Document:

exv10w2

 

Execution Copy

 

 

$70,000,000

CREDIT AGREEMENT

dated as of February 28, 2006

among

BLACKBOARD INC.

as Borrower

THE LENDERS PARTY HERETO

and

CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Administrative Agent and Collateral Agent

 

CREDIT SUISSE,

as Sole Bookrunner and Sole Lead Arranger

CREDIT SUISSE,

as Syndication Agent

CREDIT SUISSE,

as Documentation Agent

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	 

	 	ARTICLE I.	 	 	 	 
	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Definitions	 	 	 	 
	SECTION 1.01.

	 	Defined Terms
	 	 	1	 
	SECTION 1.02.

	 	Terms Generally
	 	 	23	 
	SECTION 1.03.

	 	Classification of Loans and Borrowings
	 	 	23	 
	SECTION 1.04.

	 	Pro Forma Calculations
	 	 	23	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE II.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	The Credits	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 2.01.

	 	Commitments
	 	 	24	 
	SECTION 2.02.

	 	Loans
	 	 	24	 
	SECTION 2.03.

	 	Borrowing Procedure
	 	 	26	 
	SECTION 2.04.

	 	Repayment of Loans; Evidence of Debt
	 	 	26	 
	SECTION 2.05.

	 	Fees
	 	 	27	 
	SECTION 2.06.

	 	Interest on Loans
	 	 	28	 
	SECTION 2.07.

	 	Default Interest
	 	 	28	 
	SECTION 2.08.

	 	Alternate Rate of Interest
	 	 	29	 
	SECTION 2.09.

	 	Termination and Reduction of Commitments
	 	 	29	 
	SECTION 2.10.

	 	Conversion and Continuation of Borrowings
	 	 	30	 
	SECTION 2.11.

	 	Repayment of Term Borrowings
	 	 	31	 
	SECTION 2.12.

	 	Prepayment
	 	 	32	 
	SECTION 2.13.

	 	Mandatory Prepayments
	 	 	32	 
	SECTION 2.14.

	 	Reserve Requirements; Change in Circumstances
	 	 	34	 
	SECTION 2.15.

	 	Change in Legality
	 	 	36	 
	SECTION 2.16.

	 	Indemnity
	 	 	36	 
	SECTION 2.17.

	 	Pro Rata Treatment
	 	 	37	 
	SECTION 2.18.

	 	Sharing of Setoffs
	 	 	37	 
	SECTION 2.19.

	 	Payments
	 	 	38	 
	SECTION 2.20.

	 	Taxes
	 	 	38	 
	SECTION 2.21.

	 	Assignment of Commitments Under Certain Circumstances; Duty to Mitigate
	 	 	40	 
	SECTION 2.22.

	 	Swingline Loans
	 	 	41	 
	SECTION 2.23.

	 	Letters of Credit
	 	 	43	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE III.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Representations and Warranties	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 3.01.

	 	Organization; Powers
	 	 	47	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	SECTION 3.02.

	 	Authorization; No Conflicts
	 	 	47	 
	SECTION 3.03.

	 	Enforceability
	 	 	47	 
	SECTION 3.04.

	 	Governmental Approvals
	 	 	48	 
	SECTION 3.05.

	 	Financial Statements
	 	 	48	 
	SECTION 3.06.

	 	No Material Adverse Change
	 	 	48	 
	SECTION 3.07.

	 	Title to Properties; Possession Under Leases
	 	 	48	 
	SECTION 3.08.

	 	Subsidiaries
	 	 	49	 
	SECTION 3.09.

	 	Litigation; Compliance with Laws
	 	 	49	 
	SECTION 3.10.

	 	Agreements
	 	 	50	 
	SECTION 3.11.

	 	Federal Reserve Regulations
	 	 	50	 
	SECTION 3.12.

	 	Investment Company Act; Public Utility Holding Company Act
	 	 	51	 
	SECTION 3.13.

	 	Use of Proceeds
	 	 	51	 
	SECTION 3.14.

	 	Tax Returns
	 	 	51	 
	SECTION 3.15.

	 	No Material Misstatements; Acquisition Documentation
	 	 	51	 
	SECTION 3.16.

	 	Employee Benefit Plans
	 	 	52	 
	SECTION 3.17.

	 	Environmental Matters
	 	 	52	 
	SECTION 3.18.

	 	Insurance
	 	 	53	 
	SECTION 3.19.

	 	Security Documents
	 	 	53	 
	SECTION 3.20.

	 	Location of Real Property
	 	 	54	 
	SECTION 3.21.

	 	Labor Matters
	 	 	54	 
	SECTION 3.22.

	 	Liens
	 	 	55	 
	SECTION 3.23.

	 	Intellectual Property
	 	 	55	 
	SECTION 3.24.

	 	Solvency
	 	 	55	 
	SECTION 3.25.

	 	Acquisition Documentation
	 	 	55	 
	 

	 	ARTICLE IV.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Conditions of Lending	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 4.01.

	 	All Credit Events
	 	 	56	 
	SECTION 4.02.

	 	First Credit Event
	 	 	56	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE V.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Affirmative Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 5.01.

	 	Existence; Businesses and Properties
	 	 	59	 
	SECTION 5.02.

	 	Insurance
	 	 	60	 
	SECTION 5.03.

	 	Obligations and Taxes
	 	 	60	 
	SECTION 5.04.

	 	Financial Statements, Reports, etc
	 	 	60	 
	SECTION 5.05.

	 	Litigation and Other Notices
	 	 	62	 
	SECTION 5.06.

	 	Information Regarding Collateral
	 	 	62	 
	SECTION 5.07.

	 	Maintaining Records; Access to Properties and Inspections;
Environmental Assessments
	 	 	63	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	SECTION 5.08.

	 	Use of Proceeds
	 	 	63	 
	SECTION 5.09.

	 	Additional Collateral, etc
	 	 	63	 
	SECTION 5.10.

	 	Further Assurances
	 	 	65	 
	SECTION 5.11.

	 	Rating
	 	 	65	 
	SECTION 5.12.

	 	Landlord Access Agreement
	 	 	65	 
	SECTION 5.13.

	 	Bermuda Pledge Agreement
	 	 	65	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VI.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Negative Covenants	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 6.01.

	 	Indebtedness
	 	 	66	 
	SECTION 6.02.

	 	Liens
	 	 	67	 
	SECTION 6.03.

	 	Sale and Lease-Back Transactions
	 	 	69	 
	SECTION 6.04.

	 	Investments, Loans and Advances
	 	 	69	 
	SECTION 6.05.

	 	Mergers, Consolidations, Sales of Assets and Acquisitions
	 	 	70	 
	SECTION 6.06.

	 	Restricted Payments; Restrictive Agreements
	 	 	71	 
	SECTION 6.07.

	 	Transactions with Affiliates
	 	 	72	 
	SECTION 6.08.

	 	Business of the Borrower and Subsidiaries; Limitation on Hedging Agreements
	 	 	72	 
	SECTION 6.09.

	 	Other Indebtedness and Agreements; Amendments to Acquisition
Documentation
	 	 	72	 
	SECTION 6.10.

	 	Capital Expenditures
	 	 	73	 
	SECTION 6.11.

	 	Interest Coverage Ratio
	 	 	73	 
	SECTION 6.12.

	 	Leverage Ratio
	 	 	74	 
	SECTION 6.13.

	 	Fiscal Year
	 	 	74	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VII.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Events of Default	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE VIII.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	The Agents and the Arranger	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	ARTICLE IX.	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Miscellaneous	 	 	 	 
	 
	 	 	 	 	 	 
	SECTION 9.01.

	 	Notices
	 	 	79	 
	SECTION 9.02.

	 	Survival of Agreement
	 	 	79	 
	SECTION 9.03.

	 	Binding Effect
	 	 	80	 
	SECTION 9.04.

	 	Successors and Assigns
	 	 	80	 
	SECTION 9.05.

	 	Expenses; Indemnity
	 	 	83	 
	SECTION 9.06.

	 	Right of Setoff
	 	 	85	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	PAGE
	SECTION 9.07.

	 	Applicable Law
	 	 	85	 
	SECTION 9.08.

	 	Waivers; Amendment
	 	 	85	 
	SECTION 9.09.

	 	Interest Rate Limitation
	 	 	86	 
	SECTION 9.10.

	 	Entire Agreement
	 	 	86	 
	SECTION 9.11.

	 	WAIVER OF JURY TRIAL
	 	 	87	 
	SECTION 9.12.

	 	Severability
	 	 	87	 
	SECTION 9.13.

	 	Counterparts
	 	 	87	 
	SECTION 9.14.

	 	Headings
	 	 	87	 
	SECTION 9.15.

	 	Jurisdiction; Consent to Service of Process
	 	 	87	 
	SECTION 9.16.

	 	Confidentiality
	 	 	88	 
	SECTION 9.17.

	 	Delivery of Lender Addenda
	 	 	89	 

Exhibits
and Schedules

	 	 	 
	Exhibit A

	 	Form of Administrative Questionnaire
	Exhibit B

	 	Form of Affiliate Subordination Agreement
	Exhibit C

	 	Form of Assignment and Assumption Agreement
	Exhibit D-1

	 	Form of Borrowing Request
	Exhibit D-2

	 	Form of Conversion/Continuation Notice
	Exhibit D-3

	 	Form of Prepayment Notice
	Exhibit E

	 	Form of Guarantee and Collateral Agreement
	Exhibit F

	 	Form of Lender Addendum
	Exhibit G-1

	 	Form of Mortgage (Owned Real Property)
	Exhibit G-2

	 	Form of Mortgage (Leased Real Property)
	Exhibit H

	 	Form of Perfection Certificate
	Exhibit I

	 	Form of Exemption Certificate
	Exhibit J-1

	 	Form of Opinion of Wilmer Cutler Pickering Hale & Dorr LLP
	Exhibit J-2

	 	Form of Opinion of local counsel to Borrower and Subsidiaries
	Exhibit J-3

	 	Landlord Access Agreement
	 
	 	 
	Schedule 1.01(a)

	 	Mortgaged Properties
	Schedule 1.01(b)

	 	Subsidiary Guarantors
	Schedule 3.08

	 	Subsidiaries
	Schedule 3.14

	 	Tax Claims
	Schedule 3.17

	 	Environmental Matters
	Schedule 3.18

	 	Insurance
	Schedule 3.19(a)

	 	UCC Filing Offices
	Schedule 3.19(c)

	 	Mortgage Filing Offices
	Schedule 3.20

	 	Owned and Leased Real Property
	Schedule 3.25

	 	Acquisition Documentation
	Schedule 4.02(a)

	 	Special and Local Counsel
	Schedule 5.12

	 	Leased Real Property subject to Landlord Access Agreement

iv

 

	 	 	 
	Schedule 6.01

	 	Existing Indebtedness
	Schedule 6.02

	 	Existing Liens
	Schedule 6.04

	 	Existing Investments

v

 

     CREDIT AGREEMENT dated as of February 28, 2006 (this “Agreement”), among
Blackboard Inc., a Delaware Corporation, (the “Borrower”), the LENDERS from time to time
party hereto, CREDIT SUISSE, CAYMAN ISLANDS BRANCH, as administrative agent (in such capacity and
together with its successors, the “Administrative Agent”) and as collateral agent (in such
capacity and together with its successors, the “Collateral Agent”), CREDIT SUISSE, as sole
bookrunner and sole lead arranger (in such capacity, the “Arranger”), CREDIT SUISSE, as
syndication agent (in such capacity, the “Syndication Agent”), and CREDIT SUISSE, as
documentation agent (in such capacity and together with its successors, the “Documentation
Agent”).

     The parties hereto agree as follows:

ARTICLE I.

Definitions

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

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

     “Acquisition” shall mean the acquisition transaction pursuant to the Merger Agreement
in which (i) the Borrower will acquire the Company through the merger of its wholly-owned
subsidiary, College Acquisition Sub, Inc., with and into WebCT, Inc. and (ii) the existing
shareholders of WebCT, Inc. shall receive the Acquisition Consideration.

     “Acquisition Consideration” shall mean the cash merger consideration in an aggregate
amount of $180,000,000.

     “Acquisition Documentation” shall mean, collectively, the Merger Agreement and all
schedules, exhibits, annexes and amendments thereto and all side letters and agreements affecting
the terms thereof or entered into in connection therewith.

     “Acquisition Transactions” shall mean, collectively, (a) the Acquisition, including
the payment of the Acquisition Consideration, (b) the obtaining by the Borrower of the Facility
provided for by this Agreement, and (c) the payment of fees and expenses incurred in connection
with the foregoing.

     “Adjusted LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any
Interest Period, an interest rate per annum equal to the product of (a) the LIBO Rate in effect for
such Interest Period and (b) Statutory Reserves.

     “Administrative Agent” shall have the meaning assigned to such term in the preamble.

     “Administrative Agent Fees” shall have the meaning assigned to such term in Section
2.05(b).

 

 

     “Administrative Questionnaire” shall mean an Administrative Questionnaire in the form
of Exhibit A, or such other form as may be supplied from time to time by the Administrative Agent.

     “Affiliate” shall mean, when used with respect to a specified person, another person
that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the person specified; provided, however, that, for
purposes of Section 6.07, the term “Affiliate” shall also include any person that directly
or indirectly owns 5% or more of any class of Equity Interests of the person specified or that is
an officer or director of the person specified.

     “Affiliate Subordination Agreement” shall mean an Affiliate Subordination Agreement in
the form of Exhibit B pursuant to which intercompany obligations and advances owed by any Loan
Party are subordinated to the Obligations.

     “Agents” shall have the meaning assigned to such term in Article VIII.

     “Aggregate Revolving Credit Exposure” shall mean the aggregate amount of the Lenders’
Revolving Credit Exposures.

     “Agreement” shall have the meaning assigned to such term in the preamble.

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

     “Applicable Margin” shall mean, for any day, for each Type of Loan, the rate per annum
set forth under the relevant column heading below as of the date of determination:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Eurodollar Revolving	 	 	ABR Revolving	 
	Eurodollar Term	 	ABR Term	 	 	Loans and Swingline	 	 	Loans and Swingline	 
	Loans	 	Loans	 	 	Loans	 	 	Loans	 
	2.25%
	 	 	1.25	%	 	 	2.25	%	 	 	1.25	%

     “Arranger” shall have the meaning assigned to such term in the preamble.

     “Asset Sale” shall mean the sale, sale and leaseback, assignment, conveyance,
transfer, issuance or other disposition (by way of merger, casualty, condemnation or otherwise) by
the Borrower or any of the Subsidiaries to any person other than the Borrower or any Subsidiary
Guarantor of (a) any Equity Interests of any of the Subsidiaries or (b) any other assets of the
Borrower or any of the Subsidiaries, including Equity Interests of any person that is not a
Subsidiary (other than (i) inventory excess, obsolete or worn out assets, scrap and Permitted
Investments, in each case disposed of in the ordinary course of business, or (ii) equipment traded
in for substantially similar equipment); provided that any asset sale or series of related
asset sales

2

 

described in clause (b) above having a value not in excess of $2,000,000 shall be
deemed not to be an “Asset Sale” for purposes of this Agreement

     “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a
Lender and an assignee (with the consent of any person whose consent is required by Section 9.04),
and accepted by the Administrative Agent, in the form of Exhibit C or such other form as shall be
approved by the Administrative Agent.

     “Benefit Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Tax Code
or Section 307 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if
such plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as
defined in Section 3(5) of ERISA.

     “Board” shall mean the Board of Governors of the Federal Reserve System of the United
States of America.

     “Borrower” shall have the meaning assigned to such term in the preamble.

     “Borrowing” shall mean (a) Loans of the same Class and Type made, converted or
continued on the same date and, in the case of Eurodollar Loans, as to which a single Interest
Period is in effect, or (b) a Swingline Loan.

     “Borrowing Request” shall mean a request by the Borrower in accordance with the terms
of Section 2.03 and substantially in the form of Exhibit D, or such other form as shall be approved
by the Administrative Agent.

     “Breakage Event” shall have the meaning assigned to such term in Section 2.16.

     “Business Day” shall mean any day other than a Saturday, Sunday or day on which
commercial banks in New York City are authorized or required by law to close; provided,
however, that when used in connection with a Eurodollar Loan (including with respect to all
notices and determinations in connection therewith and any payments of principal, interest or other
amounts thereon), the term “Business Day” shall also exclude any day on which banks are not
open for dealings in dollar deposits in the London interbank market.

     “Capital Expenditures” shall mean, for any period, with respect to any person, (a) the
additions to property, plant and equipment and other capital expenditures of such person and its
consolidated subsidiaries that are (or should be) set forth in a consolidated statement of cash
flows of such person for such period prepared in accordance with GAAP and (b) Capital Lease
Obligations incurred by such person and its consolidated subsidiaries during such period, in each
case excluding (i) any capital expenditures in respect of Recovery Events , (ii) any expenditure
constituting the reinvestment of proceeds from Asset Sales and other sales of equipment or other
productive assets of the Borrower and its Subsidiaries, so long as such expenditures are made
within 365 days of the receipt of such proceeds, or (iii) any expenditures made by the Borrower
or any of its Subsidiaries to acquire in a Permitted Acquisition the business, property or
assets of any person, or the Equity Interests of any person that, as a result of such acquisition,
becomes a Subsidiary of the Borrower.

3

 

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

     A “Change in Control” shall be deemed to have occurred if (a) any “person” or “group”
(within the meaning of Rule 13d-5 of the Securities Exchange Act of 1934 as in effect on the date
hereof) shall own directly or indirectly, beneficially or of record, Equity Interests representing
more than 25% on a fully-diluted basis of the aggregate ordinary voting power of the issued and
outstanding Equity Interests in the Borrower; (b) a majority of the seats (other than vacant seats)
on the board of directors of the Borrower shall at any time be occupied by persons who are not
Continuing Directors; or (c) any change of control (or similar event) with respect to the Borrower
or any Subsidiary shall occur under and as defined in any other indenture or agreement in respect
of Material Indebtedness to which the Borrower or any Subsidiary is a party.

     “Change in Law” shall mean (a) the adoption of any law, rule or regulation after the
date of this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.14, by any lending
office of such Lender or by such Lender’s or Issuing Bank’s holding company, if any) with any
request, guideline or directive (whether or not having the force of law) of any Governmental
Authority made or issued after the date of this Agreement.

     “Charges” shall have the meaning assigned to such term in Section 9.09.

     “China Joint Venture” shall mean Cernet-Blackboard Information Technology (Beijing)
Co., Ltd., and any successor thereto or resulting from a restructuring thereof.

     “Class”, when used in reference to any Loan or Borrowing, refers to whether such Loan,
or the Loans comprising such Borrowing, are Revolving Loans, Term Loans or Swingline Loans and,
when used in reference to any Commitment, refers to whether such Commitment is a Revolving Credit
Commitment, Term Loan Commitment or Swingline Commitment.

     “Closing Date” shall mean the date of the first Credit Event.

     “Collateral” shall mean all property and assets of the Loan Parties, now owned or
hereafter acquired, upon which a Lien is purported to be created by any Security Document, and
shall include the Mortgaged Properties.

     “Collateral Agent” shall have the meaning assigned to such term in the preamble.

     “Commitment” shall mean, with respect to any Lender, such Lender’s Revolving Credit
Commitment, Term Loan Commitment and Swingline Commitment.

     “Commitment Fee” shall have the meaning assigned to such term in Section 2.05(a).

4

 

     “Commitment Fee Rate” shall mean a rate per annum equal to 1/2 of 1%.

     “Commitment Letter” shall mean the Commitment Letter dated as of October 12, 2005,
among the Borrower and Credit Suisse.

     “Company” shall mean WebCT, Inc., a Delaware Corporation both (a) prior to the Closing
Date as predecessor-in-interest to the surviving corporation pursuant to the Acquisition, and (b)
on and from the Closing Date as the surviving corporation pursuant to the Acquisition.

     “Confidential Information Memorandum” shall mean the Confidential Information
Memorandum of the Borrower dated February, 2006.

