Document:

exv4w2

 Exhibit 4.2

Execution Version

 

HENRY SCHEIN, INC.

$250,000,000

Private Shelf Facility

 

PRIVATE SHELF AGREEMENT

 

Dated August 9, 2010

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	1. AUTHORIZATION OF NOTES
	 	 	1	 
	 
	 	 	 	 
	2. SALE AND PURCHASE OF SHELF NOTES
	 	 	1	 
	2.1. Facility
	 	 	1	 
	2.2. Issuance Period
	 	 	2	 
	2.3. Request for Purchase
	 	 	2	 
	2.4. Rate Quotes
	 	 	2	 
	2.5. Acceptance
	 	 	3	 
	2.6. Market Disruption
	 	 	3	 
	2.7. Fees
	 	 	3	 
	 
	 	 	 	 
	3. CLOSING
	 	 	4	 
	 
	 	 	 	 
	3.1. Facility Closings
	 	 	4	 
	3.2. Rescheduled Facility Closings
	 	 	5	 
	 
	 	 	 	 
	4. CONDITIONS TO CLOSING
	 	 	5	 
	4.1. Representations and Warranties
	 	 	5	 
	4.2. Performance; No Default
	 	 	5	 
	4.3. Compliance Certificates
	 	 	5	 
	4.4. Opinions of Counsel
	 	 	6	 
	4.5.
Purchase Permitted By Applicable Law, Etc.
	 	 	6	 
	4.6. Sale of Other Notes
	 	 	6	 
	4.7. Payment of Fees
	 	 	6	 
	4.8. Private Placement Number
	 	 	7	 
	4.9. Changes in Corporate Structure
	 	 	7	 
	4.10. Subsidiary Guarantees
	 	 	7	 
	4.11. Proceedings and Documents
	 	 	7	 
	 
	 	 	 	 
	5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	 	 	7	 
	 
	 	 	 	 
	5.1. Organization; Power and Authority
	 	 	7	 
	5.2.
Authorization, Etc.
	 	 	8	 
	5.3. Disclosure
	 	 	8	 
	5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates
	 	 	8	 
	5.5. Financial Statements; Material Liabilities
	 	 	9	 
	5.6.
Compliance with Laws, Other Instruments, Etc.
	 	 	10	 
	5.7.
Governmental Authorizations, Etc.
	 	 	10	 
	5.8. Litigation; Observance of Agreements, Statutes and Orders
	 	 	11	 
	5.9. Taxes
	 	 	11	 
	5.10. Title to Property; Leases
	 	 	11	 
	5.11.
Licenses, Permits, Etc.
	 	 	11	 
	5.12. Compliance with ERISA
	 	 	12	 
	5.13. Private Offering by the Company
	 	 	13	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	5.14. Use of Proceeds; Margin Regulations
	 	 	13	 
	5.15. Existing Indebtedness
	 	 	13	 
	5.16.
Foreign Assets Control Regulations, Etc.
	 	 	13	 
	5.17. Status under Certain Statutes
	 	 	14	 
	5.18. Environmental Matters
	 	 	14	 
	5.19. Ranking of Obligations
	 	 	15	 
	 
	 	 	 	 
	6. REPRESENTATIONS OF THE PURCHASERS
	 	 	15	 
	 
	 	 	 	 
	6.1. Purchase for Investment
	 	 	15	 
	6.2. Source of Funds
	 	 	15	 
	 
	 	 	 	 
	7. INFORMATION AS TO COMPANY
	 	 	17	 
	 
	 	 	 	 
	7.1. Financial and Business Information
	 	 	17	 
	7.2. Officer’s Certificate
	 	 	20	 
	7.3. Visitation
	 	 	20	 
	7.4. Limitation on Disclosure Obligation
	 	 	21	 
	 
	 	 	 	 
	8. PAYMENT AND PREPAYMENT OF THE NOTES
	 	 	21	 
	 
	 	 	 	 
	8.1. Maturity
	 	 	21	 
	8.2. Optional Prepayments with Make-Whole Amount
	 	 	22	 
	8.3. Allocation of Partial Prepayments
	 	 	22	 
	8.4.
Maturity; Surrender, Etc.
	 	 	22	 
	8.5. Purchase of Notes
	 	 	22	 
	8.6. Make-Whole Amount
	 	 	23	 
	8.7. Prepayment on a Change in Control
	 	 	24	 
	8.8. Prepayment in Connection with a Disposition
	 	 	25	 
	 
	 	 	 	 
	9. AFFIRMATIVE COVENANTS
	 	 	25	 
	 
	 	 	 	 
	9.1. Compliance with Law
	 	 	25	 
	9.2. Insurance
	 	 	25	 
	9.3. Maintenance of Properties
	 	 	26	 
	9.4. Payment of Taxes and Claims
	 	 	26	 
	9.5.
Corporate Existence, Etc.
	 	 	26	 
	9.6. Books and Records
	 	 	26	 
	9.7. Priority of Obligations
	 	 	26	 
	9.8. Subsidiary Guarantees
	 	 	27	 
	9.9. Designation of Subsidiaries
	 	 	28	 
	 
	 	 	 	 
	10. NEGATIVE COVENANTS
	 	 	30	 
	 
	 	 	 	 
	10.1. Transactions with Affiliates
	 	 	30	 
	10.2.
Merger, Consolidation, Etc.
	 	 	30	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	10.3. Line of Business
	 	 	31	 
	10.4. Terrorism Sanctions Regulations
	 	 	32	 
	10.5. Liens
	 	 	32	 
	10.6. Indebtedness
	 	 	34	 
	10.7. Dispositions
	 	 	36	 
	10.8. ERISA
	 	 	37	 
	10.9. Financial Covenants
	 	 	37	 
	 
	 	 	 	 
	11. EVENTS OF DEFAULT
	 	 	37	 
	 
	 	 	 	 
	12. REMEDIES
ON DEFAULT, ETC.
	 	 	40	 
	 
	 	 	 	 
	12.1. Acceleration
	 	 	40	 
	12.2. Other Remedies
	 	 	41	 
	12.3. Rescission
	 	 	41	 
	12.4. No
Waivers or Election of Remedies, Expenses, Etc.
	 	 	41	 
	 
	 	 	 	 
	13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES
	 	 	41	 
	 
	 	 	 	 
	13.1. Registration of Notes
	 	 	41	 
	13.2. Transfer and Exchange of Notes
	 	 	42	 
	13.3. Replacement of Notes
	 	 	42	 
	 
	 	 	 	 
	14. PAYMENTS ON NOTES
	 	 	43	 
	 
	 	 	 	 
	14.1. Place of Payment
	 	 	43	 
	14.2. Home Office Payment
	 	 	43	 
	 
	 	 	 	 
	15.
EXPENSES, ETC.
	 	 	43	 
	 
	 	 	 	 
	15.1. Transaction Expenses
	 	 	43	 
	15.2. Survival
	 	 	44	 
	 
	 	 	 	 
	16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT
	 	 	44	 
	 
	 	 	 	 
	17. AMENDMENT AND WAIVER
	 	 	44	 
	 
	 	 	 	 
	17.1. Requirements
	 	 	44	 
	17.2. Solicitation of Holders of Notes
	 	 	45	 
	17.3.
Binding Effect, Etc.
	 	 	45	 
	17.4. Notes
Held by Company, Etc.
	 	 	46	 
	 
	 	 	 	 
	18. NOTICES
	 	 	46	 
	 
	 	 	 	 
	19. REPRODUCTION OF DOCUMENTS
	 	 	47	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	20. CONFIDENTIAL INFORMATION
	 	 	47	 
	 
	 	 	 	 
	21. SUBSTITUTION OF PURCHASER
	 	 	48	 
	 
	 	 	 	 
	22. MISCELLANEOUS
	 	 	48	 
	 
	 	 	 	 
	22.1. Successors and Assigns
	 	 	48	 
	22.2. Payments Due on Non-Business Days
	 	 	49	 
	22.3. Accounting Terms and Covenant Calculations
	 	 	49	 
	22.4. Severability
	 	 	50	 
	22.5.
Construction, Etc.
	 	 	50	 
	22.6. Counterparts
	 	 	50	 
	22.7. Governing Law
	 	 	50	 
	22.8. Jurisdiction and Process; Waiver of Jury Trial
	 	 	50	 

iv

 

	 	 	 	 	 

	Information Schedule

	 	—
	 	Authorized Officers
	 
	 	 	 	 
	Schedule B

	 	—
	 	Defined Terms
	 
	 	 	 	 
	Exhibit 1

	 	—
	 	Form of Shelf Note
	 
	 	 	 	 
	Exhibit 2

	 	—
	 	Form of Request for Purchase
	 
	 	 	 	 
	Exhibit 3

	 	—
	 	Form of Confirmation of Acceptance
	 
	 	 	 	 
	Exhibit 4.3(a)

	 	—
	 	Form of Officer’s Certificate
	 
	 	 	 	 
	Exhibit 4.3(b)

	 	—
	 	Form of Secretary’s Certificate
	 
	 	 	 	 
	Exhibit 4.4(a)

	 	—
	 	Form of Opinion of Special Counsel for the Company
	 
	 	 	 	 
	Exhibit 4.4(b)

	 	—
	 	Form of Opinion of Special Counsel for the Purchasers
	 
	 	 	 	 
	Exhibit 4.10

	 	—
	 	Form of Confirmation of Subsidiary Guarantee
	 
	 	 	 	 
	Exhibit 9.8

	 	—
	 	Form of Subsidiary Guarantee
	 
	 	 	 	 
	Schedule 5.4

	 	—
	 	Subsidiaries of the Company and Ownership of Subsidiary Stock
	 
	 	 	 	 
	Schedule 10.1

	 	—
	 	Transactions with Affiliates
	 
	 	 	 	 
	Schedule 10.5

	 	—
	 	Existing Liens
	 
	 	 	 	 
	Schedule 10.6

	 	—
	 	Existing Indebtedness

 

 

Henry Schein, Inc.

135 Duryea Road

Melville, NY 11747

$250,000,000 Private Shelf Facility

August 9, 2010

to Prudential Investment Management, Inc. (“Prudential”)

To each other prudential affiliate which becomes

bound by this agreement as hereinafter
provided (each a “Purchaser” and collectively,
the “Purchasers”)

Ladies and Gentlemen:

     Henry Schein, Inc., a Delaware corporation (the “Company”), agrees with Prudential and each of
the Purchasers as follows:

1. AUTHORIZATION OF NOTES.

     The Company may, from time to time, authorize the issue of its senior promissory notes (the
“Shelf Notes”, such term to include any such notes issued in substitution thereof pursuant to
Section 14) in an aggregate principal amount not to exceed $250,000,000, to be dated the
date of issue thereof, to mature, in the case of each Shelf Note so issued, no more than 15 years
after the date of original issuance thereof, to have an average life, in the case of each Shelf
Note so issued, of no more than 12 years after the date of original issuance thereof, to bear
interest on the unpaid balance thereof from the date thereof at the rate per annum, and to have
such other particular terms, as shall be set forth, in the case of each Shelf Note so issued, in
the Confirmation of Acceptance with respect to such Note delivered pursuant to Section 2.5, to be
substantially in the form of Exhibit 1 attached hereto. The terms “Note” and “Notes” as used
herein shall include each Shelf Note delivered pursuant to any provision of this Agreement and each
Note delivered in substitution or exchange for any such Note pursuant to any such provision. Notes
which have (i) the same final maturity, (ii) the same principal prepayment dates, (iii) the same
principal prepayment amounts (as a percentage of the original principal amount of each Note), (iv)
the same interest rate, (v) the same interest payment dates, (vi) the same interest payment
periods, and (vii) the same date of issuance (which, in the case of a Note issued in exchange for
another Note, shall be deemed for these purposes the date on which such Note’s ultimate predecessor
Note was issued), are herein called a “Series” of Notes. Certain capitalized and other terms used
in this Agreement are defined in Schedule B; and references to a “Schedule” or an “Exhibit” are,
unless otherwise specified, to a Schedule or an Exhibit attached to this Agreement.

2. SALE AND PURCHASE OF SHELF NOTES.

     2.1. Facility. Prudential is willing to consider, in its sole discretion and within
limits which may be authorized for purchase by Prudential Affiliates from time to time, the
purchase of Shelf Notes pursuant to this Agreement. The willingness of Prudential to consider such
purchase

 

 

of Shelf Notes is herein called the “Facility”. At any time, the aggregate principal amount
of Shelf Notes stated in Section 1, minus the aggregate principal amount of Shelf Notes
purchased and sold pursuant to this Agreement prior to such time, minus the aggregate
principal amount of Accepted Notes (as hereinafter defined) which have not yet been purchased and
sold hereunder prior to such time, is herein called the “Available Facility Amount” at such time.
NOTWITHSTANDING THE WILLINGNESS OF PRUDENTIAL TO CONSIDER PURCHASES OF SHELF NOTES BY PRUDENTIAL
AFFILIATES, THIS AGREEMENT IS ENTERED INTO ON THE EXPRESS UNDERSTANDING THAT NEITHER PRUDENTIAL NOR
ANY PRUDENTIAL AFFILIATE SHALL BE OBLIGATED TO MAKE OR ACCEPT OFFERS TO PURCHASE SHELF NOTES, OR TO
QUOTE RATES, SPREADS OR OTHER TERMS WITH RESPECT TO SPECIFIC PURCHASES OF SHELF NOTES, AND THE
FACILITY SHALL IN NO WAY BE CONSTRUED AS A COMMITMENT BY PRUDENTIAL OR ANY PRUDENTIAL AFFILIATE.

     2.2. Issuance Period. Shelf Notes may be issued and sold pursuant to this Agreement
until the earlier of (i) the third anniversary of the date of this Agreement (or if such
anniversary date is not a Business Day, the Business Day next preceding such anniversary) and (ii)
the thirtieth day after Prudential shall have given to the Company, or the Company shall have given
to Prudential, a written notice stating that it elects to terminate the issuance and sale of Shelf
Notes pursuant to this Agreement (or if such thirtieth day is not a Business Day, the Business Day
next preceding such thirtieth day). The period during which Shelf Notes may be issued and sold
pursuant to this Agreement is herein called the “Issuance Period”.

     2.3. Request for Purchase. The Company may from time to time during the Issuance
Period make requests for purchases of Shelf Notes (each such request being herein called a “Request
for Purchase”). Each Request for Purchase shall be made to Prudential by fax, email or overnight
delivery service, and shall (i) specify the aggregate principal amount of Shelf Notes covered
thereby, which shall not be less than $5,000,000 and not be greater than the Available Facility
Amount at the time such Request for Purchase is made, (ii) specify the principal amounts, final
maturities and principal prepayment dates and amounts of the Shelf Notes covered thereby, (iii)
specify the use of proceeds of such Shelf Notes, (iv) specify whether interest payments are to be
made quarterly or semi-annually, (v) specify the proposed day for the closing of the purchase and
sale of such Shelf Notes, which shall be a Business Day during the Issuance Period not less than 10
days and not more than 30 days after the making of such Request for Purchase, (vi) specify the
number of the account and the name and address of the depository institution to which the purchase
prices of such Shelf Notes are to be transferred on the Closing Day for such purchase and sale,
(vii) certify that the representations and warranties contained in Section 5 are true in all
material respects on and as of the date of such Request for Purchase and that there exists on the
date of such Request for Purchase no Event of Default or Default, and (vii) be substantially in the
form of Exhibit 2 attached hereto. Each Request for Purchase shall be in writing signed by
the Company and shall be deemed made when received by Prudential.

     2.4. Rate Quotes. Not later than five Business Days after the Company shall have
given Prudential a Request for Purchase pursuant to Section 2.3, Prudential may, but shall be under
no obligation to, provide to the Company by telephone, fax or e-mail, in each case between 9:30
A.M. and 1:30 P.M. New York City local time (or such later time as Prudential

2

 

may elect) interest rate quotes for principal amounts, maturities and principal prepayment
schedules and interest payment periods (whether quarterly or semi-annually) of Shelf Notes
specified in such Request for Purchase (each such interest rate quote provided in response to a
Request for Purchase herein called a “Quotation”). Each Quotation shall represent the interest
rate per annum payable on the outstanding principal balance of such Shelf Notes at which Prudential
or a Prudential Affiliate would be willing to purchase such Shelf Notes at 100% of the principal
amount thereof.

     2.5. Acceptance. Within the Acceptance Window, an Authorized Officer of the Company
may, subject to Section 2.6, elect to accept on behalf of the Company a Quotation as to the
aggregate principal amount of the Shelf Notes specified in the related Request for Purchase (each
such Shelf Note being herein called an “Accepted Note” and such acceptance being herein called an
“Acceptance”). The day the Company notifies Prudential of an Acceptance with respect to any
Accepted Notes is herein called the “Acceptance Day” for such Accepted Notes. Any Quotation as to
which Prudential does not receive an Acceptance within the Acceptance Window shall expire, and no
purchase or sale of Shelf Notes hereunder shall be made based on any such expired Quotation.
Subject to Section 2.6 and the other terms and conditions hereof, the Company agrees to sell to a
Prudential Affiliate, and Prudential agrees to cause the purchase by a Prudential Affiliate of, the
Accepted Notes at 100% of the principal amount of such Notes. As soon as practicable following the
Acceptance Day, the Company, Prudential and each Prudential Affiliate which is to purchase any such
Accepted Notes will execute a confirmation of such Acceptance substantially in the form of
Exhibit 3 attached hereto (herein called a “Confirmation of Acceptance”). If the Company
should fail to execute and return to Prudential within three Business Days following the Company’s
receipt thereof a Confirmation of Acceptance with respect to any Accepted Notes, Prudential may at
its election at any time prior to Prudential’s receipt thereof cancel the closing with respect to
such Accepted Notes by so notifying the Company in writing.

     2.6. Market Disruption. Notwithstanding the provisions of Section 2.5, any Quotation
provided pursuant to Section 2.4 shall expire if, prior to the time an Acceptance with respect to
such Quotation shall have been notified to Prudential in accordance with Section 2.5, in the case
of any Shelf Notes, the domestic market for U.S. Treasury securities or derivatives shall have
closed or there shall have occurred a general suspension, material limitation, or significant
disruption of trading in securities generally on the New York Stock Exchange or in the domestic
market for U.S. Treasury securities or derivatives. No purchase or sale of Shelf Notes hereunder
shall be made based on such expired Quotation. If the Company thereafter notifies Prudential of
the Acceptance of any such Quotation, such Acceptance shall be ineffective for all purposes of this
Agreement, and Prudential shall promptly notify the Company that the provisions of this Section 2.6
are applicable with respect to such Acceptance.

     2.7. Fees.

     (a) Structuring Fee. In consideration for the time, effort and expense involved in
the preparation, negotiation and execution of this Agreement, at the time of the
execution and delivery of this Agreement by the Company and Prudential, the Company will
pay to Prudential in immediately available funds a fee (herein called the “Structuring
Fee”) in the amount of $75,000.

3

 

     (b) Delayed Delivery Fee. If the closing of the purchase and sale of any Accepted
Note is delayed for any reason beyond the original Closing Day for such Accepted Note,
the Company will pay to each Purchaser which shall have agreed to purchase such Accepted
Note on the Cancellation Date or actual closing date of such purchase and sale, an amount
(herein called the “Delayed Delivery Fee”) equal to the product of (1) the amount
determined by Prudential to be the amount by which the bond equivalent yield per annum of
such Accepted Note exceeds the investment rate per annum on an alternative Dollar
investment of the highest quality selected by Prudential and having a maturity date or
dates the same as, or closest to, the Rescheduled Closing Day from time to time fixed for
the delayed delivery of such Accepted Note, (2) the principal amount of such Accepted
Note, and (3) a fraction the numerator of which is equal to the number of actual days
elapsed from and including the original Closing Day for such Accepted Note to but
excluding the date of such payment, and the denominator of which is 360. In no case
shall the Delayed Delivery Fee be less than zero. Nothing contained herein shall
obligate any Purchaser to purchase any Accepted Note on any day other than the Closing
Day for such Accepted Note, as the same may be rescheduled from time to time in
compliance with Section 3.3.

     (c) Cancellation Fee. If, on or after the Acceptance Day, the Company at any time
notifies Prudential in writing that the Company is canceling the closing of the purchase
and sale of any Accepted Note, or if Prudential notifies the Company in writing under the
circumstances set forth in the last sentence of Section 2.5 or the penultimate sentence
of Section 3.2 that the closing of the purchase and sale of such Accepted Note is to be
canceled, or if the closing of the purchase and sale of such Accepted Note is not
consummated on or prior to the last day of the Issuance Period (the date of any such
notification, or the last day of the Issuance Period, as the case may be, being herein
called the “Cancellation Date”), the Company will pay to each Purchaser which shall have
agreed to purchase such Accepted Note no later than one Business Day after the
Cancellation Date in immediately available funds an amount (the “Cancellation Fee”) equal
to the product of (1) the principal amount of such Accepted Note and (2) the quotient
(expressed in decimals) obtained by dividing (y) the excess of the ask price (as
determined by Prudential) of the Hedge Treasury Note(s) on the Cancellation Date over the
bid price (as determined by Prudential) of the Hedge Treasury Note(s) on the Acceptance
Day for such Accepted Note by (z) such bid price, with the foregoing bid and ask prices
as reported on the Bridge\Telerate Service, or if such information ceases to be available
on the Bridge\Telerate Service, any publicly available source of such market data
selected by Prudential, and rounded to the second decimal place.

3. CLOSING.

     3.1. Facility Closings. Not later than 11:30 A.M. (New York City local time) on the Closing
Day for any Accepted Notes, the Company will deliver to each Purchaser listed in the Confirmation
of Acceptance relating thereto at the offices of Prudential Capital Group, 1114 Avenue of the
Americas, 30th Floor, New York, NY 10036, Attention: Law Department, or at such other place
pursuant to the written directions of Prudential to the Company, the Accepted Notes to be purchased
by such Purchaser in the form of one or more Notes in authorized

4

 

denominations as such Purchaser may request for each Series of Accepted Notes to be purchased
on the Closing Day, dated the Closing Day and registered in such Purchaser’s name (or in the name
of its nominee), against payment of the purchase price thereof by transfer of immediately available
funds for credit to the Company’s account specified in the Request for Purchase of such Notes.
Each Shelf Closing are hereafter sometimes each referred to as a “Closing”.

     3.2. Rescheduled Facility Closings. If the Company fails to tender to any Purchaser the
Accepted Notes to be purchased by such Purchaser on the scheduled Closing Day for such Accepted
Notes as provided above in Section 3.1, or any of the conditions specified in Section 4 shall not
have been fulfilled by the time required on such scheduled Closing Day, the Company shall, prior to
2:00 P.M., New York City local time, on such scheduled Closing Day notify Prudential (which
notification shall be deemed received by each Purchaser) in writing whether (a) such closing is to
be rescheduled (such rescheduled date to be a Business Day during the Issuance Period not less than
one Business Day and not more than 10 Business Days after such scheduled Closing Day (the
“Rescheduled Closing Day”)) and certify to Prudential (which certification shall be for the benefit
of each Purchaser) that the Company reasonably believes that it will be able to comply with the
conditions set forth in Section 4 on such Rescheduled Closing Day and that the Company will pay the
Delayed Delivery Fee in accordance with Section 2.7(b) or (b) such closing is to be canceled. In
the event that the Company shall fail to give such notice referred to in the second preceding
sentence, Prudential (on behalf of each Purchaser) may at its election, at any time after 2:00
P.M., New York City local time, on such scheduled Closing Day, notify the Company in writing that
such closing is to be canceled. Notwithstanding anything to the contrary appearing in this
Agreement, the Company may not elect to reschedule a closing with respect to any given Accepted
Notes on more than one occasion, unless Prudential shall have otherwise consented in writing.

4. CONDITIONS TO CLOSING.

     Each Purchaser’s obligation to purchase and pay for the Notes to be sold to such Purchaser at
the Closing for such Notes is subject to the fulfillment to such Purchaser’s reasonable
satisfaction, prior to or at such Closing, of the following conditions:

     4.1. Representations and Warranties.

     The representations and warranties of the Company in this Agreement shall be correct in all
material respects when made and at the time of the applicable Closing (except to the extent of
changes caused by the transactions herein contemplated).

     4.2. Performance; No Default.

     The Company shall have performed and complied in all material respects with all agreements and
conditions contained in this Agreement required to be performed or complied with by it prior to or
at such Closing and after giving effect to the issue and sale of the Notes (and the application of
the proceeds thereof as contemplated by Section 5.14), no Default or Event of Default shall have
occurred and be continuing.

5

 

     4.3. Compliance Certificates.

     (a) Officer’s Certificate. The Company shall have delivered to such
Purchaser an Officer’s Certificate, dated the date of such Closing, certifying that the
conditions specified in Sections 4.1, 4.2 and 4.9 have been fulfilled, in the form
attached hereto as Exhibit 4.3(a).

     (b) Secretary’s Certificate. The Company shall have delivered to such
Purchaser a certificate of its Secretary or an Assistant Secretary, dated the date of
such Closing, certifying as to the resolutions attached thereto and other corporate
proceedings relating to the authorization, execution and delivery of the Notes and this
Agreement, in the form attached hereto as Exhibit 4.3(b).

     4.4. Opinions of Counsel.

     Such Purchaser shall have received opinions in form and substance reasonably satisfactory to
such Purchaser, dated the date of such Closing (a) from Proskauer Rose LLP, counsel for the
Company, substantially in the form set forth in Exhibit 4.4(a) and covering such other matters
incident to the transactions contemplated hereby as such Purchaser or its counsel may reasonably
request (and the Company hereby instructs its counsel to deliver such opinion to the Purchasers)
and (b) from Bingham McCutchen LLP (or such other special counsel designated by Prudential), the
Purchasers’ special counsel in connection with such transactions, substantially in the form set
forth in Exhibit 4.4(b) and covering such other matters incident to such transactions as such
Purchaser may reasonably request.

     4.5. Purchase Permitted By Applicable Law, Etc.

     On the date of such Closing such Purchaser’s purchase of Notes shall (a) be permitted by the
laws and regulations of each jurisdiction to which such Purchaser is subject, without recourse to
provisions (such as section 1405(a)(8) of the New York Insurance Law) permitting limited
investments by insurance companies without restriction as to the character of the particular
investment, (b) not violate any applicable law or regulation (including, without limitation,
Regulation T, U or X of the Board of Governors of the Federal Reserve System) and (c) not subject
such Purchaser to any tax, penalty or liability under or pursuant to any applicable law or
regulation, which law or regulation was not in effect on the date hereof.

     4.6. Sale of Other Notes.

     Contemporaneously with such Closing the Company shall sell to each other Purchaser and each
other Purchaser shall purchase the Notes to be purchased by it at such Closing as specified in the
applicable Confirmation of Acceptance.

     4.7. Payment of Fees.

     (a) Without limiting the provisions of Section 15.1, the Company shall have paid to
Prudential and each Purchaser on or before such Closing any fees due it pursuant to or in
connection with this Agreement, including any Structuring Fee due pursuant to Section
2.7(a) and any Delayed Delivery Fee due pursuant to Section 2.7(b); the Structuring Fee
being due and payable on the date hereof.

6

 

     (b) Without limiting the provisions of Section 15.1, the Company shall have paid on
or before such Closing reasonable, documented and invoiced fees, charges and
disbursements of the Purchasers’ special counsel referred to in Section 4.4 to the extent
reflected in a statement of such counsel rendered to the Company at least one Business
Day prior to such Closing.

     4.8. Private Placement Number.

     A Private Placement Number issued by Standard & Poor’s CUSIP Service Bureau (in cooperation
with the SVO) shall have been obtained for such Notes.

     4.9. Changes in Corporate Structure.

     Following the date of the most recent financial statements referred to in Section 5.5, except
as otherwise permitted pursuant to Section 10.2, the Company shall not have changed its
jurisdiction of incorporation or organization, as applicable, and prior to the first Closing,
except as provided in Section 10.2, the Company shall not have been a party to any merger or
consolidation or succeeded to all or any substantial part of the liabilities of any other entity.

     4.10. Subsidiary Guarantees.

     Each Subsidiary Guarantor at the time of each Closing (other than the first Closing hereunder)
shall have delivered to Prudential a confirmation of subsidiary guarantee substantially in the form
of Exhibit 4.10 hereto executed by each such Subsidiary Guarantor.

     4.11. Proceedings and Documents.

     All corporate authorizations by the Company required for the transactions contemplated by this
Agreement and for the execution of all documents and instruments required to consummate such
transactions shall be reasonably satisfactory to such Purchaser and its special counsel, and such
Purchaser and its special counsel shall have received all such counterpart originals or certified
or other copies of such documents as such Purchaser or such special counsel may reasonably request.

5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The Purchasers and the holders of the Notes recognize and acknowledge that the Company may
supplement the following representations and warranties in this Section 5, including the Schedules
related thereto, pursuant to a Request for Purchase; provided that no such supplement to
any representation or warranty applicable to any particular Closing Day shall change or otherwise
modify or be deemed or construed to change or otherwise modify any representation or warranty given
on any other Closing Day or any determination of the falseness or inaccuracy thereof pursuant to
Section 11(e). The Company represents and warrants to each Purchaser that:

7

 

     5.1. Organization; Power and Authority.

     The Company is a corporation duly organized, validly existing and in good standing under the
laws of its jurisdiction of incorporation, and is duly qualified as a foreign corporation, where
legally applicable, and is in good standing in each jurisdiction in which such qualification is
required by law, other than those jurisdictions as to which the failure to be so qualified or in
good standing could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. The Company has the corporate power and authority, in all material
respects, to own or hold under lease the properties it purports to own or hold under lease, to
transact the business it transacts, to execute and deliver this Agreement and the Notes and to
perform the provisions hereof and thereof.

