT D

FORM OF NOTE

U.S. [Cdn.] $                    

     FOR VALUE RECEIVED, the undersigned (“Borrower”), hereby promises to pay to
                                         or registered assigns (“Lender”), in accordance with the provisions of the
Agreement (as hereinafter defined), the principal amount of each Loan from time to time made by the
Lender to Borrower under that certain Amended and Restated Credit Agreement, dated as of September
5, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement”; the terms defined therein being used herein as therein defined), among
Borrower, A. M. Castle & Co. (Canada) Inc. [A. M. Castle & Co.], the Lenders from time to time
party thereto, Bank of America, N.A., as U.S. Agent, U.S. L/C Issuer and U.S. Swing Line Lender,
and Bank of America, N.A., Canada Branch, as Canadian Agent and Canadian L/C Issuer.

     Borrower promises to pay interest on the unpaid principal amount of each Loan from the date of
such Loan until such principal amount is paid in full, at such interest rates and at such times as
provided in the Agreement. [Except as otherwise provided in Section 2.05(f) of the
Agreement with respect to U.S. Swing Line Loans,] all payments of principal and interest shall be
made to U.S. [Canadian] Agent for the account of the Lender in U.S. [or Canadian] Dollars in
immediately available funds at the U.S. [Canadian] Agent’s Office. If any amount is not paid in
full when due hereunder, such unpaid amount shall bear interest, to be paid upon demand, from the
due date thereof until the date of actual payment (and before as well as after judgment) computed
at the per annum rate set forth in the Agreement.

     This Note is one of the Notes referred to in the Agreement, is entitled to the benefits
thereof and may be prepaid in whole or in part subject to the terms and conditions provided
therein. This Note is also entitled to the benefits of the Subsidiary [Parent] Guarantee Agreement
and is secured by the Collateral subject to the U.S. Security Documents [Canadian Security
Documents]. Upon the occurrence and continuation of one or more of the Events of Default specified
in the Agreement, all amounts then remaining unpaid on this Note shall become, or may be declared
to be, immediately due and payable all as provided in the Agreement. Loans made by the Lender
shall be evidenced by one or more loan accounts or records maintained by the Lender in the ordinary
course of business. The Lender may also attach schedules to this Note and endorse thereon the date,
amount and maturity of its Loans and payments with respect thereto.

     Borrower, for itself, its successors and assigns, hereby waives diligence, presentment,
protest and demand and notice of protest, demand, dishonor and non-payment of this Note.

D-1

 

     THIS NOTE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
ILLINOIS.

	 	 	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO.	 	 
	 	 	[A. M. CASTLE & CO. (CANADA) INC.]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 

D-2

 

LOANS AND PAYMENTS WITH RESPECT THERETO

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Amount of	 	 	 	 
	 	 	 	 	 	 	 	 	Principal	 	Outstanding	 	 
	 	 	 	 	 	 	End of	 	or Interest	 	Principal	 	 
	 	 	Type of	 	Amount of	 	Interest	 	Paid This	 	Balance	 	Notation
	Date	 	Loan Made	 	Loan Made	 	Period	 	Date	 	This Date	 	Made By
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 
	 	 
	 	 
	 	 
	 	 
	 	 

D-3

 

EXHIBIT E

FORM OF COMPLIANCE CERTIFICATE

Financial Statement Date:                    ,______

	To: Bank of America, N.A., as U.S. Agent
	 
	 	 	 	Bank of America, N.A., Canada Branch, as Canadian Agent

Ladies and Gentlemen:

     Reference is made to that certain Amended and Restated Credit Agreement, dated as of September
5, 2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among A. M.
Castle & Co., a Maryland corporation (“U.S. Borrower”), A. M. Castle & Co. (Canada) Inc., a
corporation organized under the laws of the province of Ontario, Canada (“Canadian Borrower”), the
Lenders from time to time party thereto, Bank of America, N.A., as U.S. Agent, U.S. L/C Issuer and
U.S. Swing Line Lender, and Bank of America, N.A., Canada Branch, as Canadian Agent and Canadian
L/C Issuer.

     The undersigned Responsible Officer hereby certifies as of the date hereof that he/she is the                                                            
of U.S. Borrower, and that, as such, he/she is authorized to execute and deliver this Certificate
to Agents on the behalf of U.S. Borrower, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

     1. Attached hereto as Schedule 1 are the year-end audited financial statements
required by Section 6.06(b) of the Agreement for the fiscal year of U.S. Borrower ended as
of the above date, together with the report and opinion of an independent certified public
accountant required by such section.

[Use following paragraph 1 for fiscal quarter-end financial statements]

     1. Attached hereto as Schedule 1 are the unaudited financial statements required by
Section 6.06(a) of the Agreement for the fiscal quarter of U.S. Borrower ended as of the
above date. The information contained in such financial statements contains all adjustments
(consisting only of normal recurring adjustments) necessary to present fairly the consolidated
financial position of U.S. Borrower and its Subsidiaries as of the date set forth above and the
consolidated results of their operations and cash flows for the periods then ended, except that
such financial statements condense or omit certain footnotes pursuant to the rules and regulations
of the SEC.

     2. The undersigned has reviewed and is familiar with the terms of the Agreement and has made,
or has caused to be made under his/her supervision, a detailed review of the transactions and
condition (financial or otherwise) of U.S. Borrower and its Subsidiaries during the accounting
period covered by the attached financial statements.

E-1

 

     3. A review of the activities of U.S. Borrower and Canadian Borrower during such fiscal
period has been made under the supervision of the undersigned with a view to determining whether
during such fiscal period U.S. Borrower and Canadian Borrower performed and observed all of their
respective Obligations under the Loan Documents, and

[select one:]

     [to the best knowledge of the undersigned during such fiscal period, Borrowers performed and
observed each covenant and condition of the Loan Documents applicable to them, and no Default has
occurred and is continuing.]

—or—

     [the following covenants or conditions have not been performed or observed and the following
is a list of each such Default and its nature and status:]

     4. The representations and warranties of Borrowers contained in Article V of the
Agreement, and/or any representations and warranties of either Borrower or any other Loan Party
that are contained in any document furnished at any time under or in connection with the Loan
Documents, are true and correct on and as of the date hereof, 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 Compliance Certificate,
the representations and warranties contained in subsections (a) and (b) of Section 5.05 of
the Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses
(b) and (a), respectively, of Section 6.06 of the Agreement, including the statements in
connection with which this Compliance Certificate is delivered.

     5. The financial covenant analyses and information set forth on Schedule 2 attached
hereto are true and accurate on and as of the date of this Certificate.

     IN WITNESS WHEREOF, the undersigned has executed this Certificate as of                                   ,       
                                  .