     “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such
period plus (a) without duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) Consolidated Interest Expense for such period, (ii) consolidated
income tax expense for such period, (iii) all amounts attributable to depreciation and amortization
for such period, (iv) any non-cash charges and expenses (other than the write-down of current
assets) for such period (provided that to the extent that all or any portion of the income
of any person is excluded from Consolidated Net Income pursuant to the definition thereof for all
or any portion of such period any amounts set forth in the preceding clauses (i) through (iv) that
are attributable to such person shall not be included for purposes of this definition for such
period or portion thereof), (v) non-cash compensation charge arising from any grant of stock, stock
options or other equity-based awards, (vi) non-recurring charges and expenses related to the
Acquisition, including (A) employee compensation for the period from the Closing Date to the date
that is 150 days thereafter to be paid to employees identified for termination, (B) other severance
costs and accrued vacation for terminated employees, (C) retention bonuses, (D) lease termination
expenses and other restructuring charges, and (E) fees for Acquisition-related and/or
integration-related professional services; provided, however, in each case, that such charges and
expenses are (A) incurred within the first year following the Closing Date and (B) identified in
reasonable detail in a certificate of the Borrower’s chief financial officer, (vii) any non-cash
decrease in consolidated revenues during such period resulting from the following purchase
accounting adjustments made in accordance with GAAP in connection with the Acquisition: (A) loss of
deferred revenue of the Company representing the difference between revenues of the Company which
would have been amortized into income from deferred revenue (without giving effect to purchase
accounting adjustments) and the actual recognized revenues of the Company as of the Closing Date
(giving effect to purchase accounting adjustments), and (B) the adjustment resulting from changes
in revenue recognition as a result of transitional changes in licensing methodology, (viii) any
other extraordinary, unusual or non-recurring losses or charges; provided, however, in each case,
that such charges and expenses are identified in reasonable detail in a certificate of the
Borrower’s chief financial officer, and (ix) without duplication, any losses on the sale of assets
or businesses outside of the ordinary course of business, minus (b) without duplication (i)
all cash payments made during such period on
account of reserves, restructuring charges and other non-cash charges added to Consolidated
Net Income pursuant to clause (a)(iv) above in a previous period and (ii) to the extent included in
determining such Consolidated Net Income, any extraordinary gains and all non-cash items of income
for such period, all determined on a consolidated basis in accordance with GAAP; provided
that for purposes of calculating Consolidated EBITDA for any period (A) the

5

 

Consolidated EBITDA of
any Acquired Entity acquired by the Borrower or any Subsidiary pursuant to a Permitted Acquisition
during such period shall be included on a pro forma basis for such period (assuming the
consummation of such acquisition and the incurrence or assumption of any Indebtedness in connection
therewith occurred as of the first day of such period) and (B) the Consolidated EBITDA of any
person or line of business sold or otherwise disposed of by the Borrower or any Subsidiary during
such period for shall be excluded for such period (assuming the consummation of such sale or other
disposition and the repayment of any Indebtedness in connection therewith occurred as of the first
day of such period).

     “Consolidated Interest Expense” shall mean, for any period, the sum of (a) the
interest expense (including imputed interest expense in respect of Capital Lease Obligations and
Synthetic Lease Obligations) of the Borrower and the Subsidiaries for such period (including all
commissions, discounts and other fees and charges owed by the Borrower and the Subsidiaries with
respect to letters of credit and bankers’ acceptance financing), net of interest income, in each
case determined on a consolidated basis in accordance with GAAP, plus (b) any interest accrued
during such period in respect of Indebtedness of the Borrower or any Subsidiary that is required to
be capitalized rather than included in consolidated interest expense for such period in accordance
with GAAP. For purposes of the foregoing, interest expense shall be determined after giving effect
to any net payments made or received by the Borrower or any Subsidiary with respect to interest
rate Hedging Agreements.

     “Consolidated Net Income” shall mean, for any period, the net income or loss of the
Borrower and the Subsidiaries for such period determined on a consolidated basis in accordance with
GAAP; provided that there shall be excluded (a) the income of any Subsidiary to the extent
that the declaration or payment of dividends or similar distributions by the Subsidiary of that
income is not at the time permitted by operation of the terms of its charter or any agreement,
instrument, judgment, decree, statute, rule or governmental regulation applicable to such
Subsidiary, (b) except to the extent otherwise provided in paragraph (A) of the proviso in the
definition of ‘Consolidated EBITDA’, the income or loss of any person accrued prior to the date it
becomes a Subsidiary or is merged into or consolidated with the Borrower or any Subsidiary or the
date that such person’s assets are acquired by the Borrower or any Subsidiary, (c) the income of
any person (other than a Subsidiary) in which any other person (other than the Borrower or a wholly
owned Subsidiary or any director holding qualifying shares in accordance with applicable law) has
an interest, except to the extent of the amount of dividends or other distributions actually paid
to the Borrower or a wholly owned Subsidiary by such person during such period, and (d) any gains
attributable to sales of assets out of the ordinary course of business.

     “Continuing Directors” shall mean, at any time, any member of the board of directors
of the Borrower who (a) was a member of such board of directors on the Closing Date, after giving
effect to the Acquisition, or (b) was nominated for election or elected to such board of directors
with the approval of a majority of the Continuing Directors who were members of such board of
directors at the time of such nomination or election.

     “Control” shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a person, whether through the ownership of
voting securities, by contract or otherwise, and the terms “Controlling” and
“Controlled” shall have meanings correlative thereto.

6

 

     “Conversion/Continuation Notice” means a Conversion/Continuation Notice substantially
in the form of Exhibit D-2.

     “Credit Event” shall have the meaning assigned to such term in Section 4.01

     “Current Assets” shall mean, at any time, the consolidated current assets (other than
cash and Permitted Investments) of the Borrower and the Subsidiaries.

     “Current Liabilities” shall mean, at any time, the consolidated current liabilities of
the Borrower and the Subsidiaries at such time, but excluding, without duplication, (a) the current
portion of any long-term Indebtedness and (b) outstanding Revolving Loans and Swingline Loans.

     “Default” shall mean any event or condition which constitutes an Event of Default or
which upon notice, lapse of time or both would constitute an Event of Default.

     “Documentation Agent” shall have the meaning assigned to such term in the preamble.

     “dollars” or “$” shall mean lawful money of the United States of America.

     “Domestic Subsidiaries” shall mean all Subsidiaries incorporated, formed or organized
under the laws of the United States of America, any State thereof or the District of Columbia.

     “Environmental Laws” shall mean all Federal, state, local and foreign laws (including
common law), treaties, regulations, rules, ordinances, codes, decrees, judgments, directives,
orders (including consent orders), and agreements in each case, relating to protection of the
environment, natural resources, human health and safety or the presence, Release of, threatened
Release, or exposure to, Hazardous Materials, or the generation, manufacture, processing,
distribution, use, treatment, storage, transport, recycling or handling of, or the arrangement for
such activities with respect to, Hazardous Materials.

     “Environmental Liability” shall mean all liabilities, obligations, damages, losses,
claims, actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation costs), whether contingent
or otherwise, arising out of or relating to (a) compliance or non-compliance with any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release or threatened
Release of any Hazardous Materials or (e) any contract, agreement or other consensual arrangement
pursuant to which liability is assumed or imposed with respect to any of the foregoing.

     “Environmental Permit” shall mean any Permit under Environmental Law.

     “Equity Interests” shall mean shares of capital stock, partnership interests,
membership interests in a limited liability company, beneficial interests in a trust or other
equity interests in any person, or any obligations convertible into or exchangeable for, or giving
any person a right, option or warrant to acquire, such equity interests or such convertible or
exchangeable obligations.

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     “Equity Issuance” shall mean any issuance or sale by the Borrower of any Equity
Interests of the Borrower except in each case for (a) any issuance of directors’ qualifying shares
and (b) sales or issuances of common stock, or options to purchase common stock, of the Borrower to
management, employees or consultants of the Borrower or any Subsidiary under any employee stock
option or stock purchase plan or employee benefit plan in existence from time to time, or (c) any
issuance or sale, to the extent the Net Cash Proceeds thereof are used, directly or indirectly, to
finance a Permitted Acquisition.

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

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

     “ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of
ERISA or the regulations issued thereunder, with respect to a Benefit Plan (other than an event for
which the 30-day notice period is waived); (b) the existence with respect to any Benefit Plan of an
“accumulated funding deficiency” (as defined in Section 412 of the Tax Code or Section 302 of
ERISA), whether or not waived; (c) the filing pursuant to Section 412(d) of the Tax Code or Section
303(d) of ERISA of an application for a waiver of the minimum funding standard with respect to any
Benefit Plan; (d) the incurrence by the Borrower or any of its ERISA Affiliates of any material
liability under Title IV of ERISA with respect to the termination of any Benefit Plan or the
withdrawal or partial withdrawal of the Borrower or any of its ERISA Affiliates from any Benefit
Plan or Multiemployer Plan; (e) the receipt by the Borrower or any of its ERISA Affiliates from the
PBGC or a plan administrator of any notice relating to the intention to terminate any Benefit Plan
or Plans or to appoint a trustee to administer any Benefit Plan other than under a “standard
termination” as defined in ERISA; (f) the adoption of any amendment to a Benefit Plan that would
require the provision of security pursuant to Section 401(a)(29) of the Tax Code or Section 307 of
ERISA; (g) the receipt by the Borrower or any of its ERISA Affiliates of any notice, or the receipt
by any Multiemployer Plan from the Borrower or any of its ERISA Affiliates of any notice,
concerning the imposition of any material Withdrawal Liability or a determination that a
Multiemployer Plan is, or is expected to be, insolvent or in reorganization, within the meaning of
Title IV of ERISA; (h) the occurrence of a “prohibited transaction” with respect to which the
Borrower or any of the Subsidiary Guarantors is a “disqualified person” (within the meaning of
Section 4975 of the Tax Code) or with respect to which the Borrower or any such Subsidiary
Guarantor could otherwise be liable and that is likely to result in a material liability for the
Borrower and the Subsidiary Guarantors; or (i) any other event or condition with respect to a
Benefit Plan or Multiemployer Plan that could result in material liability of the Borrower or any
Subsidiary.

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

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

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     “Excess Cash Flow” shall mean, for any fiscal year of the Borrower, the excess, if
any, of (a) net cash provided by operating activities in accordance with GAAP and as set forth in
the Borrower’s audited annual financial statements for such fiscal year, or (b) Capital
Expenditures made in cash in accordance with Section 6.10 during such fiscal year, except to the
extent financed with the proceeds of Indebtedness, equity issuances, casualty proceeds,
condemnation proceeds or other proceeds that would not be included in Consolidated EBITDA.

     “Excluded Foreign Subsidiary” shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.

     “Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lender, the
Issuing Bank or any other recipient of any payment to be made by or on account of any obligation of
the Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income,
or branch profits taxes imposed, as a result of a present or former connection between such
recipient and the jurisdiction imposing such tax (or any political subdivision thereof), other than
any such connection arising solely from such recipient having executed, delivered or performed its
obligations or received a payment under, or enforced, this Agreement or any other Loan Document and
(b) in the case of a Foreign Lender (other than an assignee pursuant to a request by the Borrower
under Section 2.21(a) ), any United States withholding tax that is imposed on amounts payable to
such Foreign Lender at the time such Foreign Lender becomes a party to this Agreement (or
designates a new lending office) or is attributable to such Foreign Lender’s failure to comply with
Section 2.20(e) , except to the extent that such Foreign Lender (or its assignor, if any) was
entitled, immediately prior to the time of designation of a new lending office (or assignment), to
receive additional amounts from the Borrower with respect to such withholding tax pursuant to
Section 2.20(a) and (c) any United States withholding tax that is imposed on amounts payable to
any Lender that is a United States person as defined in Section 7701(a)(30) of the Tax Code that is
attributable to such Lender’s failure to comply with Section 2.20(f).

     “Existing Credit Facility” shall mean the unsecured equipment line of credit provided
by Silicon Valley Bank in favor of the Borrower.

     “Facility” shall mean each of (a) the Term Loan Commitments and the Term Loans made
thereunder (the “Term Loan Facility”) and (b) the Revolving Credit Commitments and the
extensions of credit made thereunder (the “Revolving Credit Facility”).

     “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the
rates on overnight Federal funds transactions with members of the Federal Reserve System arranged
by Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day that is a Business

Day, the average of the quotations for the day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing selected by it.

     “Fees” shall mean the Commitment Fees, the Administrative Agent Fees, the L/C
Participation Fees and the Issuing Bank Fees.

9

 

     “Financial Officer” of any person shall mean the chief financial officer, principal
accounting officer, treasurer or controller of such person.

     “Foreign Lender” shall mean any Lender that is organized under the laws of a
jurisdiction other than that in which the Borrower is located and any other Lender that is not a
“United States person” within the meaning of Section 7701(a)(30) of the Tax Code. For purposes of
this definition, the United States of America, each State thereof and the District of Columbia
shall be deemed to constitute a single jurisdiction.

     “Foreign Subsidiary” shall mean any Subsidiary that is not a Domestic Subsidiary.

     “GAAP” shall mean generally accepted accounting principles in the United States.

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

     “Granting Lender” shall have the meaning assigned to such term in Section 9.04(i) .

     “Guarantee” of or by any person (the “guarantor”) shall mean any obligation,
contingent or otherwise, of (a) the guarantor or (b) another person (including any bank under a
letter of credit) to induce the creation of which the guarantor has issued a reimbursement,
counterindemnity or similar obligation, in either case guaranteeing or having the economic effect
of guaranteeing any Indebtedness or other obligation of any other person (the “primary
obligor”) in any manner, whether directly or indirectly, and including any obligation,
contingent or otherwise, of the guarantor, direct or indirect, (i) to purchase or pay (or advance
or supply funds for the purchase or payment of) such Indebtedness or other obligation or to
purchase (or to advance or supply funds for the purchase of) any security for the payment of such
Indebtedness or other obligation, (ii) to purchase or lease property, securities or services for
the purpose of assuring the owner of such Indebtedness or other obligation of the payment of such
Indebtedness or other obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity of the primary obligor so as to enable the primary
obligor to pay such Indebtedness or other obligation, (iv) as an account party in respect of any
letter of credit or letter of guaranty issued to support such Indebtedness or obligation or (v) to
otherwise assure or hold harmless the owner of such Indebtedness or other obligation against loss
in respect thereof; provided, however, that the term “Guarantee” shall not include
endorsements for collection or deposit in the ordinary course of business.

     “Guarantee and Collateral Agreement” shall mean the Guarantee and Collateral Agreement
in the form of Exhibit E, to be executed and delivered by the Borrower and each Subsidiary
Guarantor.

     “Guarantors” shall mean the Company and the Subsidiary Guarantors.

     “Hazardous Materials” shall mean any petroleum (including crude oil or fraction
thereof) or petroleum products or byproducts, or any pollutant, contaminant, chemical, compound,

10

 

constituent, or hazardous, toxic or other substances, materials or wastes defined, or regulated as
such by, or pursuant to, any Environmental Law, or requires removal, remediation or reporting under
any Environmental Law, including asbestos, or asbestos containing material, radon or other
radioactive material, polychlorinated biphenyls and urea formaldehyde insulation.

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

     “Indebtedness” of any person shall mean, without duplication, (a) all obligations of
such person for borrowed money or with respect to deposits or advances of any kind (other than
deposits or advances constituting a portion of the purchase price for goods to be delivered), (b)
all obligations of such person evidenced by bonds, debentures, notes or similar instruments, (c)
all obligations of such person under conditional sale or other title retention agreements relating
to property or assets acquired by such person, (d) all obligations of such person in respect of the
deferred purchase price of property or services (other than trade accounts payable and accrued
obligations incurred in the ordinary course of business), (e) all Indebtedness of others secured by
(or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be
secured by) any Lien on property owned or acquired by such person, whether or not the Indebtedness
secured thereby has been assumed, (f) all Guarantees by such person of Indebtedness of others, (g)
all Capital Lease Obligations or Synthetic Lease Obligations of such person, (h) all obligations,
contingent or otherwise, of such person as an account party in respect of letters of credit and
letters of guaranty and (i) all obligations, contingent or otherwise, of such person in respect of
bankers’ acceptances. The Indebtedness of any person shall include the Indebtedness of any other
person (including any partnership in which such person is a general partner) to the extent such
person is liable therefor as a result of such person’s ownership interest in, or other relationship
with, such other person, except to the extent the terms of such Indebtedness provide that such
person is not liable therefor.

     “Indemnified Taxes” shall mean Taxes other than Excluded Taxes and Other Taxes.

     “Indemnitee” shall have the meaning assigned to such term in Section 9.05(b) .

     “Information” shall have the meaning assigned to such term in Section 9.16.

     “Intellectual Property Collateral” shall have the meaning assigned to such term in the
Guarantee and Collateral Agreement.

     “Intellectual Property Security Agreement” shall mean all Intellectual Property
Security Agreements to be executed and delivered by the Loan Parties, each substantially in the
applicable form required by the Guarantee and Collateral Agreement.

11

 

     “Interest Coverage Ratio” shall mean, on any date, the ratio of (a) Consolidated
EBITDA for the period of four consecutive fiscal quarters most recently ended on or prior to such
date, taken as one accounting period, to (b) Consolidated Interest Expense (excluding interest
expense in connection with any prepayment by the Borrower of the Facility) for the period of four
consecutive fiscal quarters ended on or prior to such date, taken as one accounting period.

     “Interest Payment Date” shall mean (a) with respect to any ABR Loan (including
Swingline Loans), the last Business Day of each March, June, September and December and (b) with
respect to any Eurodollar Loan, the last day of the Interest Period applicable to the Borrowing of
which such Loan is a part and, in the case of a Eurodollar Borrowing with an Interest Period of
more than three months’ duration, each day that would have been an Interest Payment Date had
successive Interest Periods of three months’ duration been applicable to such Borrowing.

     “Interest Period” shall mean, with respect to any Eurodollar Borrowing, the period
commencing on the date of such Borrowing and ending on the numerically corresponding day in the
calendar month that is 1, 2, 3 or 6 months thereafter, as the Borrower may elect; provided,
however, that (a) if any Interest Period would end on a day other than a Business Day, such
Interest Period shall be extended to the next succeeding Business Day unless such next succeeding
Business Day would fall in the next calendar month, in which case such Interest Period shall end on
the next preceding Business Day and (b) any Interest Period that commences on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding day in the last
calendar month of such Interest Period) shall end on the last Business Day of the last calendar
month of such Interest Period. Interest shall accrue from and including the first day of an
Interest Period to but excluding the last day of such Interest Period. For purposes hereof, the
date of a Borrowing initially shall be the date on which such Borrowing is made and thereafter
shall be the effective date of the most recent conversion or continuation of such Borrowing.

     “Investments” shall have the meaning assigned to such term in Section 6.04.

     “Issuing Bank” shall mean, as the context may require, (a) Credit Suisse, in its
capacity as the issuer of Letters of Credit hereunder, and (b) any other Lender that may become an
Issuing Bank pursuant to Section 2.23(i) or Section 2.23(k) , with respect to Letters of Credit
issued by such Lender. The Issuing Bank may, in its discretion, arrange for one or more Letters of
Credit to be issued by Affiliates of the Issuing Bank, in which case the term “Issuing Bank” shall
include any such Affiliate with respect to Letters of Credit issued by such Affiliate.

     “Issuing Bank Fees” shall have the meaning assigned to such term in Section 2.05(c) .

     “Landlord Access Agreement” shall mean a landlord access agreement substantially in
the form of Exhibit J-3.

     “L/C Commitment” shall mean the commitment of the Issuing Bank to issue Letters of
Credit pursuant to Section 2.23.

     “L/C Disbursement” shall mean a payment or disbursement made by the Issuing Bank
pursuant to a Letter of Credit.

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     “L/C Exposure” shall mean, at any time, the sum of (a) the aggregate undrawn amount of
all Letters of Credit at such time and (b) the aggregate amount of all L/C Disbursements that have
not been reimbursed at such time. The L/C Exposure of any Revolving Credit Lender at any time
shall equal its Pro Rata Percentage of the aggregate L/C Exposure at such time.

     “L/C Fee Payment Date” shall have the meaning assigned to such term in Section 2.05(c).

     “L/C Participation Fee” shall have the meaning assigned to such term in Section
2.05(c).

     “Lender Addendum” shall mean, with respect to any initial Lender, a Lender Addendum in
the form of Exhibit F, or such other form as may be supplied by the Administrative Agent, to be
executed and delivered by such Lender on the Closing Date.

     “Lenders” shall mean (a) the persons that deliver a Lender Addendum (other than any
such person that has ceased to be a party hereto pursuant to an Assignment and Acceptance) and (b)
any person that has become a party hereto pursuant to an Assignment and Acceptance. Unless the
context otherwise requires, the term “Lenders” shall include the Swingline Lender.