     5.2. Authorization, Etc.

     This Agreement and the Notes have been duly authorized by all necessary corporate action on
the part of the Company, and this Agreement constitutes, and upon execution and delivery thereof
each Note will constitute, a legal, valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except as such enforceability may be limited by (i)
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and (ii) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     5.3. Disclosure.

     This Agreement and the documents, certificates or other writings (including the financial
statements described in Section 5.5 and the financial statements provided pursuant to the terms
hereof) delivered to the Purchasers by or on behalf of the Company in connection with the
transactions contemplated hereby (this Agreement and such documents, certificates or other writings
and financial statements delivered to each Purchaser prior to the applicable Closing Day being
referred to, collectively, as the “Disclosure Documents”), taken as a whole, do not contain any
untrue statement of a material fact or omit to state any material fact necessary to make the
statements therein not misleading in light of the circumstances under which they were made. Except
as disclosed in the Disclosure Documents, since the end of the most recent fiscal year for which
audited financial statements have been furnished there has been no change in the financial
condition, operations, business or properties of the Company or any Subsidiary except changes that
individually or in the aggregate could not reasonably be expected to have a Material Adverse
Effect. There is no fact known to the Company that could reasonably be expected to have a Material
Adverse Effect that has not been set forth herein or in the Disclosure Documents. For the purposes
of this Section 5.3, the Disclosure Documents shall be deemed to include all filings made with, or
furnished to, the Securities and Exchange Commission by the Company pursuant to sections 13 or
15(d) of the Exchange Act, and the Company shall be deemed to have made delivery of any such
Disclosure Document if it shall have timely made such Disclosure Document available on the
Securities and Exchange Commission’s Electronic Data Gathering Analysis, and Retrieval system, or
its successor thereto (“EDGAR”).

     5.4. Organization and Ownership of Shares of Subsidiaries; Affiliates.

     (a) Schedule 5.4 contains (except as noted therein) complete and correct
lists (i) of the Company’s Subsidiaries, showing, as to each Subsidiary, the correct

8

 

name thereof, the jurisdiction of its organization, whether such Subsidiary is a
Restricted Subsidiary or Unrestricted Subsidiary, and the percentage of shares of each
class of its capital stock or similar equity interests outstanding owned by the Company
and each other Subsidiary and (ii) of the Company’s directors and senior officers, in
each case as of the date of this Agreement.

     (b) All of the outstanding shares of capital stock or similar equity interests of
each Subsidiary have been validly issued, are fully paid and nonassessable and are owned
by the Company or another Subsidiary free and clear of any Lien (except as otherwise
disclosed in Schedule 5.4 or permitted by Section 10.5).

     (c) Each Subsidiary is a corporation or other legal entity duly organized, validly
existing and in good standing under the laws of its jurisdiction of organization, and is
duly qualified as a foreign corporation or other legal entity and, where legally
applicable, is in good standing in each jurisdiction in which such qualification is
required by law, other than those jurisdictions as to which the failure to be so
qualified or in good standing could not, individually or in the aggregate, reasonably be
expected to have a Material Adverse Effect. Each such Subsidiary has the corporate or
other power and authority, in all material respects, to own or hold under lease the
properties it purports to own or hold under lease and to transact the business it
transacts.

     (d) No Subsidiary is a party to, or otherwise subject to any legal, regulatory,
contractual or other restriction (other than this Agreement, the agreements listed on
Schedule 5.4 and customary limitations imposed by corporate law or similar
statutes) restricting the ability of such Subsidiary to pay dividends out of profits or
make any other similar distributions of profits to the Company or any of its Subsidiaries
that owns outstanding shares of capital stock or similar equity interests of such
Subsidiary.

     (e) Each of Consolidated EBITDA and Adjusted Consolidated Total Assets represents
not less than 85% of the consolidated earnings before interest, tax, depreciation and
amortization of the Company and its Subsidiaries (calculated on the same basis as
Consolidated EBITDA as determined as of the last day of the last four fiscal quarter
period of the Company then last ended (taken as one accounting period)) and Consolidated
Total Assets (as of the end of the most recently ended fiscal quarter), respectively.

     5.5. Financial Statements; Material Liabilities.

     The Company has delivered to each Purchaser of any Accepted Notes the following financial
statements identified by a principal financial officer of the Company: (a) consolidating and
consolidated balance sheets of the Company and its consolidated Subsidiaries as at the last day of
each of the three fiscal years of the Company most recently completed prior to the date as of which
this representation is made or repeated to such Purchaser (other than fiscal years completed within
90 days prior to such date for which audited financial statements have not been released) and
consolidating and consolidated statements of operations, cash flows and stockholders’ equity of the
Company and its consolidated Subsidiaries for each such year, all

9

 

reported on by BDO Seidman, LLP and (ii) consolidating and consolidated balance sheets of the
Company and its consolidated Subsidiaries as at the end of the quarterly period (if any) most
recently completed prior to such date and after the end of such fiscal year (other than quarterly
periods completed within 45 days prior to such date for which financial statements have not been
released) and the comparable quarterly period in the preceding fiscal year and consolidating and
consolidated statements of operations, cash flows and stockholders’ equity for the periods from the
beginning of the fiscal years in which such quarterly periods are included to the end of such
quarterly periods, prepared by the Company. All of said financial statements (including in each
case the related schedules and notes) fairly present in all material respects the consolidated
financial position of the Company and its Subsidiaries as of the respective dates thereof and the
consolidated results of their operations and cash flows for the respective periods indicated and
have been prepared in accordance with GAAP consistently applied throughout the periods involved
except as set forth in the notes thereto (subject, in the case of any interim financial statements,
to normal, recurring, year-end audit adjustments and the absence of GAAP notes thereto). The
Company shall be deemed to satisfy the delivery requirements of this Section 5.5 if the Company’s
Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as applicable, each prepared in
accordance with the requirements therefor and filed with the Securities and Exchange Commission,
are made available on EDGAR.

     5.6. Compliance with Laws, Other Instruments, Etc.

     The execution, delivery and performance by the Company of this Agreement and the Notes will
not:

     (a) contravene, result in any breach of, or constitute a default under, or result in
the creation of any Lien in respect of any property of the Company or any Subsidiary
under, (i) the corporate charter or by-laws of the Company or any Subsidiary, or (ii) any
Material indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease,
or any other Material agreement or instrument to which the Company or any Subsidiary is
bound or by which the Company or any Subsidiary or any of their respective properties may
be bound or affected;

     (b) conflict with or result in a breach of any of the terms, conditions or
provisions of any order, judgment, decree, or ruling of any court, arbitrator or
Governmental Authority applicable to the Company or any Subsidiary; or

     (c) violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Company or any Subsidiary

except for any such contravention, breach, default, creation of a Lien, conflict or violation
described in any of clauses (b), and (c) above which, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     5.7. Governmental Authorizations, Etc.

     No consent, approval or authorization of, or registration, filing or declaration with, any
Governmental Authority is required in connection with the execution, delivery or performance

10

 

by the Company of this Agreement or the Notes, except such filings as might be required to
perfect any Liens granted to the holders of the Notes.

     5.8. Litigation; Observance of Agreements, Statutes and Orders.

     (a) There are no actions, suits, investigations or proceedings pending or, to the
knowledge of the Company, threatened against the Company or any Subsidiary or any
property of the Company or any Subsidiary in any court or before any arbitrator of any
kind or before or by any Governmental Authority that, individually or in the aggregate,
could reasonably be expected to have a Material Adverse Effect.

     (b) Neither the Company nor any Subsidiary is in default under any term of any
agreement or instrument to which it is a party or by which it is bound, or any order,
judgment, decree or ruling of any court, arbitrator or Governmental Authority or is in
violation of any applicable law, ordinance, rule or regulation (including, without
limitation, Environmental Laws or the USA Patriot Act) of any Governmental Authority,
which default or violation, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

     5.9. Taxes.

     The Company and its Subsidiaries have filed all tax returns that are required to have been
filed in any jurisdiction, and have paid all taxes shown to be due and payable on such returns and
all other taxes and assessments levied upon them or their properties, assets, income or franchises,
to the extent such taxes and assessments have become due and payable and before they have become
delinquent, except for any taxes and assessments (i) the amount of which is not individually or in
the aggregate Material or (ii) the amount, applicability or validity of which is currently being
contested in good faith by appropriate proceedings and with respect to which the Company or a
Restricted Subsidiary, as the case may be, has established adequate reserves in accordance with
GAAP.

     5.10. Title to Property; Leases.

     Each of the Company and its Restricted Subsidiaries have good record and marketable title in
fee simple to, or valid leasehold interests in, all real property necessary and 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.

     5.11. Licenses, Permits, Etc.

     (a) The Company and its Restricted Subsidiaries own or possess in all material
respects all licenses, permits, franchises, authorizations, patents, copyrights,
proprietary software, service marks, trademarks and trade names, or rights thereto, that
individually or in the aggregate are Material, without known conflict with the rights of
others.

     (b) To the best knowledge of the Company, no product of the Company or any of its
Restricted Subsidiaries infringes in any Material respect any license, permit,

11

 

franchise, authorization, patent, copyright, proprietary software, service mark,
trademark, trade name or other right owned by any other Person.

     (c) To the best knowledge of the Company, there is no Material violation by any
Person of any right of the Company or any of its Restricted Subsidiaries with respect to
any patent, copyright, proprietary software, service mark, trademark, trade name or other
right owned or used by the Company or any of its Restricted Subsidiaries.

     5.12. Compliance with ERISA.

     (a) The Company and each ERISA Affiliate have operated and administered each Plan in
compliance with all applicable laws except for such instances of noncompliance as have
not resulted in and could not reasonably be expected to result in a Material Adverse
Effect. Neither the Company nor any ERISA Affiliate has incurred any liability pursuant
to Title I or IV of ERISA or the penalty or excise tax provisions of the Code relating to
employee benefit plans (as defined in section 3 of ERISA), and no event, transaction or
condition has occurred or exists that could reasonably be expected to result in the
incurrence of any such liability by the Company or any ERISA Affiliate, or in the
imposition of any Lien on any of the rights, properties or assets of the Company or any
ERISA Affiliate, in either case pursuant to Title I or IV of ERISA or to such penalty or
excise tax provisions or to section 401(a)(29) or 412 of the Code or section 4068 of
ERISA, other than such liabilities or Liens as would not be individually or in the
aggregate Material.

     (b) The present value of the aggregate benefit liabilities under each of the Plans
(other than Multiemployer Plans), determined as of the end of such Plan’s most recently
ended plan year on the basis of the actuarial assumptions specified for funding purposes
in such Plan’s most recent actuarial valuation report, did not exceed the aggregate
current value of the assets of such Plan allocable to such benefit liabilities by an
amount that could reasonably be expected to result in a Material Adverse Effect. The
term “benefit liabilities” has the meaning specified in section 4001 of ERISA and the
terms “current value” and “present value” have the meaning specified in section 3 of
ERISA.

     (c) The Company and its ERISA Affiliates have not incurred withdrawal liabilities
(and are not subject to contingent withdrawal liabilities) under section 4201 or 4204 of
ERISA in respect of Multiemployer Plans that individually or in the aggregate are
Material.

     (d) The expected postretirement benefit obligation (determined as of the last day of
the Company’s most recently ended fiscal year in accordance with Financial Accounting
Standards Board Statement No. 106, without regard to liabilities attributable to
continuation coverage mandated by section 4980B of the Code) of the Company and its
Subsidiaries is not Material or has otherwise been disclosed in the most recent audited
financial statements.

12

 

     (e) The execution and delivery of this Agreement and the issuance and sale of the
Notes hereunder will not involve any transaction that is subject to the prohibitions of
section 406 of ERISA or in connection with which a tax could be imposed pursuant to
section 4975(c)(1)(A)-(D) of the Code. The representation by the Company to each
Purchaser in the first sentence of this Section 5.12(e) is made in reliance upon and
subject to the accuracy of such Purchaser’s representation in Section 6.2 as to the
sources of the funds used to pay the purchase price of the Notes to be purchased by such
Purchaser.

     5.13. Private Offering by the Company.

     Prior to such Closing Day, neither the Company nor anyone acting on its behalf has offered the
Notes or any similar securities for sale to, or solicited any offer to buy any of the same from, or
otherwise approached or negotiated in respect thereof with, any person other than the Purchasers
and other Institutional Investors, each of which has been offered the Notes at a private sale for
investment. Neither the Company nor anyone acting on its behalf has taken, or will take, any
action that would subject the issuance or sale of the Notes to the registration requirements of
Section 5 of the Securities Act or to the registration requirements of any securities or blue sky
laws of any applicable jurisdiction.

     5.14. Use of Proceeds; Margin Regulations.

     The Company will apply the proceeds of the sale of the Shelf Notes as set forth in the
applicable Request for Purchase. No part of the proceeds from the sale of the Notes hereunder will
be used, directly or indirectly, for the purpose of buying or carrying any margin stock within the
meaning of Regulation U of the Board of Governors of the Federal Reserve System (12 CFR 221), or
for the purpose of buying or carrying or trading in any securities under such circumstances as to
involve the Company in a violation of Regulation X of said Board (12 CFR 224) or to involve any
broker or dealer in a violation of Regulation T of said Board (12 CFR 220). Margin stock does not
constitute more than 5% of the value of the consolidated assets of the Company and its Subsidiaries
and the Company does not have any present intention that margin stock will constitute more than 5%
of the value of such assets. As used in this Section, the terms “margin stock” and “purpose of
buying or carrying” shall have the meanings assigned to them in said Regulation U.

     5.15. Existing Indebtedness.

     Neither the Company nor any of its Subsidiaries has outstanding any Indebtedness except as
permitted by Section 10.6.

     5.16. Foreign Assets Control Regulations, Etc.

     (a) Neither the sale of the Notes by the Company hereunder nor its use of the
proceeds thereof will violate the Trading with the Enemy Act, as amended, or any of the
foreign assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto.

13

 

     (b) Neither the Company nor any Subsidiary (i) is a Person described or designated
in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign
Assets Control or in Section 1 of the Anti-Terrorism Order or (ii) engages in any
dealings or transactions with any such Person. The Company and its Subsidiaries are in
compliance, in all material respects, with the USA Patriot Act.

     (c) No part of the proceeds from the sale of the Notes hereunder will be used,
directly or indirectly, for any payments to any governmental official or employee,
political party, official of a political party, candidate for political office, or anyone
else acting in an official capacity, in order to obtain, retain or direct business or
obtain any improper advantage, in violation of the United States Foreign Corrupt
Practices Act of 1977, as amended, assuming in all cases that such Act applies to the
Company.

     5.17. Status under Certain Statutes.

     Neither the Company nor any Subsidiary is governed by the Investment Company Act of 1940, as
amended, the ICC Termination Act of 1995, as amended, or the Federal Power Act, as amended.

     5.18. Environmental Matters.

     (a) Neither the Company nor any Subsidiary has actual knowledge of any claim or has
received any notice of any claim, and no proceeding has been instituted raising any claim
against the Company or any of its Subsidiaries or any of their respective real properties
now or formerly owned, leased or operated by any of them or other assets, alleging any
damage to the environment or violation of any Environmental Laws, except, in each case,
such as could not reasonably be expected to result in a Material Adverse Effect.

     (b) Neither the Company nor any Subsidiary has actual knowledge of any facts which
would give rise to any claim, public or private, of violation of Environmental Laws or
damage to the environment emanating from or occurring on real properties now or formerly
owned, leased or operated by any of them or to other assets or their use, except, in each
case, such as could not reasonably be expected to result in a Material Adverse Effect.

     (c) Neither the Company nor any Subsidiary has stored any Hazardous Materials on
real properties now or formerly owned, leased or operated by any of them and has not
disposed of any Hazardous Materials in a manner contrary to any Environmental Laws in
each case in any manner that could reasonably be expected to result in a Material Adverse
Effect; and

     (d) All buildings on all real properties now owned, leased or operated by the
Company or any Subsidiary are in compliance with applicable Environmental Laws, except
where failure to comply could not reasonably be expected to result in a Material Adverse
Effect.

14

 

     5.19. Ranking of Obligations.

     The Company’s payment obligations under this Agreement and the Notes will, upon issuance of
the Notes, rank at least pari passu, without preference or priority, with all other unsecured and
unsubordinated Indebtedness of the Company.

6. REPRESENTATIONS OF THE PURCHASERS.

     6.1. Purchase for Investment.

     Each Purchaser severally represents that it is an “accredited investor” within the meaning of
Regulation D under the Securities Act and that it is purchasing the Notes purchased by it hereunder
for its own account or for one or more separate accounts maintained by such Purchaser or for the
account of one or more pension or trust funds and not with a view to the distribution thereof,
provided that the disposition of such Purchaser’s or such pension or trust funds’ property shall at
all times be within such Purchaser’s or their control. Each Purchaser understands that the Notes
have not been registered under the Securities Act and may be resold only if registered pursuant to
the provisions of the Securities Act or if an exemption from registration is available, except
under circumstances where neither such registration nor such an exemption is required by law, and
that the Company is not required to and has no intention to register the Notes.

     6.2. Source of Funds.

     Each Purchaser severally represents that at least one of the following statements is an
accurate representation as to each source of funds (a “Source”) to be used by such Purchaser to pay
the entire purchase price of the Notes to be purchased by it hereunder:

     (a) the Source is an “insurance company general account” (as the term is defined in
the United States Department of Labor’s Prohibited Transaction Exemption (“PTE”) 95-60)
in respect of which the reserves and liabilities (as defined by the annual statement for
life insurance companies approved by the National Association of Insurance Commissioners
(the “NAIC Annual Statement”)) for the general account contract(s) held by or on behalf
of any employee benefit plan together with the amount of the reserves and liabilities for
the general account contract(s) held by or on behalf of any other employee benefit plans
maintained by the same employer (or affiliate thereof as defined in PTE 95-60) or by the
same employee organization in the general account do not exceed 10% of the total reserves
and liabilities of the general account (exclusive of separate account liabilities) plus
surplus as set forth in the NAIC Annual Statement filed with such Purchaser’s state of
domicile; or

     (b) the Source is a separate account that is maintained solely in connection with
such Purchaser’s fixed contractual obligations under which the amounts payable, or
credited, to any employee benefit plan (or its related trust) that has any interest in
such separate account (or to any participant or beneficiary of such plan (including any
annuitant)) are not affected in any manner by the investment performance of the separate
account; or

15

 

     (c) the Source is either (i) an insurance company pooled separate account, within
the meaning of PTE 90-1 or (ii) a bank collective investment fund, within the meaning of
the PTE 91-38 and, except as disclosed by such Purchaser to the Company in writing
pursuant to this clause (c), no employee benefit plan or group of plans maintained by the
same employer or employee organization beneficially owns more than 10% of all assets
allocated to such pooled separate account or collective investment fund; or

     (d) the Source constitutes assets of an “investment fund” (within the meaning of
Part V of PTE 84-14 (the “QPAM Exemption”)) managed by a “qualified professional asset
manager” or “QPAM” (within the meaning of Part V of the QPAM Exemption), no employee
benefit plan’s assets that are included in such investment fund, when combined with the
assets of all other employee benefit plans established or maintained by the same employer
or by an affiliate (within the meaning of Section V(c)(1) of the QPAM Exemption) of such
employer or by the same employee organization and managed by such QPAM, exceed 20% of the
total client assets managed by such QPAM, the conditions of Part I(c) and (g) of the QPAM
Exemption are satisfied, neither the QPAM nor a person controlling or controlled by the
QPAM (applying the definition of “control” in Section V(e) of the QPAM Exemption) owns a
5% or more interest in the Company and (i) the identity of such QPAM and (ii) the names
of all employee benefit plans whose assets are included in such investment fund have been
disclosed to the Company in writing pursuant to this clause (d); or

     (e) the Source constitutes assets of a “plan(s)” (within the meaning of Section IV
of PTE 96-23 (the “INHAM Exemption”)) managed by an “in-house asset manager” or “INHAM”
(within the meaning of Part IV of the INHAM Exemption), the conditions of Part I(a), (g)
and (h) of the INHAM Exemption are satisfied, neither the INHAM nor a person controlling
or controlled by the INHAM (applying the definition of “control” in Section IV(d) of the
INHAM Exemption) owns a 5% or more interest in the Company and (i) the identity of such
INHAM and (ii) the name(s) of the employee benefit plan(s) whose assets constitute the
Source have been disclosed to the Company in writing pursuant to this clause (e); or

     (f) the Source is a governmental plan; or

     (g) the Source is one or more employee benefit plans, or a separate account or trust
fund comprised of one or more employee benefit plans, each of which has been identified
to the Company in writing pursuant to this clause (g); or

     (h) the Source does not include assets of any employee benefit plan, other than a
plan exempt from the coverage of ERISA.

As used in this Section 6.2, the terms “employee benefit plan,” “governmental plan,” and “separate
account” shall have the respective meanings assigned to such terms in section 3 of ERISA.

16

 

7. INFORMATION AS TO COMPANY.

     7.1. Financial and Business Information.

     The Company shall deliver to Prudential and each holder of Notes that is an Institutional
Investor:

     (a) Quarterly Statements — promptly after the same are available and in any
event within 45 days after the end of each quarterly fiscal period in each fiscal year of
the Company (other than the last quarterly fiscal period of each such fiscal year) (or,
to the extent the Company is a reporting company under the Securities Act, such shorter
period as shall be required under the applicable rules of the Securities and Exchange
Commission for the filing of its quarterly report on Form 10-Q), duplicate copies of

     (i) consolidated and consolidating balance sheets of the Company and its
consolidated Subsidiaries, and of the Company and the Restricted Subsidiaries, as at
the end of each such quarter, and

     (ii) consolidated and consolidating statements of operations and of cash flows
of the Company and its Subsidiaries, and of the Company and the Restricted
Subsidiaries, for such quarter and (in the case of the second and third quarters)
for the portion of the fiscal year ending with such quarter,

setting forth in each case in comparative form the figures for the corresponding period in
the previous fiscal year, all in reasonable detail, prepared in accordance with GAAP
applicable to quarterly financial statements generally, and certified by a Senior Financial
Officer as fairly presenting, in all material respects, the financial position of the
companies being reported on and their results of operations and cash flows, subject to
changes resulting from normal, recurring, year end audit adjustments and the absence of GAAP
notes thereto;

     (b) Annual Statements — promptly after the same are available and in any
event within 90 days after the end of each fiscal year of the Company (or, to the extent
the Company is a reporting company under the Securities Act, such shorter period as shall
be required under the applicable rules of the Securities and Exchange Commission for the
filing of its annual report on Form 10-K), duplicate copies of

     (i) consolidated and consolidating balance sheets of the Company and its
consolidated Subsidiaries, and of the Company and the Restricted Subsidiaries, as at
the end of such year, and

     (ii) consolidated and consolidating statements of operations and stockholders’
equity and of cash flows of the Company and its Subsidiaries, and of the Company and
the Restricted Subsidiaries, for such year,

setting forth in each case in comparative form the figures for the previous fiscal year, all
in reasonable detail, prepared in accordance with GAAP, and accompanied by, in respect of
such financial statements of the Company and its consolidated Subsidiaries:

17

 

     (A) an opinion thereon of BDO Seidman, LLP or any other independent
certified public accountants of nationally recognized standing reasonably acceptable
to the Required Holders, which opinion shall not contain any qualification arising
out of the scope of the audit and shall state that such financial statements present
fairly, in all material respects, the financial position of the companies being
reported upon and their results of operations and cash flows and have been prepared
in conformity with GAAP, and that the examination of such accountants in connection
with such financial statements has been made in accordance with generally accepted
auditing standards, and that such audit provides a reasonable basis for such opinion
in the circumstances,

     (B) an executive summary of the management letter prepared by such accountants;
provided, however, that if a Default or Event of Default shall have
occurred and shall be continuing, the full text of such management letter shall be
provided to Prudential and each holder of Notes that is an Institutional Investor,
and

     (C) a certificate of such accountants stating whether they obtained knowledge
during the course of their examination of such financial statements of any Default
or Event of Default (which certificate may be limited to the extent required by
accounting rules or guidelines);

     (c) SEC and Other Reports — promptly upon their becoming available, one
copy of (i) each financial statement, report, circular, notice or proxy statement or
similar document sent by the Company or any Restricted Subsidiary to its principal
lending banks as a whole (excluding information sent to such banks in the ordinary course
of administration of a bank facility, such as information relating to pricing and
borrowing availability) or to its public securities holders generally, and (ii) each
regular or periodic report, each registration statement (without exhibits except as
expressly requested by such holder), and each prospectus and all amendments thereto filed
by the Company or any Restricted Subsidiary with the Securities and Exchange Commission
or any similar Governmental Authority or securities exchange and of all press releases
and other statements made available generally by the Company or any Restricted Subsidiary
to the public concerning developments that are Material;

     (d) Notice of Default or Event of Default — promptly and in any event
within five Business Days after a Responsible Officer obtaining actual knowledge of the
existence of any Default or Event of Default or that any applicable creditor has given
any notice or taken any action with respect to a claimed default hereunder or that any
Person has given any notice or taken any action with respect to a claimed default of the
type referred to in Section 11(f), a written notice specifying the nature and period of
existence thereof and what action the Company is taking or proposes to take with respect
thereto;

     (e) Employee Benefit Matters — promptly and in any event within fifteen
days after a Responsible Officer obtaining actual knowledge of any of the following, a

18

 

written notice setting forth the nature thereof and the action, if any, that the
Company or an ERISA Affiliate proposes to take with respect thereto:

     (i) with respect to any Plan, any reportable event, as defined in section
4043(c) of ERISA and the regulations thereunder, for which notice thereof has not
been waived pursuant to such regulations as in effect on the date hereof; or

     (ii) the taking by the PBGC of steps to institute, or the threatening by the
PBGC of the institution of, proceedings under section 4042 of ERISA for the
termination of, or the appointment of a trustee to administer, any Plan, or the
receipt by the Company or any ERISA Affiliate of a notice from a Multiemployer Plan
that such action has been taken by the PBGC with respect to such Multiemployer Plan;
or

     (iii) any event, transaction or condition that could result in the incurrence
of any liability by the Company or any ERISA Affiliate pursuant to Title I or IV of
ERISA or the penalty or excise tax provisions of the Code relating to employee
benefit plans, or in the imposition of any Lien on any of the rights, properties or
assets of the Company or any ERISA Affiliate pursuant to Title I or IV of ERISA or
such penalty or excise tax provisions, if such liability or Lien, taken together
with any other such liabilities or Liens then existing, could reasonably be expected
to have a Material Adverse Effect;

     (f) Notices from Governmental Authority — promptly, and in any event within
30 days of receipt thereof, copies of any notice to the Company or any Subsidiary from
any Governmental Authority relating to any order, ruling, statute or other law or
regulation that could reasonably be expected to have a Material Adverse Effect;

     (g) Material Adverse Effect — promptly and in any event within five
Business Days of a Responsible Officer obtaining actual knowledge of any development that
results in, or could reasonably be expected to result in, a Material Adverse Effect, a
written notice setting forth the nature thereof and the action, if any, that the Company
proposes to take with respect thereto; and

     (h) Requested Information — with reasonable promptness, such other data and
information relating to the business, operations, affairs, financial condition, assets or
properties of the Company or any of its Restricted Subsidiaries or relating to the
ability of the Company to perform its obligations hereunder and under the Notes as from
time to time may be reasonably requested by any such holder of Notes, including
information readily available to the Company explaining the Company’s financial
statements if such information has been requested by the SVO in order to assign or
maintain a designation of the Notes.

          The Company shall have satisfied the reporting obligations under clauses (a), (b) and
(c) of this Section 7.1 if it shall have made the information required by such clauses
available on EDGAR in accordance with the time periods specified in such clauses.

19

 

     7.2. Officer’s Certificate.

     Each set of financial statements delivered to Prudential or a holder of Notes pursuant to
Section 7.1(a) or Section 7.1(b) shall be accompanied by a certificate of a Senior Financial
Officer setting forth:

     (a) Covenant Compliance — (i) the information required in order to
establish whether the Company was in compliance with the requirements of Section 9.9(b),
and Section 10.9 (including reasonably detailed calculations) and (ii) a certification by
the Senior Financial Officer that the Company was in compliance with the requirements of
Section 10.5(o), Section 10.6(a), (b)(vi) and (b)(vii) and Section 10.7(g)(iii) during
the quarterly or annual period covered by the statements then being furnished (including
with respect to each such Section, where applicable, the calculations of the maximum or
minimum amount, ratio or percentage, as the case may be, permissible under the terms of
such Sections, and the calculation of the amount, ratio or percentage then in existence);
and

     (b) Event of Default — a statement that such Senior Financial Officer has
reviewed the relevant terms hereof and has made, or caused to be made, under his or her
supervision, a reasonable and customary review of the transactions and conditions of the
Company and its Restricted Subsidiaries from the beginning of the quarterly or annual
period covered by the statements then being furnished to the date of the certificate and
that such review shall not have disclosed the existence during such period of any
condition or event that constitutes a Default or an Event of Default or, if any such
condition or event existed or exists (including, without limitation, any such event or
condition resulting from the failure of the Company or any Restricted Subsidiary to
comply with any Environmental Law), specifying the nature and period of existence thereof
and what action the Company shall have taken or proposes to take with respect thereto.