	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

E-2

 

          For the Quarter/Year ended                                         (“Statement Date”)

SCHEDULE 2

to the Compliance Certificate

($ in 000’s)

	 	 	 	 	 	 	 	 	 	 	 
	Section 7.01 – Adjusted Consolidated Net Worth.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	A.	 	Adjusted Consolidated Net Worth at Statement Date:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	1.	 	 	Consolidated Stockholders Equity:
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	2.	 	 	Restricted Investments in excess of
10% of Consolidated Stockholders
Equity:
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	3.	 	 	Adjusted Consolidated Net Worth
(Line I.A.1 less Line I.A.2):
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	B.	 	Minimum Required Adjusted Consolidated Net Worth:	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	1.	 	 	$                    :
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	2.	 	 	plus the sum of 40% of Consolidated
Net Income (but only if a positive
number) earned in each completed
fiscal year ending after December 31,
2005:
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	3.	 	 	plus 40% of Consolidated Net Income
(but only if a positive number) for
the portion of the fiscal year to
date:
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	4.	 	 	plus 75% of the Net Cash Proceeds
received by U.S. Borrower from the
issuance of Equity Interests by U.S.
Borrower:
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	5.	 	 	Minimum Required Adjusted
Consolidated Net Worth (I.B.1 plus
I.B.2 plus I.B.3. plus I.B.4.):
	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	C.	 	Excess (deficient) for covenant compliance (Line I.A.3 less I.B.4):	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	Section 7.02 – Consolidated Debt to Consolidated Total Capitalization.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	A.	 	Consolidated Debt:	 	$                    

E-3

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	B.	 	Consolidated Total Capitalization:	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	C.	 	Consolidated Debt to Consolidated Total Capitalization (Line II.A. ) Line II.B.):	 	                    to 1.0
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Minimum required:	 	0.55 to 1.0
	 
	 	 	 	 	 	 	 	 	 	 
	Section 7.03 – Net Working Capital to Consolidated Debt.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	A.	 	Net Working Capital:	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	B.	 	Consolidated Debt:	 	$                    
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	C.	 	Net Working Capital to Consolidated Debt: (Line III.A. ) Line III.B.)	 	                    to 1.0
	 	 	Minimum required:	 	1.0 to 1.0

E-4

 

EXHIBIT F

FORM OF DISCOUNT NOTE

			
	Cdn$                    
	 	Date:                    

     FOR VALUE RECEIVED, the undersigned unconditionally promises to pay on                     ,
                    , to or to the order of                                          (the “Holder”), the sum of
Cdn$                                         with no interest thereon.

     The undersigned hereby waives presentment, protest and notice of every kind and waives any
defences based upon indulgences which may be granted by the Holder to any party liable hereon and
any days of grace.

     This promissory note evidences an Acceptance Equivalent Loan, as defined in the Amended and
Restated Credit Agreement made as of September 5, 2006 among A. M. Castle & Co. and A. M. Castle &
Co. (Canada) Inc., as Borrowers, the Lenders, Bank of America, N.A., as U.S. Agent, U.S. Swing Line
Lender and U.S. L/C Issuer, and Bank of America, N.A., Canada Branch, as Canadian Agent and
Canadian L/C Issuer and the other parties thereto, as amended, restated, supplemented and otherwise
modified from time to time, (the “Credit Agreement”) and constitutes indebtedness to the
Holder arising under the Acceptance Equivalent Loan. Payment of this note shall be made to
Canadian Agent for the account of the Holder in Canadian Dollars in immediately available funds at
Canadian Agent’s Office. Capitalized terms used and not defined herein have the meaning given to
them in the Credit Agreement.

	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO. (CANADA) INC.
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

F-1

 

EXHIBIT G

FORM OF NOTICE OF DRAWING

Date:                                         ,                    

To: Bank of America, N.A., Canada Branch, as Canadian Agent

Ladies and Gentlemen:

Reference is made to that certain Amended and Restated Credit Agreement, dated as of September 5,
2006 (as amended, restated, extended, supplemented or otherwise modified in writing from time to
time, the “Agreement;” the terms defined therein being used herein as therein defined), among A. M.
Castle & Co., a Maryland corporation, A. M. Castle & Co. (Canada) Inc., a corporation organized
under the laws of the Province of Ontario, Canada, the Lenders from time to time party thereto,
Bank of America, N.A., as U.S. Agent, U.S. L/C Issuer and U.S. Swing Line Lender, and Bank of
America, N.A., Canada Branch, as Canadian Agent and Canadian L/C Issuer.

The undersigned hereby requests (select one):

A new Borrowing of by way of Acceptance:                     ; or a conversion of Canadian Prime Loans to
Acceptances: ; or a continuation and rollover of Acceptances: .

[We have outstanding $ by way of [Canadian Prime Rate Loan/Acceptances which mature on .]

	1.	 	On                                                             (a Business Day).
	 
	2.	 	[As applicable] Please [make available/convert
(describe)/continue and rollover] Acceptances in the face
amount of Cdn. $                                        .
	 
	3.	 	For a period of (one, two, three or six months):                                        
	 
	4.	 	With a proposed Maturity Date of                                        
	 
	5.	 	The Canadian Borrower will not arrange for the purchase of Acceptances by any Person under
Section 2.03(d).
	 
	6.	 	After such Borrowing, the Canadian Availability will be:                                        

The Borrowing requested herein complies with the proviso to the first sentence of Section 2.01(b)
of the Agreement. No Default or Event of Default has occurred and is continuing on the date
hereof.

G-1

 

	 	 	 	 	 	 	 
	 	 	A. M. CASTLE & CO. (CANADA) 	 	INC.
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

G-2

 

EXHIBIT H

FORM OF ASSIGNMENT AND ASSUMPTION

     This Assignment and Assumption (this “Assignment and Assumption”) is dated as of the
Effective Date set forth below and is entered into by and between [the][each] Assignor identified
in item 1 below ([the][each, an] “Assignor”) and [the][each] Assignee identified in item 2
below ([the][each, an] “Assignee”). [It is understood and agreed that the rights and
obligations of [the Assignors][the Assignees] hereunder are several and not joint.] Capitalized
terms used but not defined herein shall have the meanings given to them in the Credit Agreement
identified below (the “Credit Agreement”), receipt of a copy of which is hereby
acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment
and Assumption as if set forth herein in full.

     For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and
assumes from [the Assignor][the respective Assignors], subject to and in accordance with the
Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by the
Administrative Agent as contemplated below (i) all of [the Assignor’s][the respective Assignors’]
rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under
the Credit Agreement and any other documents or instruments delivered pursuant thereto to the
extent related to the amount and percentage interest identified below of all of such outstanding
rights and obligations of [the Assignor][the respective Assignors] under the respective facilities
identified below (including, without limitation, the Letters of Credit and the U.S. Swing Line
Loans included in such facilities) and (ii) to the extent permitted to be assigned under applicable
law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a
Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person,
whether known or unknown, arising under or in connection with the Credit Agreement, any other
documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in
any way based on or related to any of the foregoing, including, but not limited to, contract
claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity
related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights
and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to clauses
(i) and (ii) above being referred to herein collectively as [the][an] “Assigned
Interest”). Each such sale and assignment is without recourse to [the][any] Assignor and,
except as expressly provided in this Assignment and Assumption, without representation or warranty
by [the][any] Assignor.

	 	 	 	 	 	 	 
	1.

	 	Assignor[s]:	 	 	 	 
	 

	 	 	 	 	 	 
	2.