     “Letter of Credit” shall mean any letter of credit issued pursuant to Section 2.23.

     “Leverage Ratio” shall mean, on any date of determination, the ratio of (a) Total Debt
on such date to (b) Consolidated EBITDA for the period of four consecutive fiscal quarters most
recently ended on or prior to such date, taken as one accounting period.

     “LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest
Period, the rate per annum determined by the Administrative Agent at approximately 11:00 a.m.,
London time, on the date that is two Business Days prior to the commencement of such Interest
Period by reference to the British Bankers’ Association Interest Settlement Rates for deposits in
dollars (as set forth by the Bloomberg Information Service or any successor thereto or any other
service selected by the Administrative Agent which has been nominated by the British Bankers’
Association as an authorized information vendor for the purpose of displaying such rates) for a
period equal to such Interest Period; provided that, to the extent that an interest rate is
not ascertainable pursuant to the foregoing provisions of this definition, the “LIBO Rate” shall be
the interest rate per annum determined by the Administrative Agent to be the average of the rates
per annum at which deposits in dollars are offered for such relevant Interest Period to major banks
in the London interbank market in London, England by the Administrative Agent at approximately
11:00 a.m. (London time) on the date that is two Business Days prior to the beginning of such
Interest Period.

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

13

 

     “Loan Documents” shall mean this Agreement and the Security Documents.

     “Loan Parties” shall mean the Borrower and each Subsidiary that is or becomes a party
to a Loan Document.

     “Loans” shall mean the Revolving Loans, the Term Loans and the Swingline Loans.

     “Majority Facility Lenders” shall mean, with respect to any Facility, the holders of a
majority of the aggregate unpaid principal amount of the Term Loans or the Aggregate Revolving
Credit Exposure, as the case may be, outstanding under such Facility (or, in the case of the
Revolving Credit Facility, prior to the termination of the Revolving Credit Commitments, the
holders of a majority of the Total Revolving Credit Commitment).

     “Margin Stock” shall have the meaning assigned to such term in Regulation U.

     “Material Adverse Effect” shall mean a material adverse condition or material adverse
change in or materially affecting (a) the business, assets, liabilities, operations or financial
condition of the Borrower and the Subsidiaries, taken as a whole, or (b) the validity or
enforceability of any of the Loan Documents or the rights and remedies of the Arranger, the
Administrative Agent, the Collateral Agent or the Secured Parties thereunder.

     “Material Indebtedness” shall mean Indebtedness (other than the Loans and Letters of
Credit), or obligations in respect of one or more Hedging Agreements, of any one or more of the
Borrower and the Subsidiaries in an aggregate principal amount exceeding $5,000,000. For purposes
of determining Material Indebtedness, the “principal amount” of the obligations of the Borrower or
any Subsidiary in respect of any Hedging Agreement at any time shall be the maximum aggregate
amount (giving effect to any netting agreements) that the Borrower for such Subsidiary would be
required to pay if such Hedging Agreement were terminated at such time.

     “Maximum Rate” shall have the meaning assigned to such term in Section 9.09.

     “Merger Agreement” shall mean the agreement and plan of merger dated as of October 12,
2005 by and among WebCT Inc., the Borrower and College Acquisition Sub, Inc.

     “Moody’s” shall mean Moody’s Investors Service, Inc.

     “Mortgaged Properties” shall mean, initially, each parcel of real property and the
improvements thereto owned by a Loan Party and specified on Schedule 1.01(a), and shall include
each other parcel of real property and improvements thereto with respect to which a Mortgage is
granted pursuant to Section 5.09 or 5.10.

     “Mortgages” shall mean the mortgages or deeds of trust, assignments of leases and
rents and other security documents granting a Lien on any Mortgaged Property to secure the
Obligations, each in the form of Exhibit G-1 or Exhibit G-2, as the case may be, with such changes
as shall be advisable under the law of the jurisdiction in which such Mortgage is to be recorded
and as are reasonably satisfactory to the Collateral Agent, as the same may be amended,
supplemented, replaced or otherwise modified from time to time in accordance with this Agreement.

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

     “Net Cash Proceeds” shall mean (a) with respect to any Asset Sale or Recovery Event,
the cash proceeds thereof (including any such proceeds subsequently received (but only as and when
received) in respect of noncash consideration initially received), net of (i) selling expenses
(including reasonable broker’s fees or commissions, legal fees, transfer and similar taxes incurred
by the Borrower and the Subsidiaries in connection therewith and the Borrower’s good faith estimate
of income taxes paid or payable in connection with such sale), (ii) amounts provided as a reserve,
in accordance with GAAP, against any liabilities under any indemnification obligations or purchase
price adjustment associated with such Asset Sale (provided that, to the extent and at the
time any such amounts are released from such reserve, such amounts shall constitute Net Cash
Proceeds) and (iii) the principal amount, premium or penalty, if any, interest and other amounts on
any Indebtedness for borrowed money which is secured by the asset sold in such Asset Sale and which
is required to be repaid with such proceeds (other than any such Indebtedness assumed by the
purchaser of such asset); provided, however, that, if (x) the Borrower shall
deliver a certificate of a Financial Officer of the Borrower to the Administrative Agent within
thirty days of receipt thereof setting forth the Borrower’s intent to reinvest such proceeds (or
portion thereof) in productive assets of a kind then used or usable in the business of the Borrower
and the Subsidiaries within 360 days of receipt of such proceeds and (y) no Default or Event of
Default shall have occurred and shall be continuing at the time of such certificate or at the
proposed time of the application of such proceeds, such proceeds shall not constitute Net Cash
Proceeds except to the extent not so used at the end of such 360-day period, at which time such
proceeds shall be deemed to be Net Cash Proceeds; and (b) with respect to any issuance or
disposition of Indebtedness or any Equity Issuance, the cash proceeds thereof, net of all taxes and
reasonable and customary fees, commissions, costs and other expenses incurred by the Borrower and
the Subsidiaries in connection therewith.

     “Obligations” shall mean all obligations defined as “Obligations” in the Guarantee and
Collateral Agreement and the other Security Documents.

     “Other Taxes” shall mean any and all present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies (including interest, fines, penalties
and additions to tax) arising from any payment made under any Loan Document or from the execution,
delivery or enforcement of, or otherwise with respect to, any Loan Document.

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

     “Perfection Certificate” shall mean the Pre-Closing UCC Diligence Certificate
substantially in the form of Exhibit H or any other form approved by the Collateral Agent.

     “Permits” shall mean any and all franchises, licenses, leases, permits, approvals,
notifications, certifications, registrations, authorizations, exemptions, qualifications,
easements, rights of way, Liens and other rights, privileges and approvals required under any
Requirement of Law.

15

 

     “Permitted Acquisition” shall mean the acquisition by the Borrower or any Subsidiary
of all or substantially all the assets of a person or line of business of such person, or all of
the Equity Interests of a person (referred to herein as the “Acquired Entity”);
provided that (i) the Acquired Entity shall be a going concern and shall be in a similar
line of business (or reasonably related extensions thereof) as that of the Borrower and the
Subsidiaries as conducted during the current and most recently concluded calendar year; (ii) at the
time of such transaction (A) both before and after giving effect thereto, no Event of Default or
Default shall have occurred and be continuing; and (B) the Borrower would be in compliance with the
covenants set forth in Sections 6.11 and 6.12 and the Leverage Ratio would not be greater than 3.0
to 1.0, in each case as of the most recently completed period ending prior to such transaction for
which the financial statements and certificates required by Section 5.04(a) or 5.04(b) were
required to be delivered or for which comparable financial statements have been filed with the
Securities and Exchange Commission, after giving pro forma effect to such transaction and
to any other event occurring after such period as to which pro forma recalculation is
appropriate (including any other transaction described in this definition occurring after such
period) as if such transaction (and the occurrence or assumption of any Indebtedness in connection
therewith) had occurred as of the first day of such period; and (C) after giving effect to such
acquisition, there must be at least $5,000,000 of unused and available Revolving Credit Commitments
and/or available cash; (iii) the Borrower and the Subsidiaries shall not incur or assume any
Indebtedness in connection with such acquisition, except as permitted by Section 6.01; and (iv) the
Borrower shall comply, and shall cause the Acquired Entity to comply, with the applicable
provisions of Sections 5.09 and 5.10 and the Security Documents.

     “Permitted Investments” shall mean:

     (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United States of
America), in each case maturing within one year from the date of acquisition thereof;

     (b) investments in commercial paper maturing within 270 days from the date of
acquisition thereof and having, at such date of acquisition, the highest credit rating
obtainable from S&P or from Moody’s;

     (c) investments in certificates of deposit, banker’s acceptances and time deposits
maturing within 180 days from the date of acquisition thereof issued or guaranteed by or
placed with, and money market deposit accounts issued or offered by, the Administrative
Agent or any domestic office of any commercial bank organized

under the laws of the United States of America or any State thereof that has a combined
capital and surplus and undivided profits of not less than $500,000,000;

     (d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution
satisfying the criteria of clause (c) above;

16

 

     (e) investments in “money market funds” within the meaning of Rule 2a-7 of the
Investment Company Act of 1940, as amended, substantially all of whose assets are invested
in investments of the type described in clauses (a) through (d) above; and

     (f) other short-term investments utilized by Foreign Subsidiaries in accordance with
normal investment practices for cash management in investments of a type analogous to the
foregoing.

     “Permitted Refinancing Indebtedness” shall mean Indebtedness issued or incurred
(including by means of the extension or renewal of existing Indebtedness) to refinance, refund,
extend, renew or replace existing Indebtedness or Indebtedness assumed in connection with a
Permitted Acquisition as permitted by Section 6.01 (“Refinanced Indebtedness”);
provided that (a) the principal amount of such refinancing, refunding, extending, renewing
or replacing Indebtedness is not greater than the principal amount of such Refinanced Indebtedness
plus the amount of any premiums or penalties and accrued and unpaid interest paid thereon and
reasonable fees and expenses, in each case associated with such refinancing, refunding, extension,
renewal or replacement, (b) such refinancing, refunding, extending, renewing or replacing
Indebtedness has a final maturity that is no sooner than, and a weighted average life to maturity
that is no shorter than, such Refinanced Indebtedness, (c) if such Refinanced Indebtedness or any
Guarantees thereof are subordinated to the Obligations, such refinancing, refunding, extending,
renewing or replacing Indebtedness and any Guarantees thereof remain so subordinated on terms no
less favorable to the Lenders, (d) the obligors in respect of such Refinanced Indebtedness
immediately prior to such refinancing, refunding, extending, renewing or replacing are the only
obligors on such refinancing, refunding extending, renewing or replacing Indebtedness and (e) such
refinancing, refunding, extending, renewing or replacing Indebtedness contains covenants and events
of default and is benefited by Guarantees, if any, which, taken as a whole, are determined in good
faith by a Financial Officer of the Borrower to be no less favorable to the Borrower or the
applicable Subsidiary and the Lenders in any material respect than the covenants and events of
default or Guarantees, if any, in respect of such Refinanced Indebtedness.

     “person” shall mean any natural person, corporation, trust, business trust, joint
venture, joint stock company, association, company, limited liability company, partnership,
Governmental Authority or other entity.

     “Pledged Collateral” shall have the meaning assigned to such term in the Guarantee and
Collateral Agreement.

     “Prepayment Notice” shall mean a request by the Borrower in accordance with the terms
of Section 2.03 and substantially in the form of Exhibit D-3, or such other form as shall be
approved by the Administrative Agent.

     “Prime Rate” shall mean the rate of interest per annum announced from time to time by
Credit Suisse as its prime rate in effect at its principal office in New York City; each change in
the Prime Rate shall be effective as of the opening of business on the date such change is
announced as being effective. The Prime Rate is a reference rate and does not necessarily
represent the lowest or best rate actually available.

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     “Pro Rata Percentage” of any Revolving Credit Lender, at any time, shall mean the
percentage of the Total Revolving Credit Commitment represented by such Lender’s Revolving Credit
Commitment. In the event the Revolving Credit Commitments shall have expired or been terminated,
the Pro Rata Percentages of any Revolving Credit Lender shall be determined on the basis of the
Revolving Credit Commitments most recently in effect prior thereto.

     “Ratings” shall mean the ratings given by both S&P and Moody’s in respect of the
Facility on or prior the Closing Date.

     “Real Property” shall mean all Mortgaged Property and all other real property owned or
leased from time to time by the Borrower and the Subsidiaries.

     “Recovery Event” shall mean any settlement of or payment in respect of any property or
casualty insurance claim or any taking under power of eminent domain or by condemnation or similar
proceeding of or relating to any property or asset of the Borrower or any Subsidiary.

     “Register” shall have the meaning assigned to such term in Section 9.04(d) .

     “Regulation T” shall mean Regulation T of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

     “Regulation U” shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

     “Regulation X” shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

     “Related Fund” shall mean, with respect to any Lender that is a fund that invests in
bank loans, any other fund that invests in bank loans and is advised or managed by the same
investment advisor as such Lender or by an Affiliate of such investment advisor.

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

     “Release” shall mean any release, spill, seepage, emission, leaking, pumping,
injection, pouring, emptying, deposit, disposal, discharge, dispersal, dumping, escaping, leaching,
or migration into, onto or through the environment or within or upon any building, structure,
facility or fixture.

     “Repayment Date” shall have the meaning given such term in Section 2.11(d) .

     “Required Lenders” shall mean, at any time, Lenders having Loans (excluding Swingline
Loans), L/C Exposure, Swingline Exposure and unused Revolving Credit Commitments and Term Loan
Commitments representing at least a majority of the sum of all Loans outstanding (excluding
Swingline Loans), L/C Exposure, Swingline Exposure and unused Revolving Credit Commitments and Term
Loan Commitments at such time.

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     “Required Prepayment Percentage” shall mean (a) in the case of any Equity Issuance,
50% if on the date of the issuance, the Leverage Ratio is greater than 2.0 to 1.0; (b) in the case
of any Asset Sale or Recovery Event, 100%; (c) in the case of any issuance or other incurrence of
Indebtedness, 100%; and (d) in the case of any Excess Cash Flow, 50% if on the date of the
determination of the Excess Cash Flow, the Leverage Ratio is greater than 2.0 to 1.0.

     “Requirement of Law” shall mean as to any person, any law, treaty, rule or regulation
or determination of an arbitrator or a court or other Governmental Authority, in each case
applicable to or binding upon such person or any of its Real Property or personal property or to
which such person or any of its property of any nature is subject.

     “Responsible Officer” of any person shall mean any chief financial officer, general
counsel and vice president of finance (or, to the extent such positions do not exist or are vacant,
those officers exercising the duties and responsibilities ordinarily associated with such
positions) of such person.

     “Restricted Indebtedness” shall mean Indebtedness of the Borrower or any Subsidiary,
the payment, prepayment, repurchase or defeasance of which is restricted under Section 6.09(b).

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

     “Revolving Credit Borrowing” shall mean a Borrowing comprised of Revolving Loans.

     “Revolving Credit Commitment” shall mean, with respect to each Lender, the commitment,
if any, of such Lender to make Revolving Loans (and to acquire participations in Letters of Credit
and Swingline Loans) hereunder as set forth on the Lender Addendum delivered by such Lender, or in
the Assignment and Acceptance pursuant to which such Lender assumed its Revolving Credit
Commitment, as applicable, as the same may be (a) reduced from time to time pursuant to Section
2.09 and (b) reduced or increased from time to time pursuant to assignments by or to such Lender
pursuant to Section 9.04.

     “Revolving Credit Exposure” shall mean, with respect to any Lenders, at any time, the
aggregate principal amount at such time of all outstanding Revolving Loans of such Lender, plus the
aggregate amount at such time of such Lender’s L/C Exposure, plus the aggregate amount at such time
of such Lender’s Swingline Exposure.

     “Revolving Credit Lender” shall mean a Lender with a Revolving Credit Commitment or an
outstanding Revolving Loan.

     “Revolving Credit Maturity Date” shall mean the date that is five years after the
Closing Date.

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     “Revolving Loans” shall mean the revolving loans made by the Lenders to the Borrower
pursuant to clause (b) of Section 2.01.

     “S&P” shall mean Standard & Poor’s Ratings Group, Inc.

     “Secured Parties” shall have the meaning assigned to such term in the Guarantee and
Collateral Agreement.

     “Security Documents” shall mean the Guarantee and Collateral Agreement, the Mortgages,
the Intellectual Property Security Agreements and each of the other security agreements, pledges,
mortgages, consents and other instruments and documents executed and delivered pursuant to any of
the foregoing or pursuant to Section 5.09 or 5.10.

     “Senior Secured Debt” shall mean, at any time, the principal amount of all the
Obligations and all other Indebtedness included in Total Debt at such time, except any unsecured
Indebtedness.

     “SPC” shall have the meaning assigned to such term in Section 9.04(i).

     “Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board and any other banking authority, domestic or
foreign, to which the Administrative Agent or any Lender (including any branch, Affiliate or other
fronting office making or holding a Loan) is subject for eurocurrency funding (currently referred
to as “Eurocurrency Liabilities” in Regulation D of the Board). Eurodollar Loans shall be deemed
to constitute eurocurrency funding and to be subject to such reserve requirements without benefit
of or credit for proration, exemptions or offsets that may be available from time to time to any
Lender under such Regulation D or any comparable regulation. Statutory Reserves shall be adjusted
automatically on and as of the effective date of any change in any reserve percentage.

     “subsidiary” shall mean, with respect to any person (herein referred to as the
“parent”), any corporation, partnership, limited liability company, association or other
entity (a) of which securities or other ownership interests representing more than 50% of the
equity or more than 50% of the ordinary voting power or more than 50% of the general partnership
interests are, at the time any determination is being made, owned, controlled or held, or (b) that
is, at the time

any determination is made, otherwise Controlled, by the parent or one or more subsidiaries of
the parent or by the parent and one or more subsidiaries of the parent.

     “Subsidiary” shall mean any subsidiary of the Borrower, including, without limitation,
the Company.

     “Subsidiary Guarantor” shall mean, initially, each Subsidiary specified on Schedule
1.01(b) and, at any time thereafter, shall include each other Subsidiary (other than the China
Joint Venture) that is not an Excluded Foreign Subsidiary.

20

 

     “Swingline Commitment” shall mean the commitment of the Swingline Lender to make loans
pursuant to Section 2.22, as the same may be reduced from time to time pursuant to Section 2.09.

     “Swingline Exposure” shall mean, at any time, the aggregate principal amount at such
time of all outstanding Swingline Loans. The Swingline Exposure of any Revolving Credit Lender at
any time shall equal its Pro Rata Percentage of the aggregate Swingline Exposure at such time.

     “Swingline Lender” shall mean Credit Suisse, acting through its Cayman Islands Branch,
in its capacity as lender of Swingline Loans hereunder.

     “Swingline Loan” shall mean any loan made by the Swingline Lender pursuant to Section
2.22.

     “Syndication Agent” shall have the meaning assigned to such term in the preamble.

     “Synthetic Lease Obligations” shall mean all monetary obligations of a person under
(a) a so-called synthetic, off-balance sheet or tax retention lease or (b) an agreement for the use
or possession of any property (whether real, personal or mixed) creating obligations which do not
appear on the balance sheet of such person, but which, upon the insolvency or bankruptcy of such
person, would be characterized as Indebtedness of such person (without regard to accounting
treatment).

     “Synthetic Purchase Agreement” shall mean any swap, derivative or other agreement or
combination of agreements pursuant to which the Borrower or any Subsidiary is or may become
obligated to make (a) any payment in connection with a purchase by any third party from a person
other than the Borrower or any Subsidiary of any Equity Interest or Restricted Indebtedness or (b)
any payment (other than on account of a permitted purchase by it of any Equity Interest or
Restricted Indebtedness) the amount of which is determined by reference to the price or value at
any time of any Equity Interest or Restricted Indebtedness; provided that no phantom stock
or similar plan providing for payments only to current or former directors, officers or employees
of the Borrower or the Subsidiaries (or to their heirs or estates) shall be deemed to be a
Synthetic Purchase Agreement.

     “Tax Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

     “Taxes” shall mean any and all present or future income, stamp and other taxes,
levies, imposts, duties, deductions, charges, liabilities or withholdings now or hereafter imposed,
levied, collected, withheld or assessed by any Governmental Authority.

     “Term Borrowing” shall mean a Borrowing comprised of Term Loans.

     “Term Lender” shall mean a Lender with a Term Loan Commitment or an outstanding Term
Loan.