     7.3. Visitation.

     The Company shall permit the representatives of each holder of Notes that is an Institutional
Investor:

     (a) No Default — if no Default or Event of Default then exists, at the
expense of such holder and upon reasonable prior notice to the Company, to visit the
principal executive office of the Company during regular business hours, to discuss the
affairs, finances and accounts of the Company and its Subsidiaries with the Company’s
officers, and (with the consent of the Company, which consent will not be unreasonably
withheld) its independent public accountants, and (with the consent of the Company, which
consent will not be unreasonably withheld) to visit the other offices and properties of
the Company and each Restricted Subsidiary, all at such reasonable times and as often as
may be reasonably requested in writing; provided that each holder of Notes that is an
Institutional Investor shall make reasonable efforts to coordinate any such visit with
Prudential and any other holder of Notes that is an

20

 

Institutional Investor such that each holder will attempt to conduct its visit
during the same period of time as other holders conducting visits; and

     (b) Default — if a Default or Event of Default then exists, at the expense
of the Company to visit and inspect any of the offices or properties of the Company or
any Subsidiary, to examine all their respective books of account, records, reports and
other papers, to make copies and extracts therefrom, and to discuss their respective
affairs, finances and accounts with their respective officers and independent public
accountants (and by this provision the Company authorizes said accountants to discuss the
affairs, finances and accounts of the Company and its Subsidiaries), all at such times
and as often as may be requested.

     7.4. Limitation on Disclosure Obligation.

     The Company shall not be required to disclose the following information pursuant to Section
7.1(c), 7.1(j) or 7.3:

     (a) information that the Company determines after consultation with counsel
qualified to advise on such matters that, notwithstanding the confidentiality
requirements of Section 20, it would be prohibited from disclosing by applicable law or
regulations without making public disclosure thereof; or

     (b) information that, notwithstanding the confidentiality requirements of Section
20, the Company is prohibited from disclosing by the terms of an obligation of
confidentiality contained in any agreement with any non-Affiliate binding upon the
Company and not entered into in contemplation of this clause (b), provided that the
Company shall use commercially reasonable efforts to obtain consent from the party in
whose favor the obligation of confidentiality was made to permit the disclosure of the
relevant information and provided further that the Company has received a written opinion
of counsel confirming that disclosure of such information without consent from such other
contractual party would constitute a breach of such agreement.

Promptly after a request therefor from any holder of Notes that is an Institutional Investor, the
Company will provide such holder with a written opinion of counsel (which may be addressed to the
Company) relied upon as to any requested information that the Company is prohibited from disclosing
to such holder under circumstances described in this Section 7.4.

8. PAYMENT AND PREPAYMENT OF THE NOTES.

     8.1. Maturity.

     Each Series of Shelf Notes shall be subject to required prepayments, if any, set forth in the
Notes of such Series, provided that upon any partial prepayment of the Shelf Notes of any Series
pursuant to Section 8.2, 8.7 or 8.8, the principal amount of each required prepayment of the Shelf
Notes of such Series becoming due under this Section 8.1 on and after the date of such prepayment
shall be reduced in the same proportion as the aggregate unpaid principal amount of the Shelf Notes
of such Series is reduced as a result of such prepayment.

21

 

     8.2. Optional Prepayments with Make-Whole Amount.

     The Company may, at its option, upon notice as provided below, prepay at any time all, or from
time to time any part of, any Series of Notes, in a principal amount of $1,000,000 or any integral
multiple of $100,000 in excess thereof in the case of a partial prepayment, at 100% of the
principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with
respect to such principal amount. The Company will give each holder of the Series of Notes to be
prepaid written notice of each optional prepayment under this Section 8.2 not less than 30 days and
not more than 60 days prior to the date fixed for such prepayment. Each such notice shall specify
such date (which shall be a Business Day), the aggregate principal amount of the Series of Notes to
be prepaid on such date, the principal amount of each Note held by such holder to be prepaid
(determined in accordance with Section 8.3), and the interest to be paid on the prepayment date
with respect to such principal amount being prepaid, and shall be accompanied by a certificate of a
Senior Financial Officer as to the estimated Make-Whole Amount due in connection with such
prepayment (calculated as if the date of such notice were the date of the prepayment), setting
forth the details of such computation. Two Business Days prior to such prepayment, the Company
shall deliver to each holder of the Series of Notes to be prepaid a certificate of a Senior
Financial Officer specifying the calculation of such Make-Whole Amount as of the specified
prepayment date.

     8.3. Allocation of Partial Prepayments.

     In the case of each partial prepayment of the Notes of any Series pursuant to Section 8.2, the
principal amount of the Notes of such Series to be prepaid shall be allocated among all of the
Notes of such Series at the time outstanding in proportion, as nearly as practicable, to the
respective unpaid principal amounts thereof not theretofore called for prepayment.

     8.4. Maturity; Surrender, Etc.

     In the case of each prepayment of Notes of any Series pursuant to this Section 8, the
principal amount of each Note to be prepaid shall mature and become due and payable on the date
fixed for such prepayment (which shall be a Business Day), together with interest on such principal
amount accrued to such date and the applicable Make-Whole Amount, if any. From and after such
date, unless the Company shall fail to pay such principal amount when so due and payable, together
with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount
shall cease to accrue. Any Note paid or prepaid in full shall be surrendered to the Company and
cancelled and shall not be reissued, and no Note shall be issued in lieu of any prepaid principal
amount of any Note.

     8.5. Purchase of Notes.

     The Company will not and will not permit any Affiliate to purchase, redeem, prepay or
otherwise acquire, directly or indirectly, any of the outstanding Notes except upon the payment or
prepayment of the Notes in accordance with the terms of this Agreement and the Notes. The Company
will promptly cancel all Notes acquired by it or any Affiliate pursuant to any payment or
prepayment of Notes pursuant to any provision of this Agreement and no Notes may be issued in
substitution or exchange for any such Notes.

22

 

     8.6. Make-Whole Amount.

     The term “Make-Whole Amount” means, with respect to any Note, an amount equal to the excess,
if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called
Principal of such Note over the amount of such Called Principal, provided that the Make-Whole
Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount,
the following terms have the following meanings:

     “Called Principal” means, with respect to any Note, the principal of such Note that is to be
prepaid pursuant to Section 8.2, Section 8.7 or Section 8.8or has become or is declared to be
immediately due and payable pursuant to Section 12.1.

     “Discounted Value” means, with respect to the Called Principal of any Note, the amount
obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from
their respective scheduled due dates to the Settlement Date with respect to such Called Principal,
in accordance with accepted financial practice and at a discount factor (applied on the same
periodic basis as that on which interest on the Notes is payable) equal to the Reinvestment Yield
with respect to such Called Principal.

     “Reinvestment Yield” means, with respect to the Called Principal of any Note, 0.50% over the
yield to maturity implied by (i) the yields reported as of 10:00 A.M. (New York City time) on the
second Business Day preceding the Settlement Date with respect to such Called Principal, on the
display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg
Financial Markets for the most recently issued actively traded on the run U.S. Treasury securities
having a maturity equal to the Remaining Average Life of such Called Principal as of such
Settlement Date, or (ii) if such yields are not reported as of such time or the yields reported as
of such time are not ascertainable (including by way of interpolation), the Treasury Constant
Maturity Series Yields reported, for the latest day for which such yields have been so reported as
of the second Business Day preceding the Settlement Date with respect to such Called Principal, in
Federal Reserve Statistical Release H.15 (or any comparable successor publication) for U.S.
Treasury securities having a constant maturity equal to the Remaining Average Life of such Called
Principal as of such Settlement Date. In the case of each determination under clause (i) or clause
(ii), as the case may be, of the preceding sentence, such implied yield will be determined, if
necessary, by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance
with accepted financial practice and (b) interpolating linearly between (1) the applicable U.S.
Treasury security with the maturity closest to and greater than such Remaining Average Life and (2)
the applicable U.S. Treasury security with the maturity closest to and less than such Remaining
Average Life. The Reinvestment Yield will be rounded to that number of decimals as appears in the
coupon for the applicable Note.

     “Remaining Average Life” means, with respect to any Called Principal, the number of years
(calculated to the nearest one-twelfth year) obtained by dividing (i) such Called Principal into
(ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining
Scheduled Payment with respect to such Called Principal by (b) the number of years (calculated to
the nearest one-twelfth year) that will elapse between the Settlement Date with respect to such
Called Principal and the scheduled due date of such Remaining Scheduled Payment.

23

 

     “Remaining Scheduled Payments” means, with respect to the Called Principal of any Note, all
payments of such Called Principal and interest thereon that would be due after the Settlement Date
with respect to such Called Principal if no payment of such Called Principal were made prior to its
scheduled due date, provided that if such Settlement Date is not a date on which interest payments
are due to be made under the terms of the Notes, then the amount of the next succeeding scheduled
interest payment will be reduced by the amount of interest accrued to such Settlement Date and
required to be paid on such Settlement Date pursuant to Section 8.2, Section 8.7, Section 8.8 or
Section 12.1.

     “Settlement Date” means, with respect to the Called Principal of any Note, the date on which
such Called Principal is to be prepaid pursuant to Section 8.2, Section 8.7 or Section 8.8 or has
become or is declared to be immediately due and payable pursuant to Section 12.1, as the context
requires.

     8.7. Prepayment on a Change in Control.

     (a) The Company shall, promptly upon any Responsible Officer obtaining actual
knowledge of the occurrence of a Change in Control, the Company shall give written notice
of such fact (the “Company Notice”) to all holders of the Notes. The Company Notice
shall (i) describe the facts and circumstances of such Change in Control in reasonable
detail, (ii) refer to this Section 8.7 and the rights of the holders hereunder and state
that a Change in Control has occurred, (iii) contain an offer by the Company to prepay
the entire unpaid principal amount of Notes held by each holder, together with interest
thereon to the prepayment date selected by the Company with respect to each Note, plus
the Make-Whole Amount with respect thereto, which prepayment shall be on a date specified
in the Company Notice and which date shall be a Business Day not less than 30 days and
not more than 45 days after such Company Notice is given, (iv) request each holder to
notify the Company in writing by a stated date (the “Change in Control Response Date”),
which date is not less than 30 days after such holder’s receipt of the Company Notice, of
its acceptance or rejection of such prepayment offer and (v) be accompanied by a
certificate of a Senior Financial Officer as to the estimated Make-Whole Amount due in
connection with such prepayment (calculated as if the date of such Company Notice were
the date of the prepayment), setting forth the details of such computation. If a holder
does not notify the Company as provided above, then the holder shall be deemed to have
accepted such offer.

     (b) Two Business Days prior to the prepayment date specified in the Company Notice,
the Company shall deliver to each holder of Notes to be prepaid a certificate of a Senior
Financial Officer specifying the calculation of such Make-Whole Amount as of the
prepayment date.

     (c) On the prepayment date specified in the Company Notice, the entire unpaid
principal amount of the Notes held by each holder of Notes who has accepted such
prepayment offer (in accordance with paragraph (a) above), together with interest thereon
to the prepayment date with respect to each such Note and the Make-Whole Amount with
respect thereto shall become due and payable.

24

 

     8.8. Prepayment in Connection with a Disposition.

     (a) If the Company elects to prepay the Notes pursuant to Section 10.7 in connection
with any Disposition, the Company shall give written notice of such prepayment (a
“Disposition Prepayment Notice”) to each holder of a Note, which Disposition Prepayment
Notice shall (i) describe the facts and circumstances of such Disposition in reasonable
detail, (ii) refer to this Section 8.8 and the rights of the holders of Notes hereunder,
(iii) identify a date, which shall be no more than 60 days and not less than 5 Business
Days after the date of the Disposition Prepayment Notice, on which the Company shall
prepay the Pro Rata Portion of the unpaid principal amount of the Notes issued by the
Company and held by such holder, together with interest thereon to the prepayment date
and Make-Whole Amount, if any (showing in such Disposition Prepayment Notice the amount
of the prepayment, the interest and an estimate of the Make-Whole Amount which would be
paid on such prepayment date (calculated as if the date of such Disposition Prepayment
Notice was the date of prepayment)).

     (b) On the prepayment date specified in the Disposition Prepayment Notice, the
appropriate portion of unpaid principal amount of the Notes held by each holder of a
Note, together with the accrued and unpaid interest thereon to the prepayment date and
the Make-Whole Amount, if any, shall become due and payable.

9. AFFIRMATIVE COVENANTS.

     The Company covenants that during the Issuance Period and so long thereafter as any of the
Notes are outstanding:

     9.1. Compliance with Law.

     Without limiting Section 10.4, the Company will, and will cause each of its Restricted
Subsidiaries to, comply with all laws, ordinances or governmental rules or regulations of any
Governmental Authority to which each of them is subject, including, without limitation, ERISA, the
USA Patriot Act and Environmental Laws, and will obtain and maintain in effect all licenses,
certificates, permits, franchises and other governmental authorizations necessary to the ownership
of their respective properties or to the conduct of their respective businesses, in each case to
the extent necessary to ensure that non-compliance with such laws, ordinances or governmental rules
or regulations or failures to obtain or maintain in effect such licenses, certificates, permits,
franchises and other governmental authorizations could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     9.2. Insurance.

     The Company will, and will cause each of its Restricted Subsidiaries to, maintain, with
financially sound and reputable insurers, insurance with respect to their respective properties and
businesses against such casualties and contingencies, of such types, on such terms and in such
amounts (including deductibles, co-insurance and self-insurance, if adequate reserves are
maintained with respect thereto) as is customary in the case of entities engaged in the same or a
similar business and similarly situated.

25

 

     9.3. Maintenance of Properties.

     The Company will, and will cause each of its Restricted Subsidiaries to, maintain and keep, or
cause to be maintained and kept, their respective properties necessary in the operation of their
business in good repair, working order and condition (other than ordinary wear and tear), provided
that this Section shall not prevent the Company or any Restricted Subsidiary from discontinuing the
operation and the maintenance of any of its properties if such discontinuance is desirable in the
conduct of its business and such discontinuance could not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect.

     9.4. Payment of Taxes and Claims.

     The Company will, and will cause each of its Restricted Subsidiaries to file all tax returns
required to be filed in any jurisdiction and to pay and discharge all taxes shown to be due and
payable on such returns and all other taxes, assessments, governmental charges or levies imposed on
them or any of their properties, assets, income or franchises, to the extent the same have become
due and payable and before they have become delinquent and all claims for which sums have become
due and payable which, if unpaid, would by law (without satisfaction of any other conditions)
become a Lien on properties or assets of the Company or any Restricted Subsidiary (other than Liens
permitted under Section 10.5), provided that neither the Company nor any Restricted Subsidiary need
pay any such tax, assessment, charge or levy if (i) the amount, applicability or validity thereof
is contested by the Company or such Restricted Subsidiary on a timely basis in good faith and in
appropriate proceedings, and the Company or a Restricted Subsidiary has established adequate
reserves therefor in accordance with GAAP on the books of the Company or such Restricted Subsidiary
or (ii) the nonpayment of all such taxes, assessments, charges and levies in the aggregate could
not reasonably be expected to have a Material Adverse Effect; and

     9.5. Corporate Existence, Etc.

     Subject to Section 10.2, the Company will at all times preserve and keep in full force and
effect its corporate existence. Subject to Sections 10.2 and 10.7, the Company will at all times
preserve and keep in full force and effect the corporate existence of each of its Restricted
Subsidiaries (unless merged into the Company or a Wholly-Owned Restricted Subsidiary) and all
rights and franchises of the Company and its Restricted Subsidiaries unless the termination of or
failure to preserve and keep in full force and effect such corporate existence, right or franchise
could not, individually or in the aggregate, be reasonably expected to have a Material Adverse
Effect.

     9.6. Books and Records.

     The Company will, and will cause each of its Restricted Subsidiaries to, maintain, in all
material respects, proper books of record and account in conformity with GAAP and all material
applicable requirements of any Governmental Authority having legal or regulatory jurisdiction over
the Company or such Restricted Subsidiary, as the case may be.

26

 

     9.7. Priority of Obligations.

     The Company will ensure that its payment obligations under this Agreement and the Notes will
at all times rank at least pari passu, without preference or priority, with all other unsecured and
unsubordinated Indebtedness of the Company.

     9.8. Subsidiary Guarantees.

     (a) The Company shall promptly cause each Additional Subsidiary Guarantor to execute and
deliver a Subsidiary Guarantee substantially in the form of Exhibit 9.8 hereto (with such
modifications as may be required to reflect the legal requirements of the jurisdiction of
incorporation of the relevant Subsidiary, including any modifications necessary to make the
obligations of such guarantee agreement pari passu with the other unsecured and unsubordinated
Indebtedness of such Subsidiary) or otherwise in form and substance reasonably satisfactory to the
Required Holders.

     (b) The Company may, from time to time at its discretion and upon written notice from the
Company to the holders of Notes, cause any of its Subsidiaries which are not otherwise Subsidiary
Guarantors pursuant to Section 9.8(a) to enter into a Subsidiary Guarantee substantially in the
form of Exhibit 9.8 hereto (with such modifications as may be required to reflect the legal
requirements of the jurisdiction of incorporation of the relevant Subsidiary, including any
modifications necessary to make the obligations of such guarantee agreement pari passu with the
other unsecured and unsubordinated Indebtedness of such Subsidiary) or otherwise in form and
substance reasonably satisfactory to the Required Holders (an “Optional Subsidiary Guarantee”). A
Subsidiary that enters into an Optional Subsidiary Guarantee shall be referred to as an “Optional
Subsidiary Guarantor”.

     (c) The delivery of a Subsidiary Guarantee by any Subsidiary Guarantor shall be accompanied by
the following:

	 	(i)	 	an Officer’s Certificate from such Subsidiary Guarantor
confirming that (A) the representations and warranties of such Subsidiary
Guarantor contained in such Subsidiary Guarantee are true and correct in all
material respects, and (B) the guarantee provided under the Subsidiary
Guarantee would not cause any borrowing, guaranteeing or similar limit binding
on the Subsidiary Guarantor to be exceeded;
	 
	 	(ii)	 	copies of the articles of association or certificate or
articles of incorporation, and all other constitutive documents, of such
Subsidiary Guarantor, resolutions of the board of directors (and, where
applicable, the shareholders) of such Subsidiary Guarantor authorizing its
execution and delivery of the Subsidiary Guarantee and the transactions
contemplated thereby, and specimen signatures of authorized officers of such
Subsidiary Guarantor (in each case, certified as correct and complete copies by
the secretary or an assistant secretary (or an equivalent officer) of such
Subsidiary Guarantor); and
	 
	 	(iii)	 	a legal opinion, reasonably satisfactory in form, scope and
substance to the Required Holders, of independent legal counsel to the effect
that, subject

27

 

	 	 	 	to customary qualifications and assumptions, (1) such Subsidiary Guarantor
is duly and validly organized and existing under the laws of its
jurisdiction of organization and (if applicable in such jurisdiction) is in
good standing, (2) such Subsidiary Guarantee has been duly authorized,
executed and delivered by such Subsidiary Guarantor, and (3) such Subsidiary
Guarantee is enforceable in accordance with its terms.

An original executed counterpart of each such Subsidiary Guarantee shall be delivered to each
holder of Notes promptly after the execution thereof.

     (d) In the event that an Additional Subsidiary Guarantor at any time ceases to guarantee the
obligations of the Company or other Group members under any Principal Credit Facility and is no
longer a borrower or other obligor under any Principal Credit Facility, the Company may upon
written notice to the holders of the Notes referring to this Section 9.8(d), which notices shall be
accompanied by an Officer’s Certificate certifying as to the matters set forth in clauses (i) and
(ii) below, terminate the Subsidiary Guarantee issued by such Additional Subsidiary Guarantor with
effect from the date of such notice so long as (i) no Default or Event of Default shall have
occurred and then be continuing or shall result therefrom (including, without limitation, an Event
of Default arising from a breach of Section 10.6 following the termination of such Subsidiary
Guarantee), and (ii) no payment by such Subsidiary Guarantor is due under such Subsidiary
Guarantor’s Subsidiary Guarantee.

     (e) The Company may further, from time to time at its sole discretion and upon written notice
to the holders of the Notes referring to this Section 9.8(e), which shall be accompanied by an
Officer’s Certificate certifying as to the matters set forth in sub-paragraphs (i) and (ii) below,
terminate an Optional Subsidiary Guarantee issued by an Optional Subsidiary Guarantor with effect
from the date of such notice so long as (i) no Default or Event of Default shall have occurred and
then be continuing or shall result therefrom (including, without limitation, an Event of Default
arising from a breach of Section 10.6 following the termination of such Optional Subsidiary
Guarantee) and (ii) no payment by such Optional Subsidiary Guarantor is due under such Optional
Subsidiary Guarantor’s Optional Subsidiary Guarantee.

     9.9. Designation of Subsidiaries.

     (a) Right of Designation. Subject to the satisfaction of the requirements
of clauses (b) and (c) of this Section 9.9, the Company shall have the right to designate
each of its Subsidiaries acquired or formed after the date hereof as an Unrestricted
Subsidiary or a Restricted Subsidiary by delivering to each holder of Notes a writing,
signed by the Chief Financial Officer, certifying that the Company shall have so
designated such Subsidiary prior to or within 30 days of such acquisition or formation.
Any such Subsidiary so designated within such 30 day period shall be deemed to have been
an Unrestricted Subsidiary or Restricted Subsidiary, as applicable, as of the date of
such acquisition or formation and any such Subsidiary not so designated within such 30
day period shall be deemed, on and after the date of acquisition or formation thereof and
without any further action by the Company or any holder of Notes, to have been designated
by the Company as a Restricted Subsidiary. Each Subsidiary existing as on the date
hereof designated as a Restricted Subsidiary in Schedule 5.4 shall, subject to

28

 

Section 9(c), be a Restricted Subsidiary on and after the date hereof and all other
existing Subsidiaries, if any, listed as a Unrestricted Subsidiary in such Schedule 5.4
shall, subject to Section 9.9(b) hereof, be Unrestricted Subsidiaries on and after the
date hererof.

     (b) Restricted Subsidiary Coverage. At the time of such designation or
redesignation, each of Consolidated EBITDA and Adjusted Consolidated Total Assets must
represent not less than 85% of the consolidated earnings before interest, tax,
depreciation and amortization of the Company and its Subsidiaries (calculated on the same
basis as Consolidated EBITDA as determined as of the last day of the last four fiscal
quarter period of the Company then last ended (taken as one accounting period)) and
Consolidated Total Assets (as of the end of the most recently ended fiscal quarter),
respectively.

     (c) Right of Redesignation. The Company may, at any time, redesignate any
Unrestricted Subsidiary as a Restricted Subsidiary, or any Restricted Subsidiary as an
Unrestricted Subsidiary, provided, however, that:

     (i) if such Subsidiary initially is designated a Restricted Subsidiary, then
such Restricted Subsidiary may be subsequently redesignated as an Unrestricted
Subsidiary and such Unrestricted Subsidiary may be subsequently redesignated as a
Restricted Subsidiary, but no further changes in designation may be made;

     (ii) if such Subsidiary initially is designated an Unrestricted Subsidiary,
then such Unrestricted Subsidiary may be subsequently redesignated as a Restricted
Subsidiary and such Restricted Subsidiary may be subsequently redesignated as an
Unrestricted Subsidiary, but no further changes in designation may be made; and

     (iii) if immediately after giving effect to such redesignation, and assuming
that all obligations, liabilities and investments of, and all Liens on the property
of, such Subsidiary being so designated were incurred or made contemporaneously with
such designation, no Default or Event of Default exists or would exist.

     (d) Pro Forma Effect upon Redesignation. Except as otherwise specifically
provided herein, for purposes of determining compliance with the financial covenants
contained in this Agreement, any designation or redesignation, as the case may be, shall
be given pro forma effect upon such designation or redesignation, such that such
Subsidiary shall be included or excluded, as applicable, from the beginning of any
applicable period.

     (e) Disposition upon Redesignation. The designation of a Restricted
Subsidiary as an Unrestricted Subsidiary shall be deemed to be a Disposition of all such
Subsidiary’s Property by the Company for all purposes of this Agreement; however, Section
10.7(g) shall not apply to such deemed Disposition.

29

 

     (f) Effectiveness. Other than as set forth in the last two sentences of
Section 9.9(a) hereof, any designation under this Section 9.9 that satisfies all of the
conditions set forth in this Section 9.9 shall become effective, for purposes of this
Agreement, on the day that notice thereof shall have been delivered by the Company to
each holder of Notes in accordance with the provisions of Section 18.

10. NEGATIVE COVENANTS.

     The Company covenants that during the Issuance Period and so long thereafter as any of the
Notes are outstanding:

     10.1. Transactions with Affiliates.

     The Company will not and will not permit any Restricted Subsidiary to enter into directly or
indirectly any transaction or group of related transactions (including, without limitation, the
purchase, lease, sale or exchange of properties of any kind or the rendering of any service) with
any Affiliate of the Company, other than for compensation and upon fair and reasonable terms with
Affiliates in transactions that are otherwise permitted hereunder no less favorable to the Company
or such Restricted Subsidiary than would be obtained in a comparable arm’s-length transaction with
a Person other than an Affiliate, provided, the foregoing restriction shall not apply to (a) any
transaction between the Company and any of its Restricted Subsidiaries or between any of its
Restricted Subsidiaries, (b) reasonable and customary fees paid to members of the Boards of
Directors of the Company and its Restricted Subsidiaries, (c) transactions effected as part of a
Receivables Transaction, (d) compensation arrangements of officers and other employees of the
Company and its Restricted Subsidiaries entered into in the ordinary course of business or (e)
those transactions existing on the date of this Agreement and set forth on Schedule 10.1.

     10.2. Merger, Consolidation, Etc.

     (a) Except as might otherwise be permitted under Section 10.7, the Company will not
consolidate with or merge with any other Person or convey, transfer or lease all or substantially
all of its assets in a single transaction or series of transactions to any Person unless:

	 	(i)	 	the successor formed by such consolidation or the survivor of
such merger or the Person that acquires by conveyance, transfer or lease all or
substantially all of the assets of the Company as an entirety, as the case may
be, shall be a solvent corporation or limited liability company organized and
existing under the laws of the United States or any State thereof (including
the District of Columbia), and, if the Company is not such corporation or
limited liability company, (i) such corporation or limited liability company
shall have executed and delivered to each holder of any Notes its assumption of
the due and punctual performance and observance of each covenant and condition
of this Agreement and the Notes and (ii) such corporation or limited liability
company shall have caused to be delivered to each holder of any Notes an
opinion of nationally recognized independent counsel, or other independent
counsel

30

 

	 	 	 	reasonably satisfactory to the Required Holders, to the effect that all
agreements or instruments effecting such assumption are enforceable in
accordance with their terms and comply with the terms hereof; and
	 	 	 	 	 
	 	(ii)	 	immediately before and immediately after giving effect to such
transaction, no Default or Event of Default shall have occurred and be
continuing.

No such conveyance, transfer or lease of substantially all of the assets of the Company shall have
the effect of releasing the Company or any successor corporation or limited liability company that
shall theretofore have become such in the manner prescribed in this Section 10.2(a) from its
liability under this Agreement or the Notes.

     (b) Except as might otherwise be permitted under Section 10.7, the Company will not permit any
Restricted Subsidiary to liquidate, wind up or dissolve (or suffer any liquidation or dissolution),
or merge, consolidate with or into, or convey, transfer, lease, sell, assign or otherwise dispose
of (whether in one transaction or in a series of transactions) all or substantially all of its
assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long
as no Event of Default exists or would result therefrom:

	 	(i)	 	any Restricted Subsidiary may merge with (x) the Company,
provided that the Company shall be the continuing or surviving Person, or (y)
any one or more Restricted Subsidiaries, provided that (A) when any
Wholly-Owned Restricted Subsidiary is merging with another Restricted
Subsidiary, such Wholly-Owned Restricted Subsidiary shall be the continuing or
surviving Person and (B) when any Foreign Restricted Subsidiary is merging with
a Domestic Restricted Subsidiary, such Domestic Restricted Subsidiary shall be
the continuing or surviving Person;
	 
	 	(ii)	 	any (x) Restricted Subsidiary may sell, transfer, contribute,
convey or otherwise dispose of all or substantially all of its assets (upon
voluntary liquidation or otherwise), to the Company or to a Domestic Restricted
Subsidiary; provided that if the transferor in such a transaction is a
Wholly-Owned Restricted Subsidiary, then the transferee must also be a
Wholly-Owned Restricted Subsidiary; or (y) Foreign Restricted Subsidiary may
sell, transfer, contribute, convey or otherwise dispose of all of its assets
(upon voluntary liquidation or otherwise), to any other Foreign Restricted
Subsidiary; and
	 
	 	(iii)	 	any Restricted Subsidiary formed solely for the purpose of
effecting an acquisition may be merged or consolidated with any other Person;
provided that the continuing or surviving corporation of such merger or
consolidation shall be a Restricted Subsidiary.