	 	Assignee[s]:	 	 	 	 
	 

	 	 	 	 	 	 

H-1

 

     [for each Assignee, indicate [Affiliate][Approved Fund] of [identify Lender]]

3. Borrower(s): A. M. Castle & Co. and A. M. Castle & Co. (Canada) Inc.

4. Agents: Bank of America, N.A., as the U.S. Agent under the Credit Agreement and Bank of
America N.A. Canada Branch as the Canadian Agent under the Credit Agreement

5. Credit Agreement: Amended and Restated Credit Agreement, dated as of September 5, 2006,
among A. M. Castle & Co., as U.S. Borrower, and A.M. Castle & Co. (Canada) Inc., as Canadian
Borrower, the Lenders from time to time party thereto, and Bank of America, N.A., as U.S. Agent,
U.S. L/C Issuer, and U.S. Swing Line Lender and Bank of America, N.A., Canada Branch, as Canadian
Agent and Canadian L/C Issuer

6. Assigned Interest[s]:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Amount of	 	Percentage	 	 
	 	 	 	 	 	 	Aggregate Amount of	 	Commitment/	 	Assigned of	 	 
	 	 	 	 	Facility	 	Commitment/ Loans	 	Loans	 	Commitment/	 	CUSIP
	Assignor[s]	 	Assignee[s]	 	Assigned	for all Lenders	Assigned	 	Loans	 	Number
	 

	 	 
	 	                    
	 	$                    
	 	$                    
	 	                    %
	 	 
	 

	 	 
	 	                    
	 	$                    
	 	$                    
	 	                    %
	 	 
	 

	 	 
	 	                    
	 	$                    
	 	$                    
	 	                    %
	 	 

[7. Trade Date:                                         ]

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

H-2

 

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

	 	 	 	 	 
	 	ASSIGNOR

[NAME OF ASSIGNOR]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

	 	 	 	 	 
	 	ASSIGNEE

[NAME OF ASSIGNEE]

 	 
	 	By:  	 	 
	 	 	Title: 	 
	 	 	 	 
	 

[Consented to and] Accepted:

BANK OF AMERICA, N.A., as

     U.S. Agent

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

BANK OF AMERICA, N.A., CANADA

BRANCH, as Canadian Agent

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 
	Name:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

[Consented to:]

[A.M. CASTLE & CO.]

[A.M. CASTLE & CO. (CANADA) INC.]

	 	 	 	 	 
	By:

	 	 	 	 
	 

	 	 	 	 
	 	 	Title:
	 	 
	 

	 	 
	 	 

H-3

 

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

     1. Representations and Warranties.

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

     1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full
power and authority, and has taken all action necessary, to execute and deliver this Assignment and
Assumption and to consummate the transactions contemplated hereby and to become a Lender under the
Credit Agreement, (ii) it meets all the requirements to be an assignee under Section
10.06(b)(iii), (v) and (vi) of the Credit Agreement (subject to such consents,
if any, as may be required under Section 10.06(b)(iii) of the Credit Agreement), (iii) from
and after the Effective Date, it shall be bound by the provisions of the Credit Agreement as a
Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the
obligations of a Lender thereunder, (iv) it is sophisticated with respect to decisions to acquire
assets of the type represented by [the][such] Assigned Interest and either it, or the Person
exercising discretion in making its decision to acquire [the][such] Assigned Interest, is
experienced in acquiring assets of such type, (v) it has received a copy of the Credit Agreement,
and has received or has been accorded the opportunity to receive copies of the most recent
financial statements delivered pursuant to Section 6.06 thereof, as applicable, and such other
documents and information as it deems appropriate to make its own credit analysis and decision to
enter into this Assignment and Assumption and to purchase [the][such] Assigned Interest, (vi) it
has, independently and without reliance upon the Administrative Agent or any other Lender and based
on such documents and information as it has deemed appropriate, made its own credit analysis and
decision to enter into this Assignment and Assumption and to purchase [the][such] Assigned
Interest, and (vii) if it is a Foreign Lender, attached hereto is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed and executed by
[the][such] Assignee; and (b) agrees that (i) it will, independently and without reliance upon the
Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and
information as it shall deem appropriate at the time, continue to make its own credit decisions in
taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with
their terms
 all of the obligations which by the terms of the Loan Documents are required to be performed
by it as a Lender.

H-4

 

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

     3. Collateral Agency and Intercreditor Agreement. [The] [Each] Assignee acknowledges
and agrees that from and after the Effective Date it will hold its Commitments and Loans subject to
the terms of the Collateral Agency and Intercreditor Agreement, if then in effect.

     4. General Provisions. This Assignment and Assumption shall be binding upon, and
inure to the benefit of, the parties hereto and their respective successors and assigns. This
Assignment and Assumption may be executed in any number of counterparts, which together shall
constitute one instrument. Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a manually executed
counterpart of this Assignment and Assumption. This Assignment and Assumption shall be governed
by, and construed in accordance with, the law of the State of Illinois.

H-5

 

EXHIBIT I

FORM OF BORROWING BASE CERTIFICATE

I-1

 

Borrowing Base Calculation

A. M. Castle / Transtar

($ in thousands)

	 	 	 	 	 	 	 	 	 
	ACCOUNTS RECEIVABLE
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	XX/XX/XX
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	A. M. Castle:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Accounts Receivable Balance
	 	 	 	 	 	 	0	 
	Less A. M. Castle A/R Ineligibles
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	Eligible A. M. Castle A/R Availability
	 	 	 	 	 	 	0	 
	Gross A. M. Castle A/R Availability
	 	 	80	%	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Transtar:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Accounts Receivable Balance
	 	 	 	 	 	 	0	 
	Less Transtar A/R Ineligibles
	 	 	 	 	 	 	0	 
	Less SAB 101 Reserve
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	Eligible Transtar A/R Availability
	 	 	 	 	 	 	0	 
	Gross Transtar A/R Availability
	 	 	85	%	 	 	0	 
	Less Foreign Credit Insurance Deductible
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Combined A/R Availability
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Inventory
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	A. M. Castle:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Gross A. M. Castle Inventory
	 	 	 	 	 	 	0	 
	Less A. M .Castle Ineligible Inventory
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	Eligible A. M .Castle Inventory
	 	 	 	 	 	 	0	 
	Gross A. M. Castle Inventory Availability
	 	 	50	%	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Transtar
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Gross Transtar Inventory
	 	 	 	 	 	 	0	 
	Less Transtar Ineligible Inventory
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	Eligible Transtar Inventory
	 	 	 	 	 	 	0	 
	Gross Transtar Inventory Availability
	 	blended	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Combined A/R Availability
	 	 	 	 	 	 	0	 

I-2

 

	 	 	 	 	 	 	 	 	 
	Property, Plant, & Equipment
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	A. M. Castle:
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Book PP&E
	 	 	 	 	 	 	0	 
	PP&E Availability
	 	 	20	%	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Transtar
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Book PP&E
	 	 	 	 	 	 	0	 
	PP&E Availability
	 	 	20	%	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Combined A/R Availability
	 	 	 	 	 	 	0	 
	Total Combined Availability
	 	 	 	 	 	 	0	 
	plus $12.5MM permitted over-advance
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	Final Adjusted availability
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Outstanding Debt (projected at close)
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Revolving Line of Credit
	 	 	 	 	 	 	0	 
	Term Loan
	 	 	 	 	 	 	0	 
	Prudential Private Placement
	 	 	 	 	 	 	0	 
	Standby & Trade L/Cs
	 	 	 	 	 	 	0	 
	Bankers Acceptances
	 	 	 	 	 	 	0	 
	Other Secured Indebtedness (SBC)
	 	 	 	 	 	 	0	 
	Transaction Fees
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 
	Total Outstanding Debt / Uses
	 	 	 	 	 	 	0	 
	 
	 	 	 	 	 	 	 	 
	Estimated Excess Availability at close
	 	 	 	 	 	 	0	 

I-3exv10w12

 