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     “Term Loan Commitment” shall mean, with respect to each Lender, the commitment, if
any, of such Lender to make Term Loans hereunder as set forth on the Lender Addendum delivered by
such Lender, or in the Assignment and Acceptance pursuant to which such Lender assumed its Term
Loan Commitment, as applicable, as the same may be reduced or increased from time to time pursuant
to assignments by or to such Lender pursuant to Section 9.04. The initial aggregate amount of the
Term Loan Commitments is $60,000,000.

     “Term Loan Maturity Date” shall mean the date that is six years after the Closing
Date.

     “Term Loans” shall mean the term loans made by the Lenders to the Borrower pursuant to
Section 2.01.

     “Total Debt” shall mean, at any time, the aggregate amount of Indebtedness of the
Borrower and the Subsidiaries outstanding at such time, in the amount that would be reflected on a
balance sheet prepared at such time on a consolidated basis in accordance with GAAP.

     “Total Revolving Credit Commitment” shall mean, at any time, the aggregate amount of
the Revolving Credit Commitments, as in effect at such time. The initial Total Revolving Credit
Commitment is $10,000,000.

     “Transactions” shall mean, collectively, (a) the execution, delivery and performance
by the Loan Parties of the Loan Documents to which they are a party, (b) the borrowings hereunder,
the issuance of Letters of Credit and the use of proceeds of each of the foregoing, (c) the
granting of Liens pursuant to the Security Documents, (d) the Acquisition and the other Acquisition
Transactions and (e) any other transactions related to or entered into in connection with any of
the foregoing.

     “Type”, when used in respect of any Loan or Borrowing, shall refer to the Rate by
reference to which interest on such Loan or on the Loans comprising such Borrowing is determined.
For purposes hereof, the term “Rate” shall include the Adjusted LIBO Rate and the Alternate
Base Rate.

     “UCC” shall mean the Uniform Commercial Code.

     “Uniform Customs” shall have the meaning assigned to such term in Section 9.07.

     “wholly owned subsidiary” of any person shall mean a subsidiary of such person of
which securities (except for directors’ qualifying shares) or other ownership interests
representing 100% of the Equity Interests are, at the time any determination is being made,
owned, controlled or held by such person or one or more wholly owned subsidiaries of such
person or by such person and one or more wholly owned subsidiaries of such person; a “wholly
owned Subsidiary” shall mean any wholly owned subsidiary of the Borrower.

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

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     SECTION 1.02. Terms Generally. The definitions in Section 1.01 shall apply equally to
both the singular and plural forms of the terms defined. Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including”, and words of similar import, shall not be limiting and shall be deemed
to be followed by the phrase “without limitation”. The word “will” shall be construed to have the
same meaning and effect as the word “shall”. The words “asset” and “property” shall be construed
as having the same meaning and effect and to refer to any and all rights and interests in tangible
and intangible assets and properties of any kind whatsoever, whether real, personal or mixed,
including cash, securities, Equity Interests, accounts and contract rights. The words “herein”,
“hereof” and “hereunder”, and words of similar import, shall be construed to refer to this
Agreement in its entirety and not to any particular provision of this Agreement unless the context
shall otherwise require. All references herein to Articles, Sections, Exhibits and Schedules shall
be deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement
unless the context shall otherwise require. Except as otherwise expressly provided herein, (a) any
definition of, or reference to, any Loan Document or any other agreement, instrument or document in
this Agreement shall mean such Loan Document or other agreement, instrument or document as amended,
restated, supplemented or otherwise modified from time to time (subject to any restrictions on such
amendments, restatements, supplements or modifications set forth herein) and (b) all terms of an
accounting or financial nature shall be construed in accordance with GAAP, as in effect from time
to time; provided, however, that if the Borrower notifies the Administrative Agent
that the Borrower wishes to amend any covenant in Article VI or any related definition to eliminate
the effect of any change in GAAP occurring after the date of this Agreement on the operation of
such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders wish
to amend Article VI or any related definition for such purpose), then the Borrower’s compliance
with such covenant shall be determined on the basis of GAAP in effect immediately before the
relevant change in GAAP became effective, until either such notice is withdrawn or such covenant is
amended in a manner satisfactory to the Borrower and the Required Lenders.

     SECTION 1.03. Classification of Loans and Borrowings. For purposes of this Agreement,
Loans may be classified and referred to by Class (e.g., a “Revolving Loan”) or by Type (e.g., a
“Eurocurrency Loan”) or by Class and Type (e.g., a “Eurocurrency Revolving Loan”). Borrowings also
may be classified and referred to by Class (e.g., a “Revolving Borrowing”) or by Type (e.g., a
“Eurocurrency Borrowing”) or by Class and Type (e.g., a “Eurocurrency Revolving Borrowing”).

     SECTION 1.04. Pro Forma Calculations. All pro forma calculations
permitted or required to be made by the Borrower or any Subsidiary pursuant to this Agreement shall
include only those adjustments that would be permitted or required by Regulation S-X under the
Securities Act of 1933, as amended, together with those adjustments that (a) have been certified by
a Financial Officer of the Borrower as having been prepared in good faith based upon reasonable
assumptions and (b) are based on reasonably detailed written assumptions reasonably acceptable to
the Administrative Agent.

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ARTICLE II.

The Credits

     SECTION 2.01. Commitments. Subject to the terms and conditions hereof and relying
upon the representations and warranties set forth herein, (a) each Term Lender agrees, severally
and not jointly, to make a Term Loan to the Borrower on the Closing Date in a principal amount not
to exceed its Term Loan Commitment and (b) each Revolving Credit Lender agrees, severally and not
jointly, to make Revolving Loans to the Borrower, at any time and from time to time on and after
the Closing Date and until the earlier of the Revolving Credit Maturity Date and the termination of
the Revolving Credit Commitment of such Revolving Credit Lender in accordance with the terms
hereof, in an aggregate principal amount at any time outstanding that will not result in such
Revolving Credit Lender’s Revolving Credit Exposure exceeding such Revolving Credit Lender’s
Revolving Credit Commitment. Within the limits set forth in clause (b) of the preceding sentence
and subject to the terms, conditions and limitations set forth herein, the Borrower may borrow, pay
or prepay and reborrow Revolving Loans. Amounts paid or prepaid in respect of Term Loans may not be
reborrowed.

     SECTION 2.02. Loans. (a) Each Loan (other than Swingline Loans) shall be made
as part of a Borrowing consisting of Loans of the same Class and Type made by the Lenders ratably
in accordance with their respective Commitments of the applicable Class; provided,
however, that the failure of any Lender to make any Loan required to be made by it shall
not in itself relieve any other Lender of its obligation to lend hereunder (it being understood,
however, that no Lender shall be responsible for the failure of any other Lender to make any Loan
required to be made by such other Lender). Except for Loans deemed made pursuant to Section
2.02(f) and subject to Section 2.22 relating to Swingline Loans, the Loans comprising any Borrowing
shall be in an aggregate principal amount that is (i) an integral multiple of $100,000 and not less
than $1,000,000 or (ii) equal to the remaining available balance of the applicable Commitments.

     (b)   Subject to Sections 2.08 and 2.15, each Borrowing shall be comprised entirely of ABR
Loans or Eurodollar Loans as the Borrower may request pursuant to Section 2.03; provided
that all Borrowings made on the Closing Date and during the period ending seven days thereafter
must be made as ABR Borrowings (and may not be converted into Eurodollar Borrowings until the end
of such seven-day period), and no Borrowings may be converted into or continued as a
Eurodollar Borrowing having an Interest Period in excess of one month prior to the date which
is 60 days after the Closing Date. Each Lender may at its option make any Eurodollar Loan by
causing any domestic or foreign branch or Affiliate of such Lender to make such Loan;
provided that any exercise of such option shall not affect the obligation of the Borrower
to repay such Loan in accordance with the terms of this Agreement. Borrowings of more than one
Type may be outstanding at the same time; provided, however, that the Borrower
shall not be entitled to request any Borrowing that, if made, would result in more than ten
Eurodollar Borrowings outstanding hereunder at any time. For purposes of the foregoing, Borrowings
having different Interest Periods, regardless of whether they commence on the same date, shall be
considered separate Borrowings.

     (c)   Except with respect to Loans made pursuant to Section 2.02(f) and subject to Section
2.22 relating to Swingline Loans, each Lender shall make each Loan to be made by it

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hereunder on
the proposed date thereof by wire transfer of immediately available funds to such account in New
York City as the Administrative Agent may designate not later than 12:00 Noon, New York City time,
and the Administrative Agent shall promptly credit the amounts so received to an account in the
name of the Borrower as designated by the Borrower in the applicable Borrowing Request or, if a
Borrowing shall not occur on such date because any condition precedent herein specified shall not
have been met, return the amounts so received to the respective Lenders.

     (d)   Unless the Administrative Agent shall have received notice from a Lender prior to the
date of any Borrowing that such Lender will not make available to the Administrative Agent such
Lender’s portion of such Borrowing, the Administrative Agent may assume that such Lender has made
such portion available to the Administrative Agent on the date of such Borrowing in accordance with
paragraph (c) of this Section and the Administrative Agent may, in reliance upon such assumption,
make available to the Borrower on such date a corresponding amount. If the Administrative Agent
shall have so made funds available then, to the extent that such Lender shall not have made such
portion available to the Administrative Agent, such Lender and the Borrower severally agree to
repay to the Administrative Agent forthwith on demand such corresponding amount together with
interest thereon, for each day from the date such amount is made available to the Borrower to but
excluding the date such amount is repaid to the Administrative Agent at (i) in the case of the
Borrower, the interest rate applicable at the time to the Loans comprising such Borrowing or (ii)
in the case of such Lender, a rate determined by the Administrative Agent to represent its cost of
overnight or short-term funds (which determination shall be conclusive absent manifest error);
provided, however, that in the case of the initial Borrowing of the Term Loans on
the Closing Date, the Borrower shall have no obligation to repay such amount (but without limiting
any obligation of the Borrower to make any other repayments or prepayments under this Agreement)
and any such shortfall shall be deemed funded by the Administrative Agent. If such Lender shall
repay to the Administrative Agent such corresponding amount, such amount shall constitute such
Lender’s Loan as part of such Borrowing for purposes of this Agreement.

     (e)   Notwithstanding any other provision of this Agreement, the Borrower shall not be
entitled to request any Revolving Credit Borrowing if the Interest Period requested with respect
thereto would end after the Revolving Credit Maturity Date.

     (f)   If the Issuing Bank shall not have received from the Borrower the payment required to be
made by Section 2.23(e) with respect to a Letter of Credit within the time specified in such
Section, the Issuing Bank will promptly notify the Administrative Agent of the L/C Disbursement and
the Administrative Agent will promptly notify each Credit Lender of such L/C Disbursement and its
Pro Rata Percentage thereof. Each Revolving Credit Lender shall pay by wire transfer of
immediately available funds to the Administrative Agent not later than 2:00 p.m. Noon, New York
City time, on such date (or, if such Revolving Credit Lender shall have received such notice later
than 12:00 (noon), New York City time, on any day, not later than 10:00 a.m., New York City time,
on the immediately following Business Day), an amount equal to such Lender’s Pro Rata Percentage of
such L/C Disbursement (it being understood that such amount shall be deemed to constitute an ABR
Revolving Loan of such Lender and such payment shall be deemed to have reduced the L/C Exposure),
and the Administrative Agent will promptly pay to the Issuing Bank amounts so received by it from
the Revolving Credit Lenders. The

25

 

Administrative Agent will promptly pay to the Issuing Bank any
amounts received by it from the Borrower pursuant to Section 2.23(e) prior to the time that any
Revolving Credit Lender makes any payment pursuant to this paragraph; any such amounts received by
the Administrative Agent thereafter will be promptly remitted by the Administrative Agent to the
Revolving Credit Lenders that shall have made such payments and to the Issuing Bank, as their
interests may appear. If any Revolving Credit Lender shall not have made its Pro Rata Percentage
of such L/C Disbursement available to the Administrative Agent as provided above, such Lender and
the Borrower severally agree to pay interest on such amount, for each day from and including the
date such amount is required to be paid in accordance with this paragraph to but excluding the date
such amount is paid, to the Administrative Agent for the account of the Issuing Bank at (i) in the
case of the Borrower, a rate per annum equal to the interest rate applicable to Revolving Loans
pursuant to Section 2.06(a), and (ii) in the case of such Lender, for the first such day, the
Federal Funds Effective Rate, and for each day thereafter, the Alternate Base Rate.

     SECTION 2.03. Borrowing Procedure. In order to request a Borrowing (other than a
Swingline Loan or a deemed Borrowing pursuant to Section 2.02(f), as to which this Section 2.03
shall not apply), the Borrower shall deliver (by hand, fax or telephone notice promptly confirmed
in writing or by fax) to the Administrative Agent a duly completed Borrowing Request (a) in the
case of a Eurodollar Borrowing, not later than 12:00 Noon, New York City time, three Business Days
before a proposed Borrowing and (b) in the case of an ABR Borrowing, not later than 12:00 Noon, New
York City time, one Business Day before a proposed Borrowing (or the same Business Day, in the case
of the initial Borrowing hereunder). Each Borrowing Request shall be irrevocable, shall be signed
by or on behalf of the Borrower and shall specify the following information: (i) whether the
Borrowing then being requested is to be a Term Borrowing or a Revolving Credit Borrowing, and
whether such Borrowing is to be a Eurodollar Borrowing or an ABR Borrowing; (ii) the date of such
Borrowing (which shall be a Business Day); (iii) the number and location of the account to which
funds are to be disbursed (which shall be an account that complies with the requirements of Section
2.02(c)); (iv) the amount of such Borrowing; and (v) if such Borrowing is to be a Eurodollar
Borrowing, the initial Interest Period with respect thereto; provided, however,
that, notwithstanding any contrary specification in any Borrowing Request, each requested Borrowing
shall comply with the requirements set forth in Section 2.02. If no election as to the Type of
Borrowing is specified in any such notice, then the requested Borrowing shall
be an ABR Borrowing. If no Interest Period with respect to any Eurodollar Borrowing is
specified in any such notice, then the Borrower shall be deemed to have selected an Interest Period
of one month’s duration. The Administrative Agent shall promptly advise the applicable Lenders of
any notice given in accordance with this Section 2.03 (and the contents thereof), and of each
Lender’s portion of the requested Borrowing.

     SECTION 2.04. Repayment of Loans; Evidence of Debt. (a) The Borrower hereby
unconditionally promises to pay to the Administrative Agent for the account of each Lender (i) the
principal amount of each Term Loan of such Lender made to the Borrower as provided in Section 2.11
and (ii) the then unpaid principal amount of each Revolving Loan of such Lender made to the
Borrower on the Revolving Credit Maturity Date. The Borrower hereby unconditionally promises to
pay to the Swingline Lender the then unpaid principal amount of each Swingline Loan made to the
Borrower on the Revolving Credit Maturity Date.

26

 

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

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

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

     (e)   Any Lender may request that Loans made by it hereunder be evidenced by a promissory
note. In such event, the Borrower shall execute and deliver to such Lender a promissory note
payable to such Lender and its registered assigns and in a form and substance reasonably acceptable
to the Administrative Agent. Notwithstanding any other provision of this Agreement, in the event
any Lender shall request and receive such a promissory note, the interests represented by such note
shall at all times (including after any assignment of all or part of such interests pursuant to
Section 9.04) be represented by one or more promissory notes payable to the payee named therein or
its registered assigns.

     SECTION 2.05. Fees. (a) The Borrower agrees to pay to each Lender, through the
Administrative Agent, on the last Business Day of March, June, September and December in each year
and on each date on which any Commitment of such Lender shall expire or be terminated as provided
herein, a commitment fee (a “Commitment Fee”) equal to the Commitment Fee Rate on the
average daily unused amount of the Commitments of such Lender (other than the Swingline Commitment)
during the preceding quarter (or other period commencing with the date hereof or ending with the
Revolving Credit Maturity Date or the date on which the Commitments of such Lender shall expire or
be terminated). All Commitment Fees shall be computed on the basis of the actual number of days
elapsed in a year of 360 days. The Commitment Fee due to each Lender shall commence to accrue on
the date hereof and shall cease to accrue on the date on which the Commitment of such Lender shall
expire or be terminated as provided herein. For purposes of calculating Commitment Fees with
respect to Revolving Credit Commitments only, no portion of the Revolving Credit Commitments shall
be deemed utilized under Section 2.22 as a result of outstanding Swingline Loans.

     (b)   The Borrower agrees to pay to the Administrative Agent, for its own account, the fees in
the amounts and at the times from time to time agreed to in writing by the Borrower (or any
Affiliate) and the Administrative Agent (the “Administrative Agent Fees”).

27

 

     (c)   The Borrower agrees to pay (i) to each Revolving Credit Lender, through the
Administrative Agent, on the last Business Day of March, June, September and December of each year
and on the date on which the Revolving Credit Commitment of such Lender shall be terminated as
provided herein (each, an “L/C Fee Payment Date”) a fee (an “L/C Participation
Fee”) calculated on such Lender’s Pro Rata Percentage of the daily aggregate L/C Exposure
(excluding the portion thereof attributable to unreimbursed L/C Disbursements which are earning
interim interest pursuant to Section 2.23(h)) during the preceding quarter (or shorter period
commencing with the date hereof or ending with the Revolving Credit Maturity Date or the date on
which all Letters of Credit have been canceled or have expired and the Revolving Credit Commitments
of all Lenders shall have been terminated) at a rate per annum equal to the Applicable Margin used
to determine the interest rate on Revolving Credit Borrowings comprised of Eurodollar Loans
pursuant to Section 2.06, and (ii) to the Issuing Bank with respect to each outstanding Letter of
Credit issued for the account of (or at the request of) the Borrower a fronting fee, which shall
accrue at the rate of 1/4 of 1% per annum or such other rate as shall be separately agreed upon
between the Borrower and the Issuing Bank, on the drawable amount of such Letter of Credit, payable
quarterly in arrears on each L/C Fee Payment Date after the issuance date of such Letter of Credit,
as well as the Issuing Bank’s standard fees with respect to the issuance, amendment, renewal or
extension of any Letter of Credit issued for the account of (or at the request of) the Borrower or
processing of drawings thereunder (the fees in this clause (ii), collectively, the “Issuing
Bank Fees”). All L/C Participation Fees and Issuing Bank Fees shall be computed on the basis
of the actual number of days elapsed in a year of 360 days.

     (d)   All Fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for distribution, if and as appropriate, among the Lenders, except that the
Issuing Bank Fees shall be paid directly to the Issuing Bank. Once paid, none of the Fees shall be
refundable under any circumstances.

     SECTION 2.06. Interest on Loans. (a) Subject to the provisions of Section
2.07, the Loans comprising each ABR Borrowing, including each Swingline Loan, shall bear interest
(computed on the basis of the actual number of days elapsed over a year of 365 or 366 days, as the
case may be, when the Alternate Base Rate is determined by reference to the Prime Rate and over a
year of 360 days at all other times) at a rate per annum equal to the Alternate Base Rate plus the
Applicable Margin in effect from time to time.

     (b)   Subject to the provisions of Section 2.07, the Loans comprising each Eurodollar
Borrowing shall bear interest (computed on the basis of the actual number of days elapsed over a
year of 360 days) at a rate per annum equal to the Adjusted LIBO Rate for the Interest Period in
effect for such Borrowing plus the Applicable Margin in effect from time to time.

     (c)   Interest on each Loan shall be payable on the Interest Payment Dates applicable to such
Loan except as otherwise provided in this Agreement. The applicable Alternate Base Rate or
Adjusted LIBO Rate for each Interest Period or day within an Interest Period, as the case may be,
shall be determined by the Administrative Agent, and such determination shall be conclusive absent
manifest error.

     SECTION 2.07. Default Interest. If the Borrower shall default in the payment of the
principal of or interest on any Loan or any other amount becoming due hereunder or under

28

 

any other
Loan Document, by acceleration or otherwise, the Borrower shall on demand from time to time pay
interest, to the extent permitted by law, on such defaulted amount to but excluding the date of
actual payment (after as well as before judgment) (a) in the case of overdue principal, at the rate
otherwise applicable to such Loan pursuant to Section 2.06 plus 2.00% per annum and (b) in all
other cases, at a rate per annum (computed on the basis of the actual number of days elapsed over a
year of 365 or 366 days, as the case may be, when determined by reference to the Prime Rate and
over a year of 360 days at all other times) equal to the rate that would be applicable to an ABR
Revolving Loan plus 2.00%.