     10.3. Line of Business.

     The Company will not and will not permit any Restricted Subsidiary to engage in any business
if, as a result, the general nature of the business in which the Company and its

31

 

Restricted Subsidiaries, taken as a whole, would then be engaged would be substantially
changed from the general nature of the business in which the Company and its Restricted
Subsidiaries, taken as a whole, are engaged on the date of this Agreement.

     10.4. Terrorism Sanctions Regulations.

     The Company will not and will not permit any Subsidiary to (a) become a Person described or
designated in the Specially Designated Nationals and Blocked Persons List of the Office of Foreign
Assets Control or in Section 1 of the Anti-Terrorism Order or (b) knowingly, after due inquiry,
engage in any dealings or transactions with any such Person.

     10.5. Liens.

     The Company will not and will not permit any Restricted Subsidiary to create, incur, assume or
suffer to exist any Lien upon any of its property, assets or revenues, whether now owned or
hereafter acquired, except for:

     (a) Liens for taxes not yet due or which are being contested in good faith by
appropriate proceedings, provided that adequate reserves with respect thereto are
maintained on the books of the Company or its Restricted Subsidiaries, as the case may
be, in conformity with GAAP;

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

     (c) pledges or deposits made in the ordinary course of business in compliance with
workers’ compensation, unemployment insurance and other social security legislation and
deposits made in the ordinary course of business securing liability to insurance carriers
under insurance or self-insurance arrangements;

     (d) deposits to secure the performance of bids, trade or government contracts (other
than for borrowed money), leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature incurred in the ordinary course
of business;

     (e) easements, rights-of-way, restrictions, building, zoning and other similar
encumbrances or restrictions, utility agreements, covenants, reservations and
encroachments and other similar encumbrances, or leases or subleases, incurred in the
ordinary course of business which, in the aggregate, are not substantial in amount and
which do not, in the aggregate, materially detract from the value of the properties of
the Company and its Restricted Subsidiaries, taken as a whole, or materially interfere
with the ordinary conduct of the business of the Company and its Restricted Subsidiaries,
taken as a whole;

32

 

     (f) Liens securing Indebtedness in respect of Capital Leases and purchase money
obligations for fixed or capital assets; provided that (i) such Liens do not at any time
encumber any property other than the property financed by such Indebtedness, (ii) the
principal amount of the Indebtedness secured thereby does not exceed the fair market
value of the property being acquired on the date of acquisition and (iii) such
Indebtedness was not incurred in connection with, or in anticipation or contemplation of,
an acquisition;

     (g) Liens on the assets of Receivable Subsidiaries created pursuant to any
Receivables Transaction permitted pursuant to Section 10.6(a);

     (h) Liens securing the obligations of the Company under this Agreement and the Notes
and/or the obligations of any Subsidiary Guarantor under its Subsidiary Guarantee;

     (i) Liens granted by any Restricted Subsidiary in favor of the Company;

     (j) judgment Liens securing judgments and other court proceedings not constituting
an Event of Default under Section 11(i);

     (k) any Lien on any property of the Company or any Restricted Subsidiary existing on
the date of this Agreement and set forth on Schedule 10.5 or any extension,
renewal or refinancing thereof; provided that (i) such Lien shall not apply to any other
property or asset of the Company or any Restricted Subsidiary, (ii) such Lien shall
secure only those obligations which it secures as of the date hereof and (iii) in the
case of any extension, renewal or refinancing thereof, (x) there is no increase in the
obligations so secured and (y) such Lien does not secure additional assets not subject to
the Lien then being extended or renewed;

     (l) any Lien existing on any property or asset prior to the acquisition thereof by
the Company or any Restricted Subsidiary or existing on any property or asset of any
Person that becomes a Restricted Subsidiary after the date hereof prior to the time such
Person becomes a Restricted Subsidiary or any extension, renewal or refinancing thereof;
provided that (i) such Lien is not created in contemplation of or in connection with such
acquisition or such Person becoming a Restricted Subsidiary, as the case may be, (ii)
such Lien shall not apply to any other property or assets of the Company or any
Restricted Subsidiary, (iii) such Lien shall secure only those obligations which it
secures on the date of such acquisition or the date such Person becomes a Restricted
Subsidiary, as the case may be, and (iv) in the case of any extension, renewal or
refinancing thereof, (x) there is no increase in the obligations so secured and (y) such
Lien does not secure additional assets not subject to the Lien then being extended or
renewed;

     (m) Liens arising from precautionary UCC financing statements regarding operating
leases or consignments;

     (n) Liens which secure obligations or Indebtedness of the Company or any of its
Restricted Subsidiaries under or in connection with (A) the Principal Credit

33

 

Facility or (B) a private shelf agreement or note purchase agreement (however
designated or styled); provided, that the Notes and the Company’s obligations under this
Agreement and any Subsidiary Guarantor’s obligations under its Subsidiary Guarantee are
also concurrently equally and ratably secured pursuant to documentation in form and
substance reasonably satisfactory to the Required Holders (including, but not limited to,
documentation such as security agreements and other necessary or desirable collateral
agreements, an intercreditor agreement and opinions of independent legal counsel);

     (o) Liens (not otherwise permitted hereunder) which secure obligations or
Indebtedness of the Company or any of its Restricted Subsidiaries; provided that
any obligation or Indebtedness secured pursuant to this Section 10.5(o), together with
any outstanding Indebtedness of the Company and of its Restricted Subsidiaries permitted
pursuant to Section 10.6(b)(vi), shall not at the most recent date on which any such
obligation or Indebtedness was incurred exceed the greater of (x) $400,000,000 or (y) 15%
of Adjusted Consolidated Total Assets as of the last day of the then most recently ended
fiscal quarter of the Company immediately on or prior to such incurrence date;
provided further that neither the Company nor any of its Restricted
Subsidiaries will secure any amounts owed or outstanding under the Principal Credit
Facility pursuant to this clause (o);

     (p) any Lien over the assets, property or Equity Interests of the Joint Venture
(including the Equity Interests in the Joint Venture) and its Subsidiaries that secures
Indebtedness permitted under Section 10.6(b)(vii); provided that such Lien does
not at any time cover any additional assets or property other than products or proceeds
thereof; or

     (q) Liens granted by any Restricted Subsidiary of the Company that are contractual
rights of set-off or netting arrangements relating to pooled deposit or sweep accounts of
such Restricted Subsidiary to permit satisfaction of overdraft or similar obligations
(including with respect to netting services, automatic clearinghouse arrangements,
overdraft protections and similar arrangements) incurred in the ordinary course of
business of such Restricted Subsidiary.

     10.6. Indebtedness.

     The Company will not and will not permit any Restricted Subsidiary to create, issue, incur,
assume, become liable in respect of or suffer to exist:

     (a) any Indebtedness pursuant to any Receivables Transaction, except for
Indebtedness pursuant to a Receivables Transaction that is (i) nonrecourse with respect
to the Company and its Restricted Subsidiaries (other than any Receivables Subsidiary and
to any Equity Interests of such Receivables Subsidiary (and the proceeds thereof)) and
(ii) in an aggregate principal amount at the most recent date on which any such
Indebtedness is incurred not exceeding the greater of (x) $400,000,000 or (y) 15% of
Adjusted Consolidated Total Assets as of the last day of the then most recently ended
fiscal quarter of the Company immediately on or prior to such incurrence date; or

34

 

     (b) any Indebtedness of any of the Restricted Subsidiaries other than:

	 	(i)	 	Indebtedness of any Receivables Subsidiary
pursuant to any Receivables Transaction permitted under Section
10.6(a);
	 
	 	(ii)	 	any Indebtedness of any Restricted Subsidiary
existing on the date of this Agreement and set forth on Schedule
10.6 and any refinancing thereof; provided that the then
outstanding principal amount thereof is not increased and the weighted
average maturity thereof is not decreased;
	 
	 	(iii)	 	any Indebtedness of any Restricted Subsidiary
which is a Subsidiary Guarantor, so long as such Restricted Subsidiary
has complied with the requirements of Section 9.8 in respect of its
Subsidiary Guarantee;
	 
	 	(iv)	 	any Indebtedness of any Restricted Subsidiary
owed to the Company or any other Restricted Subsidiary;
provided that any such Indebtedness of a Subsidiary Guarantor
shall only be permitted pursuant to this Section 10.6(b)(iv) to the
extent owed to the Company or another Subsidiary Guarantor;
	 
	 	(v)	 	any Indebtedness arising in respect of Capital
Leases or purchase money obligations incurred in accordance with
Section 10.5(f);
	 
	 	(vi)	 	any other Indebtedness of Restricted
Subsidiaries; provided that such Indebtedness, taken together
with Indebtedness of the Company and Indebtedness or other obligations
permitted to be secured pursuant to Section 10.5(o) of this Agreement,
shall not at the most recent date on which any such Indebtedness or
obligation was incurred exceed the greater of (x) $400,000,000 or (y)
15% of Adjusted Consolidated Total Assets as of the last day of the
then most recently ended fiscal quarter of the Company immediately on
or prior to such incurrence date;
	 
	 	(vii)	 	(A) Indebtedness of the Joint Venture and its
Subsidiaries under the Winslow Credit Agreement (or any Permitted JV
Refinancing Indebtedness in respect thereof) in each case in a
principal amount not to exceed $350,000,000 at any time and (B) other
Indebtedness of joint ventures of the Company or its Restricted
Subsidiaries in an aggregate principal amount for all such joint
ventures not to exceed $100,000,000 at any time; and
	 
	 	(viii)	 	Indebtedness of any Restricted Subsidiary of the Company in respect
of netting services, automatic clearinghouse arrangements, overdraft
protections and similar arrangements in each case in connection with
deposit accounts in the ordinary course of business.

35

 

     10.7. Dispositions

     The Company will not and will not permit any Restricted Subsidiary to make any Disposition or
enter into any agreement to make any Disposition, except:

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

     (b) Dispositions of inventory and cash equivalents in the ordinary course of
business;

     (c) Dispositions of property by any Restricted Subsidiary to the Company or to any
other Restricted Subsidiary; provided that any such Disposition by a Subsidiary
Guarantor shall only be permitted pursuant to this Section 10.7(c) to the extent made to
another Subsidiary Guarantor;

     (d) Dispositions of Receivables pursuant to Receivables Transactions permitted under
subsection 10.6(a);

     (e) the nonexclusive license of intellectual property of the Company or any of its
Restricted Subsidiaries to third parties in the ordinary course of business;

     (f) without limitation to clause (a), the Company and its Restricted Subsidiaries
may sell or exchange specific items of machinery or equipment, so long as the proceeds of
each such sale or exchange are used (or contractually committed to be used) to acquire
(and result within one year of such sale or exchange in the acquisition of) replacement
items of machinery or equipment of reasonably equivalent Fair Market Value; and

     (g) other Dispositions where:

	 	(i)	 	in the good faith opinion of the Company, the
Disposition is an exchange for consideration having a Fair Market Value
at least equal to that of the property Disposed of and is in the best
interest of the Company or the applicable Restricted Subsidiary, as the
case may be;
	 
	 	(ii)	 	immediately after giving effect to such
Disposition, no Event of Default would exist; and
	 
	 	(iii)	 	immediately after giving effect to such
Disposition, the Disposition Value of all property that was the subject
thereof in any four fiscal quarter period of the Company plus the Fair
Market Value of any other property Disposed of during such four quarter
period does not equal or exceed 20% of Adjusted Consolidated Total
Assets as of the last day of the then most recently ended fiscal
quarter of the Company;

36

 

provided that for purposes of clause (g)(iii) above there shall be excluded from any
determination of the Fair Market Value or consideration receivable of property or assets
disposed of in a Disposition if and to the extent that an amount equal to the net proceeds
realized upon such Disposition are within 90 days after the consummation of such
Disposition, applied by the Company to prepay or repay Indebtedness that ranks at least pari
passu with the Notes or the Subsidiary Guarantees (other than Indebtedness owing to the
Company, any Subsidiary or any Affiliate of the Company) so long as in connection with any
such payment or prepayment of such Indebtedness, the Company shall, on or before the date of
such payment or prepayment, prepay a Pro Rata Portion of each Note then outstanding as
provided in Section 8.8.

     10.8. ERISA.

     The Company will not and will not permit any Restricted Subsidiary to engage in a transaction
which could be subject to Section 4069 or 4212(c) of ERISA, or permit any Plan to:

     (a) engage in any non-exempt “prohibited transaction” (as defined in Section 406 of
ERISA or Section 4975 of the Code);

     (b) fail to comply with ERISA or any other applicable Laws; or

     (c) incur any material “accumulated funding deficiency” (as defined in Section 412
of the Code or Section 302 of ERISA),

which, with respect to any event listed above, could reasonably be expected to have a Material
Adverse Effect.

     10.9. Financial Covenants.

     The Company will not permit the Consolidated Leverage Ratio to exceed 3.50 to 1.0 for the four
fiscal quarters of the Company then last ended (in each case taken as one accounting period) as of
the last day of each fiscal quarter.

	11.	 	EVENTS OF DEFAULT.

     An “Event of Default” shall exist if any of the following conditions or events shall occur and
be continuing:

     (a) the Company defaults in the payment of any principal or Make-Whole Amount, if
any, on any Note when the same becomes due and payable, whether at maturity or at a date
fixed for prepayment or by declaration or otherwise; or

     (b) the Company defaults in the payment of any interest on any Note for more than
five Business Days after the same becomes due and payable; or

     (c) the Company defaults in the performance of or compliance with any term contained
in Section 7.1(d), (e), (g) or (h), Section 9.8 or Section 10; or

37

 

     (d) (i) the Company shall default in the observance or performance of any covenant
contained in Section 7.1(a) or (b), and such default shall continue unremedied for a
period of 10 days; or (ii) the Company shall default in the observance or performance of
any other agreement contained in this Agreement or the Notes (other than as provided
above in this Section 11), and such default described in this clause (d)(ii) shall
continue unremedied for a period of 30 days; provided that if any such default covered by
this clause (d)(ii), (x) is not capable of being remedied within such 30-day period, (y)
is capable of being remedied within an additional 30-day period, and (z) the Company is
diligently pursuing such remedy during the period contemplated by (x) and (y) and has
advised the holders of Notes as to the remedy thereof, the first 30-day period referred
to in this clause (d)(ii) shall be extended for an additional 30-day period but only so
long as (A) the Company continues to diligently pursue such remedy, (B) such default
remains capable of being remedied within such period and (C) any such extension could not
reasonably be expected to have a Material Adverse Effect; or

     (e) any representation or warranty made in writing by the Company or by any officer
of the Company in this Agreement or in any writing delivered pursuant to this Agreement
proves to have been false or incorrect in any material respect on the date as of which
made; or

     (f) (i) the Company or any Restricted Subsidiary is in default (as principal or as
guarantor or other surety) in the payment of any principal of or premium or make-whole
amount or interest on any Indebtedness (other than Indebtedness permitted under Section
10.6(b)(viii)) that is outstanding in an aggregate principal amount of at least
$150,000,000 beyond any period of grace provided with respect thereto, or (ii) the
Company or any Restricted Subsidiary is in default in the performance of or compliance
with any term of any evidence of any Indebtedness (other than Indebtedness permitted
under Section 10.6(b)(viii)) in an aggregate outstanding principal amount of at least
$150,000,000 or of any mortgage, indenture or other agreement relating thereto or any
other condition exists, and as a consequence of such default or condition such
Indebtedness has become, or has been declared (or one or more Persons are entitled to
declare such Indebtedness to be), due and payable before its stated maturity or before
its regularly scheduled dates of payment, or (iii) as a consequence of the occurrence or
continuation of any event or condition (other than the passage of time or the right of
the holder of Indebtedness to convert such Indebtedness into equity interests), (x) the
Company or any Restricted Subsidiary has become obligated to purchase or repay
Indebtedness (other than Indebtedness permitted under Section 10.6(b)(viii)) before its
regular maturity or before its regularly scheduled dates of payment in an aggregate
outstanding principal amount of at least $150,000,000, or (y) one or more Persons have
the right to require the Company or any Restricted Subsidiary so to purchase or repay
such Indebtedness; or

     (g) the Company or any Significant Subsidiary (other than the Joint Venture and its
Subsidiaries) (i) is generally not paying, or admits in writing its inability to pay, its
debts as they become due, (ii) files, or consents by answer or otherwise to the filing
against it of, a petition for relief or reorganization or

38

 

arrangement or any other petition in bankruptcy, for liquidation or to take
advantage of any bankruptcy, insolvency, reorganization, moratorium or other similar law
of any jurisdiction, (iii) makes an assignment for the benefit of its creditors, (iv)
consents to the appointment of a custodian, receiver, trustee or other officer with
similar powers with respect to it or with respect to any substantial part of its
property, (v) is adjudicated as insolvent or to be liquidated, or (vi) takes corporate
action for the purpose of any of the foregoing; or

     (h) a court or Governmental Authority of competent jurisdiction enters an order
appointing, without consent by the Company or any of its Significant Subsidiaries (other
than the Joint Venture and its Subsidiaries), a custodian, receiver, trustee or other
officer with similar powers with respect to it or with respect to any substantial part of
its property, or constituting an order for relief or approving a petition for relief or
reorganization or any other petition in bankruptcy or for liquidation or to take
advantage of any bankruptcy or insolvency law of any jurisdiction, or ordering the
dissolution, winding-up or liquidation of the Company or any of its Significant
Subsidiaries (other than the Joint Venture and its Subsidiaries), or any such petition
shall be filed against the Company or any of its Significant Subsidiaries (other than the
Joint Venture and its Subsidiaries) and such petition shall not be dismissed within 60
days (provided that if at any time after the date of this Agreement the Principal Credit
Facility provides for a time period greater than 60 days but less than or equal to 120,
then such time period therein shall be deemed incorporated herein); or

     (i) a final judgment or judgments (to the extent not covered by insurance where
insurance coverage has been acknowledged) for the payment of money aggregating in excess
of $50,000,000 are rendered against one or more of the Company and its Restricted
Subsidiaries (other than the Joint Venture and its Subsidiaries) and which judgments are
not, within 60 days after entry thereof, bonded, discharged or stayed pending appeal, or
are not discharged within 60 days after the expiration of such stay (provided that if at
any time after the date of this Agreement the Principal Credit Facility provides for a
judgment amount greater than $50,000,000 but less than $150,000,000 and/or a time period
greater than 60 days but less than or equal to 120, then such amount and/or such time
period, as applicable, therein shall be deemed incorporated herein); or

     (j) if (i) any Plan shall fail to satisfy the minimum funding standards of ERISA or
the Code for any plan year or part thereof or a waiver of such standards or extension of
any amortization period is sought or granted under section 412 of the Code, (ii) a notice
of intent to terminate any Plan shall have been or is reasonably expected to be filed
with the PBGC or the PBGC shall have instituted proceedings under ERISA section 4042 to
terminate or appoint a trustee to administer any Plan or the PBGC shall have notified the
Company or any ERISA Affiliate that a Plan may become a subject of any such proceedings,
(iii) the aggregate “amount of unfunded benefit liabilities” (within the meaning of
section 4001(a)(18) of ERISA) under all Plans, determined in accordance with Title IV of
ERISA, shall exceed the aggregate permitted amount specified in any event of default
relating to ERISA or other similar

39

 

laws or regulations concerning benefit plans contained in the Principal Credit
Facility, (iv) the Company or any ERISA Affiliate shall have incurred or is reasonably
expected to incur any liability pursuant to Title I or IV of ERISA or the penalty or
excise tax provisions of the Code relating to employee benefit plans, or (v) the Company
or any Restricted Subsidiary establishes or amends any employee welfare benefit plan that
provides post-employment welfare benefits in a manner that would increase the liability
of the Company or any Restricted Subsidiary thereunder; and any such event or events
described in clauses (i) through (v) above, either individually or together with any
other such event or events, could reasonably be expected to have a Material Adverse
Effect; or

     (k) (i) any default shall occur under any Subsidiary Guarantee or any Subsidiary
Guarantee shall cease to be in full force and effect for any reason whatsoever (except as
otherwise permitted hereunder and under such Subsidiary Guarantee), including, without
limitation, a determination by any Governmental Authority that such Subsidiary Guarantee
is invalid, void or unenforceable or (ii) the Company or any Subsidiary Guarantor shall
contest or deny in writing the validity or enforceability of any Subsidiary Guarantor’s
obligations under its Subsidiary Guarantee.

As used in Section 11(j), the terms “employee benefit plan” and “employee welfare benefit plan”
shall have the respective meanings assigned to such terms in section 3 of ERISA.

12. REMEDIES ON DEFAULT, ETC.

     12.1. Acceleration.

     (a) If an Event of Default with respect to the Company described in Section 11(g) or
(h) (other than an Event of Default described in clause (i) of Section 11(g) or described
in clause (vi) of Section 11(g) by virtue of the fact that such clause encompasses clause
(i) of Section 11(g)) has occurred, all the Notes then outstanding shall automatically
become immediately due and payable.

     (b) If any other Event of Default has occurred and is continuing, the Required
Holders may at any time at their option, by notice or notices to the Company, declare all
the Notes then outstanding to be immediately due and payable.

     (c) If any Event of Default described in Section 11(a) or (b) has occurred and is
continuing, any holder or holders of Notes at the time outstanding affected by such Event
of Default may at any time, at its or their option, by notice or notices to the Company,
declare all the Notes held by it or them to be immediately due and payable.

     Upon any Notes becoming due and payable under this Section 12.1, whether automatically or by
declaration, such Notes will forthwith mature and the entire unpaid principal amount of such Notes,
plus (x) all accrued and unpaid interest thereon (including, without limitation, interest accrued
thereon at the Default Rate) and (y) the Make-Whole Amount determined in respect of such principal
amount (to the full extent permitted by applicable law), shall all be immediately due and payable,
in each and every case without presentment, demand,

40

 

protest or further notice, all of which are hereby waived. The Company acknowledges, and the
parties hereto agree, that each holder of a Note has the right to maintain its investment in the
Notes free from repayment by the Company (except as herein specifically provided for) and that the
provision for payment of a Make-Whole Amount by the Company in the event that the Notes are prepaid
or are accelerated as a result of an Event of Default, is intended to provide compensation for the
deprivation of such right under such circumstances.

     12.2. Other Remedies.

     If any Default or Event of Default has occurred and is continuing, and irrespective of whether
any Notes have become or have been declared immediately due and payable under Section 12.1, the
holder of any Note at the time outstanding may proceed to protect and enforce the rights of such
holder by an action at law, suit in equity or other appropriate proceeding, whether for the
specific performance of any agreement contained herein or in any Note, or for an injunction against
a violation of any of the terms hereof or thereof, or in aid of the exercise of any power granted
hereby or thereby or by law or otherwise.

     12.3. Rescission.

     At any time after any Notes have been declared due and payable pursuant to Section 12.1(b) or
(c), the Required Holders, by written notice to the Company, may rescind and annul any such
declaration and its consequences if (a) the Company has paid all overdue interest on the Notes, all
principal of and Make-Whole Amount, if any, on any Notes that are due and payable and are unpaid
other than by reason of such declaration, and all interest on such overdue principal and Make-Whole
Amount, if any, and (to the extent permitted by applicable law) any overdue interest in respect of
the Notes, at the Default Rate, (b) neither the Company nor any other Person shall have paid any
amounts that have become due solely by reason of such declaration, (c) all Events of Default and
Defaults, other than non-payment of amounts that have become due solely by reason of such
declaration, have been cured or have been waived pursuant to Section 17, and (d) no judgment or
decree has been entered for the payment of any monies due pursuant hereto or to the Notes. No
rescission and annulment under this Section 12.3 will extend to or affect any subsequent Event of
Default or Default or impair any right consequent thereon.

     12.4. No Waivers or Election of Remedies, Expenses, Etc.

     No course of dealing and no delay on the part of any holder of any Note in exercising any
right, power or remedy shall operate as a waiver thereof or otherwise prejudice such holder’s
rights, powers or remedies. No right, power or remedy conferred by this Agreement or by any Note
upon any holder thereof shall be exclusive of any other right, power or remedy referred to herein
or therein or now or hereafter available at law, in equity, by statute or otherwise. Without
limiting the obligations of the Company under Section 15, the Company will pay to the holder of
each Note on demand such further amount as shall be sufficient to cover all costs and expenses of
such holder incurred in any enforcement or collection under this Section 12, including, without
limitation, reasonable attorneys’ fees, expenses and disbursements.

13. REGISTRATION; EXCHANGE; SUBSTITUTION OF NOTES.

     13.1. Registration of Notes.

41

 

     The Company shall keep at its principal executive office a register for the registration and
registration of transfers of Notes. The name and address of each holder of one or more Notes, each
transfer thereof and the name and address of each transferee of one or more Notes shall be
registered in such register. Prior to due presentment for registration of transfer, the Person in
whose name any Note shall be registered shall be deemed and treated as the owner and holder thereof
for all purposes hereof, and the Company shall not be affected by any notice or knowledge to the
contrary. The Company shall give to any holder of a Note that is an Institutional Investor
promptly upon request therefor, a complete and correct copy of the names and addresses of all
registered holders of Notes.

     13.2. Transfer and Exchange of Notes.

     Upon surrender of any Note to the Company at the address and to the attention of the
designated officer (all as specified in Section 18) for registration of transfer or exchange (and
in the case of a surrender for registration of transfer accompanied by a written instrument of
transfer duly executed by the registered holder of such Note or such holder’s attorney duly
authorized in writing and accompanied by the relevant name, address and other details for notices
of each transferee of such Note or part thereof) within ten Business Days thereafter the Company
shall execute and deliver, at the Company’s expense (except as provided below), one or more new
Notes (as requested by the holder thereof) of the same Series as such surrendered Note in exchange
therefor, in an aggregate principal amount equal to the unpaid principal amount of the surrendered
Note. Each such new Note shall be payable to such Person as such holder may request and shall be
substantially in the form of Exhibit 1. Each such new Note shall be dated and bear interest from
the date to which interest shall have been paid on the surrendered Note or dated the date of the
surrendered Note if no interest shall have been paid thereon. The Company may require payment of a
sum sufficient to cover any stamp tax or governmental charge imposed in respect of any such
transfer of Notes. Notes shall not be transferred in denominations of less than $100,000, provided
that if necessary to enable the registration of transfer by a holder of its entire holding of
Notes, one Note may be in a denomination of less than $100,000. Any transferee, by its acceptance
of a Note registered in its name (or the name of its nominee), shall be deemed to have made the
representation set forth in Section 6.2.

     13.3. Replacement of Notes.

     Upon receipt by the Company at the address and to the attention of the designated officer (all
as specified in Section 18(iii)) of evidence reasonably satisfactory to it of the ownership of and
the loss, theft, destruction or mutilation of any Note (which evidence shall be, in the case of an
Institutional Investor, notice from such Institutional Investor of such ownership and such loss,
theft, destruction or mutilation), and

     (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory
to it (provided that if the holder of such Note is, or is a nominee for, an original
Purchaser or another holder of a Note with a minimum net worth of at least $50,000,000 or
a Qualified Institutional Buyer, such Person’s own unsecured agreement of indemnity shall
be deemed to be satisfactory), or

     (b) in the case of mutilation, upon surrender and cancellation thereof,

42

 

within ten Business Days thereafter the Company at its own expense shall execute and deliver, in
lieu thereof, a new Note of the same Series as such lost, stolen, destroyed or mutilated Note,
dated and bearing interest from the date to which interest shall have been paid on such lost,
stolen, destroyed or mutilated Note or dated the date of such lost, stolen, destroyed or mutilated
Note if no interest shall have been paid thereon.

14. PAYMENTS ON NOTES.

     14.1. Place of Payment.

     Subject to Section 14.2, payments of principal, Make-Whole Amount, if any, and interest
becoming due and payable on the Notes shall be made in New York, New York, at the principal office
of JPMorgan Chase Bank, N.A. in such jurisdiction. The Company may at any time, by notice to each
holder of a Note, change the place of payment of the Notes so long as such place of payment shall
be either the principal office of the Company in such jurisdiction or the principal office of a
bank or trust company in such jurisdiction.

     14.2. Home Office Payment.

     So long as any Purchaser or its nominee shall be the holder of any Note, and notwithstanding
anything contained in Section 14.1 or in such Note to the contrary, the Company will pay all sums
becoming due on such Note for principal, Make-Whole Amount, if any, and interest and all other
amounts by the method and at the address specified for such purpose below such Purchaser’s name as
specified in such Purchaser’s Confirmation of Acceptance, or by such other method or at such other
address as such Purchaser shall have from time to time specified to the Company in writing for such
purpose, without the presentation or surrender of such Note or the making of any notation thereon,
except that upon written request of the Company made concurrently with or reasonably promptly after
payment or prepayment in full of any Note, such Purchaser shall surrender such Note for
cancellation, reasonably promptly after any such request, to the Company at its principal executive
office or at the place of payment most recently designated by the Company pursuant to Section 14.1.
Prior to any sale or other disposition of any Note held by a Purchaser or its nominee, such
Purchaser will, at its election, either endorse thereon the amount of principal paid thereon and
the last date to which interest has been paid thereon or surrender such Note to the Company in
exchange for a new Note or Notes pursuant to Section 13.2. The Company will afford the benefits of
this Section 14.2 to any Institutional Investor that is the direct or indirect transferee of any
Note purchased by a Purchaser under this Agreement and that has made the same agreement relating to
such Note as the Purchasers have made in this Section 14.2.