EXHIBIT 10.12

GUARANTEE AGREEMENT

     This GUARANTEE AGREEMENT (as the same may hereafter be amended, supplemented or otherwise
modified, this “Guarantee”), dated as of September 5, 2006, is by KEYSTONE TUBE COMPANY, LLC, a
Delaware limited liability company, TOTAL PLASTICS, INC., a Michigan corporation, PARAMONT MACHINE
COMPANY, LLC, a Delaware limited liability company, ADVANCED FABRICATING TECHNOLOGY, LLC, a
Delaware limited liability company, OLIVER STEEL PLATE CO., a Delaware corporation, METAL MART,
LLC, a Delaware limited liability company, DATAMET, INC., an Illinois corporation, TRANSTAR
INTERMEDIATE HOLDINGS #2, INC., a Delaware corporation, TRANSTAR METALS HOLDINGS, INC., a Delaware
corporation, TRANSTAR INVENTORY CORP., a Delaware corporation, TRANSTAR METALS CORP., a Delaware
corporation and TRANSTAR MARINE CORP., a Delaware corporation (each of whom, together with each
other Person which from time to time becomes a Guarantor pursuant to Section 5 hereof, is
referred to herein, individually, as a “Guarantor” and, collectively, as the “Guarantors”) in favor
of U.S. Lenders (as defined in the Credit Agreement referred to below) and BANK OF AMERICA, N.A.,
as U.S. Agent for U.S. Lenders (together with its successors and assigns, herein referred to as
“U.S. Agent”).

RECITALS:

     WHEREAS, each of the Guarantors is a direct or indirect Subsidiary of A. M. Castle & Co., a
Maryland corporation (together with its successors and assigns, “U.S. Borrower”);

     WHEREAS, U.S. Borrower, A. M. Castle & Co. (Canada) Inc., a corporation organized under the
laws of the Province of Ontario, Canada (“Canadian Borrower”), the lenders from time to time party
thereto, including U.S. Lenders, U.S. Agent and Bank of America, N.A., Canada Branch, entered into
an Amended and Restated Credit Agreement, dated as of September 5, 2006 (as from time to time
modified, amended, restated or supplemented, the “Credit Agreement”), pursuant to which the lenders
party thereto have agreed to extend certain credit facilities to U.S. Borrower and Canadian
Borrower;

     WHEREAS, each Guarantor will receive substantial direct and indirect economic, financial and
other benefits as a result of the credit facilities provided for in the Credit Agreement.

     NOW THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, each Guarantor hereby
agrees as follows:

1. DEFINITIONS.

     All capitalized terms used herein and not defined herein have the respective meanings given
them in the Credit Agreement.

2. GUARANTEE.

 

 

     2.1. Guarantee of Payment and Performance. Each Guarantor hereby absolutely, unconditionally
and irrevocably, on a joint and several basis with each other Guarantor, guarantees to U.S. Agent
and U.S. Lenders:

     (a) the full and punctual payment by U.S. Borrower of the U.S. Obligations at any time
payable under the Loan Documents in each case when and as the same shall become due and
payable, whether at maturity, pursuant to mandatory or optional prepayment, by acceleration
or otherwise, all in accordance with the terms and provisions of this Guarantee, the Credit
Agreement and the other Loan Documents, including, without limitation, overdue interest,
post-petition interest, indemnification payments and all of such obligations which would
become due but for the operation of the automatic stay pursuant to Section 362(a) of the
United States Bankruptcy Code and the operation of Sections 502(b) and 506(b) of the United
States Bankruptcy Code; and

     (b) the full and punctual performance by U.S. Borrower of all duties, agreements,
covenants and obligations of U.S. Borrower contained in the Credit Agreement and the other
Loan Documents,

and the full and prompt payment, on demand, of all reasonable costs and expenses incurred by (x)
U.S. Agent in connection with the negotiation, preparation, execution and delivery of this
Guarantee and (y) U.S. Agent, U.S. Lenders or any trustee or agent acting on behalf of U.S. Agent
and/or U.S. Lenders in enforcing any of its rights and remedies under this Guarantee, the Credit
Agreement or any of the other Loan Documents, including, but not limited to, all reasonable
attorneys’ fees and expenses (whether or not there is litigation), court costs and all costs in
connection with any proceedings under any Debtor Relief Laws (collectively, the “Guarantied
Obligations”), provided that the Guarantors shall not be liable for the reasonable fees and
expenses of more than one separate firm of attorneys representing U.S. Agent.

     2.2. Nature of Guarantee. This is a continuing, absolute and unconditional Guarantee of
payment and performance and not merely of collection, and shall continue in full force and effect
until such time as the Guarantied Obligations have been fully and irrevocably paid.

     2.3. Binding Nature of Certain Adjudications. Each Guarantor shall be conclusively bound by
the final adjudication in any action or proceeding, legal or otherwise to which U.S. Borrower is a
party, involving any controversy arising under, in connection with, or in any way related to, any
of the Guarantied Obligations, and by a final judgment, award or decree entered therein.

     2.4. No Duty to Pursue Others. Upon the occurrence and during the continuance of an Event of
Default, U.S. Agent or any trustee or agent acting on behalf of U.S. Agent may proceed to enforce
its rights and remedies directly against any one or more of the Guarantors without first proceeding
against U.S. Borrower or any other Person liable for the Guarantied Obligations or any security for
the Guarantied Obligations.

- 2 -

 

     2.5. No Release of Guarantors. Each Guarantor’s liability under this Guarantee shall not be
limited, diminished or extinguished by, and each Guarantor shall not be entitled to raise as a
defense, any:

     (a) invalidity, irregularity or unenforceability of the Guarantied Obligations or of
such Guarantor’s obligations hereunder;

     (b) failure of such Guarantor to be given notice of default by U.S. Borrower;

     (c) reorganization, merger or consolidation of U.S. Borrower or any Guarantor into or
with any other Person;

     (d) waiver of U.S. Borrower’s defaults or extensions of due dates for payments or other
accommodations, indulgences or forbearance granted to U.S. Borrower;

     (e) release of or non-perfection with respect to part or all of any security for the
Guarantied Obligations;

     (f) taking or accepting of any other security, collateral or guaranty of payment of any
or all of the Guarantied Obligations;

     (g) release of or settlement or compromise with any one or more Persons who constitute
guarantors or the release of or settlement or compromise with any one or more Persons who
are otherwise liable for the payment or performance of all or any portion of the Guarantied
Obligations and who are not primary obligors thereon;

     (h) any loss or impairment of any right of any Guarantor for subrogation, reimbursement
or contributions;

     (i) assignment or other transfer by U.S. Agent or any U.S. Lender (or any trustee or
agent acting on the behalf of U.S. Agent or any U.S. Lender, as the case may be) of any part
of the Guarantied Obligations, or any collateral or security securing any portion of the
Guarantied Obligations;

     (j) illegality or impossibility of performance on the part of U.S. Borrower or the
Guarantors under the Credit Agreement or this Guarantee; or

     (k) other acts or omissions of U.S. Agent or any U.S. Lender which, in the absence of
this Section, would operate so as to impair, diminish or extinguish any Guarantor’s
liability under this Guarantee.

     2.6. Certain Waivers.

     (a) Waiver of Notice. Each Guarantor hereby waives notice of (i) acceptance of this
Guarantee, (ii) any amendment, extension or other modification of the Credit Agreement
and/or any of the other Loan Documents, (iii) any loans or advances made by any U.S. Lenders
to U.S. Borrower, (iv) the occurrence of a Default or Event of Default,

- 3 -

 

(v) any transfer or other disposition of the Guarantied Obligations pursuant to the
Credit Agreement, and (vi) any other action at any time taken or omitted by U.S. Agent or
any U.S. Lender or by any trustee or agent acting on behalf of U.S. Agent or any U.S.
Lender, and generally, all demands and notices of every kind in connection with this
Guarantee, the Credit Agreement and the other Loan Documents, except as provided herein and
in the Credit Agreement.