     SECTION 2.08. Alternate Rate of Interest. In the event, and on each occasion, that
prior to the commencement of any Interest Period for a Eurodollar Borrowing (a) the Administrative
Agent shall have determined that adequate and reasonable means do not exist for determining the
Adjusted LIBO Rate for such Interest Period or (b) the Administrative Agent is advised by the
Majority Facility Lenders in respect of the relevant Facility that the Adjusted LIBO Rate for such
Interest Period will not adequately and fairly reflect the cost to such Lenders of making or
maintaining their Loans included in such Borrowing for such Interest Period, the Administrative
Agent shall, as soon as practicable thereafter, give written or fax notice of such determination to
the Borrower and the Lenders. In the event of any such determination, until the Administrative
Agent shall have advised the Borrower and the Lenders that the circumstances giving rise to such
notice no longer exist, (i) any request by the Borrower for a Eurodollar Borrowing pursuant to
Section 2.03 or 2.10 shall be deemed to be a request for an ABR Borrowing and (ii) any Interest
Period election that requests the conversion of any Borrowing to, or continuation of any Borrowing
as, a Eurodollar Borrowing shall be ineffective. Each determination by the Administrative Agent
under this Section 2.08 shall be conclusive absent manifest error.

     SECTION 2.09. Termination and Reduction of Commitments. (a) Unless previously
terminated in accordance with the terms hereof, (i) the Term Loan Commitments shall automatically
terminate at 5:00 p.m., New York City time, on the Closing Date and (ii) the Revolving Credit
Commitments, the Swingline Commitment and the L/C Commitment shall automatically terminate on the
Revolving Credit Maturity Date. Notwithstanding the foregoing, all the Commitments shall
automatically terminate at 5:00 p.m., New York City time, on October 12, 2007, if the initial
Credit Event shall not have occurred by such time.

     (b)   Upon at least three Business Days’ prior irrevocable written or fax notice to the
Administrative Agent, the Borrower may at any time in whole permanently terminate, or from time to
time in part permanently reduce, the Revolving Credit Commitments or the Swingline Commitment;
provided, however, that (i) each partial reduction of the Revolving Credit
Commitments or the Swingline Commitment shall be in an integral multiple of $100,000 and in a
minimum amount of $1,000,000 and (ii) the Total Revolving Credit Commitment shall not be reduced to
an amount that is less than the Aggregate Revolving Credit Exposure then in effect.

     (c)   Each reduction in the Revolving Credit Commitments or Swingline Commitment hereunder
shall be made ratably among the applicable Lenders in accordance with their Pro Rata Percentages.
The Borrower shall pay to the Administrative Agent for the account of the applicable Lenders, on
the date of each termination or reduction, the Commitment Fees on the

29

 

amount of the Commitments so
terminated or reduced accrued to but excluding the date of such termination or reduction.

     SECTION 2.10. Conversion and Continuation of Borrowings. The Borrower shall have the
right at any time upon prior irrevocable written or telephonic (promptly confirmed in writing)
Conversion/Continuation Notice to the Administrative Agent (a) not later than 12:00 (noon), New
York City time, one Business Day prior to conversion, to convert any Eurodollar Borrowing of the
Borrower into an ABR Borrowing, (b) not later than 12:00 p.m., New York City time, three Business
Days prior to conversion or continuation, to convert any ABR Borrowing of the Borrower into a
Eurodollar Borrowing or to continue any Eurodollar Borrowing of the Borrower as a Eurodollar
Borrowing for an additional Interest Period and (c) not later than 12:00 p.m., New York City time,
three Business Days prior to conversion, to convert the Interest Period with respect to any
Eurodollar Borrowing of the Borrower to another permissible Interest Period, subject in each case
to the following:

     (i) each conversion or continuation shall be made pro rata among the Lenders in
accordance with the respective principal amounts of the Loans comprising the converted or
continued Borrowing;

     (ii) if less than all the outstanding principal amount of any Borrowing shall be
converted or continued, then each resulting Borrowing shall satisfy the limitations

specified in Sections 2.02(a) and 2.02(b) regarding the principal amount and maximum
number of Borrowings of the relevant Type;

     (iii) each conversion shall be effected by each Lender and the Administrative Agent by
recording for the account of such Lender the new Loan of such Lender resulting from such
conversion and reducing the Loan (or portion thereof) of such Lender being converted by an
equivalent principal amount; accrued interest on any Eurodollar Loan (or portion thereof)
being converted shall be paid by the Borrower at the time of conversion;

     (iv) if any Eurodollar Borrowing is converted at a time other than the end of the
Interest Period applicable thereto, the Borrower shall pay, upon demand, any amounts due to
the Lenders pursuant to Section 2.16;

     (v) any portion of a Borrowing maturing or required to be repaid in less than one month
may not be converted into or continued as a Eurodollar Borrowing;

     (vi) any portion of a Eurodollar Borrowing that cannot be converted into or continued
as a Eurodollar Borrowing by reason of the immediately preceding clause shall be
automatically converted at the end of the Interest Period in effect for such Borrowing into
an ABR Borrowing;

     (vii) no Interest Period may be selected for any Eurodollar Term Borrowing that would
end later than a Repayment Date occurring on or after the first day of such Interest Period
if, after giving effect to such selection, the aggregate outstanding amount of (A) the
Eurodollar Term Borrowings with Interest Periods ending on or prior to such Repayment Date
and (B) the ABR Term Borrowings would not be at least equal to the principal amount of Term
Borrowings to be paid on such Repayment Date;

30

 

     (viii) the date of any such conversion shall be a Business Day; and

     (ix) after the occurrence and during the continuance of a Default or Event of Default,
no outstanding Loan may be converted into, or continued as, a Eurodollar Loan.

     If no Interest Period is specified in any such Conversion/Continuation Notice with respect to
any conversion to or continuation as a Eurodollar Borrowing, the Borrower shall be deemed to have
selected an Interest Period of one month’s duration. The Administrative Agent shall advise the
Lenders of any Conversion/Continuation Notice given pursuant to this Section 2.10 and of each
Lender’s portion of any converted or continued Borrowing. If the Borrower shall not have given a
Conversion/Continuation Notice in accordance with this Section 2.10 to continue any Borrowing into
a subsequent Interest Period (and shall not otherwise have given notice in accordance with this
Section 2.10 to convert such Borrowing), such Borrowing shall, at the end of the Interest Period
applicable thereto (unless repaid pursuant to the terms hereof), automatically be converted or
continued into an ABR Borrowing.

     SECTION 2.11. Repayment of Term Borrowings. (a) On the dates set forth below,
or if any such date is not a Business Day, on the next preceding Business Day (each such date being
called a “Repayment Date”), the Borrower shall pay to the Administrative Agent, for the account of the Term Lenders, a
principal amount of the Term Loans (as adjusted from time to time pursuant to Sections 2.11(b),
2.12 and 2.13(f)) equal to the amount set forth below for such date, together in each case with
accrued and unpaid interest and Fees on the amount to be paid to but excluding the date of such
payment:

	 	 	 	 	 
	Repayment Date	 	Amount	 
	March 31, 2006
	 	$	150,000	 
	June 30, 2006
	 	$	150,000	 
	September 30, 2006
	 	$	150,000	 
	December 31, 2006
	 	$	150,000	 
	March 31, 2007
	 	$	150,000	 
	June 30, 2007
	 	$	150,000	 
	September 30, 2007
	 	$	150,000	 
	December 31, 2007
	 	$	150,000	 
	March 31, 2008
	 	$	150,000	 
	June 30, 2008
	 	$	150,000	 
	September 30, 2008
	 	$	150,000	 
	December 31, 2008
	 	$	150,000	 
	March 31, 2009
	 	$	150,000	 
	June 30, 2009
	 	$	150,000	 
	September 30, 2009
	 	$	150,000	 
	December 31, 2009
	 	$	150,000	 
	March 31, 2010
	 	$	150,000	 
	June 30, 2010
	 	$	150,000	 
	September 30, 2010
	 	$	150,000	 
	December 31, 2010
	 	$	150,000	 
	March 31, 2011
	 	$	14,250,000	 
	June 30, 2011
	 	$	14.250,000	 

31

 

	 	 	 	 	 
	Repayment Date	 	Amount	 
	September 30, 2011
	 	$	14,250,000	 
	Term Loan Maturity Date
	 	Remainder

     (b)   In the event and on each occasion that any Term Loan Commitments shall be reduced or
shall expire or terminate other than as a result of the making of a Term Loan, the installments
payable on each Repayment Date shall be reduced pro rata by an aggregate amount equal to the amount
of such reduction, expiration or termination.

     (c)   To the extent not previously paid, all Term Loans shall be due and payable on the Term
Loan Maturity Date, together with accrued and unpaid interest on the principal amount to be paid to
but excluding the date of payment.

     (d)   All repayments pursuant to this Section 2.11 shall be subject to Section 2.16, but shall
otherwise be without premium or penalty.

     SECTION 2.12. Prepayment. (a) The Borrower shall have the right at any time
and from time to time to prepay any Borrowing, in whole or in part, upon at least three Business
Days’ prior written or fax delivery of a Prepayment Notice (or telephone notice promptly confirmed thereafter by
written or fax delivery of a Prepayment Notice) in the case of Eurodollar Loans, or written or fax
delivery of a Prepayment Notice (or telephone notice promptly confirmed thereafter by written or
fax delivery of a Prepayment Notice) at least one Business Day prior to the date of prepayment in
the case of ABR Loans, to the Administrative Agent before 12:00 Noon, New York City time;
provided, however, that each partial prepayment shall be in an amount that is an
integral multiple of $100,000 and not less than $1,000,000.

     (b)   Any voluntary prepayments pursuant to Section 2.12 (a) shall be applied to Term Loans to
ratably reduce each scheduled installment of principal thereunder set forth in Section 2.11. Any
voluntary prepayment shall be applied first to Term Loans that are ABR Loans to the full extent
thereof before application to Term Loans that are Eurodollar Loans.

     (c)   Each Prepayment Notice shall be irrevocable and shall commit the Borrower to prepay such
Borrowing by the amount stated therein on the date stated therein. All prepayments under this
Section 2.12 shall be subject to Section 2.16, but otherwise without premium or penalty. All
prepayments under this Section 2.12 (other than a prepayment of an ABR Revolving Loan) shall be
accompanied by accrued and unpaid interest on the principal amount to be prepaid to but excluding
the date of payment.

     SECTION 2.13. Mandatory Prepayments. (a) In the event of any termination of
all the Revolving Credit Commitments, the Borrower shall, on the date of such termination, repay or
prepay all its outstanding Revolving Credit Borrowings and all its outstanding Swingline Loans and
replace all its outstanding Letters of Credit and/or deposit an amount equal to the L/C Exposure in
cash in a cash collateral account established with the Collateral Agent for the benefit of the
Secured Parties. If as a result of any partial reduction of the Revolving Credit Commitments the
Aggregate Revolving Credit Exposure would exceed the Total Revolving Credit Commitment after giving
effect thereto, then the Borrower shall, on the date of such reduction, repay or prepay Revolving
Credit Borrowings or Swingline Loans (or a combination

32

 

thereof) and/or cash collateralize Letters of Credit in an amount sufficient to eliminate such excess.

     (b)   Not later than thirty days following the completion of any Asset Sale or the occurrence
of any Recovery Event, the Borrower shall apply the Required Prepayment Percentage of the Net Cash
Proceeds received with respect thereto to prepay outstanding Term Loans in accordance with Section
2.13(f).

     (c)   In the event and on each occasion that an Equity Issuance occurs, the Borrower shall,
substantially simultaneously with (and in any event not later than the fifth Business Day next
following) the occurrence of such Equity Issuance, apply the Required Prepayment Percentage of the
Net Cash Proceeds therefrom to prepay outstanding Term Loans in accordance with Section 2.13(f).

     (d)   In the event that any Loan Party or any subsidiary of a Loan Party shall receive Net
Cash Proceeds from the issuance or other incurrence of Indebtedness of any Loan Party or any
subsidiary of a Loan Party (other than Indebtedness permitted pursuant to Section 6.01

(other than pursuant to Section 6.01(f)), the Borrower shall, substantially simultaneously
with (and in any event not later than the fifth Business Day next following) the receipt of such
Net Cash Proceeds by such Loan Party or such subsidiary, apply an amount equal to the Required
Prepayment Percentage of such Net Cash Proceeds to prepay outstanding Term Loans in accordance with
Section 2.13(f).

     (e)   No later than the earlier of (i) 90 days after the end of each fiscal year of the
Borrower, commencing with the fiscal year ending on December 31, 2006, and (ii) the date on which
the financial statements with respect to such period are delivered pursuant to Section 5.04(a), the
Borrower shall prepay outstanding Term Loans in accordance with Section 2.13(f), in an aggregate
principal amount equal to the excess, if any, of (x) the Required Prepayment Percentage of Excess
Cash Flow for the fiscal year then ended, over (y) any permanent repayments or prepayments of
Indebtedness made by the Borrower and the Subsidiaries during such fiscal year, but only to the
extent that such repayments or prepayments by their terms cannot be reborrowed or redrawn;
provided that the amount required to be prepaid pursuant to this Section 2.13(e) shall not
exceed the amount necessary to have caused the Leverage Ratio to be equal to 2.0 to 1.0 as of the
last day of such fiscal year.

     (f)   The Borrower shall deliver to the Administrative Agent, at the time of each prepayment
required under this Section 2.13, (i) a certificate signed by a Financial Officer of the Borrower
setting forth in reasonable detail the calculation of the amount of such prepayment and (ii) to the
extent practicable, at least three days prior written notice of such prepayment. Each notice of
prepayment shall specify the prepayment date, the Type of each Loan being prepaid and the principal
amount of each Loan (or portion thereof) to be prepaid. All prepayments of Borrowings pursuant to
this Section 2.13 shall be subject to Section 2.16, but shall otherwise be without premium or
penalty.

Mandatory prepayments pursuant to this Section 2.13 shall be applied:

33

 

     (i) to Term Loans to ratably reduce each scheduled installment of principal thereunder set
forth in Section 2.11. Any Term Lender may elect, by notice in writing to the
Administrative Agent by telephone (promptly confirmed thereafter by facsimile) at least 2 Business
Days or any shorter time period as the Administrative Agent may determine, prior to the applicable
prepayment date, to decline all of any mandatory prepayments of its Term Loans pursuant to
Section 2.13, in which case the aggregate amount of the prepayment that would have been
applied to prepay such Term Loans but was so declined shall be applied to prepay the Term Loans of
those Term Lenders who have initially accepted such prepayment (such prepayment to be made to each
such Term Lender based on the percentage which such Term Lender’s Term Loans represents of the
aggregate Term Loans of all such Term Lenders who have initially accepted such prepayment);

     (ii) in the manner set forth in clause (i) above irrespective of whether the then outstanding
Term Loans being prepaid are ABR Loans or Eurodollar Loans; provided that if no Term
Lenders exercise the right to waive a given mandatory prepayment of the Term Loans pursuant to the
above paragraph, then, with respect to such mandatory prepayment, the amount of such mandatory
prepayment shall be applied first to Term Loans that are ABR Loans to the full extent thereof
before application to Term Loans that are Eurodollar Loans; and

     (iii) when there are no longer outstanding Term Loans under the Term Facility, to prepay
outstanding Revolving Loans and cash collateralize the L/C Exposure, in each case with no
corresponding permanent reduction of the Revolving Credit Commitments.

     SECTION 2.14. Reserve Requirements; Change in Circumstances. (a)
Notwithstanding any other provision of this Agreement, if any Change in Law shall:

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

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

and the result of any of the foregoing shall be to increase the cost to such Lender or the Issuing
Bank of making or maintaining any Eurodollar Loan (or of maintaining its obligation to make any
such Loan) or to increase the cost to any Lender, the Administrative Agent or the Issuing Bank of
issuing or maintaining any Letter of Credit or purchasing or maintaining a participation therein or
to reduce the amount of any sum received or receivable by such Lender or the Issuing Bank hereunder
(whether of principal, interest or otherwise) by an amount deemed by such Lender, the
Administrative Agent or the Issuing Bank to be material, then the Borrower will pay to such Lender,
the Administrative Agent or the Issuing Bank, as the case may be, upon demand such additional
amount or amounts as will compensate such Lender or the Issuing Bank, as the case may be, for such
additional costs incurred or reduction suffered; provided, that such amount shall be
determined in a manner consistent with the amount that such Lender or the Issuing Bank, as the case
may be, would generally apply with respect to other similarly situated

34

 

borrowers and shall not be
duplicative of any amounts paid by Borrower under any other provision of this Agreement; and
provided further that costs to which this Section 2.14 applies shall not include Excluded Taxes or
costs relating to Indemnified Taxes or Other Taxes that are governed by Section 2.20.

     (b)   If any Lender, the Administrative Agent or the Issuing Bank shall have determined that
any Change in Law regarding capital adequacy has or would have the effect of reducing the rate of
return on such Lender’s, the Administrative Agent’s or the Issuing Bank’s capital or on the capital
of such Lender’s, the Administrative Agent’s or the Issuing Bank’s holding company, if any, as a
consequence of this Agreement or the Loans made by, or participations in Letters of Credit
purchased by, such Lender or the Letters of Credit issued by the Issuing Bank to a level below that
which such Lender, the Administrative Agent or the Issuing Bank or such Lender’s, the
Administrative Agent’s or the Issuing Bank’s holding company could have achieved but for such
Change in Law (taking into consideration such Lender’s, the Administrative Agent’s or the Issuing
Bank’s policies and the policies of such Lender’s, the Administrative Agent’s or the Issuing Bank’s
holding company with respect to capital adequacy) by an amount deemed by such Lender, the
Administrative Agent or the Issuing Bank to be material, then from time to time the Borrower shall pay to such Lender, the
Administrative Agent or the Issuing Bank, as the case may be, such additional amount or amounts as
will compensate such Lender, the Administrative Agent or the Issuing Bank or such Lender’s, the
Administrative Agent’s or the Issuing Bank’s holding company for any such reduction suffered;
provided, that such amount shall be determined in a manner consistent with the amount that
such Lender or the Issuing Bank, as the case may be, would generally apply with respect to other
similarly situated borrowers and shall not be duplicative of any amounts paid by Borrower under any
other provision of this Agreement.

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

     (d)   Failure or delay on the part of any Lender, the Administrative Agent or the Issuing Bank
to demand compensation pursuant to this Section shall not constitute a waiver of such Lender’s, the
Administrative Agent’s or the Issuing Bank’s right to demand such compensation; provided
that the Borrower shall not be under any obligation to compensate any Lender, the Administrative
Agent or the Issuing Bank under paragraph (a) or (b) above for increased costs or reductions with
respect to any period prior to the date that is 270 days prior to such request if such Lender, the
Administrative Agent or the Issuing Bank knew or could reasonably have been expected to know of the
circumstances giving rise to such increased costs or reductions and of the fact that such
circumstances would result in a claim for increased compensation by reason of such increased costs
or reductions; provided further that the foregoing limitation shall not apply to any
increased costs or reductions arising out of the retroactive application of any Change in Law
within such 270-day period. The protection of this Section shall be available to each Lender, the
Administrative Agent and the Issuing Bank

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regardless of any possible contention of the invalidity
or inapplicability of the Change in Law that shall have occurred or been imposed.

     SECTION 2.15. Change in Legality. (a) Notwithstanding any other provision of
this Agreement, if any Change in Law shall make it unlawful for any Lender to make or maintain any
Eurodollar Loan or to give effect to its obligations as contemplated hereby with respect to any
Eurodollar Loan, then, by written notice to the Borrower and to the Administrative Agent:

     (i) such Lender may declare that Eurodollar Loans will not thereafter (for the duration
of such unlawfulness) be made by such Lender hereunder (or be continued for additional
Interest Periods and ABR Loans will not thereafter (for such duration) be converted into
Eurodollar Loans), whereupon any request for a Eurodollar Borrowing (or to convert an ABR
Borrowing to a Eurodollar Borrowing or to continue a Eurodollar Borrowing for an additional
Interest Period) shall, as to such Lender only, be deemed a request for an ABR Loan (or a
request to continue an ABR Loan as such for an additional Interest Period or to convert a Eurodollar Loan into an ABR Loan, as the case may be),
unless such declaration shall be subsequently withdrawn; and

     (ii) such Lender may require that all outstanding Eurodollar Loans made by it be
converted to ABR Loans, in which event all such Eurodollar Loans shall be automatically
converted to ABR Loans as of the effective date of such notice as provided in paragraph (b)
below.