15. EXPENSES, ETC.

     15.1. Transaction Expenses.

     Whether or not the transactions contemplated hereby are consummated, the Company will pay all
reasonable and invoiced costs and expenses (including reasonable attorneys’ fees of a special
counsel and, if reasonably required by the Required Holders, local or other counsel) incurred by
the Purchasers and each other holder of a Note in connection with such transactions and in
connection with any amendments, waivers or consents under or in respect of this

43

 

Agreement or the Notes (whether or not such amendment, waiver or consent becomes effective),
including, without limitation: (a) the costs and expenses incurred in enforcing or defending (or
determining whether or how to enforce or defend) any rights under this Agreement or the Notes or in
responding to any subpoena or other legal process or informal investigative demand issued in
connection with this Agreement or the Notes, or by reason of being a holder of any Note, (b) the
costs and expenses, including financial advisors’ fees, incurred in connection with the insolvency
or bankruptcy of the Company or any Subsidiary or in connection with any work-out or restructuring
of the transactions contemplated hereby and by the Notes and (c) the costs and expenses incurred in
connection with the initial filing of this Agreement and all related documents and financial
information with the SVO, provided that such costs and expenses under this clause (c) shall not
exceed $3,000 per Series of Notes. The Company will pay, and will save each Purchaser and each
other holder of a Note harmless from, all claims in respect of any fees, costs or expenses, if any,
of brokers and finders (other than those, if any, retained by a Purchaser or other holder in
connection with its purchase of the Notes). On the date hereof, the Company shall have paid the
reasonable, documented and invoiced fees and disbursements of Prudential’s special counsel, Bingham
McCutchen LLP, as evidenced by a statement of such counsel rendered to the Company at least one
Business Day prior to the date hereof.

     15.2. Survival.

     The obligations of the Company under this Section 15 will survive the payment or transfer of
any Note, the enforcement, amendment or waiver of any provision of this Agreement or the Notes, and
the termination of this Agreement.

16. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

     All representations and warranties contained herein shall survive the execution and delivery
of this Agreement and the Notes, the purchase or transfer by any Purchaser of any Note or portion
thereof or interest therein and the payment of any Note, and may be relied upon by any subsequent
holder of a Note, regardless of any investigation made at any time by or on behalf of such
Purchaser or any other holder of a Note. All statements contained in any certificate or other
instrument delivered by or on behalf of the Company pursuant to this Agreement shall be deemed
representations and warranties of the Company under this Agreement. Subject to the preceding
sentence, this Agreement and the Notes embody the entire agreement and understanding between each
Purchaser and the Company and supersede all prior agreements and understandings relating to the
subject matter hereof.

17. AMENDMENT AND WAIVER.

     17.1. Requirements.

     This Agreement and the Notes may be amended, and the observance of any term hereof or of the
Notes may be waived (either retroactively or prospectively), with (and only with) the written
consent of the Company and the Required Holders, except that (a) no amendment or waiver of any of
the provisions of Section 1, 2, 3, 4, 5, 6 or 21, or any defined term (as it is used therein), will
be effective as to any Purchaser unless consented to by such Purchaser in writing,

44

 

(b) (i) with the written consent of Prudential (and without the consent of any other holder of
Notes), the provisions of Section 1 or 2 may be amended or waived (except insofar as any such
amendment or waiver would affect any rights or obligations with respect to the purchase and sale of
Notes which shall have become Accepted Notes prior to such amendment or waiver), and (ii) with the
written consent of all of the Purchasers which shall have become obligated to purchase Accepted
Notes of any Series (and not without the written consent of all such Purchasers), any of the
provisions of Sections 2.2 and 4 may be amended or waived insofar as such amendment or waiver would
affect only rights or obligations with respect to the purchase and sale of the Accepted Notes of
such Series or the terms and provisions of such Accepted Notes and (c) no such amendment or waiver
may, without the written consent of the holder of each Note at the time outstanding affected
thereby, (i) subject to the provisions of Section 12 relating to acceleration or rescission, change
the amount or time of any prepayment or payment of principal of, or reduce the rate or change the
time of payment or method of computation of interest or of the Make-Whole Amount on, the Notes,
(ii) change the percentage of the principal amount of the Notes the holders of which are required
to consent to any such amendment or waiver, or (iii) amend Section 8, 11(a), 11(b), 12, 17 or 20.

     17.2. Solicitation of Holders of Notes.

     (a) Solicitation. The Company will provide each holder of the Notes
(irrespective of the amount of Notes then owned by it) with sufficient information,
sufficiently far in advance of the date a decision is required, to enable such holder to
make an informed and considered decision with respect to any proposed amendment, waiver
or consent in respect of any of the provisions hereof or of the Notes, unless such
proposed amendment, waiver or consent relates only to a specific Series of Accepted Notes
which have not yet been purchased, in which case such information will only be required
to be delivered to the Purchasers which shall have become obligated to purchase Accepted
Notes of such Series. The Company will deliver executed or true and correct copies of
each amendment, waiver or consent effected pursuant to the provisions of this Section 17
to each holder of outstanding Notes promptly following the date on which it is executed
and delivered by, or receives the consent or approval of, the requisite holders of Notes.

     (b) Payment. The Company will not directly or indirectly pay or cause to be
paid any remuneration, whether by way of supplemental or additional interest, fee or
otherwise, or grant any security or provide other credit support, to any holder of Notes
as consideration for or as an inducement to the entering into by any holder of Notes of
any waiver or amendment of any of the terms and provisions hereof or of any Note unless
such remuneration is concurrently paid, or security is concurrently granted or other
credit support concurrently provided, on the same terms, ratably to each holder of Notes
then outstanding even if such holder did not consent to such waiver or amendment.

     17.3. Binding Effect, Etc.

     Any amendment or waiver consented to as provided in this Section 17 applies equally to all
holders of Notes and is binding upon them and upon each future holder of any Note and upon

45

 

the Company without regard to whether such Note has been marked to indicate such amendment or
waiver. No such amendment or waiver will extend to or affect any obligation, covenant, agreement,
Default or Event of Default not expressly amended or waived or impair any right consequent thereon.
No course of dealing between the Company and the holder of any Note nor any delay in exercising
any rights hereunder or under any Note shall operate as a waiver of any rights of any holder of
such Note. As used herein, the term “this Agreement” and references thereto shall mean this
Agreement as it may from time to time be amended or supplemented.

     17.4. Notes Held by Company, Etc.

     Solely for the purpose of determining whether the holders of the requisite percentage of the
aggregate principal amount of Notes then outstanding approved or consented to any amendment, waiver
or consent to be given under this Agreement or the Notes, or have directed the taking of any action
provided herein or in the Notes to be taken upon the direction of the holders of a specified
percentage of the aggregate principal amount of Notes then outstanding, Notes directly or
indirectly owned by the Company or any of its Affiliates shall be deemed not to be outstanding.

18. NOTICES.

     All notices and communications provided for hereunder shall be in writing and sent (a) by fax
or e-mail if the sender on the same day sends a confirming copy of such notice by a recognized
overnight delivery service (charges prepaid), (b) by registered or certified mail with return
receipt (postage prepaid), or (c) by a recognized overnight delivery service (with charges
prepaid). Any such notice must be sent:

     (i) if to a Purchaser or its nominee, to such Purchaser or nominee at the
address specified for such communications by such Purchaser in its Confirmation of
Acceptance, or at such other address as such Purchaser or nominee shall have
specified to the Company in writing,

     (ii) if to any other holder of any Note, to such holder at such address as such
other holder shall have specified to the Company in writing, or

     (iii) if to the Company, to the Company at 135 Duryea Road, Melville, New York
11747, Attention: Treasurer, E-mail: ferdinand.jahnel@henryschein.com, Phone No:
(631) 454-3109, Fax No: (631) 843-9314; with a copy to 135 Duryea Road — Mail Stop
E-365, Melville, New York 11747, Attention: General Counsel, E-mail:
michael.ettinger@henryschein.com, Phone No: (631) 843-5989, Fax No: (631) 843-5660,
or at such other address as the Company shall have specified to the holder of each
Note in writing.

Notices under this Section 18 will be deemed given only when actually received.

     Notwithstanding anything to the contrary in this Section 18, any communication pursuant to
Section 2 shall be made by the method specified for such communication in Section 2, and shall be
effective to create any rights or obligations under this Agreement only if, in the case of a

46

 

telephone communication, an Authorized Officer of the party conveying the information and of
the party receiving the information are parties to the telephone call, and in the case of a fax or
e-mail communication, the communication is signed by an Authorized Officer of the party conveying
the information, addressed to the attention of an Authorized Officer of the party receiving the
information, and in fact received, with respect to a fax, at the fax terminal the number of which
is listed for the party receiving the communication in the Information Schedule or at such other
fax terminal as the party receiving the information shall have specified in writing to the party
sending such information, and in the case of an e-mail, at the e-mail address listed for the party
receiving the communication in the Information Schedule or at such other email address as the party
receiving the information shall have specified in writing to the party sending such information.

	19.	 	REPRODUCTION OF DOCUMENTS.

     This Agreement and all documents relating thereto, including, without limitation, (a)
consents, waivers and modifications that may hereafter be executed, (b) documents received by any
Purchaser at any Closing (except the Notes themselves), and (c) financial statements, certificates
and other information previously or hereafter furnished to any Purchaser, may be reproduced by such
Purchaser by any photographic, photostatic, electronic, digital or other similar process and such
Purchaser may destroy any original document so reproduced. The Company agrees and stipulates that,
to the extent permitted by applicable law, any such reproduction shall be admissible in evidence as
the original itself in any judicial or administrative proceeding (whether or not the original is in
existence and whether or not such reproduction was made by such Purchaser in the regular course of
business) and any enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence. This Section 19 shall not prohibit the Company or any other
holder of Notes from contesting any such reproduction to the same extent that it could contest the
original, or from introducing evidence to demonstrate the inaccuracy of any such reproduction.

	20.	 	CONFIDENTIAL INFORMATION.

     For the purposes of this Section 20, “Confidential Information” means information delivered to
any Purchaser by or on behalf of the Company or any Subsidiary in connection with the transactions
contemplated by or otherwise pursuant to this Agreement (or any related document, certificate or
agreement) that is proprietary or confidential in nature and that was clearly marked or labeled or
otherwise adequately identified when received by such Purchaser as being confidential information
of the Company or such Subsidiary, provided that such term does not include information that (a)
was publicly known or otherwise known to such Purchaser prior to the time of such disclosure, (b)
subsequently becomes publicly known through no act or omission by such Purchaser or any person
acting on such Purchaser’s behalf, (c) otherwise becomes known to such Purchaser other than through
disclosure by the Company or any Subsidiary or (d) constitutes financial statements delivered to
such Purchaser under Section 7.1 that are otherwise publicly available. Each Purchaser will
maintain the confidentiality of such Confidential Information in accordance with procedures adopted
by such Purchaser in good faith to protect confidential information of third parties delivered to
such Purchaser, provided that such Purchaser may deliver or disclose Confidential Information to
(i) its directors, trustees, officers, employees, agents, attorneys and affiliates (to the extent
such disclosure reasonably

47

 

relates to the administration of the investment represented by its Notes), (ii) its financial
advisors and other professional advisors who agree to hold confidential the Confidential
Information substantially in accordance with the terms of this Section 20, (iii) any other holder
of any Note, (iv) any Institutional Investor to which it sells or offers to sell such Note or any
part thereof or any participation therein (if such Person has agreed in writing prior to its
receipt of such Confidential Information to be bound by the provisions of this Section 20), (v) any
Person from which it offers to purchase any security of the Company (if such Person has agreed in
writing prior to its receipt of such Confidential Information to be bound by the provisions of this
Section 20), (vi) any federal or state regulatory authority having jurisdiction over such
Purchaser, (vii) the NAIC or the SVO or, in each case, any similar organization, or any nationally
recognized rating agency that requires access to information about such Purchaser’s investment
portfolio, or (viii) any other Person to which such delivery or disclosure may be necessary or
appropriate (w) to effect compliance with any law, rule, regulation or order applicable to such
Purchaser, (x) in response to any subpoena or other legal process, (y) in connection with any
litigation to which such Purchaser is a party or (z) if an Event of Default has occurred and is
continuing, to the extent such Purchaser may reasonably determine such delivery and disclosure to
be necessary or appropriate in the enforcement or for the protection of the rights and remedies
under such Purchaser’s Notes and this Agreement. Each holder of a Note, by its acceptance of a
Note, will be deemed to have agreed to be bound by and to be entitled to the benefits of this
Section 20 as though it were a party to this Agreement. On reasonable request by the Company in
connection with the delivery to any holder of a Note of information required to be delivered to
such holder under this Agreement or requested by such holder (other than a holder that is a party
to this Agreement or its nominee), such holder will enter into an agreement with the Company
embodying the provisions of this Section 20.

21. SUBSTITUTION OF PURCHASER.

     Each Purchaser shall have the right to substitute any one of its Affiliates as the purchaser
of the Notes that it has agreed to purchase hereunder, by written notice to the Company, which
notice shall be signed by both such Purchaser and such Affiliate, shall contain such Affiliate’s
agreement to be bound by this Agreement and shall contain a confirmation by such Affiliate of the
accuracy with respect to it of the representations set forth in Section 6. Upon receipt of such
notice, any reference to such Purchaser in this Agreement (other than in this Section 21), shall be
deemed to refer to such Affiliate in lieu of such original Purchaser. In the event that such
Affiliate is so substituted as a Purchaser hereunder and such Affiliate thereafter transfers to
such original Purchaser all of the Notes then held by such Affiliate, upon receipt by the Company
of notice of such transfer, any reference to such Affiliate as a “Purchaser” in this Agreement
(other than in this Section 21), shall no longer be deemed to refer to such Affiliate, but shall
refer to such original Purchaser, and such original Purchaser shall again have all the rights of an
original holder of the Notes under this Agreement.

48

 

22. MISCELLANEOUS.

     22.1. Successors and Assigns.

     All covenants and other agreements contained in this Agreement by or on behalf of any of the
parties hereto bind and inure to the benefit of their respective successors and assigns (including,
without limitation, any subsequent holder of a Note) whether so expressed or not.

     22.2. Payments Due on Non-Business Days.

     Anything in this Agreement or the Notes to the contrary notwithstanding (but without limiting
the requirement in Section 8.4 that notice of any optional prepayment specify a Business Day as the
date fixed for such prepayment), any payment of principal of or Make-Whole Amount or interest on
any Note that is due on a date other than a Business Day shall be made on the next succeeding
Business Day without including the additional days elapsed in the computation of the interest
payable on such next succeeding Business Day; provided that, if the maturity date of any Note is a
date other than a Business Day, the payment otherwise due on such maturity date shall be made on
the next succeeding Business Day and shall include the additional days elapsed in the computation
of interest payable on such next succeeding Business Day.

     22.3. Accounting Terms and Covenant Calculations.

     (a) All accounting terms used herein which are not expressly defined in this
Agreement have the meanings respectively given to them in accordance with GAAP. Except
as otherwise specifically provided herein, all computations made pursuant to this
Agreement shall be made in accordance with GAAP, and all financial statements shall be
prepared in accordance with GAAP.

     (b) Notwithstanding anything to the contrary herein, for purposes of determining
compliance with the covenants in this Agreement, any election by the Company or any
Subsidiary to measure any portion of a non-derivative financial liability at fair value
(as permitted by IAS 39 or any similar accounting standard), other than to reflect any
hedging of such non-derivative financial liability (including both interest rate and
foreign currency hedges), shall be disregarded and such determination shall be made as if
such election had not been made.

     (c) As used in this Agreement, accounting terms relating to the Company and its
Subsidiaries not defined in Schedule B, and accounting terms partly defined in
Schedule B, but only to the extent not so defined, shall have the respective
meanings given to them under GAAP. If at any time any change in GAAP or in the manner in
which the Company shall be required or permitted to disclose its financial results in its
filings with the Securities and Exchange Commission (i.e., a change which is inconsistent
with the manner disclosed by the Company in its Annual Report on Form 10-K for the fiscal
year ended December 26, 2009) would affect the computation of any financial ratio or
requirement set forth in this Agreement, and either the Company or the Required Holders
shall so request, the holders of Notes and the Company shall negotiate in good faith to
amend such ratio or requirement to preserve the original intent thereof in light of such
change (subject to the approval of the Required Holders); provided that, until so
amended, (i) such ratio or requirement shall continue to be computed in accordance with
GAAP and as calculated consistent with the manner disclosed by the Company in its Annual
Report on Form 10- K for the fiscal year

49

 

ended December 26, 2009 prior to such change therein and (ii) the Company shall
provide to the holders of Notes financial statements and other documents required under
this Agreement or as reasonably requested hereunder setting forth a reconciliation
between calculations of such ratio or requirement made before and after giving effect to
such change.

     (d) Any financial ratios required to be maintained by the Company 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).

     22.4. Severability.

     Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall,
as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall (to the full extent permitted by law) not invalidate or render
unenforceable such provision in any other jurisdiction.

     22.5. Construction, Etc.

     Each covenant contained herein shall be construed (absent express provision to the contrary)
as being independent of each other covenant contained herein, so that compliance with any one
covenant shall not (absent such an express contrary provision) be deemed to excuse compliance with
any other covenant. Where any provision herein refers to action to be taken by any Person, or
which such Person is prohibited from taking, such provision shall be applicable whether such action
is taken directly or indirectly by such Person.

     For the avoidance of doubt, all Schedules and Exhibits attached to this Agreement shall be
deemed to be a part hereof.

     22.6. Counterparts.

     This Agreement may be executed in any number of counterparts, each of which shall be an
original but all of which together shall constitute one instrument. Each counterpart may consist
of a number of copies hereof, each signed by less than all, but together signed by all, of the
parties hereto.

     22.7. Governing Law.

     This Agreement shall be construed and enforced in accordance with, and the rights of the
parties shall be governed by, the law of the State of New York excluding choice-of-law principles
of the law of such State that would permit the application of the laws of a jurisdiction other than
such State.

50

 

     22.8. Jurisdiction and Process; Waiver of Jury Trial.

     (a) The Company irrevocably submits to the non-exclusive jurisdiction of any New
York State or federal court sitting in the Borough of Manhattan, The City of New York,
over any suit, action or proceeding arising out of or relating to this Agreement or the
Notes. To the fullest extent permitted by applicable law, the Company irrevocably waives
and agrees not to assert, by way of motion, as a defense or otherwise, any claim that it
is not subject to the jurisdiction of any such court, any objection that it may now or
hereafter have to the laying of the venue of any such suit, action or proceeding brought
in any such court and any claim that any such suit, action or proceeding brought in any
such court has been brought in an inconvenient forum.

     (b) Nothing in this Section 22.8 shall affect the right of any holder of a Note to
serve process in any manner permitted by law, or limit any right that the holders of any
of the Notes may have to bring proceedings against the Company in the courts of any
appropriate jurisdiction or to enforce in any lawful manner a judgment obtained in one
jurisdiction in any other jurisdiction.

     (c) THE PARTIES HERETO HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH
RESPECT TO THIS AGREEMENT, THE NOTES OR ANY OTHER DOCUMENT EXECUTED IN CONNECTION
HEREWITH OR THEREWITH.

* * * * *

51

 

     If you are in agreement with the foregoing, please sign the form of agreement on a counterpart
of this Agreement and return it to the Company, whereupon this Agreement shall become a binding
agreement between you and the Company.

	 	 	 	 	 
	 	Very truly yours,

Henry Schein, Inc.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

This Agreement is hereby accepted

and agreed to as of the date thereof.

	 	 	 	 	 
	 	PRUDENTIAL INVESTMENT MANAGEMENT, INC.

 	 
	By  	 	 
	 	Vice President 	 
	 	 	 	 

[Signature Page to Private Shelf Agreement]

 

 

DEFINED TERMS

     As used herein, the following terms have the respective meanings set forth below or set forth
in the Section hereof following such term:

     “Acceptance” is defined in Section 2.5.

     “Acceptance Day” is defined in Section 2.5.

     “Acceptance Window” means, with respect to any Quotation, the time period designated by
Prudential during which the Company may elect to accept such Quotation. The Acceptance Window with
respect to any Quotation is expected to be two minutes, but may be a shorter period if Prudential
so elects.

     “Accepted Note” is defined in Section 2.5.

     “Additional Subsidiary Guarantor” means, at any time, each Restricted Subsidiary of the
Company which is (x) a guarantor of the obligations of the Company or any Restricted Subsidiary
under a Principal Credit Facility or (y) a borrower or other obligor under a Principal Credit
Facility.

     “Adjusted Consolidated Total Assets” means, at any date of determination, the net book value
of all assets of the Company and its Restricted Subsidiaries determined on a consolidated basis in
accordance with GAAP and as calculated consistent with the manner disclosed by the Company in its
Annual Report on Form 10-K for the fiscal year ended December 26, 2009.

     “Affiliate” means, at any time, (a)with respect to any Person, any other Person that at such
time directly or indirectly through one or more intermediaries Controls, or is Controlled by, or is
under common Control with, such first Person, (b) with respect to the Company, shall include any
Person beneficially owning or holding, directly or indirectly, 25% or more of any class of voting
or equity interests of the Company or any Subsidiary or any corporation of which the Company and
its Subsidiaries beneficially own or hold, in the aggregate, directly or indirectly, 25% or more of
any class of voting or equity interests and (c) with respect to Prudential, shall include any
managed account, investment fund or other vehicle for which Prudential or any Prudential Affiliate
acts as investment advisor or portfolio manager. As used in this definition, “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. Unless the context otherwise clearly requires, any reference to an “Affiliate” is a
reference to an Affiliate of the Company.

     “Anti-Terrorism Order” means Executive Order No. 13,224 of September 23, 2001, Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit or Support
Terrorism, 66 U.S. Fed. Reg. 49079 (2001), as amended.

     “Authorized Officer” means (i) in the case of the Company, its chief executive officer, its
chief financial officer, any other Person authorized by the Company to act on behalf of the Company
and designated as an “Authorized Officer” of the Company in the Information Schedule

2

 

attached hereto or any other Person authorized by the Company to act on behalf of the Company
and designated as an “Authorized Officer” of the Company for the purpose of this Agreement in an
Officer’s Certificate executed by the Company’s chief executive officer or chief financial officer
and delivered to Prudential, and (ii) in the case of Prudential, any officer of Prudential
designated as its “Authorized Officer” in the Information Schedule or any officer of Prudential
designated as its “Authorized Officer” for the purpose of this Agreement in a certificate executed
by one of its Authorized Officers or a lawyer in its law department. Any action taken under this
Agreement on behalf of the Company by any individual who on or after the date of this Agreement
shall have been an Authorized Officer of the Company and whom Prudential in good faith believes to
be an Authorized Officer of the Company at the time of such action shall be binding on the Company
even though such individual shall have ceased to be an Authorized Officer of the Company, and any
action taken under this Agreement on behalf of Prudential by any individual who on or after the
date of this Agreement shall have been an Authorized Officer of Prudential and whom the Company in
good faith believes to be an Authorized Officer of Prudential at the time of such action shall be
binding on Prudential even though such individual shall have ceased to be an Authorized Officer of
Prudential.

     “Available Facility Amount” is defined in Section 2.1.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which commercial
banks in New York are required or authorized to be closed.

     “Cancellation Date” is defined in Section 2.7(c).

     “Cancellation Fee” is defined in Section 2.7(c).

     “Capital Lease” means, at any time, a lease with respect to which the lessee is required
concurrently to recognize the acquisition of an asset and the incurrence of a liability in
accordance with GAAP.

     “Change in Control” means (A) any Person or “group” (within the meaning of Section 13(d) or
14(d) of the Securities Exchange Act of 1934, as amended) (i) acquiring or having acquired
beneficial interest of 50% or more of any outstanding class of equity interests having ordinary
voting power in the election of the directors of the Company (other than the aggregate beneficial
ownership of the Persons who are officers or directors of the Company on the date of this
Agreement) or (ii) obtaining or having obtained the power (whether or not exercised) to elect a
majority of the Company’s directors or (B) the board of directors of the Company ceasing to consist
of a majority of Continuing Directors.

     “Change in Control Response Date” is defined in Section 8.7(a).

     “Closing” is defined in Section 3.

     “Closing Day” means, with respect to any Accepted Note, the Business Day specified for the
closing of the purchase and sale of such Accepted Note in the Confirmation of Acceptance for such
Accepted Note, provided that (i) if the Company and the Purchaser which is obligated to purchase
such Accepted Note agree on an earlier Business Day for such closing, the “Closing Day” for such
Accepted Note shall be such earlier Business Day, and (ii) if the closing of the

3

 

purchase and sale of such Accepted Note is rescheduled pursuant to Section 3.3, the Closing
Day for such Accepted Note, for all purposes of this Agreement except references to “original
Closing Day” in Section 2.7(b), shall mean the Rescheduled Closing Day with respect to such
Accepted Note.

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

     “Company” means Henry Schein, Inc., a Delaware corporation, or any successor that becomes such
in the manner prescribed in Section 10.2(a).

     “Company Notice” is defined in Section 8.7(a).

     “Confidential Information” is defined in Section 20.

     “Confirmation of Acceptance” is defined in Section 2.5.

     “Consolidated EBITDA” means, for any period, Consolidated Operating Income plus, without
duplication, (a) Consolidated Interest Income, (b) depreciation, (c) amortization and (d) all
non-cash charges, and (e) all non-recurring, unusual and extraordinary charges, costs and expenses
(including merger, restructuring and integration charges, costs and expenses).

     “Consolidated Interest Income” means, for any period, the interest income of the Company and
its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance with
GAAP and as calculated consistent with the manner disclosed by the Company in its Annual Report on
Form 10-K for the fiscal year ended December 26, 2009.

     “Consolidated Gross Profit” means, for any period, net sales less cost of sales of the Company
and its Restricted Subsidiaries for such period, determined on a consolidated basis in accordance
with GAAP and as calculated consistent with the manner disclosed by the Company in its Annual
Report on Form 10-K for the fiscal year ended December 26, 2009.

     “Consolidated Leverage Ratio” means at any date of determination, the ratio of (a)
Consolidated Total Debt on such date to (b) Consolidated EBITDA for the period of four fiscal
quarters of the Company ending on (or most recently ended prior to) such date.

     “Consolidated Operating Expenses” means, for any period, total expenses related to salaries,
employee benefits and general and administrative expenses of the Company and its Restricted
Subsidiaries determined on a consolidated basis in accordance with GAAP and as calculated
consistent with the manner disclosed by the Company in its Annual Report on Form 10-K for the
fiscal year ended December 26, 2009.

     “Consolidated Operating Income” means, for any period, Consolidated Gross Profit less
Consolidated Operating Expenses of the Company and its Restricted Subsidiaries determined on a
consolidated basis in accordance with GAAP and as calculated consistent with the manner disclosed
by the Company in its Annual Report on Form 10-K for the fiscal year ended December 26, 2009.

4

 

     “Consolidated Total Assets” means, at any date of determination, the net book value of all
assets of the Company and its Subsidiaries determined on a consolidated basis in accordance with
GAAP and as calculated consistent with the manner disclosed by the Company in its Annual Report on
Form 10-K for the fiscal year ended December 26, 2009.

     “Consolidated Total Debt” means, at any date of determination, without duplication, (a) the
aggregate amount of all Indebtedness of the Company and its Restricted Subsidiaries, minus (b) the
Unrestricted Cash Amount of the Company and its Restricted Subsidiaries, in each case, determined
on a consolidated basis in accordance with GAAP.

     “Continuing Directors” means, as to the Company, the directors of the Company on the date of
this Agreement and each other director of the Company whose nomination for election to the Board of
Directors of the Company is recommended by a majority of the then Continuing Directors.

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

     “Default Rate” with respect to any Note, has the meaning given in such Note.

     “Delayed Delivery Fee” is defined in Section 2.7(b).

     “Disposition” or “Dispose” means the sale, transfer, license or other disposition (including
any sale and leaseback transaction) of any property by any Person, including any sale, assignment,
transfer or other disposal, with or without recourse, of any notes or accounts receivable or any
rights and claims associated therewith.

     “Disposition Prepayment Notice” is defined in Section 8.9(a).

     “Disposition Value” means:

     (a) in the case of property that does not constitute Subsidiary Stock, the book
value thereof, valued at the time of such Disposition in good faith by the Company; and

     (b) in the case of property that constitutes Subsidiary Stock, an amount equal to
that percentage of book value of the assets of the Subsidiary that issued such stock as
is equal to the percentage that the book value of such Subsidiary Stock represents of the
book value of all of the outstanding Equity Interests of such Subsidiary (assuming, in
making such calculations, that all securities convertible into such Equity Interests are
so converted and giving full effect to all transactions that would occur or be required
in connection with such conversion) determined at the time of the Disposition thereof, in
good faith by the Company.

     “Dollars” or “$” means lawful money of the United States of America.

5

 

     “Domestic Subsidiary” or “Restricted Domestic Subsidiary” means any Subsidiary or Restricted
Subsidiary, as the case may be, other than a Foreign Subsidiary or Foreign Restricted Subsidiary,
as the case may be.

     “EDGAR” is defined in Section 5.3.

     “Environmental Laws” means any and all statutes, laws, regulations, ordinances, rules,
judgments, orders, decrees, permits, concessions, grants, franchises, licenses, agreements or
governmental restrictions by any Governmental Authority relating to pollution and the protection of
the environment or the release of any materials into the environment, including but not limited to
those related to Hazardous Materials.