     (b) Certain Other Waivers. Each Guarantor hereby waives (i) diligence, presentment,
demand for payment, protest or notice, whether of nonpayment, dishonor, protest or
otherwise, (ii) all setoffs, counterclaims and claims of recoupment against the Guarantied
Obligations that may be available to U.S. Borrower or any other guarantor of the Guarantied
Obligations (it being understood that the waivers set forth anywhere in this Guarantee shall
not preclude any action by such Guarantor, after payment in full of its obligations
hereunder, to recover for any tortious action or omission by U.S. Agent or any U.S. Lender
which resulted in injury to such Guarantor), (iii) any defense based upon or in any way
related to any claim that any election of remedies by U.S. Agent or any U.S. Lender (or by
any trustee or agent acting on behalf of U.S. Agent or any U.S. Lender) impaired, reduced,
released or otherwise extinguished any rights such Guarantor might otherwise have had
against U.S. Borrower or any security, (iv) any claim based upon or in any way related to
any of the matters referred to in Section 2.5, and (v) any claim that this Guarantee
should be strictly construed against U.S. Agent or any U.S. Lender.

     2.7. Bankruptcy; Other Matters. In the event that, pursuant to any insolvency, bankruptcy,
reorganization, receivership or other debtor relief law, or any judgment, order or decision
thereunder, or for any other reason U.S. Agent or any U.S. Lender must rescind or restore any
payment received by U.S. Agent or any U.S. Lender in connection with the Guarantied Obligations,
the Credit Agreement or any other Loan Document, or U.S. Borrower ceases to be liable to U.S. Agent
or any U.S. Lender in respect of the Credit Agreement (other than by the full and irrevocable
payment in full thereof), then any prior release or discharge from this Guarantee shall be without
effect and this Guarantee and the obligations of each Guarantor hereunder shall remain in full
force and effect.

     2.8. Payments by Guarantors. If all or any part of the Guarantied Obligations are not paid
when due, whether at maturity, by reason of acceleration, or otherwise, and remain unpaid until the
expiration of any applicable grace or cure period, or otherwise upon the occurrence and continuance
of any Event of Default, the Guarantors shall, immediately upon demand by U.S. Agent (or any
trustee or agent acting on behalf of U.S. Agent or any U.S. Lender), and without presentment,
protest, notice of protest, notice of nonpayment, notice of intention to accelerate or acceleration
or any other notice whatsoever, pay in immediately available funds, the amount due on the
Guarantied Obligations to U.S. Agent for distribution to U.S. Lenders. All obligations of the
Guarantors under this Guarantee shall be performable and payable to U.S. Agent at its office at the
address for notices provided for in the Credit Agreement.

     2.9. Failure to Pay Guarantied Obligations. If any Guarantor fails to pay the Guarantied
Obligations as required by this Guarantee, then each of the Guarantors, as the

- 4 -

 

principal obligor and not as a guarantor only, shall jointly and severally pay, on demand, all
reasonable out-of-pocket costs and expenses incurred or expended by U.S. Agent and U.S. Lenders
(and any trustee or agent acting on behalf of U.S. Agent and/or any U.S. Lender) in connection with
the enforcement of, and the preservation of U.S. Agent’s and U.S. Lenders’ rights under and with
respect to, this Guarantee, including, but not limited to, all reasonable attorneys’ fees and
expenses (whether or not there is litigation), court costs and all costs incurred in connection
with any proceedings under any Debtor Relief Laws, provided that the Guarantors shall not
be liable for the reasonable fees and expenses of more than one separate firm of attorneys
representing U.S. Agent. Until paid, all such amounts recoverable under this Section 2.9
shall bear interest from the time when such amounts become due until payment in full thereof at the
Default Rate for Base Rate Loans.

     2.10. Subordination of Affiliate Obligations. Each of the Guarantors agrees that all
Affiliate Obligations (as defined below), interest thereon, and all other amounts due with respect
thereto, are hereby subordinated as to time of payment and in all other respects to all the
Guarantied Obligations. Each Guarantor agrees that at all times during the existence of an Event
of Default, such Guarantor shall not be entitled to enforce or receive any payment in respect
thereof until all sums then due and owing to U.S. Agent and/or U.S. Lenders in respect of the
Guarantied Obligations shall have been paid in full. If any payment shall have been made to any
Guarantor by U.S. Borrower or such indebted Person on any such Affiliate Obligation during any time
that an Event of Default exists and there are Guarantied Obligations outstanding, such Guarantor
shall collect and receive all such payments as trustee for U.S. Agent and U.S. Lenders, to the
extent of all amounts owing with respect to this Guarantee, and such amounts shall be immediately
paid over to U.S. Agent (or any trustee or agent acting on behalf of U.S. Agent and/or U.S.
Lenders), without affecting in any manner the liability of the Guarantors under the other
provisions of this Guarantee. For purposes of this Section 2.10, “Affiliate Obligation”
means any indebtedness of any kind of U.S. Borrower, or any Person obligated in respect of the
Guarantied Obligations, to the Guarantors.

     2.11. Postponement of Subrogation Rights. No Guarantor will exercise any Subrogation Rights
(as defined below) which it may acquire with respect to this Guarantee until the prior and
indefeasible payment, in full and in cash, of all Guarantied Obligations. Any amount paid to a
Guarantor by or on behalf of U.S. Borrower or any other guarantor of the Guarantied Obligations on
account of any such Subrogation Rights prior to the payment in full of all Guarantied Obligations
shall immediately be paid over to U.S. Agent for the ratable benefit of U.S. Lenders and credited
and applied against the Guarantied Obligations whether matured or unmatured, in accordance with the
terms of the Credit Agreement. In furtherance of the foregoing, for so long as any Guarantied
Obligations remain outstanding, (i) no Guarantor shall take any action or commence any proceeding
against U.S. Borrower or any other guarantor of the Guarantied Obligations (or any of their
respective successors or assigns, whether in connection with a bankruptcy proceeding or otherwise),
to recover any amounts in the respect of payments made under this Guarantee to U.S. Agent and/or
U.S. Lenders, and (ii) each Guarantor hereby forbears realizing any benefit of and exercising any
right to participate in any security which may be held by U.S. Agent or U.S. Lender or any agent or
trustee acting on behalf of U.S. Agent and/or U.S. Lenders. For purposes of this Section
2.11, “Subrogation Right” means any right of contribution, subrogation, reimbursement,
indemnity, or repayment, and any other “claim”, as that term is defined in the United States
Bankruptcy Code, which any Guarantor

- 5 -

 

might now have or hereafter acquire against U.S. Borrower or any other guarantor of the
Guarantied Obligations that arises from the existence or performance of such Guarantor’s
obligations under this Guarantee, and any right to participate in any security for the Guarantied
Obligations.

     2.12. Limitation on Guarantied Obligations. Notwithstanding anything in Section 2.1
or elsewhere in this Guarantee or any other Loan Document to the contrary, the obligations of the
Guarantors under this Guarantee shall at each point in time be limited to an aggregate amount equal
to the greatest amount that would not result in such obligations being subject to avoidance, or
otherwise result in such obligations being unenforceable, at such time under applicable law
(including, without limitation, to the extent, and only to the extent, applicable to the
Guarantors, Section 548 of the United States Bankruptcy Code and any comparable provisions of the
law of any other jurisdiction, any capital preservation law of any jurisdiction and any other law
of any jurisdiction that at such time limits the enforceability of the obligations of the
Guarantors under this Guarantee). This Section 2.12 is intended solely to preserve the
rights of U.S. Agent and U.S. Lenders hereunder to the maximum extent permitted by applicable law,
and neither the Guarantors nor any other Person shall have any rights under this Section
2.12 that it would not otherwise have under applicable law.