In the event any Lender shall exercise its rights under (i) or (ii) above, all payments and
prepayments of principal that would otherwise have been applied to repay the Eurodollar Loans that
would have been made by such Lender or the converted Eurodollar Loans of such Lender shall instead
be applied to repay the ABR Loans made by such Lender in lieu of, or resulting from the conversion
of, such Eurodollar Loans. Any such conversion of a Eurodollar Loan under (i) above shall be
subject to Section 2.16.

     (b)   For purposes of this Section 2.15, a notice to the Borrower by any Lender shall be
effective as to each Eurodollar Loan made by such Lender, if lawful, on the last day of the
Interest Period then applicable to such Eurodollar Loan; in all other cases such notice shall be
effective on the date of receipt by the Borrower.

     SECTION 2.16. Indemnity. The Borrower shall indemnify each Lender against any loss or
expense that such Lender may sustain or incur as a consequence of (a) any event, other than a
default by such Lender in the performance of its obligations hereunder (or such Lender’s gross
negligence or willful misconduct) which results in (i) such Lender receiving or being deemed to
receive any amount on account of the principal of any Eurodollar Loan prior to the end of the
Interest Period in effect therefor, (ii) the conversion of any Eurodollar Loan to an ABR Loan, or
the conversion of the Interest Period with respect to any Eurodollar Loan, in each case other than
on the last day of the Interest Period in effect therefor or (iii) any Eurodollar Loan to be made
by such Lender (including any Eurodollar Loan to be made pursuant to a conversion or continuation
under Section 2.10) not being made after notice of such Loan shall have been given by the Borrower
hereunder (any of the events referred to in this clause (a) being called a “Breakage
Event”) or (b) any default in the making of any payment or prepayment

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required to be made
hereunder. In the case of any Breakage Event, such loss shall include an amount equal to the
excess, as reasonably determined by such Lender, of (i) its cost of obtaining funds for the
Eurodollar Loan that is the subject of such Breakage Event for the period from the date of such
Breakage Event to the last day of the Interest Period in effect (or that would have been in effect)
for such Loan over (ii) the amount of interest likely to be realized by such Lender in redeploying
the funds released or not utilized by reason of such Breakage Event for such period. A certificate
of any Lender setting forth any amount or amounts which such Lender is entitled to receive pursuant
to this Section 2.16 shall be delivered to the Borrower and shall be conclusive absent manifest
error.

     SECTION 2.17. Pro Rata Treatment. Except as provided below in this Section 2.17 with
respect to Swingline Loans and as required under Sections 2.13 and 2.15, each Borrowing, each
payment or prepayment of principal of any Borrowing, each payment of interest on the Loans, each payment of the
Commitment Fees, each reduction of the Revolving Credit Commitments and each conversion of any
Borrowing to or continuation of any Borrowing as a Borrowing of any Type shall be allocated pro
rata among the Lenders in accordance with their respective applicable Commitments (or, if such
Commitments shall have expired or been terminated, in accordance with the respective principal
amounts of their outstanding Loans). For purposes of determining the available Revolving Credit
Commitments of the Lenders at any time, each outstanding Swingline Loan shall be deemed to have
utilized the Revolving Credit Commitments of the Lenders (including those Lenders which shall not
have made Swingline Loans) pro rata in accordance with such respective Revolving Credit
Commitments. Each Lender agrees that in computing such Lender’s portion of any Borrowing to be
made hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage of
such Borrowing to the next higher or lower whole dollar amount.

     SECTION 2.18. Sharing of Setoffs. Each Lender agrees that if it shall, through the
exercise of a right of banker’s lien, setoff or counterclaim against the Borrower or any other Loan
Party, or pursuant to a secured claim under Section 506 of Title 11 of the United States Code or
other security or interest arising from, or in lieu of, such secured claim, received by such Lender
under any applicable bankruptcy, insolvency or other similar law or otherwise, or by any other
means, obtain payment (voluntary or involuntary) in respect of any Loan or Loans or L/C
Disbursement as a result of which the unpaid principal portion of its Loans and participations in
L/C Disbursements shall be proportionately less than the unpaid principal portion of the Loans and
participations in L/C Disbursements of any other Lender, it shall be deemed simultaneously to have
purchased from such other Lender at face value, and shall promptly pay to such other Lender the
purchase price for, a participation in the Loans and L/C Exposure of such other Lender, so that the
aggregate unpaid principal amount of the Loans and L/C Exposure and participations in Loans and L/C
Exposure held by each Lender shall be in the same proportion to the aggregate unpaid principal
amount of all Loans and L/C Exposure then outstanding as the principal amount of its Loans and L/C
Exposure prior to such exercise of banker’s lien, setoff or counterclaim or other event was to the
principal amount of all Loans and L/C Exposure outstanding prior to such exercise of banker’s lien,
setoff or counterclaim or other event; provided, however, that if any such purchase
or purchases or adjustments shall be made pursuant to this Section 2.18 and the payment giving rise
thereto shall thereafter be recovered, such purchase or purchases or adjustments shall be rescinded
to the extent of such recovery and the purchase price or prices or adjustment restored without
interest. The Borrower expressly

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consents to the foregoing arrangements and agrees that any Lender
holding a participation in a Loan or L/C Disbursement deemed to have been so purchased may exercise
any and all rights of banker’s lien, setoff or counterclaim with respect to any and all moneys
owing by the Borrower to such Lender by reason thereof as fully as if such Lender had made a Loan
directly to the Borrower in the amount of such participation.

     SECTION 2.19. Payments. (a) The Borrower shall make each payment (including
principal of or interest on any Borrowing or any L/C Disbursement or any Fees or other amounts)
hereunder and under any other Loan Document not later than 12:00 (noon), New York City time, on the
date when due in immediately available dollars, without setoff, defense or counterclaim. Each such
payment (other than (i) Issuing Bank Fees, which shall be paid directly to the Issuing Bank, and
(ii) principal of and interest on Swingline Loans, which shall be paid directly to the Swingline
Lender except as otherwise provided in Section 2.22(e)) shall be made to the Administrative Agent
at its offices at Eleven Madison Avenue, New York, NY 10010. All payments hereunder and under each
other Loan Document shall be made in dollars. The Agent shall promptly pay to each Lender such
Lender’s share of all payments received by the Agent.

     (b)   Except as otherwise expressly provided herein, whenever any payment (including principal
of or interest on any Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document shall become due, or otherwise would occur, on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of interest or Fees, if applicable.

     SECTION 2.20. Taxes. (a) Any and all payments by or on account of any
obligation of the Borrower or any other Loan Party hereunder or under any other Loan Document shall
be made free and clear of and without deduction or withholding for any Indemnified Taxes or Other
Taxes; provided that if any Indemnified Taxes or Other Taxes are required to be withheld or
deducted from such payments, then (i) the sum payable by or on behalf of the Borrower shall be
increased as necessary so that after all required deductions or withholding (including deductions
or withholdings applicable to additional sums payable under this Section) the Administrative Agent,
the Issuing Bank or such Lender (as the case may be) receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrower or such other Loan Party shall
make (or cause to be made) such deductions and (iii) the Borrower or such other Loan Party shall
pay (or cause to be paid) the full amount deducted to the relevant Governmental Authority in
accordance with applicable law. In addition, the Borrower or any other Loan Party hereunder shall
pay (or cause to be paid) any Other Taxes to the relevant Governmental Authority in accordance with
applicable law.

     (b)   The Borrower shall indemnify the Administrative Agent, the Issuing Bank and each Lender,
within 10 days after written demand therefor, for the full amount of any Indemnified Taxes or Other
Taxes paid by the Administrative Agent, the Issuing Bank or such Lender, as the case may be, or any
of their respective Affiliates, on or with respect to any payment by or on account of any
obligation of the Borrower or any Loan Party hereunder or under any other Loan Document (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts payable under
this Section) and any penalties, interest and expenses arising therefrom or with respect thereto,
whether or not such Indemnified Taxes or

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Other Taxes were correctly or legally imposed or asserted
by the relevant Governmental Authority. A reasonably detailed certificate as to the amount of such
payment or liability delivered to the Borrower by a Lender, the Issuing Bank or by the
Administrative Agent on its behalf or on behalf of a Lender or the Issuing Bank shall be conclusive
absent manifest error.

     (c)   As soon as practicable after any payment of Indemnified Taxes or Other Taxes pursuant to
Section 2.20(a), and in any event within 30 days of any such payment being due, the
Borrower shall deliver (or cause to be delivered) to the Administrative Agent the original or
a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy
of the return reporting such payment or other evidence of such payment reasonably satisfactory to
the Administrative Agent.

     (d)   If the applicable Lender, the Issuing Bank or the Administrative Agent obtains a refund
in respect of an amount paid by the Borrower to any Governmental Authority pursuant to Section
2.20(a) or for an amount for which indemnification was received by any Lender, the Issuing Bank or
the Administrative Agent pursuant to Section 2.20(b), which in the good faith judgment of the
applicable Lender, the Issuing Bank or the Administrative Agent is allocable to such payment, such
Lender, Issuing Bank or the Administrative Agent shall promptly pay to Borrower the amount of the
refund (and any interest thereon), net of all out-of-pocket expenses of such Lender, Issuing Bank
or the Administrative Agent incurred in obtaining such refund, that will leave such Lender, the
Issuing Bank or the Administrative Agent in the same position it would have been in had the
Borrower not been required to make the payment pursuant to Section 2.20(a) or to provide
indemnification pursuant to Section 2.20(b) or Section 2.20(c); provided, however, that the
Borrower agrees to promptly return such refund to the applicable Lender, the Issuing Bank or the
Administrative Agent if the Borrower receives notice from the applicable Lender, the Issuing Bank
or Administrative Agent that such Lender, the Issuing Bank or the Administrative Agent is required
to repay such refund.

     (e)   Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the reasonable written request of the
Borrower, such properly completed and executed documentation prescribed by applicable law as will
permit such payments to be made without withholding or at a reduced rate; provided that
such Lender is legally entitled to complete, execute and deliver such documentation. In addition,
each Foreign Lender shall (i) furnish on or before it becomes a party to the Agreement either (a)
two accurate and complete originally executed U.S. Internal Revenue Service Form W-8BEN (or
successor form), (b) an accurate and complete U.S. Internal Revenue Service Form W-8ECI and/or (c)
two accurate and complete U.S. Internal Revenue Service Form W-8IMYs (or successor form),
certifying, in each case, to such Foreign Lender’s legal entitlement to an exemption from or
reduction of U.S. federal withholding tax with respect to all interest payments hereunder, and (ii)
provide a new Form W-8BEN (or successor form), Form W-8ECI (or successor form) or Form W-8IMY (or
successor form) upon the expiration or obsolescence of any previously delivered form to reconfirm
any complete exemption from, or any entitlement to a reduction in, U.S. federal withholding tax
with respect to any interest payment hereunder; provided that any Foreign Lender that is
not a “bank” within the meaning of Section 881(c)(3)(A) of the Tax Code and is relying on the
so-called “portfolio interest

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exemption” shall also furnish a “Non-Bank Certificate” in the form of
Exhibit I together with a Form W-8BEN. Notwithstanding any other provision of this paragraph, a
Foreign Lender shall not be required to deliver any form pursuant to this paragraph that such
Foreign Lender is not legally able to deliver. If any Foreign Lender provides a Form W-8IMY, such
Foreign Lender must also attach the additional documentation that must be transmitted with Form
W-8IMY, including the appropriate forms described in this Section 2.20(e).

     (f)   Any Lender that is a United States person, as defined in Section 7701(a)(30) of the Tax
Code, and has not otherwise established that it is an exempt recipient within the meaning of
Treasury Regulations Section 1.6049-4(c), shall deliver, on or before the date it becomes a party
to this Agreement, to the Borrower (with a copy to the Administrative Agent) two accurate and
complete original signed copies of Internal Revenue Service Form W-9, or any successor form that
such person is entitled to provide at such time in order to comply with United States backup
withholding requirements.

     (g)   Without prejudice to the survival of any other agreement of the Borrower hereunder, the
agreements and obligations of the Borrower contained in this Section 2.20 shall survive the payment
in full of all amounts due hereunder.

     SECTION 2.21. Assignment of Commitments Under Certain Circumstances; Duty to
Mitigate. (a) In the event (i) any Lender or the Issuing Bank delivers a certificate
requesting compensation pursuant to Section 2.14, (ii) any Lender or the Issuing Bank delivers a
notice described in Section 2.15, (iii) the Borrower is required to pay any additional amount to
any Lender, the Issuing Bank, the Administrative Agent or any Governmental Authority on account of
any Lender or the Issuing Bank pursuant to Section 2.20 or (iv) any Lender does not consent to a
proposed amendment, modification or waiver of this Agreement requested by the Borrower which
requires the consent of all of the Lenders or all of the Lenders under any Facility to become
effective (and which is approved by at least the Required Lenders), the Borrower may, at its sole
expense and effort (including with respect to the processing and recordation fee referred to in
Section 9.04(b)), upon notice to such Lender or the Issuing Bank and the Administrative Agent,
require such Lender or the Issuing Bank to transfer and assign, without recourse (in accordance
with and subject to the restrictions contained in Section 9.04), all of its interests, rights and
obligations under this Agreement to an assignee that shall assume such assigned obligations (which
assignee may be another Lender, if a Lender accepts such assignment); provided that (x)
such assignment shall not conflict with any law, rule or regulation or order of any court or other
Governmental Authority having jurisdiction, (y) solely with respect to replacements of Lenders
pursuant to clauses (i), (ii) or (iii) of this Section, the Borrower shall have received the prior
written consent of the Administrative Agent (and, if a Revolving Credit Commitment is being
assigned, of the Issuing Bank and the Swingline Lender), which consent shall not unreasonably be
withheld, and (z) the Borrower or such assignee shall have paid to the affected Lender or the
Issuing Bank in immediately available funds an amount equal to the sum of the principal of and
interest accrued to the date of such payment on the outstanding Loans or L/C Disbursements of such
Lender or the Issuing Bank, respectively, plus all Fees and other amounts accrued for the account
of such Lender or the Issuing Bank hereunder (including any amounts under Section 2.14 and Section
2.16); provided further that, if prior to any such transfer and assignment the circumstances or
event that resulted in such Lender’s or the Issuing Bank’s claim for compensation under Section
2.14 or notice under Section 2.15 or the amounts paid

40

 

pursuant to Section 2.20, as the case may be,
cease to cause such Lender or the Issuing Bank to suffer increased costs or reductions in amounts
received or receivable or reduction in return on capital, or cease to have the consequences
specified in Section 2.15, or cease to result in amounts being payable under Section 2.20, as the
case may be (including as a result of any action taken by such Lender or the Issuing Bank pursuant
to paragraph (b) below), or if such Lender or the
Issuing Bank shall waive its right to claim further compensation under Section 2.14 in respect
of such circumstances or event or shall withdraw its notice under Section 2.15 or shall waive its
right to further payments under Section 2.20 in respect of such circumstances or event, as the case
may be, then such Lender or the Issuing Bank shall not thereafter be required to make any such
transfer and assignment hereunder. In connection with any such replacement, if the replaced Lender
does not execute and deliver to the Administrative Agent a duly completed Assignment and Acceptance
reflecting such replacement within five Business Days of the date on which the replacement Lender
executes and delivers such Assignment and Acceptance to the replaced Lender, then such replaced
Lender shall be deemed to have executed and delivered such Assignment and Acceptance.

     (b)   If (i) any Lender or the Issuing Bank shall request compensation under Section 2.14,
(ii) any Lender or the Issuing Bank delivers a notice described in Section 2.15 or (iii) the
Borrower is required to pay any additional amount to any Lender, the Issuing Bank, the
Administrative Agent or any Governmental Authority on account of any Lender or the Issuing Bank,
pursuant to Section 2.20, then such Lender or the Issuing Bank shall use reasonable efforts (which
shall not require such Lender or the Issuing Bank to incur an unreimbursed loss or unreimbursed
cost or expense or otherwise take any action inconsistent with its internal policies or legal or
regulatory restrictions or suffer any disadvantage or burden deemed by it to be significant) (x) to
file any certificate or document reasonably requested in writing by the Borrower or (y) to assign
its rights and delegate and transfer its obligations hereunder to another of its offices, branches
or affiliates, if such filing or assignment would reduce its claims for compensation under Section
2.14 or enable it to withdraw its notice pursuant to Section 2.15 or would reduce amounts payable
pursuant to Section 2.20, as the case may be, in the future. The Borrower hereby agrees to pay all
reasonable costs and expenses incurred by any Lender or the Issuing Bank in connection with any
such filing or assignment, delegation and transfer.

     SECTION 2.22. Swingline Loans. (a) Swingline Commitment. Subject to
the terms and conditions hereof and relying upon the representations and warranties, set forth
herein, the Swingline Lender agrees to make loans to the Borrower, at any time and from time to
time after the Closing Date, and until the earlier of the Revolving Credit Maturity Date and the
termination of the Revolving Credit Commitments in accordance with the terms hereof, in an
aggregate principal amount at any time outstanding that will not result in (i) the aggregate
principal amount of all Swingline Loans exceeding $2,500,000 in the aggregate or (ii) the Aggregate
Revolving Credit Exposure, after giving effect to any Swingline Loan, exceeding the Total Revolving
Credit Commitment. Each Swingline Loan shall be in a principal amount that is an integral multiple
of $100,000. The Swingline Commitment may be terminated or reduced from time to time as provided
herein. Within the foregoing limits, the Borrower may borrow, pay or prepay and reborrow Swingline
Loans hereunder, subject to the terms, conditions and limitations set forth herein.

41

 

     (b)   Swingline Loans. The Borrower shall notify the Swingline Lender by fax, or by
telephone (confirmed by fax), not later than 10:00 a.m., New York City time, on the day of a
proposed Swingline Loan to be made to it. Such notice shall be delivered on a Business Day, shall
be irrevocable and shall refer to this Agreement and shall specify the requested date (which shall
be a Business Day) and amount of such Swingline Loan. The Swingline Lender shall make
each Swingline Loan available to the Borrower by means of a credit to the general deposit
account of the Borrower as specified in the notice of borrowing by 3:00 p.m. on the date such
Swingline Loan is so requested.

     (c)   Prepayment. The Borrower shall have the right at any time and from time to time
to prepay any Swingline Loan, in whole or in part, upon giving written or fax notice (or telephone
notice promptly confirmed by written or fax notice) to the Swingline Lender and to the
Administrative Agent before 12:00 (noon), New York City time, on the date of prepayment at the
Swingline Lender’s address for notices specified in the Lender Addendum delivered by the Swingline
Lender.

     (d)   Interest. Each Swingline Loan shall be an ABR Loan and, subject to the
provisions of Section 2.07, shall bear interest as provided in Section 2.06(a).

     (e)   Participations. The Swingline Lender may by written notice given to the
Administrative Agent not later than 10:00 a.m., New York City time, on any Business Day require the
Revolving Credit Lenders to acquire participations on such Business Day in all or a portion of the
Swingline Loans outstanding. Such notice shall specify the aggregate amount of Swingline Loans in
which Revolving Credit Lenders will participate. The Administrative Agent will, promptly upon
receipt of such notice, give notice to each Revolving Credit Lender, specifying in such notice such
Lender’s Pro Rata Percentage of such Swingline Loan or Loans. In furtherance of the foregoing,
each Revolving Credit Lender hereby absolutely and unconditionally agrees, upon receipt of notice
as provided above, to pay to the Administrative Agent, for the account of the Swingline Lender,
such Revolving Credit Lender’s Pro Rata Percentage of such Swingline Loan or Loans. Each Revolving
Credit Lender acknowledges and agrees that its obligation to acquire participations in Swingline
Loans pursuant to this paragraph is absolute and unconditional and shall not be affected by any
circumstance whatsoever, including the occurrence and continuance of a Default or an Event of
Default, and that each such payment shall be made without any offset, abatement, withholding or
reduction whatsoever. Each Revolving Credit Lender shall comply with its obligation under this
paragraph by wire transfer of immediately available funds, in the same manner as provided in
Section 2.02(c) with respect to Loans made by such Lender (and Section 2.02(c) shall apply,
mutatis mutandis, to the payment obligations of the Lenders under this Section) and the
Administrative Agent shall promptly pay to the Swingline Lender the amounts so received by it from
the Lenders. The Administrative Agent shall notify the Borrower of any participations in any
Swingline Loan acquired pursuant to this paragraph and thereafter payments in respect of such
Swingline Loan shall be made to the Administrative Agent and not to the Swingline Lender. Any
amounts received by the Swingline Lender from the Borrower (or other party on behalf of the
Borrower) in respect of a Swingline Loan after receipt by the Swingline Lender of the proceeds of a
sale of participations therein shall be promptly remitted to the Administrative Agent; any such
amounts received by the Administrative Agent shall be promptly remitted by the Administrative Agent
to the Lenders that shall have made their payments pursuant to this paragraph and to the Swingline

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Lender, as their interests may appear. The purchase of participations in a Swingline Loan pursuant
to this paragraph shall not relieve the Borrower (or other party liable for obligations of the
Borrower) of any default in the payment thereof.