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

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and the rules and regulations promulgated thereunder from time to time in effect.

     “ERISA Affiliate” means any trade or business (whether or not incorporated) that is treated as
a single employer together with the Company under section 414 of the Code.

     “Event of Default” is defined in Section 11.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations promulgated thereunder from time to time in effect.

     “Existing Credit Facility” means the $400,000,000 Credit Agreement, dated as of September 5,
2008, among the Company, as borrower, JPMorgan Chase Bank, N.A., as administrative agent, the
co-syndication agents and lenders party thereto and J.P. Morgan Securities Inc. as lead arranger
and bookrunner, as the same may be amended, supplemented, restated or otherwise modified from time
to time.

     “Facility” is defined in Section 2.1.

     “Fair Market Value” means, at any time and with respect to any property, the sale value of
such property that would be realized in an arm’s-length sale at such time between an informed and
willing buyer and an informed and willing seller (neither being under a compulsion to buy or sell).

     “Foreign Subsidiary” or “Foreign Restricted Subsidiary” means any Subsidiary or Restricted
Subsidiary, as the case may be, incorporated or otherwise organized in any jurisdiction outside the
United States of America, its territories and possessions.

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

6

 

     “Governmental Authority” means

     (a) the government of

     (i) the United States of America or any State or other political subdivision of
either thereof, or

     (ii) any other jurisdiction in which the Company or any Restricted Subsidiary
conducts all or a material part of its business, or which asserts jurisdiction over
any properties of the Company or any Restricted Subsidiary, or

     (b) any entity exercising executive, legislative, judicial, regulatory or
administrative functions of, or pertaining to, any such government.

     “Group” means the Company and its Restricted Subsidiaries from time to time and “member of the
Group” means any one of them.

     “Guarantee Obligation” means, as to any Person (the “guaranteeing person”), any obligation of
(a) the guaranteeing person or (b) another Person (including, without limitation, any bank under
any letter of credit) to induce the creation of which the guaranteeing person has issued a
reimbursement, counterindemnity or similar obligation, in either case guaranteeing or in effect
guaranteeing any Indebtedness, leases, dividends or other obligations (the “primary obligations”)
of any other unrelated third Person (the “primary obligor”) in any manner, whether directly or
indirectly, including, without limitation, any obligation of the guaranteeing person, whether or
not contingent, (i) to purchase any such primary obligation or any property constituting direct or
indirect security therefor, (ii) to advance or supply funds (1) for the purchase or payment of any
such primary obligation or (2) to maintain working capital or equity capital of the primary obligor
or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase
property, securities or services primarily for the purpose of assuring the owner of any such
primary obligation of the ability of the primary obligor to make payment of such primary obligation
or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss
in respect thereof; provided, however, that the term Guarantee Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of business. The
amount of any Guarantee Obligation shall be deemed to be an amount equal to the stated or
determinable amount of the related primary obligation, or portion thereof, in respect of which such
Guarantee Obligation is made or, if not stated or determinable, the maximum reasonably anticipated
liability in respect thereof as determined by the guaranteeing Person in good faith.

     “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such 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) obligations
incurred through an agreement, contingent or otherwise, by such Person:

     (a) to purchase such indebtedness or obligation or any property constituting
security therefor;

7

 

     (b) to advance or supply funds (i) for the purchase or payment of such indebtedness
or obligation, or (ii) to maintain any working capital or other balance sheet condition
or any income statement condition of any other Person or otherwise to advance or make
available funds for the purchase or payment of such indebtedness or obligation;

     (c) to lease properties or to purchase properties or services primarily for the
purpose of assuring the owner of such indebtedness or obligation of the ability of any
other Person to make payment of the indebtedness or obligation; or

     (d) otherwise to assure the owner of such indebtedness or obligation against loss in
respect thereof.

In any computation of the indebtedness or other liabilities of the obligor under any Guaranty, the
indebtedness or other obligations that are the subject of such Guaranty shall be assumed to be
direct obligations of such obligor.

     “Hazardous Material” means any and all pollutants, toxic or hazardous wastes or other
substances that might pose a hazard to health and safety, the removal of which may be required or
the generation, manufacture, refining, production, processing, treatment, storage, handling,
transportation, transfer, use, disposal, release, discharge, spillage, seepage or filtration of
which is or shall be restricted, prohibited or penalized by any applicable law, including, without
limitation, asbestos, urea formaldehyde foam insulation, polychlorinated biphenyls, petroleum,
petroleum products, lead based paint, radon gas or similar restricted, prohibited or penalized
substances.

     “Hedge Treasury Note(s)” means, with respect to any Accepted Note, the United States Treasury
Note or Notes whose duration (as determined by Prudential) most closely matches the duration of
such Accepted Note.

     “holder” means, with respect to any Note the Person in whose name such Note is registered in
the register maintained by the Company pursuant to Section 14.1.

     “Indebtedness” with respect to any Person means, at any time, without duplication,

     (a) its liabilities for borrowed money (including obligations evidenced by notes,
bonds, debentures or other similar instruments) and its redemption obligations in respect
of mandatorily redeemable Preferred Stock;

     (b) its liabilities for the deferred purchase price of property or services acquired
by such Person (excluding accounts payable arising in the ordinary course of business but
including all liabilities created or arising under any conditional sale or other title
retention agreement with respect to any such property);

     (c) (i) all liabilities appearing on its balance sheet in accordance with GAAP in
respect of Capital Leases and (ii) all liabilities which would appear on its balance
sheet in accordance with GAAP in respect of Synthetic Leases assuming such Synthetic
Leases were accounted for as Capital Leases;

8

 

     (d) all liabilities for borrowed money secured by any Lien with respect to any
property owned by such Person (whether or not it has assumed or otherwise become liable
for such liabilities);

     (e) all its liabilities in respect of letters of credit or instruments serving a
similar function issued or accepted for its account by banks and other financial
institutions (whether or not representing obligations for borrowed money);

     (f) all indebtedness of such Person, determined in accordance with GAAP, arising out
of a Receivables Transaction;

     (g) any Guarantee Obligations of such Person;

     (h) all obligations of such Person secured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured by) any Lien on
property (including accounts and contract rights) owned by such Person, whether or not
such Person has assumed or become liable for the payment of such obligation; provided,
however, that in the event that liability of such Person is non-recourse to such Person
and is recourse only to specified property owned by such Person, the amount of
Indebtedness attributed thereto shall not exceed the greater of the Fair Market Value of
such property or the net book value of such property; and

     (i) for the purposes of determining the outstanding principal amount of Indebtedness
for the purposes of Section 11(f) only (except to the extent otherwise included above),
all obligations of such Person in respect of Swap Contracts; provided that the “principal
amount” of the obligations of such Person in respect of any Swap Contract at any time
shall be the maximum aggregate amount (giving effect to any netting agreements) that such
Person would be required to pay if such Swap Contract were terminated at such time.

The Indebtedness of any Person shall (A) include the Indebtedness of any other entity (including
any partnership in which such Person is a general partner) to the extent such Person is actually
liable therefor as a result of such Person’s ownership interest in or other relationship with such
entity, except to the extent the terms of such Indebtedness expressly provide that such Person is
not actually liable therefore, and (B) include all obligations of such Person of the character
described in clauses (a) through (i) to the extent such Person remains legally liable in respect
thereof notwithstanding that any such obligation is deemed to be extinguished under GAAP.

     “Institutional Investor” means (a) any Purchaser of a Note, (b) any holder of a Note holding
(together with one or more of its affiliates) more than 5.0% of the aggregate principal amount of
the Notes then outstanding, (c) any bank, trust company, savings and loan association or other
financial institution, any pension plan, any investment company, any insurance company, any broker
or dealer, or any other similar financial institution or entity, regardless of legal form, and (d)
any Related Fund of any holder of any Note.

     “Issuance Period” is defined in Section 2.2.

9

 

     “Joint Venture” means W.A. Butler Company, a Delaware corporation (formerly known as Winslow
Acquisition Company).

     “Lien” means, with respect to any Person, any mortgage, lien, pledge, hypothecation,
assignment, deposit arrangement, charge, security interest or other encumbrance, or any interest or
title of any vendor, lessor, lender or other secured party to or of such Person under any
conditional sale or other title retention agreement or Capital Lease, upon or with respect to any
property or asset of such Person (including in the case of stock, stockholder agreements, voting
trust agreements and all similar arrangements) or any preference, priority or other security
agreement or preferential arrangement of any kind or nature whatsoever.

     “Make-Whole Amount” is defined in Section 8.6.

     “Material” means material in relation to the business, operations, affairs, financial
condition, assets or properties of the Company and its Restricted Subsidiaries taken as a whole.

     “Material Adverse Effect” means a material adverse effect on (a) the business, operations,
affairs, financial condition, assets or properties of the Company and its Restricted Subsidiaries
taken as a whole, or (b) the ability of the Company to perform its obligations under this Agreement
and the Notes, or (c) the validity or enforceability of this Agreement or the Notes.

     “Multiemployer Plan” means any Plan that is a “multiemployer plan” (as such term is defined in
section 4001(a)(3) of ERISA).

     “NAIC” means the National Association of Insurance Commissioners or any successor thereto.

     “Notes” is defined in Section 1.

     “Officer’s Certificate” means a certificate of a Senior Financial Officer or of any other
officer of the Company whose responsibilities extend to the subject matter of such certificate.

     “Optional Subsidiary Guarantee” is defined in Section 9.8(b).

     “Optional Subsidiary Guarantor” is defined in Section 9.8(b).

     “PBGC” means the Pension Benefit Guaranty Corporation referred to and defined in ERISA or any
successor thereto.

     “Permitted JV Refinancing Indebtedness” means Indebtedness of the Joint Venture and its
Subsidiaries which satisfies each of the following conditions:

     (a) to the extent that such Indebtedness is to be secured by a Lien on any assets or
property, or the Equity Interests, of the Joint Venture and its Subsidiaries, the terms
of such Indebtedness (including the Liens that secure such Indebtedness) shall be
substantially similar to those provided in the Winslow Credit Documents (other than
changes which extend the maturity thereof, decrease the interest rate applicable

10

 

thereto, release a portion of the assets subject to such Liens or otherwise amend
the terms in a manner that could not reasonably be expected to be materially adverse to
the interests of the Lenders taken as a whole) and any Liens that secure such
Indebtedness do not cover any additional assets, property or Equity Interests (except as
permitted by Section 10.5(p);

     (b) such Indebtedness shall consist of (i) a secured facility which satisfies the
requirements of clause (a) above or (ii) an unsecured or subordinated facility (and
guarantees in respect thereof provided by any Subsidiary of the Joint Venture) with terms
customary for facilities of such type at such time;

     (c) no Default or Event of Default shall have occurred and be continuing or would
result from the incurrence of such Indebtedness;

     (d) such Indebtedness shall not be subject to any amortization or required repayment
obligations (other than, in the case of a secured facility, as contemplated by clause (a)
above or, in the case of an unsecured or subordinated facility, as then reflects the
customary terms for facilities of such type at such time) on or prior to September 5,
2013;

     (e) the net proceeds of such Indebtedness (other than any revolving Indebtedness)
are concurrently applied to the prepayment of the Indebtedness to be refinanced; and

     (f) the holders of Notes shall have received (x) an Officer’s Certificate certifying
compliance with the conditions set forth in this definition (and attaching any other
information reasonably required by the Required Holders) and (y) copies of all the loan
documents relating to such Indebtedness at least one Business Day prior to the funding of
any such Indebtedness.

     “Person” means an individual, partnership, corporation, limited liability company,
association, trust, unincorporated organization, business entity or Governmental Authority.

     “Plan” means an “employee benefit plan” (as defined in section 3(3) of ERISA) subject to Title
I of ERISA that is or, within the preceding five years, has been established or maintained, or to
which contributions are or, within the preceding five years, have been made or required to be made,
by the Company or any ERISA Affiliate or with respect to which the Company or any ERISA Affiliate
may have any liability.

     “Preferred Stock” means any class of capital stock of a Person that is preferred over any
other class of capital stock (or similar equity interests) of such Person as to the payment of
dividends or the payment of any amount upon liquidation or dissolution of such Person.

     “Principal Credit Facility” means any agreement, instrument or facility, and any renewal,
refinancing, refunding or replacement thereof, or any two or more of any of the foregoing forming
part of a common interrelated financing or other transaction (collectively, a “Credit Agreement”)
in respect of which any member of the Group other than the Joint Venture and its Subsidiaries is a
borrower, guarantor or other obligor, providing for the incurrence of

11

 

Indebtedness by the Group in an aggregate principal amount equal to or in excess of
$300,000,000 (or the equivalent thereof in any other currency), regardless of the principal amount
outstanding thereunder from time to time. For the avoidance of doubt, the Existing Credit Facility
is a Principal Credit Facility.

     “Pro Rata Portion” means, with respect to a Note and the prepayment of Indebtedness in respect
of Section 10.7, the portion of such Note equal to (a) the aggregate amount of the proceeds to be
used in the prepayment or repayment of all Indebtedness pursuant to Section 10.7(g) (including the
Notes) multiplied by (b) a fraction, the numerator of which is the aggregate principal amount of
such Note and the denominator of which is the aggregate principal amount of all such Indebtedness
to be prepaid or repaid in accordance with Section 10.7(g).

     “property” or “properties” means, unless otherwise specifically limited, real or personal
property of any kind, tangible or intangible, choate or inchoate.

     “Prudential” is defined in the addressee line to this Agreement.

     “Prudential Affiliate” means any Affiliate of Prudential.

     “PTE” is defined in Section 6.2.

     “Purchaser” is defined in the addressee line to this Agreement.

     “Qualified Institutional Buyer” means any Person who is a “qualified institutional buyer”
within the meaning of such term as set forth in Rule 144A(a)(1) under the Securities Act.

     “Quotation” shall have the meaning provided in paragraph 2.2(d).

     “Receivables” means any accounts receivable of any Person, including, without limitation, any
thereof constituting or evidenced by chattel paper, instruments or general intangibles, and all
proceeds thereof and rights (contractual and other) and collateral related thereto.

     “Receivables Subsidiary” means any special purpose, bankruptcy-remote Restricted Subsidiary
that purchases Receivables generated by the Company or any of its Restricted Subsidiaries.

     “Receivables Transaction” means any transaction or series of transactions providing for the
financing of Receivables of the Company or any of its Restricted Subsidiaries, involving one or
more sales, contributions or other conveyances by the Company or any of its Restricted Subsidiaries
of its/their Receivables to Receivables Subsidiaries which finance the purchase thereof by means of
the incurrence of Indebtedness or otherwise. Notwithstanding anything contained in the foregoing
to the contrary: (a) no portion of the Indebtedness (contingent or otherwise) with respect to any
Receivables Transactions shall (i) be guaranteed by the Company or any of its Restricted
Subsidiaries, (ii) involve recourse to the Company or any of its Restricted Subsidiaries (other
than the relevant Receivables Subsidiary), or (iii) require or involve any credit support or credit
enhancement from the Company or any of its Restricted Subsidiaries (other than the relevant
Receivables Subsidiary), provided that the Company and its Restricted

12

 

Subsidiaries will be permitted to agree to representations, warranties, covenants and
indemnities that are reasonably customary in accounts receivable securitization transactions of the
type contemplated (none of which representations, warranties, covenants or indemnities will result
in recourse to the Company or any of its Restricted Subsidiaries (other than the relevant
Receivables Subsidiary) beyond the limited recourse that is reasonably customary in accounts
receivable securitization transactions of the type contemplated); and (b) the securitization
facility and structure relating to such Receivables Transactions shall be on market terms and
conditions customary for Receivables transactions of the type contemplated.

     “Related Fund” means, with respect to any holder of any Note, any fund or entity that (a)
invests in securities or bank loans, and (b) is advised or managed by such holder, the same
investment advisor as such holder or by an affiliate of such holder or such investment advisor.

     “Request for Purchase” is defined in Section 2.3.

     “Required Holders” means, at any time, the holders of at least 51% in principal amount of the
Notes at the time outstanding (exclusive of Notes then owned by the Company or any of its
Affiliates).

     “Rescheduled Closing Day” is defined in Section 3.3.

     “Responsible Officer” means any Senior Financial Officer and any other officer of the Company
with responsibility for the administration of the relevant portion of this Agreement.

     “Restricted Subsidiary” means any Subsidiary (a) at least a majority of the voting securities
of which are owned by the Company and/or one or more Wholly Owned Restricted Subsidiaries and (b)
that the Company has not designated an Unrestricted Subsidiary by notice in writing given to the
holders of the Notes.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules
and regulations promulgated thereunder from time to time in effect.

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

     “Series” is defined in Section 1.

     “Shelf Closing” means, with respect to any Series of Shelf Notes, the closing of the sale and
purchase of such Series of Shelf Notes.

     “Shelf Notes” is defined in Section 1.

     “Significant Subsidiary” means:

     (a) each domestic (i.e., incorporated or organized in the United States or any state
or territory thereof; hereinafter, “domestic”) Wholly-Owned Restricted Subsidiary formed
or acquired by the Company or any direct or indirect Restricted Subsidiary (whether
existing at the date hereof, or formed or acquired after the date

13

 

hereof), if such Restricted Subsidiary or entity, after giving effect to the
formation/acquisition of the same, has total assets that exceed five percent of domestic
“Consolidated Total Assets,” (hereinafter, the “Asset Threshold”) valued as of the
occurrence/closing of such formation/acquisition or as of the last day of any fiscal year
thereafter; and

     (b) each domestic Restricted Subsidiary (whether existing at the date hereof, or
formed or acquired after the date hereof) in which the Company or any Subsidiary
Guarantor (if any) has, directly or indirectly, a 66.67% or greater but less than 100%
ownership interest which becomes or is a Restricted Subsidiary if such Restricted
Subsidiary, after giving effect to the formation/acquisition of the same, has total
assets that exceed the Asset Threshold, valued as of the occurrence/closing of such
formation/acquisition or as of the last day of any fiscal year thereafter;

     provided that if at any time after the date of this Agreement a Principal Credit
Facility provides an Asset Threshold greater than five percent but less than or equal to ten
percent, then such Asset Threshold therein shall be deemed incorporated herein.

     “Structuring Fee” is defined in Section 2.7(a).

     “Subsidiary” means, as to any Person, any other Person in which such first Person or one or
more of its Subsidiaries or such first Person and one or more of its Subsidiaries owns sufficient
equity or voting interests to enable it or them (as a group) ordinarily, in the absence of
contingencies, to elect a majority of the directors (or Persons performing similar functions) of
such second Person, and any partnership or joint venture if more than a 50% interest in the profits
or capital thereof is owned by such first Person or one or more of its Subsidiaries or such first
Person and one or more of its Subsidiaries (unless such partnership or joint venture can and does
ordinarily take major business actions without the prior approval of such Person or one or more of
its Subsidiaries). Unless the context otherwise clearly requires, any reference to a “Subsidiary”
is a reference to a Subsidiary of the Company.

     “Subsidiary Guarantee” means an agreement substantially in the form of the subsidiary
guarantee attached hereto as Exhibit 9.8.

     “Subsidiary Guarantor” means any Additional Subsidiary Guarantor and any Optional Subsidiary
Guarantor, in each case which executes and delivers a Subsidiary Guarantee pursuant to the terms
hereof.

     “Subsidiary Stock” means, with respect to any Person, the Equity Interests of any Subsidiary
of such Person.

     “SVO” means the Securities Valuation Office of the NAIC or any successor to such Office.

     “Swap Contract” means (a) any and all interest rate swap transactions, basis 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 foreign exchange

14

 

transactions, cap transactions, floor transactions, currency options, spot contracts or any
other similar transactions or any of the foregoing (including, without limitation, any options to
enter into any of the foregoing), 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. or any
International Foreign Exchange Master Agreement.

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

     “Synthetic Lease” means, at any time, any lease (including leases that may be terminated by
the lessee at any time) of any property (a) that is accounted for as an operating lease under GAAP
and (b) in respect of which the lessee retains or obtains ownership of the property so leased for
income tax purposes, other than any such lease under which such Person is the lessor.

     “Tax” means any tax (whether income, documentary, sales, stamp, registration, issue, capital,
property, excise or otherwise), duty, assessment, levy, impost, fee, compulsory loan, charge or
withholding.

     “Unrestricted Cash Amount” means, as of any date of determination, that portion of the
Company’s and its consolidated Subsidiaries’ aggregate cash and cash equivalents in excess of
$50,000,000, that is not encumbered by or subject to any Lien securing Indebtedness for borrowed
money (excluding, in all events, any Lien arising from any set-off, netting or other banking
arrangements or other customary cash management arrangements).

     “Unrestricted Subsidiary” means, at any time, any Subsidiary that is not at such time
designated a Restricted Subsidiary.

     “USA Patriot Act” means United States Public Law 107-56, Uniting and Strengthening America by
Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of
2001, as amended from time to time, and the rules and regulations promulgated thereunder from time
to time in effect.

     “Wholly-Owned Subsidiary” or “Wholly Owned Restricted Subsidiary” means, at any time, any
Subsidiary, or Restricted Subsidiary, as the case may be, all of the equity interests (except
directors’ qualifying shares) and voting interests of which are owned by any one or more of the
Company and the Company’s other Wholly-Owned Subsidiaries, or Wholly-Owned Restricted Subsidiaries,
as the case may be, at such time.

     “Winslow Credit Agreement” means the credit agreement entered into in connection with the
establishment of the Joint Venture between Butler Animal Health Supply, LLC, a Delaware limited
liability company, as borrower, the lenders from time to time party thereto, and

15

 

JPMorgan Chase Bank, N.A., as administrative agent (as amended, waived, modified or
supplemented from time to time.

     “Winslow Credit Documents” means the Winslow Credit Agreement and any agreement, document or
instrument creating any security interest or other encumbrance, or guaranty, entered into in
connection therewith and any other agreement, document or instrument ancillary or otherwise related
thereto (as amended, waived, modified or supplemented from time to time.

16

 

EXHIBIT 1

[Form of Shelf Note]

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR
ANY OTHER APPLICABLE SECURITIES LAWS AND, ACCORDINGLY, NEITHER MAY BE SOLD NOR OTHERWISE
TRANSFERRED UNLESS REGISTERED OR EXEMPT FROM REGISTRATION UNDER SAID ACT OR SUCH OTHER APPLICABLE
LAWS.

HENRY SCHEIN, INC.

[____]% Series ___ Senior Note Due [                    ,      ]

No. [     ] [Date]

PPN[                    ]

ORIGINAL PRINCIPAL AMOUNT:

ORIGINAL ISSUE DATE:

INTEREST RATE:

INTEREST PAYMENT PERIOD:

FINAL MATURITY DATE:

PRINCIPAL PREPAYMENT DATES AND AMOUNTS:

     For Value Received, the undersigned, HENRY SCHEIN, INC. (herein called the “Company”), a
corporation organized and existing under the laws of the State of Delaware, hereby promises to pay
to [                    ], or registered assigns, the principal sum of [                                        ] Dollars [on
the Final Maturity Date specified above (or so much thereof as shall not have been prepaid),][,
payable on the Principal Prepayment Dates and in the amounts specified above, and on the Final
Maturity Date specified above in an amount equal to the unpaid balance of the principal hereof,]
with interest (computed on the basis of a 360-day year of twelve 30-day months) (a) on the unpaid
balance hereof at the Interest Rate per annum specified above, payable [quarterly][semi-annually],
on the [     ] day of [                    ], [                    ], [         
           ] and [                    ] in each year,
commencing with the [                    ], [                    ], [                    ] or [   
                 ] next succeeding the
date hereof, until the principal hereof shall have become due and payable, and (b) to the extent
permitted by law, on any overdue payment of interest and, during the continuance of an Event of
Default, on such unpaid balance and on any overdue payment of any Make Whole Amount, at a rate per
annum (the “Default Rate”) from time to time equal to the greater of (i) 2% over the Interest Rate
specified above or (ii) 2% over the rate of interest publicly announced by JPMorgan Chase Bank,
N.A. from time to time in New York, New York as its “base” or “prime rate”, payable
[quarterly][semi-annually] as aforesaid (or, at the option of the registered holder hereof, on
demand).

     Payments of principal of, interest on and any Make-Whole Amount with respect to this Note are
to be made in lawful money of the United States of America at the principal office of JPMorgan
Chase Bank, N.A. in New York, New York or at such other place as the Company

 

 

shall have designated by written notice to the holder of this Note as provided in the Shelf
Agreement referred to below.

     This Note is one of a series of Senior Notes (herein called the “Notes”) issued pursuant to
the Private Shelf Agreement, dated as of [                    ], 2010 (as from time to time amended, the “Shelf
Agreement”), between the Company, Prudential Investment Management, Inc. and each Prudential
Affiliate which becomes a party thereto and is entitled to the benefits thereof. Each holder of
this Note will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality
provisions set forth in Section 20 of the Shelf Agreement and (ii) made the representation set
forth in Section 6.2 of the Shelf Agreement. Unless otherwise indicated, capitalized terms used in
this Note shall have the respective meanings ascribed to such terms in the Shelf Agreement.

     This Note is a registered Note and, as provided in the Shelf Agreement, upon surrender of this
Note for registration of transfer, duly endorsed, or accompanied by a written instrument of
transfer duly executed, by the registered holder hereof or such holder’s attorney duly authorized
in writing, a new Note for a like principal amount will be issued to, and registered in the name
of, the transferee. Prior to due presentment for registration of transfer, the Company may treat
the person in whose name this Note is registered as the owner hereof for the purpose of receiving
payment and for all other purposes, and the Company will not be affected by any notice to the
contrary.

     [The Company will make required prepayments of principal on the dates and in the amounts
specified above and in the Shelf Agreement.] [This Note is [also] subject to [optional]
prepayment, in whole or from time to time in part, at the times and on the terms specified in the
Shelf Agreement, but not otherwise.] [This Note is not subject to prepayment.]

     If an Event of Default occurs and is continuing, the principal of this Note may be declared or
otherwise become due and payable in the manner, at the price (including any applicable Make-Whole
Amount) and with the effect provided in the Shelf Agreement.

     This Note shall be construed and enforced in accordance with, and the rights of the Company
and the holder of this Note shall be governed by, the law of the State of New York excluding
choice-of-law principles of the law of such State that would permit the application of the laws of
a jurisdiction other than such State.

	 	 	 	 	 
	 	HENRY SCHEIN, INC.

 	 
	 	By  	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

 

EXHIBIT 2

[Form of ]Request for Purchase

Henry Schein, Inc.

Private Shelf Agreement

     Reference is made to the Private Shelf Agreement (the “Agreement”), dated as of [•], 2010,
between Henry Schein, Inc. (the “Company”), on the one hand, and Prudential Investment Management,
Inc. (“Prudential”) and each Prudential Affiliate which becomes party thereto, on the other hand.
Capitalized terms used and not otherwise defined herein shall have the respective meanings
specified in the Agreement.

     Pursuant to Section 2.3 of the Agreement, the Company hereby makes the following Request for
Purchase:

	1.	 	Aggregate principal amount of

the Shelf Notes covered hereby

(the “Notes”): $                    1 
	 
	2.	 	Interest Rate: [•]%
	 
	3.	 	Interest Payment Period:       [Quarterly][Semi-annually]
	 
	4.	 	Individual specifications of the Notes:

	 	 	 	 	 	 	 	 	 
	Principal	 	 	 	 	 	 
	Final	 	Prepayment	 	 	 	 
	Principal	 	Maturity	 	 	Dates and	 
	Amount	 	Date	 	 	Amounts	 
	 
	 
	 	 	 	 	 	 	 	 

	5.	 	Use of proceeds of the Notes:
	 
	6.	 	Proposed day for the closing of the purchase and sale of the Notes:
	 
	7.	 	The purchase price of the Notes is to be transferred to:

	 	 	 	 	 
	Name and Address	 	 	 
	and ABA Routing	 	Number of	 
	Number of Bank	 	Account	 
	 
	 
	 	 	 	 

	8.	 	The Company certifies that (a) [except as set forth on Exhibit A hereto,] the representations
and warranties contained in Section 5 of the Agreement are true on and

 

			
	1	 	Minimum principal amount of $5,000,000.

 

 

	 	 	as of the date of this Request for Purchase and (b) on the date of this Request for Purchase
no Default or Event of Default has occurred or is continuing.

Dated: [•] 20[•]

	 	 	 	 	 
	 	Henry Schein, Inc.

 	 
	 	By:  	 
	 	Authorized Officer 	 
	 	 	 	 
	 

 

 

EXHIBIT A

SUPPLEMENTAL REPRESENTATIONS

The Section references hereinafter set forth correspond to the similar sections of the
Agreement which are supplemented hereby:

 

 

EXHIBIT 3

[Form of ]Confirmation of Acceptance

Henry Schein, Inc.

Private Shelf Agreement

          Reference is made to the Private Shelf Agreement (the “Agreement”), dated as of [•], 2010,
between Henry Schein, Inc. (the “Company”), on the one hand, and Prudential Investment Management,
Inc. (“Prudential”) and each Prudential Affiliate which becomes party thereto, on the other hand.
All terms used herein that are defined in the Agreement have the respective meanings specified in
the Agreement.