     2.13. Other Enforcement Rights. U.S. Agent and U.S. Lenders may proceed to protect and
enforce this Guarantee by suit or proceedings in equity, at law or in bankruptcy, and whether for
the specific performance of any covenant or agreement contained herein or in execution or aid of
any power herein granted or for the recovery of judgment for the obligations hereby guaranteed or
for the enforcement of any other proper legal or equitable remedy available under applicable law.

3. REPRESENTATIONS AND WARRANTIES.

     Each Guarantor hereby represents and warrants to U.S. Agent and U.S. Lenders that:

     3.1. Organization and Existence. The Guarantor is duly organized and existing in good
standing under the laws of its jurisdiction of organization, is duly qualified to do business and
is in good standing where the nature or extent of its businesses or properties requires it to be
qualified to do business except where the failure to so qualify will not have a material adverse
effect on the business, operations, profits, financial condition, properties or business prospects
of such Guarantor or on its ability to perform its obligations hereunder and under the other Loan
Documents. The Guarantor has the power and authority to own its properties and carry on its
business as now being conducted.

     3.2. Authorization. The Guarantor is duly authorized to execute and perform this Guarantee
and this Guarantee has been properly authorized by all requisite action of such Guarantor. No
consent, approval or authorization of, or declaration or filing with, any Governmental Authority or
any other Person, is required in connection with the execution, delivery or performance of this
Guarantee, except for those already duly obtained.

     3.3. Due Execution. This Guarantee has been executed on behalf of such Guarantor by a Person
duly authorized to do so.

- 6 -

 

     3.4. Enforceability. This Guarantee constitutes the legal, valid and binding obligation of
the Guarantor, enforceable against such Guarantor in accordance with its terms, except to the
extent that the enforceability thereof against such Guarantor may be limited by bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditor’s rights generally or by
equitable principles of general application (regardless of whether such enforceability is
considered in a proceeding in equity or at law).

     3.5. Legal Restraints. The execution of this Guarantee by the Guarantor and the performance
by such Guarantor of its obligations under this Guarantee, will not (i) violate or constitute a
default under the certificate or articles of incorporation, bylaws or other organizational
documents of such Guarantor as applicable, (ii) except as contemplated by the U.S. Security
Documents and the granting of Liens to secure Other Senior Debt, result in any Lien being imposed
on any of such Guarantor’s property, or (iii) violate or constitute a default under any agreement
to which the Guarantor is a party or any law, ordinance, governmental rule or regulation to which
it is subject, except where such violation or default could not reasonably be expected to have a
material adverse effect on the business, operations, profits, financial condition, properties or
business prospects of such Guarantor or on its ability to perform its obligations hereunder and
under the other Loan Documents.

     3.6. No Material Proceedings. There are no proceedings, actions or investigations pending or,
to the knowledge of the Guarantor, threatened against such Guarantor that, in the aggregate for all
such proceedings, actions and investigations, could reasonably be expected to have a material
adverse effect on the business, operations, profits, financial condition, properties or business
prospects of such Guarantor or on its ability to perform its obligations hereunder and under the
other Loan Documents.

     3.7. Compliance with Laws. The Guarantor is in compliance with all laws, ordinances,
governmental rules and regulations to which it is subject, except for such failures to comply that,
in the aggregate for all such failures, could not reasonably be expected to have a material adverse
effect on the business, operations, profits, financial condition, properties or business prospects
of such Guarantor or on its ability to perform its obligations hereunder and under the other Loan
Documents.

     3.8. No Defaults. The Guarantor has not breached or violated, or is not in default under, any
agreement to which it is a party, and is not in default with respect to any of its obligations,
except for such breaches, violations and defaults that, in the aggregate for all such breaches,
violations and defaults, could not reasonably be expected to have a material adverse effect on the
business, operations, profits, financial condition, properties or business prospects of such
Guarantor or on its ability to perform its obligations hereunder and under the other Loan
Documents.

     3.9. Independent Credit Evaluation. The Guarantor has independently, and without reliance on
any information supplied by U.S. Agent or any U.S. Lender, taken, and will continue to take,
whatever steps such Guarantor deems necessary to evaluate the financial condition and affairs of
U.S. Borrower, and neither U.S. Agent nor any U.S. Lender shall have any duty to advise the
Guarantor of information at any time known to U.S. Agent or any U.S. Lender regarding such
financial condition or affairs.

- 7 -

 

     3.10. No Representation By Agent. Neither U.S. Agent, any U.S. Lender nor any trustee or
agent acting on its behalf has made any representation, warranty or statement to the Guarantor to
induce such Guarantor to execute this Guarantee.

     3.11. Survival. All representations and warranties made by the Guarantor herein shall survive
the execution hereof and may be relied upon by U.S. Agent and U.S. Lenders as being true and
accurate until the Guarantied Obligations are fully and irrevocably paid.

4. COVENANTS.

     4.1. Corporate Existence; Scope of Business; Compliance with Law; Preservation of
Enforceability. Each Guarantor covenants that from the date hereof and until the Guarantied
Obligations are fully and irrevocably paid, such Guarantor shall

     (a) preserve and maintain its existence in good standing and its right to transact
business in those states in which it is now or hereafter doing business and obtain and
maintain all licenses, except where the failure to obtain and maintain such licenses that,
in the aggregate for all such failures, could not reasonably be expected to have a material
adverse effect on the business, operations, profits, financial condition, properties or
business prospects of such Guarantor or on its ability to perform its obligations hereunder
and under the other Loan Documents;

     (b) comply, with all applicable laws, ordinances, governmental rules and regulations to
which it is subject, except where such failure to comply could not reasonably be expected to
have a material adverse effect on the business, operations, profits, financial condition,
properties or business prospects of such Guarantor; or on its ability to perform its
obligations hereunder and under the other Loan Documents; and

     (c) take all action and obtain all consents and governmental approvals required so that
its obligations under this Guarantee will at all times be legal, valid and binding and
enforceable in accordance with the terms hereof.

5. ADDITIONAL GUARANTORS.

     In accordance with Section 6.12 of the Credit Agreement, additional Persons may from time to
time after the date of this Guarantee become Guarantors under this Guarantee by executing and
delivering to U.S. Agent a joinder agreement (a “Joinder Agreement”) to this Guarantee in
substantially the form attached as Exhibit A to this Guarantee. Effective from and after
the date of the execution and delivery by any Person to U.S. Agent of a Joinder Agreement, such
Person shall be, and shall be deemed for all purposes to be, a Guarantor under this Guarantee with
the same force and effect, and subject to the same agreements, representations, guarantees,
indemnities, liabilities and obligations, as if such Person were, effective as of such date, an
original signatory to this Guarantee as a Guarantor. The execution and delivery of a Joinder
Agreement by any Person shall not require the consent of any other Guarantor and all of the
Guarantied Obligations of each Guarantor under this Guarantee shall remain in force and effect
notwithstanding the addition of any additional Guarantor to this Guarantee.