     SECTION 2.23. Letters of Credit. (a) General. Subject to the terms
and conditions hereof, the Borrower may request the issuance of a Letter of Credit at any time
until the date that is 30 days prior to the Revolving Credit Maturity Date for its own account or
for the account of any of the Subsidiary Guarantors (in which case the Borrower and such Subsidiary
Guarantor shall be co-applicants with respect to such Letter of Credit), in a form reasonably
acceptable to the Administrative Agent and the Issuing Bank. This Section shall not be construed
to impose an obligation upon the Issuing Bank to issue any Letter of Credit that is inconsistent
with the terms and conditions of this Agreement.

     (b)   Notice of Issuance, Amendment, Renewal, Extension; Certain Conditions. In order
to request the issuance of a Letter of Credit (or to amend, renew or extend an existing Letter of
Credit), the Borrower shall hand deliver or fax to the Issuing Bank and the Administrative Agent
(no less than two Business Days (or such shorter period of time acceptable to the Issuing Bank) in
advance of the requested date of issuance, amendment, renewal or extension) a notice requesting the
issuance of a Letter of Credit, or identifying the Letter of Credit to be amended, renewed or
extended, the date of issuance, amendment, renewal or extension, the date on which such Letter of
Credit is to expire (which shall comply with paragraph (c) below), the amount of such Letter of
Credit, the name and address of the beneficiary thereof and such other information as shall be
necessary to prepare such Letter of Credit. A Letter of Credit shall be issued, amended, renewed or
extended only if, and upon issuance, amendment, renewal or extension of each Letter of Credit the
Borrower shall be deemed to represent and warrant that, after giving effect to such issuance,
amendment, renewal or extension (i) the L/C Exposure shall not exceed $7,500,000 and (ii) the
Aggregate Revolving Credit Exposure shall not exceed the Total Revolving Credit Commitment.

     (c)   Expiration Date. Each Letter of Credit shall expire at the close of business on
the earlier of (i) the date one year after the date of the issuance of such Letter of Credit and
(ii) the date that is five Business Days prior to the Revolving Credit Maturity Date, unless such
Letter of Credit expires by its terms on an earlier date; provided, however, that a
Letter of Credit may, upon the request of the Borrower, include a provision whereby such Letter of
Credit shall be renewed automatically for additional consecutive periods of 12 months or less (but
not beyond the date that is five Business Days prior to the Revolving Credit Maturity Date) unless
the Issuing Bank notifies the beneficiary thereof at least 30 days prior to the then-applicable
expiration date that such Letter of Credit will not be renewed.

     (d)   Participations. By the issuance of a Letter of Credit and without any further
action on the part of the Issuing Bank or the Lenders, the Issuing Bank hereby grants to each
Revolving Credit Lender, and each such Lender hereby acquires from the Issuing Bank, a
participation in such Letter of Credit equal to such Lender’s Pro Rata Percentage of the aggregate
amount available to be drawn under such Letter of Credit, effective upon the issuance of such
Letter of Credit. In consideration and in furtherance of the foregoing, each Revolving Credit
Lender hereby absolutely and unconditionally agrees to pay to the Administrative Agent, for the
account of the Issuing Bank, such Lender’s Pro Rata Percentage of each L/C Disbursement made by the

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Issuing Bank and not reimbursed by the Borrower (or, if applicable, another party pursuant to its
obligations under any other Loan Document) forthwith on the date due as provided in Section
2.02(f). Each Revolving Credit Lender acknowledges and agrees that its obligation to acquire
participations pursuant to this paragraph in respect of Letters of Credit is absolute and
unconditional and shall not be affected by any circumstance whatsoever, including the
occurrence and continuance of a Default or an Event of Default, and that each such payment shall be
made without any offset, abatement, withholding or reduction whatsoever.

     (e)   Reimbursement. If the Issuing Bank shall make any L/C Disbursement in respect of
a Letter of Credit, the Borrower shall pay to the Issuing Bank an amount equal to such L/C
Disbursement not later than the end of the day on which the Borrower shall have received notice
from the Issuing Bank that payment of such draft will be made, or, if the Borrower shall have
received such notice later than 10:00 a.m., New York City time, on any Business Day, not later than
10:00 a.m., New York City time, on the immediately following Business Day.

     (f)   Obligations Absolute. The Borrower’s obligations to reimburse L/C Disbursements
as provided in paragraph (e) above shall be absolute, unconditional and irrevocable, and shall be
performed strictly in accordance with the terms of this Agreement, under any and all circumstances
whatsoever, and irrespective of:

     (i) any lack of validity or enforceability of any Letter of Credit or any Loan
Document, or any term or provision therein;

     (ii) any amendment or waiver of, or any consent to departure from, all or any of the
provisions of any Letter of Credit or any Loan Document;

     (iii) the existence of any claim, setoff, defense or other right that the Borrower, any
other party guaranteeing, or otherwise obligated with, the Borrower, any subsidiary or other
Affiliate thereof or any other person may at any time have against the beneficiary under any
Letter of Credit, the Issuing Bank, the Administrative Agent or any Lender or any other
person, whether in connection with this Agreement, any other Loan Document or any other
related or unrelated agreement or transaction;

     (iv) any draft or other document presented under a Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being
untrue or inaccurate in any respect;

     (v) payment by the Issuing Bank under a Letter of Credit against presentation of a
draft or other document that does not comply with the terms of such Letter of Credit; and

     (vi) any other act or omission to act or delay of any kind of the Issuing Bank, any
Lender, the Administrative Agent or any other person or any other event or circumstance
whatsoever, whether or not similar to any of the foregoing, that might, but for the
provisions of this Section, constitute a legal or equitable discharge of the Borrower’s
obligations hereunder.

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     Without limiting the generality of the foregoing, it is expressly understood and agreed that
the absolute and unconditional obligation of the Borrower hereunder to reimburse L/C Disbursements
will not be excused by the gross negligence or willful misconduct of the Issuing Bank. However,
the foregoing shall not be construed to excuse the Issuing Bank from liability to the Borrower to
the extent of any direct damages (as opposed to consequential damages, claims

in respect of which are hereby waived by the Borrower to the extent permitted by applicable
law) suffered by the Borrower that are caused by the Issuing Bank’s gross negligence or willful
misconduct in determining whether drafts and other documents presented under a Letter of Credit
comply with the terms thereof; it is understood that the Issuing Bank may accept documents that
appear on their face to be in order, without responsibility for further investigation, regardless
of any notice or information to the contrary and, in making any payment under any Letter of Credit
(i) the Issuing Bank’s exclusive reliance on the documents presented to it under such Letter of
Credit as to any and all matters set forth therein, including reliance on the amount of any draft
presented under such Letter of Credit, whether or not the amount due to the beneficiary thereunder
equals the amount of such draft and whether or not any document presented pursuant to such Letter
of Credit proves to be insufficient in any respect, if such document on its face appears to be in
order, and whether or not any other statement or any other document presented pursuant to such
Letter of Credit proves to be forged or invalid or any statement therein proves to be inaccurate or
untrue in any respect whatsoever and (ii) any noncompliance in any immaterial respect of the
documents presented under such Letter of Credit with the terms thereof shall, in each case, be
deemed not to constitute willful misconduct or gross negligence of the Issuing Bank.

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

     (h)   Interim Interest. If the Issuing Bank shall make any L/C Disbursement in respect
of a Letter of Credit, then, unless the Borrower shall reimburse such L/C Disbursement in full on
such date, the unpaid amount thereof shall bear interest for the account of the Issuing Bank, for
each day from and including the date of such L/C Disbursement to but excluding the earlier of the
date of payment by the Borrower or the date on which interest shall commence to accrue thereon as
provided in Section 2.02(f), at the rate per annum that would apply to such amount if such amount
were an ABR Revolving Loan.

     (i)   Resignation of the Issuing Bank. The Issuing Bank may resign at any time by
giving 30 days’ prior written notice to the Administrative Agent, the Lenders and the Borrower.
Subject to the next succeeding paragraph, upon the acceptance of any appointment as the Issuing
Bank hereunder by a Lender that shall agree to serve as successor Issuing Bank, such successor
shall succeed to and become vested with all the interests, rights and obligations of the retiring
Issuing Bank and the retiring Issuing Bank shall be discharged from its obligations to issue

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additional Letters of Credit hereunder. At the time such removal or resignation shall become
effective, the Borrower shall pay all accrued and unpaid fees pursuant to Section 2.05(c)(ii). The
acceptance of any appointment as the Issuing Bank hereunder by a successor Lender shall be
evidenced by an agreement entered into by such successor, in a form satisfactory to the Borrower
and the Administrative Agent, and, from and after the effective date of such agreement, (i) such
successor Lender shall have all the rights and obligations of the previous Issuing Bank under
this Agreement and the other Loan Documents and (ii) references herein and in the other Loan
Documents to the term “Issuing Bank” shall be deemed to refer to such successor or to any previous
Issuing Bank, or to such successor and all previous Issuing Banks, as the context shall require.
After the resignation or removal of the Issuing Bank hereunder, the retiring Issuing Bank shall
remain a party hereto and shall continue to have all the rights and obligations of an Issuing Bank
under this Agreement and the other Loan Documents with respect to Letters of Credit issued by it
prior to such resignation or removal, but shall not be required to issue additional Letters of
Credit.

     (j)   Cash Collateralization. If any Event of Default shall occur and be continuing,
the Borrower shall, on the Business Day it receives notice from the Administrative Agent or the
Required Lenders (or, if the maturity of the Loans has been accelerated, Revolving Credit Lenders
representing greater than 50% of the total L/C Exposure) thereof and of the amount to be deposited,
deposit in an account with the Collateral Agent, for the ratable benefit of the Revolving Credit
Lenders, an amount in cash equal to the L/C Exposure as of such date. Such deposit shall be held
by the Collateral Agent as collateral for the payment and performance of the obligations of the
Borrower under this Agreement. The Collateral Agent shall have exclusive dominion and control,
including the exclusive right of withdrawal, over such account. Other than any interest earned on
the investment of such deposits in Permitted Investments, which investments shall be made at the
option and sole discretion of the Collateral Agent, such deposits shall not bear interest.
Interest or profits, if any, on such investments shall accumulate in such account. Moneys in such
account shall (i) automatically be applied by the Administrative Agent to reimburse the Issuing
Bank for L/C Disbursements for which it has not been reimbursed, (ii) be held for the satisfaction
of the reimbursement obligations of the Borrower for the L/C Exposure at such time and (iii) if the
maturity of the Loans has been accelerated (but subject to the consent of Revolving Credit Lenders
representing greater than 50% of the total L/C Exposure), be applied to satisfy the Obligations.
If the Borrower is required to provide an amount of cash collateral hereunder as a result of the
occurrence of an Event of Default, such amount (to the extent not applied as aforesaid) shall be
returned to the Borrower within three Business Days after all Events of Default have been cured or
waived.

     (k)   Additional Issuing Banks. The Borrower may, at any time and from time to time
with the consent of the Administrative Agent (which consent shall not be unreasonably withheld,
conditioned or delayed) and such Lender, designate one or more additional Lenders to act as an
issuing bank under the terms of the Agreement. Any Lender designated as an issuing bank pursuant
to this paragraph shall be deemed to be an “Issuing Bank” (in addition to being a Lender) in
respect of Letters of Credit issued or to be issued by such Lender, and, with respect to such
Letters of Credit, such term shall thereafter apply to the other Issuing Bank and such Lender.

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ARTICLE III.

Representations and Warranties

     The Borrower represents and warrants to the Arranger, the Administrative Agent, the Collateral
Agent, the Issuing Bank and each of the Lenders that:

     SECTION 3.01. Organization; Powers. The Borrower and each of the Subsidiaries (a) is
duly organized or formed, validly existing and in good standing under the laws of the jurisdiction
of its organization or formation, (b) has all requisite power and authority, and the legal right,
to own and operate its property and assets, to lease the property it operates as lessee and to
carry on its business as now conducted and as proposed to be conducted, except where the failure to
have such power, authority or right could not reasonably be expected to have a Material Adverse
Effect, (c) is qualified to do business in, and is in good standing in, every jurisdiction where
such qualification is required except where the failure to so qualify in a jurisdiction (other than
its jurisdiction of incorporation or formation) could not reasonably be expected to have a Material
Adverse Effect and (d) has the power and authority, and the legal right, to execute, deliver and
perform its obligations under this Agreement, each of the other Loan Documents, the Acquisition
Documentation and each other agreement or instrument contemplated hereby or thereby to which it is
or will be a party, including, in the case of the Borrower, to borrow hereunder, in the case of
each Loan Party, to grant the Liens contemplated to be granted by it under the Security Documents
and, in the case of each Subsidiary Guarantor, to Guarantee the Obligations as contemplated by the
Guarantee and Collateral Agreement.

     SECTION 3.02. Authorization; No Conflicts. The Transactions (a) have been duly
authorized by all requisite corporate, partnership or limited liability company and, if required,
stockholder, partner or member action and (b) will not (i) violate (A) any provision of applicable
law, statute, rule or regulation, or of the certificate or articles of incorporation or other
constitutive documents or by-laws of the Borrower or any Subsidiary, (B) any order of any
Governmental Authority or arbitrator or (C) any provision of any indenture, agreement or other
instrument to which the Borrower or any Subsidiary is a party or by which any of them or any of
their property is or may be bound, except to the extent that such violation could not reasonably be
expected to have a Material Adverse Effect (ii) be in conflict with, result in a breach of or
constitute (alone or with notice or lapse of time or both) a default under, or give rise to any
right to accelerate or to require the prepayment, repurchase or redemption of any obligation under
any such indenture, agreement or other instrument, except to the extent that such conflict, breach
or default could not reasonably be expected to have a Material Adverse Effect or (iii) result in
the creation or imposition of any Lien upon or with respect to any property or assets now owned or
hereafter acquired by the Borrower or any Subsidiary (other than Liens created under the Security
Documents).

     SECTION 3.03. Enforceability. This Agreement has been duly executed and delivered by
the Borrower and constitutes, and each other Loan Document when executed and delivered by each Loan
Party party thereto will constitute, a legal, valid and binding obligation of such Loan Party
enforceable against such Loan Party in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’

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rights generally and
subject to general principles of equity, regardless of whether considered in a proceeding in equity
or at law.

     SECTION 3.04. Governmental Approvals. No action, consent or approval of, registration or filing with, Permit from, notice to, or
any other action by, any Governmental Authority is or will be required in connection with the
Transactions, except to the extent that could not reasonably be expected to have a Material Adverse
Effect, except for (a) the filing of UCC financing statements and filings with the United States
Patent and Trademark Office and the United States Copyright Office and continuations thereof, (b)
recordation of the Mortgages, (c) such as have been made or obtained and are in full force and
effect, and (d) the matters referred to in Section 4.02(l).

     SECTION 3.05. Financial Statements. (a) The Borrower has heretofore furnished
to the Lenders its consolidated balance sheets and statements of income, stockholder’s equity and
cash flows as of and for the fiscal years ended December 31, 2004, December 31, 2003 and December
31, 2002, in each case audited by and accompanied by the opinion of Ernst & Young LL.P.,
independent public accountants. Such financial statements present fairly in all material respects
the financial condition and results of operations and cash flows of the Borrower and its
consolidated Subsidiaries as of such dates and for such periods. Such balance sheets and the notes
thereto disclose all material liabilities, direct or contingent, of the Borrower and its
consolidated Subsidiaries as of the dates thereof. Such financial statements were prepared in
accordance with GAAP applied on a consistent basis.

     (b)   The Borrower has heretofore delivered to the Lenders its unaudited pro forma
consolidated balance sheet and statements of income, stockholder’s equity and cash flows as of
December 31, 2005, prepared giving effect to the Transactions as if they had occurred, with respect
to such balance sheet, on such date and, with respect to such other financial statements, on the
first day of the 12-month period ending on such date. Such pro forma financial statements (i) have
been prepared in good faith by the Borrower, based on the assumptions believed by the Borrower on
the date hereof and on the Closing Date to be reasonable, (ii) accurately reflect all adjustments
required to be made to give effect to the Transactions and (iii) present fairly in all material
respects on a pro forma basis the estimated consolidated financial position of the Borrower and its
consolidated Subsidiaries as of such date and for such period, assuming that the Transactions had
actually occurred at such date or at the beginning of such period, as the case may be.

     SECTION 3.06. No Material Adverse Change. No event, change or condition has occurred
since December 31, 2004 that has caused, or could reasonably be expected to cause, a Material
Adverse Effect.

     SECTION 3.07. Title to Properties; Possession Under Leases. (a) Each of the Borrower and
the Subsidiaries has good and marketable title to, or valid leasehold interests in, all its
material properties and assets (including all Real Property), except for minor defects in title
that do not materially interfere with its ability to conduct its business as currently conducted or
to utilize such properties and assets for their intended purposes. Each parcel of Real Property
and the current use thereof complies with all applicable laws (including building and zoning

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ordinances and codes) and with all insurance requirements, except where such
non-compliance could not reasonably be expected to have a Material Adverse Effect.

     (b) Each of the Borrower and the Subsidiaries, and to the knowledge of the Borrower, each
other party thereto, has complied with all obligations under all material leases to which it is a
party, except where such non-compliance could not reasonably be expected to have a Material Adverse
Effect, and all such leases are legal, valid, binding and in full force and effect. Each of the
Borrower and the Subsidiaries enjoys peaceful and undisturbed possession under all such material
leases. No landlord Lien has been filed with respect to any lease payment under any material
lease. None of the Real Property is subject to any lease, sublease, license or other agreement
granting to any person (other than the Borrower and its Affiliates) any right to the use,
occupancy, possession or enjoyment of the Real Property or any portion thereof, except for
easements or similar rights which do not materially detract from the value of the property subject
thereto. The Borrower has delivered or made available to the Administrative Agent true, complete
and correct copies of all leases (whether as landlord or tenant) of Real Property.

     (c) None of the Borrower or any of the Subsidiaries has received any written notice of, nor
has any actual knowledge of, any pending or contemplated condemnation proceeding affecting the Real
Properties in any material respect or any sale or disposition thereof in lieu of condemnation.

     (d) None of the Borrower or any of the Subsidiaries is obligated under any right of first
refusal, option or other contractual right to sell, assign or otherwise dispose of any Real
Property or any interest therein.

     (e) Except as could not reasonably be expected to have a Material Adverse Effect, (i) each
Loan Party has obtained and holds all Permits required in respect of all Real Property and for any
other property otherwise operated by or on behalf of, or for the benefit of, such person and for
the operation of each of its businesses as presently conducted, (ii) all such Permits are in full
force and effect, and each Loan Party has performed and observed all requirements of such Permits,
and (iii) no event has occurred that allows or results in, or after notice or lapse of time would
allow or result in, revocation or termination by the issuer of any such Permit.

     SECTION 3.08. Subsidiaries. Schedule 3.08 sets forth as of the Closing Date a list of
all Subsidiaries, after giving effect to the Acquisition, including each Subsidiary’s exact legal
name (as reflected in such Subsidiary’s certificate or articles of incorporation or other
constitutive documents) and jurisdiction of incorporation or formation and the percentage ownership
interest of the Borrower (direct or indirect) therein, and identifies each Subsidiary that is Loan
Party. The shares of capital stock or other Equity Interests so indicated on Schedule 3.08 are
fully paid and non-assessable and are owned by the Borrower, directly or indirectly, free and clear
of all Liens (other than Liens created under the Security Documents).

     SECTION 3.09. Litigation; Compliance with Laws. (a) There are no actions,
suits or proceedings at law or in equity or by or before any arbitrator or Governmental Authority
now pending or, to the knowledge of the Borrower, threatened against or affecting the Borrower or
any Subsidiary or any business, property or rights of any such person (i) that involve any Loan
Document or the Transactions or (ii) as to which there is a reasonable possibility of an adverse

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determination, and that, in the case of this clause (ii), if adversely determined could reasonably
be expected, individually or in the aggregate, to result in a Material Adverse Effect.