          Prudential or the Prudential Affiliate which is named below as a Purchaser of Shelf Notes
hereby confirms the representations as to such Shelf Notes set forth in Section 6 of the Agreement,
and agrees to be bound by the provisions of the Agreement applicable to the Purchasers or holders
of the Notes.

          Pursuant to Section 2.5 of the Agreement, an Acceptance with respect to the following Accepted
Notes is hereby confirmed:

I. Accepted Notes: Aggregate principal amount $[•]

	(A)	(a)	 Name of Purchaser:	 

	 	(b)	 	Principal amount:
	 
	 	(c)	 	Final maturity date:
	 
	 	(d)	 	Principal prepayment dates and amounts:
	 
	 	(e)	 	Interest rate:
	 
	 	(f)	 	Interest payment period: [quarterly][semi-annually] in arrears
	 
	 	(g)	 	Payment and notice instructions: As set forth on attached Purchaser Schedule

	(B)	(a)	Name of Purchaser:	 

	 	(b)	 	Principal amount:
	 
	 	(c)	 	Final maturity date:
	 
	 	(d)	 	Principal prepayment dates and amounts:
	 
	 	(e)	 	Interest rate:
	 
	 	(f)	 	Interest payment period: [quarterly][semi-annually] in arrears

 

 

	 	     
(g)	 	Payment and notice instructions: as set forth on attached Purchaser Schedule

[(C), (D).... same information as above.]

II. Closing Day: [•], 20[•].

	 	 	 	 	 
	 	HENRY SCHEIN, INC.

 	 
	 	By:  	 	 
	 	Name:  	 	 	 
	 	Title:  
Dated: 	 
	 
	 	PRUDENTIAL INVESTMENT MANAGEMENT, INC.

 	 
	 	By:  	 	 
	 	 	Vice President 	 
	 
	 	[PRUDENTIAL AFFILIATE]

 	 
	 	By:  	 	 
	 	 	Vice President 	 
	 	 	 	 
	 

[ATTACH PURCHASER SCHEDULES]

 

 

EXHIBIT 4.3(A)

FORM OF OFFICER’S CERTIFICATE

OF

HENRY SCHEIN, INC.

     I,                                                     
        , hereby certify that I am the                                          of Henry Schein, Inc.,
a Delaware corporation (the “Company”), and that, as such, I have access to the Company’s records
and am familiar with the matters herein certified, and I am authorized to execute and deliver this
Certificate in the name and on behalf of the Company, and I further certify as follows.

     1. This Certificate is being delivered pursuant to Section 4.3(a) of that certain Private
Shelf Agreement (the “Shelf Agreement”), dated as of August 9, 2010, by and among the Company and
Prudential Investment Management, Inc. (“Prudential”). The terms used in this certificate and not
defined herein have the respective meanings specified in the Shelf Agreement.

     2. The representations and warranties of the Company in Section 5 of the Shelf Agreement are
correct in all material respects on and as of the date hereof [(except to the extent of changes
caused by the transactions herein contemplated)].

     3. The Company has performed and complied in all material respects with all covenants and
conditions contained in the Shelf Agreement required to be performed or complied with by it prior
to or at the Closing.

     4. After giving effect to the issue and sale of the Notes (and the application of the proceeds
thereof as contemplated by the Request for Purchase relating to such Notes) no Default or Event of
Default shall have occurred and be continuing.

     5. Except as otherwise permitted pursuant to Section 10.2 of the Shelf Agreement, the Company
has not (a) changed its jurisdiction of incorporation or organization; or (b) been a party to any
merger or consolidation prior to the first Closing, at any time following the date of the most
recent financial statements referred to in Section 5.5 of the Shelf Agreement.

 

 

     I have executed this Certificate in the name and on the behalf of the Company on
                                                            , 20___.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 	 
	 	 	 	 
	 

 

 

EXHIBIT 4.3(B)

FORM OF SECRETARY’S CERTIFICATE

OF

HENRY SCHEIN, INC.

I, [                    ], hereby certify that I am the duly elected, qualified and acting
[Secretary][Assistant Secretary] of Henry Schein, Inc., a Delaware corporation (the “Company”), and
that, as such, I have access to its corporate records and am familiar with the matters herein
certified, and I am authorized to execute and deliver this certificate in the name and on behalf of
the Company, and further certify in my capacity as such officer as follows. This certificate is
being delivered pursuant to Section 4.3(b) of that certain Private Shelf Agreement (the “Shelf
Agreement”), dated as of August 9, 2010 by and among the Company and Prudential Investment
Management, Inc. (“Prudential”). The terms used in this certificate and not defined herein have
the respective meanings specified in the Shelf Agreement.

	1.	 	(a) The Company is a company duly incorporated and validly existing under the laws of
Delaware; (b) no petition has been presented nor order made by a court for the bankruptcy or
suspension of payments of the Company and no resolution has been passed to voluntarily
dissolve, merge or de-merge the Company; and (c) no receiver, administrator or similar officer
has been appointed in respect of the Company or its assets.
	 
	2.	 	Attached hereto as Exhibit A is a true and correct copy of the resolutions of
the Board of Directors of the Company, relating to the Shelf Agreement and the transactions
contemplated therein, duly adopted on                      at which a quorum was present and acting
throughout. Such resolutions are in full force and effect on and as of the date hereof, not
having been amended, revoked or rescinded, and such resolutions are filed with the records of
the Board of Directors of the Company.
	 
	3.	 	[The Shelf Agreement was executed and delivered by the Company pursuant to and in accordance
with the resolutions set forth in Exhibit A hereto and said Shelf Agreement is
substantially in the form as was submitted to and approved by the Board of Directors of the
Company as aforementioned.]2
	 
	4.	 	The Series [___] Senior Notes were executed and delivered by the Company pursuant to and in
accordance with the resolutions set forth in Exhibit A hereto and said Notes
are substantially in the form as was submitted to and approved by the Board of Directors of
the Company.
	 
	5.	 	[Attached hereto as Exhibit B is a true, correct and complete copy of the
Certificate of Incorporation of the Company (together with amendments thereto), in full force
and effect on and as of the date hereof, and prior to such date, inclusive, without any
further

 

			
	2	 	To be provided in the Secretary’s
Certificate provided in connection with the first Closing.

 

 

	 	 	modifications or amendments in any respect.] [The Certificate of Incorporation of the
Company in the forms provided to Prudential Investment Management, Inc. on [___], 20[___]
have been in full force and effect from such date to and including the date hereof, without
any further modifications or amendments in any respect.]
	 
	6.	 	[Attached hereto as Exhibit C is the name, title and a copy of the specimen
signature of each representative of the Company executing documents in connection with the
Shelf Agreement. The specimen signature appearing opposite the name of each such person on
Exhibit C is a copy of his or her genuine signature.][There has been no change to the
name, title and specimen signature of certain persons authorized by the Company to execute
documents on behalf of the Company in connection with the Shelf Agreement since [                    ],
the date of the delivery of a Secretary’s Certificate to Prudential Investment Management,
Inc., and the signature appearing opposite the name of each such person, in each case, as
provided to Prudential Investment Management, Inc. as of [                    ] is his or her genuine
signature.]

 

 

IN WITNESS WHEREOF, I have affixed hereto my signature this       day of [                    ], 20[     ].

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 	 
	 	Title:  	[Secretary][Assistant Secretary] 	 
	 

     I,                                         ,         
                                 of the Company, herby certify that the signature above
of                                         , [Secretary][Assistant Secretary] of the Company is [his/her] genuine signature.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 

 

 

Exhibit A

Resolutions of the Board of Directors of the Company

 

 

Exhibit B

Certificate of Incorporation of the Company

 

 

Exhibit C

Incumbency Certificate of the Company

	 	 	 	 	 

	Title

	 	Name of Officer
	 	Signature of Officer

	 	 	 	 	 

	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 
	 	 
	 	 
	 	 	 	 	 
	 
	 	 
	 	 
	 
	 	 
	 	 

 

 

EXHIBIT 4.4(a)

[Form of Opinion of Special Counsel to the Company]

     The following opinions are to be provided by special counsel for the Company, subject to
customary assumptions, definitions, limitations and qualifications. All capitalized terms used
herein without definition shall have the meanings ascribed thereto in that certain Private Shelf
Agreement (the “Shelf Agreement”), dated as of August 9, 2010, between Henry Schein, Inc. (the
“Company”), on the one hand, and Prudential Investment Management, Inc. (“Prudential”) and each
Prudential Affiliate which becomes party thereto, on the other hand.

     The Company (i) is a company duly incorporated and validly existing under the laws of Delaware
and (ii) has the corporate power and authority to execute and deliver the Shelf Agreement and the
Notes, to perform the provisions thereof, and to conduct its business as, to such counsel’s
knowledge, is currently conducted.

     [Each Subsidiary Guarantor (i) is a [•]3 duly [incorporated][formed] and
validly existing under the laws of its jurisdiction of organization and (ii) has all requisite
[•]4 power and authority to execute and deliver its Subsidiary Guarantee and to
perform the provisions thereof.]5

     The Shelf Agreement has been duly authorized, executed and delivered by the Company and
constitutes a legal, valid and binding agreement of the Company, enforceable against the Company in
accordance with its terms.

     The Notes issued on the Closing Date with respect to which the opinion is being delivered,
have been duly authorized, executed and delivered by the Company and constitute legal, valid and
binding obligations of the Company, enforceable against the Company in accordance with their terms.

     Each Subsidiary Guarantee executed on the Closing Day with respect to which the opinion is
being delivered, has been duly authorized, executed and delivered by the applicable Subsidiary
Guarantor and constitutes a legal, valid and binding agreement of that Subsidiary Guarantor,
enforceable against that Subsidiary Guarantor in accordance with its terms.

     Assuming the accuracy of the representations and warranties of the Purchasers in Section 6 of
the Purchase Agreement (and, for this purpose, excluding any materiality or other similar
qualifications set forth therein), no consent, approval or authorization of, or registration,
filing or declaration with, any federal or New York court or governmental agency, body or authority
or administrative agency, or with any Delaware court or arbitrator or governmental or regulatory
authority in each case pursuant to the DGCL by the Company or any Subsidiary Guarantor is required
in connection with the execution, delivery or performance by the Company of the Shelf Agreement or
the Notes or in connection with the execution, delivery or performance by any

 

			
	3	 	Insert appropriate range of entities
(e.g. corporation, limited liability company, etc.).
	 
	4	 	Insert appropriate range of entities
(e.g. corporation, limited liability company, etc.).
	 
	5	 	Opinion regarding Subsidiary
Guarantors will be limited to only those Subsidiary Guarantors at such Closing
Date organized in a jurisdiction in which Proskauer is admitted to practice.
Any Subsidiary Guarantor not addressed by such opinion shall, upon request by
Prudential (in the case of the first Closing Date) or the Required Holders (at
all other times), be delivered by the Company’s local counsel authorized to
practice in the jurisdiction of organization of such Subsidiary Guarantor.

 

 

Subsidiary Guarantor of its Subsidiary Guarantee except such as have been or will be obtained
and made on or prior to the Closing Date.

     No (i) registration under the Securities Act of 1933, as amended, of the Notes or the
Subsidiary Guarantees thereof or (ii) qualification of an indenture in respect of the Notes under
the Trust Indenture Act of 1939, as amended, is required for the offering, sale and delivery of the
Notes purchased by the Purchaser as contemplated by the Note Purchase Agreement, assuming (a) the
accuracy of the Purchaser’s representations contained in Section 6 of the Purchase Agreement (and,
for this purpose, excluding any materiality or other similar qualifications set forth therein) and
(b) the accuracy of the Company’s representations in Section 5 of the Purchase Agreement (and, for
this purpose, excluding any materiality or other similar qualifications set forth therein).

     The execution, delivery and performance by the Company of the Note Purchase Agreement and the
Notes and the execution, delivery and performance by the Subsidiary Guarantors of their Subsidiary
Guarantees do not and will not (i) breach any of the terms or provisions of, or constitute a
default under, or result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company or any Subsidiary pursuant to, any indenture, mortgage, deed of
trust, loan, purchase or credit agreement, lease or other agreement or instrument listed on Annex
B6 to such opinion, (ii) violate the provisions of the Charter or By-laws of the
Company or (iii) violate the laws of the State of New York, the Delaware General Corporation Law or
any federal statute, rule or regulation of the United States of America or any judgment, order or
regulation of any court or arbitrator or governmental or regulatory authority known to such
counsel, applicable to the Company.

     The Company is not an “investment company” or, to the knowledge of such counsel, a Person
“controlled” by an “investment company” within the meaning of the Investment Company Act of 1940,
as amended.

     Neither the issuance and sale of the Notes and the Subsidiary Guarantees, on the Closing Date
with respect to which the opinion is being delivered, nor the application of the proceeds thereof
by the Company in a manner consistent with the requirements of the Note Purchase Agreement will
violate Regulation T, U or X of the Board of Governors of the United States Federal Reserve System,
12 CFR, Part 220, Part 221 and Part 224, respectively.

 

			
	6	 	Such Annex B to include, among other
things, each Principal Credit Facility and each other agreement for material
Indebtedness of the Company and any of its Subsidiaries.

 

 

EXHIBIT 4.4(b)

[Form of Opinion of Special Counsel to the Purchasers]

     The following opinions are to be provided by special counsel to the Purchasers, subject to
customary assumptions, limitations and qualifications. All capitalized terms used herein without
definition shall have the meanings ascribed thereto in that certain Private Shelf Agreement (the
“Shelf Agreement”), dated as of August 9, 2010, between Henry Schein, Inc. (the “Company”), on the
one hand, and Prudential Investment Management, Inc. (“Prudential”) and each Prudential Affiliate
which becomes party thereto, on the other hand.

     Each of the Shelf Agreement, the Request for Purchase, the Confirmation of Acceptance and the
Notes constitutes a legal, valid and binding obligation of the Company, enforceable against the
Company in accordance with its respective terms. Each Subsidiary Guarantee constitutes a legal,
valid and binding obligation of the respective Subsidiary Guarantor, enforceable against such
Subsidiary Guarantor in accordance with its terms.

     No consents, approvals or authorizations of Governmental Authorities of the State of New York
or the United States of America are required under the laws of the United States of America or the
State of New York on behalf of the Company or any Subsidiary Guarantor in connection with the
execution and delivery of the documents to which it is a party.

     Each Chosen-Law Provision is enforceable in accordance with New York General Obligations Law
section 5-1401, as applied by a New York State court or a federal court sitting in New York and
applying New York choice of law principles.

     Under the circumstances contemplated by the Shelf Agreement, the Request for Purchase, the
Confirmation of Acceptance and the Notes, it is not necessary to register the offer and sale of the
Notes and the Subsidiary Guarantees under the Securities Act of 1933, as amended, or to qualify an
indenture in respect of the issuance of the Shelf Notes under the Trust Indenture Act of 1939, as
amended.

 

 

EXHIBIT 4.10

FORM OF CONFIRMATION OF SUBSIDIARY GUARANTEE

     Reference is made to the several Subsidiary Guarantees made by each of the undersigned (each a
“Subsidiary Guarantor”) in favor of the holders of the Shelf Notes described therein (each as
amended, restated, supplemented or otherwise modified from time to time, a “Subsidiary Guarantee”
and collectively, the “Subsidiary Guarantees”).

     Notwithstanding that such consent is not required under the Subsidiary Guarantees, each of the
Subsidiary Guarantors hereby consents to the execution and issue by the Company of its [•]% Series
[•] Senior Notes, due [•] (the “Series [•] Notes”) pursuant to the Private Shelf Agreement, dated
as of August 9, 2010 between Henry Schein, Inc., on the one hand, and Prudential Investment
Management, Inc. and each Prudential Affiliate which becomes party thereto, on the other hand (as
it may be amended, restated or otherwise modified from time to time, the “Shelf Agreement”), which
Series [•] Notes will be guaranteed by such Subsidiary Guarantor under its Subsidiary Guarantee.
As a material inducement to the Purchasers of the Series [•] Notes to consummate the purchase of
the Series [•] Notes under the Shelf Agreement, each of the Subsidiary Guarantors respectively (i)
acknowledges and confirms the continuing existence, validity and effectiveness of its Subsidiary
Guarantee, including, without limitation, with respect to the Series [•] Notes, and (ii) agrees
that the issuance of the Series [•] Notes shall not in any way release, diminish, impair or reduce
its obligations under its Subsidiary Guarantee.

     Terms used herein that are defined in the Shelf Agreement and are not otherwise defined herein
shall have the meanings given in the Shelf Agreement.

	 	 	 	 	 
	 	[SUBSIDIARY GUARANTORS]

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 	 
	 

 

 

EXHIBIT 9.8

 

[Form of] Subsidiary Guarantee

Dated as of [•], 20[•]

of

[Name of Subsidiary Guarantor]

 

 

 

Subsidiary Guarantee

     This Subsidiary Guarantee, dated as of [•], 20[•] (this “Guarantee Agreement"), is
made by [•], a [•]7 (the “Guarantor") in favor of the Purchasers (as defined
below) and the other holders from time to time of the Notes (as defined below). The Purchasers and
such other holders are herein collectively called the “holders” and individually a “holder.”

Preliminary Statements:

     I. Henry Schein, Inc., a Delaware corporation (the “Company"), has entered into a Private
Shelf Agreement dated as of [•], 2010 (as amended, modified, supplemented or restated from time to
time, the “Shelf Agreement") with Prudential Investment Management, Inc. and each Prudential
Affiliate which becomes a party thereto from time to time (such Prudential Affiliates, the
“Purchasers"). Capitalized terms used herein have the meanings specified in the Shelf Agreement
unless otherwise defined herein.

     II. The Company has authorized the issuance, pursuant to the Shelf Agreement, of its senior
promissory notes in the aggregate principal amount of $250,000,000 (the “Shelf Notes"). The
foregoing Shelf Notes that may from time to time be issued pursuant to the Shelf Agreement
(including any notes issued in substitution therefor) are herein collectively called the “Notes”
and individually a “Note".

     III. Pursuant to the Shelf Agreement, the Company is required or has chosen to cause the
Guarantor to deliver this Guarantee Agreement to the holders.

     IV. The Guarantor has received and will receive direct and indirect benefits from the
financing arrangements contemplated by the Shelf Agreement. The [Board of Directors] of the
Guarantor has determined that the incurrence of such obligations is in the best interests of the
Guarantor.

     Now Therefore, in compliance with the Shelf Agreement, and in consideration of, the
execution and delivery of the Shelf Agreement and the purchase of the Notes by each of the
Purchasers, the Guarantor hereby covenants and agrees with, and represents and warrants to each of
the holders as follows:

1. GUARANTEE; INDEMNITY.

     1.1 Guarantee. The Guarantor hereby irrevocably and unconditionally
guarantees to each holder, the due and punctual payment in full of (a) the principal of, Make-Whole
Amount, if any, and interest on (including, without limitation, interest accruing after the filing
of any petition in bankruptcy, or the commencement of any

 

			
	7	 	Insert appropriate form of entity
(e.g. corporation, limited liability company, etc.).

1

 

insolvency, reorganization or like proceeding, whether or not a claim for post-filing or
post-petition interest is allowed in such proceeding), and any other amounts due under, the Notes
when and as the same shall become due and payable (whether at stated maturity or by required or
optional prepayment or by acceleration or otherwise) and (b) any other sums which may become due
under the terms and provisions of the Notes, the Shelf Agreement or any other instrument referred
to therein (all such obligations described in clauses (a) and (b) above are herein called the
“Guaranteed Obligations"). The guarantee in the preceding sentence is an absolute, present and
continuing guarantee of payment and not of collectability and is in no way conditional or
contingent upon any attempt to collect from the Company or any other guarantor of the Notes or upon
any other action, occurrence or circumstance whatsoever. In the event that the Company shall fail
so to pay any of such Guaranteed Obligations, the Guarantor agrees to pay the same when due to the
holders entitled thereto, without demand, presentment, protest or notice of any kind, in lawful
money of the United States of America, pursuant to the requirements for payment specified in the
Notes and the Shelf Agreement. Each default in payment of any of the Guaranteed Obligations shall
give rise to a separate cause of action hereunder and separate suits may be brought hereunder as
each cause of action arises. The Guarantor agrees that the Notes issued in connection with the
Shelf Agreement may (but need not) make reference to this Guarantee Agreement.

     The Guarantor agrees to pay and to indemnify and save each holder harmless from and against
any damage, loss, cost or expense (including attorneys’ fees) which such holder may incur or be
subject to as a consequence, direct or indirect, of (x) any breach by the Guarantor or by the
Company of any warranty, covenant, term or condition in, or the occurrence of any default under,
this Guarantee Agreement, the Notes, the Shelf Agreement or any other instrument referred to
therein, together with all expenses resulting from the compromise or defense of any claims or
liabilities arising as a result of any such breach or default, (y) any legal action commenced to
challenge the validity or enforceability of this Guarantee Agreement, the Notes, the Shelf
Agreement or any other instrument referred to therein and (z) enforcing or defending (or
determining whether or how to enforce or defend) the provisions of this Guarantee Agreement.

     The Guarantor hereby acknowledges and agrees that the Guarantor’s liability hereunder is joint
and several with any other Person(s) who may guarantee the obligations and Indebtedness under and
in respect of the Notes and the Shelf Agreement.

     Notwithstanding the foregoing provisions or any other provision of this Guarantee Agreement,
the holders (by their acceptance of any Note) and the Guarantor hereby agree that if at any time
the Guaranteed Obligations exceed the Maximum Guaranteed Amount determined as of such time with
regard to the Guarantor, then this Guarantee Agreement shall be automatically amended to reduce the
Guaranteed Obligations to the Maximum Guaranteed Amount. Such amendment shall not require the
written consent of the Guarantor or any holder and shall be deemed to have been automatically
consented to by the Guarantor and each holder. The Guarantor agrees that the Guaranteed
Obligations may at any time exceed the Maximum Guaranteed Amount without affecting or impairing the
obligation of the Guarantor. “Maximum Guaranteed Amount” means as

2

 

of the date of determination with respect to the Guarantor, the lesser of (a) the amount of
the Guaranteed Obligations outstanding on such date and (b) the maximum amount that would not
render the Guarantor’s liability under this Guarantee Agreement subject to avoidance under Section
548 of the United States Bankruptcy Code (or any successor provision) or any comparable provision
of applicable state law.

     1.2 Indemnity. The Guarantor hereby further agrees that if, for any reason,
any amount claimed by a holder of the Notes under this Guarantee Agreement is not recoverable on
the basis of a guarantee, it will be liable as a principal debtor and primary obligor to indemnify
that holder of the Notes against any cost, loss or liability it incurs as a result of the Company
not paying any amount expressed to be payable by it under the Notes, the Shelf Agreement or
otherwise on the date when it is expressed to be due. The amount payable by the Guarantor under
this Section 1.2 will not exceed the amount it would have had to pay under Section 1.1 if the
amount claimed had been recoverable on the basis of a guarantee.

2. OBLIGATIONS ABSOLUTE.

     The obligations of the Guarantor hereunder shall be primary, absolute, irrevocable and
unconditional, irrespective of the validity or enforceability of the Notes, the Shelf Agreement or
any other instrument referred to therein, shall not be subject to any counterclaim, setoff,
deduction or defense based upon any claim the Guarantor may have against the Company or any holder
or otherwise, and shall remain in full force and effect without regard to, and shall not be
released, discharged or in any way affected by, any circumstance or condition whatsoever (whether
or not the Guarantor shall have any knowledge or notice thereof), including, without limitation:
(a) any amendment to, modification of, supplement to or restatement of the Notes, the Shelf
Agreement or any other instrument referred to therein (it being agreed that the obligations of the
Guarantor hereunder shall apply to the Notes, the Shelf Agreement or any such other instrument as
so amended, modified, supplemented or restated) or any assignment or transfer of any thereof or of
any interest therein, or any furnishing, acceptance or release of any security for the Notes; (b)
any waiver, consent, extension, indulgence or other action or inaction under or in respect of the
Notes, the Shelf Agreement or any other instrument referred to therein; (c) any bankruptcy,
insolvency, arrangement, reorganization, readjustment, composition, liquidation or similar
proceeding with respect to the Company or its property; (d) any merger, amalgamation or
consolidation of the Guarantor or of the Company into or with any other Person or any sale, lease
or transfer of any or all of the assets of the Guarantor or of the Company to any Person; (e) any
failure on the part of the Company for any reason to comply with or perform any of the terms of any
other agreement with the Guarantor; (f) any failure on the part of any holder to obtain, maintain,
register or otherwise perfect any security; or (g) any other event or circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor (whether or not
similar to the foregoing), and in any event however material or prejudicial it may be to the
Guarantor or to any subrogation, contribution or reimbursement rights the Guarantor may otherwise
have. The Guarantor covenants that its obligations hereunder will not be discharged except by
indefeasible payment in full in

3

 

cash of all of the Guaranteed Obligations and all other obligations hereunder.

3. WAIVER.

     The Guarantor unconditionally waives to the fullest extent permitted by law, (a) notice of
acceptance hereof, of any action taken or omitted in reliance hereon and of any default by the
Company in the payment of any amounts due under the Notes, the Shelf Agreement or any other
instrument referred to therein, and of any of the matters referred to in Section 2 hereof, (b) all
notices which may be required by statute, rule of law or otherwise to preserve any of the rights of
any holder against the Guarantor, including, without limitation, presentment to or demand for
payment from the Company or the Guarantor with respect to any Note, notice to the Company or to the
Guarantor of default or protest for nonpayment or dishonor and the filing of claims with a court in
the event of the bankruptcy of the Company, (c) any right to require any holder to enforce, assert
or exercise any right, power or remedy including, without limitation, any right, power or remedy
conferred in the Shelf Agreement or the Notes, (d) any requirement for diligence on the part of any
holder and (e) any other act or omission or thing or delay in doing any other act or thing which
might in any manner or to any extent vary the risk of the Guarantor or otherwise operate as a
discharge of the Guarantor or in any manner lessen the obligations of the Guarantor hereunder.

4. OBLIGATIONS UNIMPAIRED.

     The Guarantor authorizes the holders, without notice or demand to the Guarantor and without
affecting its obligations hereunder, from time to time: (a) to renew, compromise, extend,
accelerate or otherwise change the time for payment of, all or any part of the Notes, the Shelf
Agreement or any other instrument referred to therein; (b) to change any of the representations,
covenants, events of default or any other terms or conditions of or pertaining to the Notes, the
Shelf Agreement or any other instrument referred to therein, including, without limitation,
decreases or increases in amounts of principal, rates of interest, the Make-Whole Amount or any
other obligation; (c) to take and hold security for the payment of the Notes, the Shelf Agreement
or any other instrument referred to therein, for the performance of this Guarantee Agreement or
otherwise for the Indebtedness guaranteed hereby and to exchange, enforce, waive, subordinate and
release any such security; (d) to apply any such security and to direct the order or manner of sale
thereof as the holders in their sole discretion may determine; (e) to obtain additional or
substitute endorsers or guarantors; (f) to exercise or refrain from exercising any rights against
the Company and others; and (g) to apply any sums, by whomsoever paid or however realized, to the
payment of the Guaranteed Obligations and all other obligations owed hereunder. The holders shall
have no obligation to proceed against any additional or substitute endorsers or guarantors or to
pursue or exhaust any security provided by the Company, the Guarantor or any other Person or to
pursue any other remedy available to the holders.

     If an event permitting the acceleration of the maturity of the principal amount of any Notes
shall exist and such acceleration shall at such time be prevented or the right of

4

 

any holder to receive any payment on account of the Guaranteed Obligations shall at such time
be delayed or otherwise affected by reason of the pendency against the Company, the Guarantor or
any other guarantors of a case or proceeding under a bankruptcy or insolvency law, the Guarantor
agrees that, for purposes of this Guarantee Agreement and its obligations hereunder, the maturity
of such principal amount shall be deemed to have been accelerated with the same effect as if the
holder thereof had accelerated the same in accordance with the terms of the Shelf Agreement, and
the Guarantor shall forthwith pay such accelerated Guaranteed Obligations.

5. SUBROGATION AND SUBORDINATION.

     (a) The Guarantor will not exercise any rights which it may have acquired by way of
subrogation under this Guarantee Agreement, by any payment made hereunder or otherwise, or accept
any payment on account of such subrogation rights, or any rights of reimbursement, contribution or
indemnity or any rights or recourse to any security for the Notes or this Guarantee Agreement
unless and until all of the Guaranteed Obligations shall have been indefeasibly paid in full in
cash.

     (b) The Guarantor hereby subordinates the payment of all Indebtedness and other obligations of
the Company or any other guarantor of the Guaranteed Obligations owing to the Guarantor, whether
now existing or hereafter arising, including, without limitation, all rights and claims described
in clause (a) of this Section 5, to the indefeasible payment in full in cash of all of the
Guaranteed Obligations. If the Required Holders so request, any such Indebtedness or other
obligations shall be enforced and performance received by the Guarantor as trustee for the holders
and the proceeds thereof shall be paid over to the holders promptly, in the form received (together
with any necessary endorsements) to be applied to the Guaranteed Obligations, whether matured or
unmatured, as may be directed by the Required Holders, but without reducing or affecting in any
manner the liability of the Guarantor under this Guarantee Agreement.