- 8 -

 

6. SUCCESSORS AND ASSIGNS.

     This Guarantee shall bind the successors, assignees, trustees, and administrators of each
Guarantor and shall inure to the benefit of U.S. Agent, each U.S. Lender, and their respective
successors, transferees, participants and assignees.

7. CONTINUANCE OF GUARANTEE.

     Each Guarantor is liable under this Guarantee for the full amount of the Guarantied
Obligations. U.S. Agent may release, settle with or compromise with any one or more Persons who
are otherwise liable for the payment or performance of all or portions of the Guarantied
Obligations without impairing, diminishing or releasing any rights of U.S. Agent or U.S. Lenders
hereunder against any Guarantor or any other Person liable for the Guarantied Obligations. This
Guarantee shall continue in full force and effect and shall bind each Guarantor notwithstanding the
death or release of any other Person who is otherwise liable for the payment or performance of all
or any portion of the Guarantied Obligations.

8. AMENDMENTS AND WAIVERS.

     No amendment to, waiver of, or departure from full compliance with any provision of this
Guarantee, or consent to any departure by any Guarantor herefrom, shall be effective unless it is
in writing and signed by authorized officers of each Guarantor directly affected thereby and U.S.
Agent; provided, however, that any such waiver or consent shall be effective only in the specific
instance and for the purpose for which given. No failure by U.S. Agent to exercise, and no delay
by U.S. Agent in exercising, any right, remedy, power or privilege hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise by U.S. Agent of any right, remedy, power
or privilege hereunder preclude any other exercise thereof, or the exercise of any other right,
remedy, power or privilege.

9. RIGHTS CUMULATIVE.

     Each of the rights and remedies of U.S. Agent and U.S. Lenders under this Guarantee shall be
in addition to all of their other rights and remedies under applicable law, and nothing in this
Guarantee shall be construed as limiting any such rights or remedies.

10. SERVICE OF PROCESS.

     EACH GUARANTOR HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS UPON IT AND CONSENTS THAT
ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL (RETURN RECEIPT REQUESTED) DIRECTED TO
IT AT ITS ADDRESS SET FORTH IN ANNEX 1 HERETO. SERVICE SO MADE SHALL BE DEEMED TO BE
COMPLETED AS OF THE DATE THAT SUCH GUARANTOR SIGNS THE RETURN RECEIPT. NOTHING IN THIS SECTION
SHALL AFFECT THE RIGHT OF U.S. AGENT OR ANY U.S. LENDER TO SERVE LEGAL PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW.

- 9 -

 

11. WAIVER OF JURY TRIAL.

     EACH GUARANTOR HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH
THIS GUARANTEE.

12. SEVERABILITY.

     Any provision of this Guarantee which is prohibited, unenforceable or not authorized in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition,
unenforceability or nonauthorization without invalidating the remaining provisions hereof or
affecting the validity, enforceability or legality of such provision in any other jurisdiction
unless the ineffectiveness of such provision would result in such a material change as to cause
completion of the transactions contemplated hereby to be unreasonable.

13. GOVERNING LAW.

     THIS GUARANTEE SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE
INTERNAL LAWS OF THE STATE OF ILLINOIS.

14. SECTION HEADINGS.

     Section headings are for convenience only and shall not affect the interpretation of this
Guarantee.

15. LIMITATION OF LIABILITY.

     NEITHER U.S. AGENT NOR ANY U.S. LENDER SHALL HAVE ANY LIABILITY WITH RESPECT TO, AND EACH OF
THE GUARANTORS HEREBY WAIVES, RELEASES AND AGREES NOT TO SUE FOR, (a) ANY LOSS OR DAMAGE SUSTAINED
BY ANY GUARANTOR THAT MAY OCCUR AS A RESULT OF, IN CONNECTION WITH, OR THAT IS IN ANY WAY RELATED
TO, ANY ACT OR FAILURE TO ACT REFERRED TO IN SECTION 2.5 OR (b) ANY SPECIAL, INDIRECT OR
CONSEQUENTIAL DAMAGES SUFFERED BY ANY GUARANTOR IN CONNECTION WITH ANY CLAIM RELATED TO THIS
GUARANTEE.

16. ENTIRE AGREEMENT.

     This Guarantee embodies the entire agreement among Guarantors, U.S. Agent and U.S. Lenders
relating to the subject matter hereof and supersedes all prior agreements, representations and
understandings, if any, relating to the subject matter hereof.

17. COMMUNICATIONS.

     All notices and other communications to U.S. Agent and U.S. Lenders or Guarantors hereunder
shall be in writing, shall be delivered in the manner and with the effect, as provided by

- 10 -

 

the Credit Agreement, and shall be addressed to the Guarantors as set forth in Annex 1
hereto and to U.S. Agent and U.S. Lenders as set forth in the Credit Agreement.

18. DUPLICATE ORIGINALS.

     Two or more duplicate counterpart originals hereof may be signed by the parties, each of which
shall be an original but all of which together shall constitute one and the same instrument.
Delivery of any executed signature page to this Guarantee by any Guarantor by facsimile
transmission shall be as effective as delivery of a manually executed copy of this Guarantee by
such Guarantor.

19. NOTICES.

     Nothing in this Guarantee shall void or abrogate any obligation of U.S. Borrower, any
Guarantor or U.S. Agent to give any notice specifically required to be given by such Person in any
provision of any Loan Document.

20. TERMINATION.

     Subject to Section 2.7, this Guarantee shall terminate and have no further force or
effect upon payment in full of the Guarantied Obligations and the termination of the Credit
Agreement.

[Remainder of page intentionally left blank. Next page is signature page.]

- 11 -

 

     IN WITNESS WHEREOF, each Guarantor has caused this Guarantee to be duly executed and delivered
by its officer thereunto duly authorized as of the date first above written.

	 	 	 	 	 	 	 
	 	 	KEYSTONE TUBE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	Name:
	 	 

Lawrence A. Boik
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TOTAL PLASTICS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	Name:
	 	 

Lawrence A. Boik
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	PARAMONT MACHINE COMPANY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	Name:
	 	 

Jerry M. Aufox
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	ADVANCED FABRICATING TECHNOLOGY, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	Name:
	 	 

Jerry M. Aufox
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	OLIVER STEEL PLATE CO.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	Name:
	 	 

Jerry M. Aufox
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	METAL MART, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	Name:
	 	 

Jerry M. Aufox
	 	 
	 

	 	Title:
	 	Secretary	 	 

- 12 -

 

	 	 	 	 	 	 	 
	 	 	DATAMET, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Jerry M. Aufox	 	 
	 

	 	Name:
	 	 

Jerry M. Aufox
	 	 
	 

	 	Title:
	 	Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR INTERMEDIATE HOLDINGS #2, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	Name:
	 	 

Lawrence A. Boik
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR METALS HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Michael H. Goldberg	 	 
	 

	 	Name:
	 	 

Michael H. Goldberg
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR INVENTORY CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	Name:
	 	 

Lawrence A. Boik
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR METALS CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	Name:
	 	 

Lawrence A. Boik
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	TRANSTAR MARINE CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Boik	 	 
	 

	 	Name:
	 	 

Lawrence A. Boik
	 	 
	 

	 	Title:
	 	Vice President	 	 

- 13 -

 

ANNEX 1

ADDRESSES OF GUARANTORS

	 	 	 	 	 
	 	 	Jurisdiction of	 	 
	Guarantor	 	Organization	 	Address
	Datamet, Inc.

	 	Illinois
	 	Datamet, Inc.