     (c) If any amount or other payment is made to or accepted by the Guarantor in violation of any
of the preceding clauses (a) and (b) of this Section 5, such amount shall be deemed to have been
paid to the Guarantor for the benefit of, and held in trust for the benefit of, the holders and
shall be paid over to the holders promptly, in the form received (together with any necessary
endorsements) to be applied to the Guaranteed Obligations, whether matured or unmatured, as may be
directed by the Required Holders, but without reducing or affecting in any manner the liability of
the Guarantor under this Guarantee Agreement.

     (d) The Guarantor acknowledges that it will receive direct and indirect benefits from the
financing arrangements contemplated by the Shelf Agreement and that its agreements set forth in
this Guarantee Agreement (including this Section 5) are knowingly made in contemplation of such
benefits.

6. REINSTATEMENT OF GUARANTEE.

     This Guarantee Agreement shall continue to be effective, or be reinstated, as the

5

 

case may be, if and to the extent at any time payment, in whole or in part, of any of the sums
due to any holder on account of the Guaranteed Obligations is rescinded or must otherwise be
restored or returned by a holder upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Company or any other guarantors, or upon or as a result of the appointment of
a custodian, receiver, trustee or other officer with similar powers with respect to the Company or
any other guarantors or any part of its or their property, or otherwise, all as though such
payments had not been made.

7. RANK OF GUARANTEE.

     The Guarantor will ensure that its payment obligations under this Guarantee Agreement will at
all times rank at least pari passu, without preference or priority, with all other unsecured
and unsubordinated Indebtedness of the Guarantor now or hereafter existing.

8. REPRESENTATIONS AND WARRANTIES OF THE GUARANTOR.

     The Guarantor represents and warrants to each holder as follows:

     8.1 Organization; Power and Authority. The Guarantor is a [•], duly
organized, validly existing and in good standing under the laws of its jurisdiction of [•], and is
duly qualified as a foreign [•], where legally applicable, and is in good standing in each
jurisdiction in which such qualification is required by law, other than those jurisdictions as to
which the failure to be so qualified or in good standing could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse Effect. The Guarantor has the
[•]8 power and authority, in all material respects, to own or hold under lease
the properties it purports to own or hold under lease and to transact the business it transacts, to
execute and deliver this Guarantee Agreement and to perform the provisions hereof.

     8.2 Authorization, Etc. This Guarantee Agreement has been duly authorized
by all necessary [•]9 action on the part of the Guarantor, and this Guarantee
Agreement constitutes a legal, valid and binding obligation of the Guarantor enforceable against
the Guarantor in accordance with its terms, except as such enforceability may be limited by (a)
applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the
enforcement of creditors’ rights generally and (b) general principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at law).

     8.3 Compliance with Laws, Other Instruments, Etc. The execution, delivery
and performance by the Guarantor of this Guarantee Agreement will not

 

			
	8	 	Insert appropriate form of action
(e.g. corporate, limited liability company, etc.).
	 
	9	 	See preceding Note.

6

 

     (a) contravene, result in any breach of, or constitute a default under, or result
in the creation of any Lien in respect of any property of the Guarantor or any of its
Subsidiaries under, (i) the organizational documents of the Guarantor or (ii) any
Material indenture, mortgage, deed of trust, loan, purchase or credit agreement, lease,
or any other Material agreement or instrument to which the Guarantor or any of its
Subsidiaries is bound or by which the Guarantor or any of its Subsidiaries or any of
their respective properties may be bound or affected;

     (b) conflict with or result in a breach of any of the terms, conditions or
provisions of any order, judgment, decree, or ruling of any court, arbitrator or
Governmental Authority applicable to the Guarantor or any of its Subsidiaries;

     (c) (c) violate any provision of any statute or other rule or regulation of any
Governmental Authority applicable to the Guarantor or any of its Subsidiaries;

     except for any such contravention, breach, default, creation of a Lien, conflict or violation
described in any of clauses (b), and (c) above which, individually or in the aggregate, could not
reasonably be expected to result in a Material Adverse Effect.

     “Governmental Authority” means (x) the government of (i) the United States of America or any
State or other political subdivision thereof, or (ii) any other jurisdiction in which the Guarantor
or any of its Subsidiaries conducts all or a material part of its business, or which asserts
jurisdiction over any properties of the Guarantor or any of its Subsidiaries, or (y) any entity
exercising executive, legislative, judicial, regulatory or administrative functions of, or
pertaining to, any such government.

     8.4 Governmental Authorizations, Etc. No consent, approval or authorization
of, or registration, filing or declaration with, any Governmental Authority is required in
connection with the execution, delivery or performance by the Guarantor of this Guarantee
Agreement.

     8.5 Information Regarding the Company. The Guarantor now has and will
continue to have independent means of obtaining information concerning the affairs, financial
condition and business of the Company. No holder shall have any duty or responsibility to provide
the Guarantor with any credit or other information concerning the affairs, financial condition or
business of the Company which may come into possession of the holders. The Guarantor has executed
and delivered this Guarantee Agreement without reliance upon any representation by the holders
including, without limitation, with respect to (a) the due execution, validity, effectiveness or
enforceability of any instrument, document or agreement evidencing or relating to any of the
Guaranteed Obligations or any loan or other financial accommodation made or granted to the Company,
(b) the validity, genuineness, enforceability, existence, value or sufficiency of any property
securing any of the Guaranteed Obligations or the creation, perfection or priority of any lien or
security interest in such property or (c) the existence, number,

7

 

financial condition or creditworthiness of other guarantors or sureties, if any, with respect
to any of the Guaranteed Obligations.

     8.6 Solvency. Upon the execution and delivery hereof, the Guarantor will be
solvent, will be able to pay its debts as they mature, and will have capital sufficient to carry on
its business.

     8.7 Pari Passu. All obligations and liabilities of the Guarantor under this
Guarantee Agreement will rank in right of payment at least pari passu without preference or
priority with all other outstanding unsecured and unsubordinated present Indebtedness of the
Guarantor.

9. TERM OF GUARANTEE AGREEMENT.

     This Guarantee Agreement and all guarantees, covenants and agreements of the Guarantor
contained herein shall continue in full force and effect and shall not be discharged until such
time as all of the Guaranteed Obligations and all other obligations hereunder shall be indefeasibly
paid in full in cash and the Issuance Period under the Shelf Agreement shall have expired or
otherwise terminated and shall be subject to reinstatement pursuant to Section 6; provided that
this Guarantee Agreement may be terminated in accordance with, and pursuant to, Section 9.8(e) of
the Shelf Agreement.

10. SURVIVAL OF REPRESENTATIONS AND WARRANTIES; ENTIRE AGREEMENT.

     All representations and warranties contained herein shall survive the execution and delivery
of this Guarantee Agreement and may be relied upon by any subsequent holder, regardless of any
investigation made at any time by or on behalf of any Purchaser or any other holder. All
statements contained in any certificate or other instrument delivered by or on behalf of the
Guarantor pursuant to this Guarantee Agreement shall be deemed representations and warranties of
the Guarantor under this Guarantee Agreement. Subject to the preceding sentence, this Guarantee
Agreement embodies the entire agreement and understanding between each holder and the Guarantor and
supersedes all prior agreements and understandings relating to the subject matter hereof.

11. AMENDMENT AND WAIVER.

     11.1 Requirements. Except as otherwise provided in the fourth paragraph of
Section 1.1 of this Guarantee Agreement, this Guarantee Agreement may be amended, and the
observance of any term hereof may be waived (either retroactively or prospectively), with (and only
with) the written consent of the Guarantor and the Required Holders, except that no amendment or
waiver (a) of any of the first three paragraphs of Section 1.1 or any of Section 1.2 or any of the
provisions of Section 2, 3, 4, 5, 6, 7, 9 or 11 hereof, or any defined term (as it is used
therein), or (b) which results in the limitation of the liability of the Guarantor hereunder
(except to the extent provided in the fourth paragraph of Section 1 of this Guarantee Agreement)
will be effective as to any

8

 

holder unless consented to by such holder in writing.

     11.2 Solicitation of Holders of Notes.

     (a) Solicitation. The Guarantor will provide each holder of the Notes (irrespective of the
amount of Notes then owned by it) with sufficient information, sufficiently far in advance of the
date a decision is required, to enable such holder to make an informed and considered decision with
respect to any proposed amendment, waiver or consent in respect of any of the provisions hereof.
The Guarantor will deliver executed or true and correct copies of each amendment, waiver or consent
effected pursuant to the provisions of this Section 11.2 to each holder promptly following the date
on which it is executed and delivered by, or receives the consent or approval of, the requisite
holders of Notes.

     (b) Payment. The Guarantor will not directly or indirectly pay or cause to be paid any
remuneration, whether by way of supplemental or additional interest, fee or otherwise, or grant any
security or provide other credit support, to any holder as consideration for or as an inducement to
the entering into by any holder of any waiver or amendment of any of the terms and provisions
hereof unless such remuneration is concurrently paid, or security is concurrently granted or other
credit support concurrently provided, on the same terms, ratably to each holder even if such holder
did not consent to such waiver or amendment.

     11.3 Binding Effect. Any amendment or waiver consented to as provided in
this Section 11 applies equally to all holders and is binding upon them and upon each future holder
and upon the Guarantor without regard to whether any Note has been marked to indicate such
amendment or waiver. No such amendment or waiver will extend to or affect any obligation, covenant
or agreement not expressly amended or waived or impair any right consequent thereon. No course of
dealing between the Guarantor and the holder nor any delay in exercising any rights hereunder or
under any Note shall operate as a waiver of any rights of any holder. As used herein, the term
“this Guarantee Agreement” and references thereto shall mean this Guarantee Agreement as it may be
amended, modified, supplemented or restated from time to time.

     11.4 Notes Held By Company, Etc. Solely for the purpose of determining
whether the holders of the requisite percentage of the aggregate principal amount of Notes then
outstanding approved or consented to any amendment, waiver or consent to be given under this
Guarantee Agreement, or have directed the taking of any action provided herein to be taken upon the
direction of the holders of a specified percentage of the aggregate principal amount of Notes then
outstanding, Notes directly or indirectly owned by the Guarantor, the Company or any of their
respective Affiliates shall be deemed not to be outstanding.

12. NOTICES.

     All notices and communications provided for hereunder shall be in writing and sent (a) by
telecopy if the sender on the same day sends a confirming copy of such notice

9

 

by a recognized overnight delivery service (charges prepaid), or (b) by registered or
certified mail with return receipt requested (postage prepaid), or (c) by a recognized overnight
delivery service (with charges prepaid). Any such notice must be sent:

     (a) if to the Guarantor, to [•], or such other address as the Guarantor shall have specified
to the holders in writing, or

     (b) if to any holder, to such holder at the addresses specified for such communications set
forth in such holder’s Confirmation of Acceptance, or such other address as such holder shall have
specified to the Guarantor in writing.

13. MISCELLANEOUS.

     13.1 Successors and Assigns. All covenants and other agreements contained
in this Guarantee Agreement by or on behalf of any of the parties hereto bind and inure to the
benefit of their respective successors and assigns whether so expressed or not.

     13.2 Severability.  Any provision of this Guarantee Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall (to the full extent
permitted by law), not invalidate or render unenforceable such provision in any other jurisdiction.

     13.3 Construction. Each covenant contained herein shall be construed
(absent express provision to the contrary) as being independent of each other covenant contained
herein, so that compliance with any one covenant shall not (absent such express contrary provision)
be deemed to excuse compliance with any other covenant. Whether any provision herein refers to
action to be taken by any Person, or which such Person is prohibited from taking, such provision
shall be applicable whether such action is taken directly or indirectly by such Person.

     The section and subsection headings in this Guarantee Agreement are for convenience of
reference only and shall neither be deemed to be a part of this Guarantee Agreement nor modify,
define, expand or limit any of the terms or provisions hereof. All references herein to numbered
sections, unless otherwise indicated, are to sections of this Guarantee Agreement. Words and
definitions in the singular shall be read and construed as though in the plural and vice versa, and
words in the masculine, neuter or feminine gender shall be read and construed as though in either
of the other genders where the context so requires.

     13.4 Further Assurances.  The Guarantor agrees to execute and deliver all
such instruments and take all such action as the Required Holders may from time to time reasonably
request in order to effectuate fully the purposes of this Guarantee Agreement.

     13.5 Governing Law. This Guarantee Agreement shall be construed and

10

 

enforced in accordance with, and the rights of the parties shall be governed by, the law of
the State of New York, excluding choice-of-law principles of the law of such State that would
permit the application of the laws of a jurisdiction other than such State.

     13.6 Jurisdiction and Process; Waiver of Jury Trial.

     (a) Each of the Guarantor and each holder irrevocably submits to the non-exclusive
jurisdiction of any New York State or federal court sitting in the Borough of Manhattan, The City
of New York, over any suit, action or proceeding arising out of or relating to this Guarantee
Agreement. To the fullest extent permitted by applicable law, each of the Guarantor and each
holder of Notes irrevocably waives and agrees not to assert, by way of motion, as a defense or
otherwise, any claim that it is not subject to the jurisdiction of any such court, any objection
that it may now or hereafter have to the laying of the venue of any such suit, action or proceeding
brought in any such court and any claim that any such suit, action or proceeding brought in any
such court has been brought in an inconvenient forum.

     (b) Each of the Guarantor and each holder consents to process being served by or on behalf of
such Guarantor or any holder, as applicable, in any suit, action or proceeding of the nature
referred to in Section 13.6(a) by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, return receipt requested, to it at its
address specified in Section 12 or at such other address of which such holder shall then have been
notified pursuant to Section 12. Each of the Guarantor and each holder agrees that such service
upon receipt (i) shall be deemed in every respect effective service of process upon it in any such
suit, action or proceeding and (ii) shall, to the fullest extent permitted by applicable law, be
taken and held to be valid personal service upon and personal delivery to it. Notices hereunder
shall be conclusively presumed received as evidenced by a delivery receipt furnished by the United
States Postal Service or any reputable commercial delivery service.

     (c) Nothing in this Section 13.6 shall affect the right of any holder to serve process in any
manner permitted by law, or limit any right that the holders may have to bring proceedings against
the Guarantor in the courts of any appropriate jurisdiction or to enforce in any lawful manner a
judgment obtained in one jurisdiction in any other jurisdiction.

     (d) THE GUARANTOR AND THE HOLDERS HEREBY WAIVE TRIAL BY JURY IN ANY ACTION BROUGHT ON OR WITH
RESPECT TO THIS GUARANTEE AGREEMENT OR OTHER DOCUMENT EXECUTED IN CONNECTION HEREWITH.

     13.7 Reproduction of Documents; Execution. This Guarantee Agreement may be
reproduced by any holder by any photographic, photostatic, electronic, digital, or other similar
process and such holder may destroy any original document so reproduced. The Guarantor agrees and
stipulates that, to the extent permitted by applicable law, any such reproduction shall be
admissible in evidence as the original itself in any judicial or administrative proceeding (whether
or not the original is

11

 

in existence and whether or not such reproduction was made by such holder in the regular
course of business) and any enlargement, facsimile or further reproduction of such reproduction
shall likewise be admissible in evidence. This Section 13.7 shall not prohibit the Guarantor or
any other holder of Notes from contesting any such reproduction to the same extent that it could
contest the original, or from introducing evidence to demonstrate the inaccuracy of any such
reproduction. A facsimile or electronic transmission of the signature page of the Guarantor shall
be as effective as delivery of a manually executed counterpart hereof and shall be admissible into
evidence for all purposes.

12

 

     In Witness Whereof, the Guarantor has caused this Guarantee Agreement to be duly
executed and delivered as of the date and year first above written.

	 	 	 	 	 	 	 

	 	 	[Name of Guarantor]	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:	 	 	 	 

13exv10w1

Exhibit 10.1

SECURITIES PURCHASE AGREEMENT

     Securities Purchase Agreement (this “Agreement”), dated as of August 9, 2010, among Columbia
Laboratories, Inc., a Delaware corporation (“Buyer”) and the parties listed on Schedule I
attached hereto (each a “Seller” and collectively, the “Sellers”).

     Each of the Sellers owns the shares of the Buyer’s common stock, $.01 par value per share
(“Common Stock”) set forth next to such Seller’s name on Schedule I attached hereto
(collectively, the “Shares”).

     The Sellers desire to sell and Buyer desires to purchase the Shares upon the terms and subject
to the conditions set forth herein.

     The parties, intending to be legally bound, hereby agree as follows:

     1. Purchase and Sale of the Shares; Etc. Upon the terms and subject to the conditions
of this Agreement, each Seller hereby sells, assigns and transfers to Buyer, and Buyer hereby
purchases from each Seller, the Shares owned by such Seller, free and clear of any liens, charges,
encumbrances, security interests, options, mortgages, liabilities, pledges, conditional sale
agreements or other adverse claims (other than (x) those imposed by applicable securities laws,
rules and regulations and (y) those arising as a result of Buyer being the acquirer thereof)
(collectively, “Encumbrances”).

     2. Purchase Price and Deliveries.

     (a) The purchase price for the Shares is set forth on Schedule I hereto (the “Purchase
Price”) and has been allocated among the Sellers as set forth thereon. Simultaneously with the
execution and delivery of this Agreement, Buyer shall pay the Purchase Price to the Sellers by wire
transfer of immediately available funds to the account(s) of the respective Seller set forth on
Schedule II hereto.

     (b) Simultaneously with the execution and delivery of this Agreement, the Sellers shall
initiate electronic delivery of the Shares through the Depository Trust Company (“DTC”)
Deposit/Withdrawal at Custodian (“DWAC”) system to American Stock Transfer & Trust Company (the
“Transfer Agent”), for the account of Buyer. Set forth on Schedule II next to each Seller’s
name is the name and DTC participant number of the Seller’s prime broker who will deliver the
Shares.

     3. Representations and Warranties of the Sellers. Each of the Sellers, in order to
induce Buyer to enter into this Agreement, hereby represents and warrants to Buyer as to itself
only as follows, which representations and warranties shall survive the execution and delivery
hereof and the consummation of the transactions contemplated hereby:

     3.1 Organization; Authorization. Such Seller has been duly organized or formed and is validly
existing and in good standing under the laws of the respective jurisdictions of its formation.
Such Seller has the requisite power and authority to execute, deliver and perform this Agreement.
The execution and delivery of this Agreement by such Seller, the performance by such Seller of its
obligations hereunder and the consummation of the transactions contemplated

 

 

by this Agreement have been duly authorized by all requisite action on the part of such
Seller. This Agreement has been duly authorized, executed and delivered by such Seller and
constitutes a legal, valid and binding obligation of such Seller, enforceable against such Seller
in accordance with its terms.

     3.2 No Conflict. The execution and delivery of this Agreement by such Seller, the performance
by such Seller of its respective obligations hereunder and the consummation of the transactions
contemplated hereby do not (a) violate, contravene or breach the certificate of incorporation or
by-laws or any other governing documents of such Seller; (b) violate, contravene or breach, or
constitute a default under, any contract, agreement, indenture or instrument to which such Seller
is a party, or any of its property or assets are bound, or to which such Seller may be subject; or
(c) violate, contravene or breach any statute or law or any judgment, decree, order, regulation, or
rule of any court or governmental authority applicable to such Seller. No consent of, approval of,
or filing with, any person or entity (including any governmental entity) is required for such
Seller to enter into this Agreement or consummate the transactions contemplated hereby (other than
those that have been obtained or made or, if applicable, any filings with the SEC, which would be
made as and when required). As of the date hereof, there are no pending legal proceedings against
such Seller affecting the Shares or the right of such Seller to execute, deliver and perform its
obligations under this Agreement.

     3.3 The Shares. Such Seller has good and valid title to its Shares as set forth on
Schedule I. Such Shares are owned beneficially and of record by such Seller and are being
sold to Buyer free and clear of any Encumbrances. Upon payment of the Purchase Price by Buyer to
such Seller in accordance with this Agreement, good and valid title to the Shares will pass to
Buyer free of any Encumbrances whatsoever.

     3.4 Broker. Other than the broker set forth on Schedule II next to the Seller’s name,
to whom such Seller has agreed to pay a fee but no expenses (collectively, the “Sellers Broker
Fee”) and Seller’s prime broker, such Seller has not retained or otherwise employed any broker or
finder or, directly or indirectly, incurred any liability for any brokerage or finder’s fees or
commissions or similar payments in connection with the transactions contemplated by this Agreement.
Buyer shall have no liability for any payments in respect of the Sellers Broker Fee or to Seller’s
prime broker.

     3.5 Knowledge; Etc.

          A. Such Seller is an “accredited investor,” as such term is defined in Rule 501 promulgated
under the Securities Act of 1933, as amended, with such knowledge and experience in financial and
business matters as to be capable of evaluating the risks of ownership and sale of its Shares, and
have carefully evaluated the same. Such Seller is able to bear the economic risks of the sale
contemplated by this Agreement and is voluntarily assuming all risks associated with the sale of
the Shares.

          B. SUCH SELLER HAS CONDUCTED ITS OWN INDEPENDENT FINANCIAL AND BUSINESS INVESTIGATION OF THE
SHARES. SUCH SELLER REPRESENTS TO AND AGREES WITH BUYER THAT NEITHER BUYER NOR ANY OF ITS
AFFILIATES NOR ANY OF THEIR RESPECTIVE DIRECTORS, OFFICERS,

2

 

EMPLOYEES, AGENTS, TRUSTEES OR ADVISORS, HAVE ANY RESPONSIBILITY TO SUCH SELLER FOR THE
COMPLETENESS OF INFORMATION OBTAINED BY SUCH SELLER FROM ANY SOURCE WITH RESPECT TO OR IN ANY WAY
RELATING TO THE SHARES.

          C. SUCH SELLER ACKNOWLEDGES AND AGREES THAT IT HAS RELIED SOLELY ON ITS OWN KNOWLEDGE AND
INVESTIGATION ABOUT BUYER, AND HAS NOT RELIED UPON ANY REPRESENTATIONS OF BUYER IN MAKING ITS
DECISION TO SELL ITS SHARES, OTHER THAN THOSE SET FORTH IN SECTIONS 4.1 THROUGH 4.3 OF THIS
AGREEMENT.

     3.6 No Other Representations and Warranties. Except as set forth in Sections 3.1 through 3.5
of this Agreement, the Sellers make no representations or warranties whether express or implied.

     4. Representations and Warranties of Buyer. Buyer, in order to induce the Sellers to
sell the Shares, hereby represents and warrants to the Sellers as follows, which representations
and warranties shall survive the execution and delivery hereof and the consummation of the
transactions contemplated hereby:

     4.1 Organization; Authorization. Buyer has been duly organized or formed and is validly
existing and in good standing under the laws of the jurisdiction of its formation. Buyer has the
requisite power and authority to execute, deliver and perform this Agreement. The execution and
delivery of this Agreement by Buyer, the performance by Buyer of its obligations hereunder and the
consummation of the transactions by Buyer contemplated by this Agreement have been duly authorized
by all requisite action on the part of Buyer. This Agreement has been duly authorized, executed
and delivered by Buyer and constitutes a legal, valid and binding obligation of Buyer, enforceable
against Buyer in accordance with its terms.

     4.2 No Conflict. The execution and delivery of this Agreement by Buyer, the performance by
Buyer of its obligations hereunder and the consummation of the transactions contemplated by this
Agreement do not: (a) violate, contravene or breach, the certificate of incorporation or by-laws or
any other governing documents of Buyer; (b) violate, contravene or breach, or constitute a default
under, any contract, agreement, indenture or instrument to which Buyer is a party, or any of its
property or assets are bound, or to which it may be subject; or (c) violate, contravene or breach
any statute or law or any judgment, decree, order, regulation, or rule of any court or governmental
authority applicable to Buyer. No consent of, approval of, or filing with, any person or entity
(including any governmental entity) is required for Buyer to enter into this Agreement or
consummate the transactions contemplated hereby (other than those that have been obtained or made
or, if applicable, any filings with the SEC, which would be made as and when required). As of the
date hereof, there are no pending legal proceedings against Buyer affecting the right of Buyer to
execute, deliver and perform its obligations under this Agreement.

     4.3 Broker. Other than The Benchmark Company, LLC, the fees (other than the Sellers Broker
Fee) and expenses of which will be paid by Buyer, Buyer has not retained or otherwise employed any
broker or finder or, directly or indirectly, incurred any liability for any

3

 

brokerage or finder’s fees or commissions or similar payments in connection with the
transactions contemplated by this Agreement.

     4.4 Other Representations and Warranties. Except as set forth in Sections 4.1 through 4.3
hereof, Buyer makes no representations or warranties whether express or implied.

     5. Notice. All notices, consents and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given when (a) delivered by hand, (b) sent by
telecopier (with receipt confirmed), provided that a copy is mailed by registered or certified
mail, return receipt requested, or (c) when received by the addressee, if sent by Express Mail,
Federal Express or other express delivery service (receipt requested), in each case to the
appropriate addresses and telecopier numbers set forth below, in the case of the Buyer or on
Schedule II, in the case of any Seller (or to such other addresses and telecopier numbers
as a party may designate as to itself by notice to the other parties):

	 	 	 

	 

	 	If to the Buyer:
	 

	 	Columbia Laboratories, Inc.

354 Eisenhower Parkway

Livingston, New Jersey 07039

Attention: General Counsel

	 
	 	 
	 

	 	Telephone: (973) 486-8809

Telecopier: (973) 994-3001

     6. Binding Effect and Assignment. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and assigns.

     7. Further Assurances. The Sellers and Buyer shall take such actions and execute and
deliver such documents as Buyer may reasonably request to effectuate the intent of this Agreement.

     8. Entire Agreement; Etc. This Agreement constitutes a complete statement of all
agreements among the parties hereto with respect to its subject matter and supersedes all other
arrangements and understandings between or among them with respect to its subject matter. The
Buyer acknowledges that the confidentiality agreements entered into among Buyer and Perry Capital
LLC prior to the date hereof have terminated. No changes of, modifications of, or additions to
this Agreement shall be valid unless the same shall be in writing and signed by the parties hereto.
Neither Buyer nor the Sellers have made any representations or warranties except as expressly set
forth in this Agreement. The right to any remedy based on the representations, warranties,
covenants and other obligations contained herein will not be affected by any investigation
conducted with respect to, or any knowledge acquired (or capable of being acquired) at any time,
with respect to the accuracy or inaccuracy of or compliance with, any such representation,
warranty, covenant or obligation.

     9. Construction. To the extent that there is only one Seller listed on Schedule
I hereto, each of the references hereunder to the “Sellers” shall be interpreted in the
singular context to be the “Seller”.

4

 

     10. Headings. The headings contained in this Agreement are for the convenience of
reference only, shall not be deemed to be a part of this Agreement and shall not be referred to in
connection with the construction or interpretation of this Agreement.

     11. Governing Law and Jurisdiction. This Agreement shall be construed and interpreted
according to the laws of the State of New York. All legal actions or proceedings or disputes
arising out of, relating to or concerning this Agreement shall be decided by the courts of the
State of New York, the courts of the United States for the Southern District of New York. Buyer
and each Seller hereby irrevocably consent to the jurisdiction of the courts referred to in the
preceding sentence and irrevocably consents to service of process of any of the aforementioned
courts in any action or proceeding anywhere in the world.

     12. Expenses. Buyer and each of the Sellers shall bear and pay their own respective
expenses in connection with this Agreement and the consummation of the transactions contemplated by
this Agreement.

     13. Counterparts. This Agreement may be executed in any number of counterparts and by
the different parties hereto on separate counterparts, each of which when so executed and delivered
shall be an original, but all the counterparts together shall constitute one and the same
instrument.

     14. Publicity. The Buyer shall not publicly disclose the name of any Seller, without
the prior written consent of such Seller, except to the extent disclosure of this Agreement or the
transaction contemplated hereby are required by law, regulations or the rules of any securities
exchange, in which case the Buyer shall provide the applicable Seller with prior notice of and the
opportunity to comment on such disclosure.

[Remainder of this page intentionally left blank]

5

 

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

	 	 	 	 	 

	 	 	COLUMBIA LABORATORIES, INC.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Lawrence A. Gyenes
	 

	 	 	 	 
	 

	 	 	 	Name: Lawrence A. Gyenes
	 

	 	 	 	Title: SVP & CFO
	 
	 	 	 	 
	 	 	PERRY PARTNERS INTERNATIONAL INC.
	 
	 	 	 	 
	 

	 	By:
	 	Perry Corp., Investment Manager of Perry Partners International, Inc.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael C. Neus
	 

	 	 	 	 
	 

	 	 	 	Name: Michael C. Neus
	 

	 	 	 	Title: General Counsel
	 
	 	 	 	 
	 	 	PERRY PARTNERS, L.P.
	 
	 	 	 	 
	 

	 	By:
	 	Perry Corp., General Partner of Perry Partners L.P.
	 
	 	 	 	 
	 

	 	By:
	 	/s/ Michael C. Neus
	 

	 	 	 	 
	 

	 	 	 	Name: Michael C. Neus
	 

	 	 	 	Title: General Counsel

 

SCHEDULE I

	 	 	 	 	 	 	 	 	 
	Name	 	Cash Consideration	 	 	Shares	 
	PERRY PARTNERS INTERNATIONAL INC.
	 	$	2,069,331.30	 	 	 	2,299,257	 
	PERRY PARTNERS, L.P.
	 	$	930,665.70	 	 	 	1,034,073	 
	PURCHASE PRICE:
	 	$	2,999,997.00	 	 	 	 	 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00177-of-00352.parquet"}]]