3400 North Wolf Road 

Franklin Park, IL 60131
	 
	 	 	 	 
	Keystone Tube Company, LLC

	 	Delaware
	 	Keystone Tube Company, LLC

13527 South Halsted Street

Riverdale, IL 60827
	 
	 	 	 	 
	Total Plastics, Inc.

	 	Michigan
	 	Total Plastics, Inc.

2810 North Burdick Street

Kalamazoo, MI 49004
	 
	 	 	 	 
	Paramont Machine Company, LLC

	 	Delaware
	 	Paramont Machine Company, LLC

963 Commercial Avenue SE

New Philadelphia, OH 44663
	 
	 	 	 	 
	Advanced Fabricating
Technology, LLC

	 	Delaware
	 	Advanced Fabricating Technology, LLC

687 Bryne Industrial Drive

Rockford, MI 49341
	 
	 	 	 	 
	Oliver Steel Plate Co.

	 	Delaware
	 	Oliver Steel Plate Co.

7851 Bavaria Drive

Twinsburg, OH 44087
	 
	 	 	 	 
	Metal Mart, LLC

	 	Delaware
	 	Metal Mart, LLC

W229 N2464 Joseph Road

Waukesha, WI 53186
	 
	 	 	 	 
	Transtar Intermediate
Holdings #2, Inc.

	 	Delaware
	 	Transtar Intermediate Holdings #2, Inc.

970 West 190th Street, Suite 700

Torrance, CA 90502
	 
	 	 	 	 
	Transtar Metals Holdings, Inc.

	 	Delaware
	 	Transtar Metals Holdings, Inc.

970 West 190th Street, Suite 700

Torrance, CA 90502

 

 

	 	 	 	 	 
	 	 	Jurisdiction of	 	 
	Guarantor	 	Organization	 	Address
	Transtar Inventory Corp.

	 	Delaware
	 	Transtar Inventory Corp.

970 West 190th Street, Suite 700

Torrance, CA 90502
	 
	 	 	 	 
	Transtar Metals Corp.

	 	Delaware
	 	Transtar Metals Corp.

970 West 190th Street, Suite 700

Torrance, CA 90502
	 
	 	 	 	 
	Transtar Marine Corp.

	 	Delaware
	 	Transtar Marine Corp.

970 West 190th Street, Suite 700

Torrance, CA 90502

 

 

EXHIBIT A

[FORM OF JOINDER AGREEMENT]

JOINDER AGREEMENT NO. ___TO GUARANTEE AGREEMENT

Re: A. M. CASTLE & CO.

     This Joinder Agreement is made as of                     , in favor of U.S. Agent and U.S. Lenders
(as such terms are defined in the Castle Guaranty, as hereinafter defined).

A. Reference is made to the Guarantee Agreement made as of                                         , 2006 (as such
Guarantee may be supplemented, amended, restated or consolidated from time to time, the “Castle
Guaranty”) by certain Persons in favor of U.S. Agent and U.S. Lenders (as defined in the Castle
Guaranty), under which such Persons have guaranteed to U.S. Agent and U.S. Lenders the due payment
and performance by A. M. Castle & Co. (“Castle”) of all its present and future indebtedness,
liabilities and obligations to U.S. Agent and U.S. Lenders in connection with the Loan Documents.

B. Capitalized terms used but not otherwise defined in this Joinder Agreement have the respective
meanings given to such terms in the Castle Guaranty, including the definitions of terms
incorporated in the Castle Guaranty by reference to other agreements.

C. Section 5 of the Castle Guaranty provides that additional Persons may from time to time after
the date of the Castle Guaranty become Guarantors under the Castle Guaranty by executing and
delivering to U.S. Agent a supplemental agreement to the Castle Guaranty in the form of this
Joinder Agreement.

     For valuable consideration, each of the undersigned (each a “New Guarantor”) severally (and
not jointly, or jointly and severally) agrees as follows:

     1. Each of the New Guarantors has received a copy of, and has reviewed, the Castle Guaranty
and the Loan Documents in existence on the date of this Joinder Agreement and is executing and
delivering this Joinder Agreement to U.S. Agent pursuant to Section 5 of the Castle Guaranty.

     2. Effective from and after the date this Joinder Agreement is executed and delivered to U.S.
Agent by any one of the New Guarantors (and irrespective of whether this Joinder Agreement has been
executed and delivered by any other Person), such New Guarantor is, and shall be deemed for all
purposes to be, a Guarantor under the Castle Guaranty with the same force and effect, and subject
to the same agreements, representations, guarantees, indemnities, liabilities and obligations, as
if such New Guarantor was, effective as of the date of this Joinder Agreement, an original
signatory to the Castle Guaranty as a Guarantor. In furtherance of the foregoing, each of the New
Guarantors jointly and severally guarantees to U.S. Agent and U.S. Lenders in accordance with the
provisions of the Castle Guaranty the due and punctual payment and performance in full of each of
the Guarantied Obligations as each such Guarantied

 

 

Obligation becomes due from time to time (whether because of maturity, default, demand,
acceleration or otherwise) and understands, agrees and confirms that U.S. Agent and U.S. Lenders
may enforce the Castle Guaranty and this Joinder Agreement against such New Guarantor for the
benefit of U.S. Agent and U.S. Lenders up to the full amount of the Guarantied Obligations without
proceeding against any other Guarantor, Castle, any other Person or any collateral securing the
Guarantied Obligations. The terms and provisions of the Castle Guaranty are incorporated by
reference in this Joinder Agreement.

     3. Upon this Joinder Agreement bearing the signature of any Person claiming to have authority
to bind any New Guarantor coming into the hands of U.S. Agent or any U.S. Lender, and irrespective
of whether this Joinder Agreement or the Castle Guaranty has been executed by any other Person,
this Joinder Agreement will be deemed to be finally and irrevocably executed and delivered by, and
be effective and binding on, and enforceable against, such New Guarantor free from any promise or
condition affecting or limiting the liabilities of such New Guarantor and such New Guarantor shall
be, and shall be deemed for all purposes to be, a Guarantor under the Castle Guaranty. No
statement, representation, agreement or promise by any officer, employee or agent of U.S. Agent or
U.S. Lenders, forms any part of this Joinder Agreement or the Castle Guaranty or has induced the
making of this Joinder Agreement or the Castle Guaranty by any of the New Guarantors or in any way
affects any of the obligations or liabilities of any of the New Guarantors in respect of the
Guarantied Obligations.

     4. This Joinder Agreement may be executed in counterparts. Each executed counterpart shall be
deemed to be an original and all counterparts taken together shall constitute one and the same
Joinder Agreement. Delivery of an executed signature page to this Joinder Agreement by any New
Guarantor by facsimile transmission shall be as effective as delivery of a manually executed copy
of this Joinder Agreement by such New Guarantor.

     5. This Joinder Agreement is a contract made under, and will for all purposes be governed by
and interpreted and enforced according to, the internal laws of the State of Illinois excluding any
conflict of laws rule or principle which might refer these matters to the laws of another
jurisdiction.

     6. This Joinder Agreement and the Castle Guaranty shall be binding upon each of the New
Guarantors and the successors of each of the New Guarantors. None of the New Guarantors may assign
any of its obligations or liabilities in respect of the Guarantied Obligations.

     IN WITNESS OF WHICH this Joinder Agreement has been duly executed and delivered by each of the
New Guarantors as of the date indicated on the first page of this Joinder Agreement.

	 	 	 	 	 	 	 
	 	 	[NEW GUARANTOR]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]