     (b)   None of the Borrower or any of the Subsidiaries or any of their respective material
properties or assets is in violation of, nor will the continued operation of their material
properties and assets as currently conducted violate, any law, rule or regulation (including any
zoning, building, Environmental Law, ordinance, code or approval or any building permits) or any
restrictions of record or agreements affecting the Mortgaged Property, or is in default with
respect to any judgment, writ, injunction, decree or order of any Governmental Authority, except
where such violation or default could not reasonably be expected to result in a Material Adverse
Effect.

     (c)   Certificates of occupancy and permits are in effect for each Mortgaged Property as
currently constructed, and true and complete copies of such certificates of occupancy have been
delivered or made available to the Collateral Agent as mortgagee with respect to each Mortgaged
Property.

     SECTION 3.10. Agreements. (a) None of the Borrower or any of the Subsidiaries
is a party to any agreement or instrument, or subject to any corporate restriction, that,
individually or in the aggregate, could reasonably be expected to result in a Material Adverse
Effect.

     (b)   None of the Borrower or any of the Subsidiaries is in default in any manner under any
provision of any indenture or other agreement or instrument evidencing Indebtedness or any other
material agreement or instrument to which it is a party or by which it or any of its properties or
assets are or may be bound, except where such default could not reasonably be expected to result in
a Material Adverse Effect.

     SECTION 3.11. Federal Reserve Regulations. (a) None of the Borrower or any of
the Subsidiaries is engaged principally, or as one of its important activities, in the business of
extending credit for the purpose of buying or carrying Margin Stock.

     (b)   No part of the proceeds of any Loan or any Letter of Credit will be used, whether
directly or indirectly, and whether immediately, incidentally or ultimately, for purchasing or
carrying Margin Stock or for the purpose of purchasing, carrying or trading in any securities under
such circumstances as to involve the Borrower in a violation of Regulation X or to involve any
broker or dealer in a violation of Regulation T. No Indebtedness being reduced or retired out of
the proceeds of any Loans or Letters of Credit was or will be incurred for the purpose of
purchasing or carrying any Margin Stock. Following the application of the proceeds of the Loans
and the Letters of Credit, Margin Stock will not constitute more than 25% of the value of
the assets of the Borrower and the Subsidiaries. None of the transactions contemplated by
this Agreement will violate or result in the violation of any of the provisions of the Regulations
of the Board, including Regulation T, U or X. If requested by any Lender or the Administrative
Agent, the Borrower will furnish to the Administrative Agent and each Lender a statement to the
foregoing effect in conformity with the requirements of FR Form G-3 or FR Form U-1 referred to in
Regulation U.

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     SECTION 3.12. Investment Company Act; Public Utility Holding Company Act. None of the
Borrower or any of the Subsidiaries is (a) an “investment company” as defined in, or subject to
regulation under, the Investment Company Act of 1940, as amended, or (b) a “holding company” as
defined in, or subject to regulation under, the Public Utility Holding Company Act of 1935, as
amended.

     SECTION 3.13. Use of Proceeds. The Borrower will use the proceeds of the Term Loans
solely to partially pay the Acquisition Consideration, to refinance certain existing indebtedness
and to pay fees and expenses related to the Transactions. The Borrower will use the proceeds of
the Revolving Loans and the Swingline Loans solely for working capital purposes. The Borrower will
request the issuance of Letters of Credit solely to support payment obligations incurred in the
ordinary course of business by the Borrower and the Subsidiary Guarantors.

     SECTION 3.14. Tax Returns. Except as set forth in Schedule 3.14, each of the Borrower
and each of the Subsidiaries has timely filed or timely caused to be filed all Federal income tax
returns and all other material Federal, state, local and foreign tax returns or materials required
to have been filed by it and all such tax returns are correct and complete in all material
respects. Except as set forth in Schedule 3.14, each of the Borrower and each of the Subsidiaries
has timely paid or timely caused to be paid all Taxes due and payable by it and all assessments
received by it, except Taxes that are being contested in good faith by appropriate proceedings and
for which the Borrower or such Subsidiary, as applicable, shall have set aside on its books
adequate reserves to the extent required by GAAP or Taxes that could not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect. Each of the Borrower and
each of the Subsidiaries has made adequate provision in accordance with GAAP for all Taxes not yet
due and payable. Except as set forth in Schedule 3.14, no Tax Lien has been filed, and to the
knowledge of the Borrower and each of the Subsidiaries, no claim is being asserted, with respect to
any Tax. None of the Borrower or any of the Subsidiaries (a) intends to treat the Loans or any of
the transactions contemplated by any Loan Document or the Acquisition as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4) or (b) is aware of any
facts or events that would result in such treatment.

     SECTION 3.15. No Material Misstatements; Acquisition Documentation. (a) No
information, report, financial statement, exhibit or schedule furnished by or on behalf of the
Borrower or any Subsidiary to the Arranger, the Administrative Agent or any Lender for use in
connection with the transactions contemplated
by the Loan Documents or
in connection with the negotiation of any Loan Document or included therein or delivered pursuant
thereto contained, contains or will contain any material misstatement of fact or omitted, omits or
will omit to state any material fact necessary to make the statements therein, in the light of the
circumstances under which they were, are or will be made, not misleading; provided that to
the extent any such information, report, financial statement, exhibit or schedule was based upon or
constitutes a forecast or projection, the Borrower represents only that it acted in good faith and
utilized reasonable assumptions and due care in the preparation of such information, report,
financial statement, exhibit or schedule.

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     (b)   As of the Closing Date, the representations and warranties of the applicable Loan
Parties and their Affiliates set forth in the Acquisition Documentation are true and correct in all
material respects.

     SECTION 3.16. Employee Benefit Plans. Each of the Borrower and each of the Subsidiary
Guarantors is in compliance with the applicable provisions of ERISA and the Tax Code and the
regulations and published interpretations thereunder, except where non-compliance could not
reasonably be expected to result in a Material Adverse Effect. No ERISA Event has occurred or is
reasonably expected to occur that, when taken together with all other such ERISA Events, could
reasonably be expected to result in a Material Adverse Effect. The present value of all benefit
liabilities under each Benefit Plan (based on the assumptions used for purposes of Statement of
Financial Accounting Standards No. 87) did not, as of the last annual valuation date applicable
thereto, exceed by more than $ 1,000,000 the fair market value of the assets of such Benefit Plan,
and the present value of all benefit liabilities of all underfunded Benefit Plans (based on the
assumptions used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of
the last annual valuation dates applicable thereto, exceed by more than $5,000,000 the fair market
value of the assets of all such underfunded Benefit Plans.

     SECTION 3.17. Environmental Matters. (a) Except as set forth in Schedule 3.17
and except with respect to any other matters that, individually or in the aggregate, could not
reasonably be expected to have a Material Adverse Effect, none of the Borrower or any of the
Subsidiaries:

     (i) has failed to comply with any Environmental Law or to take, in a timely manner, all
actions necessary to obtain, maintain, renew and comply with any Environmental Permit, and
all such Environmental Permits are in full force and effect and not subject to any
administrative or judicial appeal;

     (ii) has become a party to any governmental, administrative or judicial proceeding or
possesses knowledge of any such proceeding that has been threatened under Environmental Law;

     (iii) has received notice of, become subject to, or is aware of any facts or
circumstances that could form the basis for, any Environmental Liability other than those
which have been fully and finally resolved and for which no obligations remain outstanding;

     (iv) possesses knowledge that any Mortgaged Property (A) is subject to any Lien,
restriction on ownership, occupancy, use or transferability imposed pursuant to
Environmental Law or (B) contains or previously contained Hazardous Materials of a form or
type or in a quantity or location that could reasonably be expected to result in any
Environmental Liability;

     (v) possess knowledge that there has been a Release or threat of Release of Hazardous
Materials at or from the Mortgaged Properties (or from any facilities or other properties
formerly owned, leased or operated by the Borrower or any of the

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Subsidiaries) in violation
of, or in amounts or in a manner that could reasonably be expected to give rise to liability
under, any Environmental Law;

     (vi) has generated, treated, stored, transported, or Released Hazardous Materials from
the Mortgaged Properties (or from any facilities or other properties formerly owned, leased
or operated by the Borrower or any of the Subsidiaries) in violation of, or in a manner or
to a location that could reasonably be expected to give rise to liability under, any
Environmental Law;

     (vii) is aware of any facts, circumstances, conditions or occurrences in respect of any
of the facilities and properties owned, leased or operated that could (A) form the basis of
any action, suit, claim or other judicial or administrative proceeding relating to liability
under or noncompliance with Environmental Law on the part of the Borrower or any of the
Subsidiaries or (B) or interfere with or prevent continued compliance with Environmental
Laws by the Borrower or the Subsidiaries; or

     (viii) has pursuant to any order, decree, judgment or agreement by which it is bound or
has assumed the Environmental Liability for any Person.

     (b)   Since the date of this Agreement, there has been no change in the status of the matters
disclosed on Schedule 3.17 that, individually or in the aggregate, could reasonably be expected to
have a Material Adverse Effect.

     SECTION 3.18. Insurance. Schedule 3.18 sets forth a true, complete and correct
description of all insurance maintained by or on behalf of the Borrower and the Subsidiaries as of
the Closing Date. As of the Closing Date, such insurance is in full force and effect and all
premiums have been duly paid. The Borrower and the Subsidiaries have insurance in such amounts and
covering such risks and liabilities as are in accordance with normal and prudent industry practice.
None of the Borrower or any of the Subsidiaries (a) has received notice from any insurer (or any
agent thereof) that substantial capital improvements or other substantial expenditures will have to
be made in order to continue such insurance or (b) has any reason to believe that it will not be
able to renew its existing coverage as and when such coverage expires or to obtain similar coverage
from similar insurers at a substantially similar cost.

     SECTION 3.19. Security Documents.

     (a)   The Guarantee and Collateral Agreement is effective to create in favor of the Collateral
Agent, for the ratable benefit of the Secured Parties, a legal, valid, binding and enforceable
security interest in the Collateral described therein and proceeds thereof, to the extent that a
security interest can be created in such property (except that no representation or warranty is
made with respect to the perfection of security interests under the laws of any non-U.S.
jurisdiction other than with respect to the pledge of partnership interests referred to in Section
5.13 following the delivery of the documents contemplated thereunder) and (i) in the case of the
Pledged Collateral, upon the earlier of (A) when such Pledged Collateral is delivered to the
Collateral Agent and (B) when financing statements in appropriate form are

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filed in the offices
specified on Schedule 3.19(a) and (ii) in the case of all other Collateral described therein (other
than Intellectual Property Collateral), when financing statements in appropriate form are filed in
the offices specified on Schedule 3.19(a), the Guarantee and Collateral Agreement shall constitute
a fully perfected Lien on, and security interest in, all right, title and interest of the Loan
Parties in such Collateral and proceeds thereof, to the extent that a security interest can be
created in such property, as security for the Obligations, in each case prior and superior to the
rights of any other person (except, in the case of all Collateral other than Pledged Collateral,
with respect to Liens expressly permitted by Section 6.02).

     (b)   Each Intellectual Property Security Agreement is effective to create in favor of the
Collateral Agent, for the ratable benefit of the Secured Parties, a legal, valid, binding and
enforceable security interest in the Intellectual Property Collateral described therein and
proceeds thereof. When each Intellectual Property Security Agreement is filed in the United States
Patent and Trademark Office and the United States Copyright Office, respectively, together with
financing statements in appropriate form filed in the offices specified in Schedule 3.19(a), such
Intellectual Property Security Agreement shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the grantors thereunder in the Intellectual Property
Collateral and proceeds thereof, as security for the Obligations, in each case prior and superior
in right to any other person (except with respect to Liens expressly permitted by Section 6.02) (it
being understood that subsequent recordings in the United States Patent and Trademark Office and
the United States Copyright Office may be necessary to perfect a lien on registered trademarks,
trademark applications and copyrights acquired by the grantors after the date hereof).

     (c)   Each of the Mortgages is effective to create in favor of the Collateral Agent, for the
ratable benefit of the Secured Parties, a legal, valid, binding and enforceable Lien on, and
security interest in, all of the Loan Parties’ right, title and interest in and to the Mortgaged
Property thereunder and proceeds thereof, and when the Mortgages are filed in the offices specified
on Schedule 3.19(c), each such Mortgage shall constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the grantors thereof in such Mortgaged Property and
proceeds thereof, as security for the Obligations, in each case prior and superior in right to any
other person (except with respect to Liens expressly permitted by Section 6.02).

     SECTION 3.20. Location of Real Property. Schedule 3.20 lists completely and correctly
as of the Closing Date all Real Property leased by the Borrower and
its Subsidiaries, addresses thereof, the landlord name, lease date and lease expiration date. As of the Closing Date, the Borrower and the Subsidiaries have valid
leasehold interests in all the real property set forth on Schedule 3.20.

     SECTION 3.21. Labor Matters. Except as could not reasonably be expected to result in
a Material Adverse Effect, (i) as of the Closing Date, there are no strikes, lockouts or slowdowns
against the Borrower or any Subsidiary pending or, to the knowledge of the Borrower, threatened,
(ii) the hours worked by and payments made to employees of the Borrower and the Subsidiaries have
not been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local
or foreign law dealing with such matters, (iii) all payments due from the Borrower or any
Subsidiary, or for which any claim may be made against the Borrower or any Subsidiary, on account
of wages and employee health and welfare insurance and other benefits, have been paid or accrued as
a liability on the books of the Borrower or such Subsidiary, and (iv) the consummation of the
Transactions will not give rise to any right of

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 termination or right of renegotiation on the part
of any union under any collective bargaining agreement to which the Borrower or any Subsidiary is
bound.

     SECTION 3.22. Liens. There are no Liens of any nature whatsoever on any of the
properties or assets of the Borrower or any of the Subsidiaries (other than Liens expressly
permitted by Section 6.02).

     SECTION 3.23. Intellectual Property. Each of the Borrower and each of the
Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other
intellectual property material to its business, and the use thereof by the Borrower and the
Subsidiaries does not infringe upon the rights of any other person, except for any such
infringements that, individually or in the aggregate, could not reasonably be expected to adversely
affect Borrower or the Subsidiaries or their respective businesses in any material respect.

     SECTION 3.24. Solvency. Immediately after the consummation of the Transactions to
occur on the Closing Date and immediately following the making of each Loan (or other extension of
credit hereunder) and after giving effect to the application of the proceeds of each Loan (or other
extension of credit hereunder), (a) the fair value of the assets of each Loan Party, at a fair
valuation, will exceed its debts and liabilities, subordinated, contingent or otherwise; (b) the
present fair saleable value of the property of each Loan Party will be greater than the amount that
will be required to pay the probable liability of its debts and other liabilities, subordinated,
contingent or otherwise, as such debts and other liabilities become absolute and matured; (c) each
Loan Party will be able to pay its debts and liabilities, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured; and (d) no Loan Party will have
unreasonably small capital with which to conduct the business in which it is engaged as such
business is now conducted and is proposed to be conducted following the Closing Date.

     SECTION 3.25. Acquisition Documentation. The Acquisition Documentation listed on Schedule 3.25 constitutes all of the material
agreements, instruments and undertakings to which the Borrower or any of the Subsidiaries is bound
or by which any of their respective property or assets is bound or affected relating to, or arising
out of, the Acquisition. None of such material agreements, instruments or undertakings has been
amended, supplemented or otherwise modified, and all such material agreements, instruments and
undertakings are in full force and effect. No party to any of the Acquisition Documentation is in
default thereunder as of the Closing Date and no party thereto has the right to terminate any of
the Acquisition Documentation.

ARTICLE IV.

Conditions of Lending

     The obligations of the Lenders to make Loans and the obligations of the Issuing Bank to issue
Letters of Credit are subject to the satisfaction of the following conditions:

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     SECTION 4.01. All Credit Events. On the date of each Borrowing, including each
Borrowing of a Swingline Loan, and on the date of each issuance, amendment, extension or renewal of
a Letter of Credit (each such event being called a “Credit Event”):

     (a)   The Administrative Agent shall have received a notice of such Borrowing as
required by Section 2.03 (or such notice shall have been deemed given in accordance with
Section 2.03) or, in the case of the issuance, amendment, extension or renewal of a Letter
of Credit, the Issuing Bank and the Administrative Agent shall have received a notice
requesting the issuance, amendment, extension or renewal of such Letter of Credit as
required by Section 2.23(b) or, in the case of the Borrowing of a Swingline Loan, the
Swingline Lender and the Administrative Agent shall have received a notice requesting such
Swingline Loan as required by Section 2.22(b).

     (b)   The representations and warranties set forth in each Loan Document shall be true
and correct in all material respects on and as of the date of the Loan Document and the
representations and warranties set forth in the Credit Agreement shall be true and correct
in all material respects on and as of the date of such Credit Event with the same effect as
though made on and as of such date; except to the extent such representations and warranties
expressly relate to an earlier date, in which case such representations and warranties shall
be true and correct in all material respects on and as of such earlier date.

     (c)   At the time of and immediately after such Credit Event, no Event of Default or
Default shall have occurred and be continuing.

     Each Credit Event shall be deemed to constitute a joint and several representation and
warranty by each of the Borrower on the date of such Credit Event as to the matters specified in
paragraphs (b) and (c) of this Section 4.01.

     SECTION 4.02. First Credit Event. On the Closing Date:

     (a)   The Administrative Agent shall have received, on behalf of itself, the Lenders
and the Issuing Bank, a favorable written opinion of (i) Wilmer Cutler Pickering Hale & Dorr
LLP, counsel for the Borrower and the Subsidiaries, substantially to the effect set forth in
Exhibit J-1, and (ii) each special and local counsel to the Borrower and the Subsidiaries
listed on Schedule 4.02(a), substantially to the effect set forth in Exhibit J-2, in each
case (A) dated the Closing Date, (B) addressed to the Administrative Agent, the Issuing
Bank, the Arranger and the Lenders and (C) covering such other matters relating to the Loan
Documents and the Transactions as the Administrative Agent shall reasonably request and
which are customary for transactions of the type contemplated herein, and the Borrower and
the Subsidiaries hereby request such counsel to deliver such opinions.

     (b)   The Administrative Agent shall have received (i) a copy of the certificate or
articles of incorporation or other formation documents, including all amendments thereto, of
each Loan Party, certified as of a recent date by the Secretary of State of the state of its
organization, and a certificate as to the good standing of each Loan Party as of a recent
date, from such Secretary of State; (ii) a certificate of the Secretary or Assistant

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Secretary of each Loan Party dated the Closing Date and certifying (A) that attached thereto
is a true and complete copy of the by-laws of such Loan Party as in effect on the Closing
Date and at all times since a date prior to the date of the resolutions described in clause
(B) below, (B) that attached thereto is a true and complete copy of resolutions duly adopted
by the Board of Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such person is a party, in the case of the
Borrower, the borrowings hereunder, in the case of each Loan Party, the granting of the
Liens contemplated to be granted by it under the Security Documents and, in the case of each
Subsidiary Guarantor, the Guaranteeing of the Obligations as contemplated by the Guarantee
and Collateral Agreement, and that such resolutions have not been modified, rescinded or
amended and are in full force and effect, (C) that the certificate or articles of
incorporation or other formation documents of such Loan Party have not been amended since
the date of the last amendment thereto shown on the certificate of good standing furnished
pursuant to clause (i) above and (D) as to the incumbency and specimen signature of each
officer executing any Loan Document or any other document delivered in connection herewith
on behalf of such Loan Party; (iii) a certificate of another officer as to the incumbency
and specimen signature of the Secretary or Assistant Secretary executing the certificate
pursuant to (ii) above; and (iv) such other documents as the Administrative Agent, the
Arranger, the Issuing Bank or the Lenders may reasonably request.

     (c)   The Administrative Agent shall have received a certificate, dated the Closing
Date and signed by a Financial Officer of the Borrower, confirming compliance with the
conditions precedent set forth in paragraphs (b) and (c) of Section 4.01.

     (d)   The Administrative Agent shall have received (i) this Agreement, executed and
delivered by a duly authorized officer of the Borrower, (ii) the Guarantee and Collateral
Agreement, executed and delivered by a duly authorized officer of each of
the Borrower and each Subsidiary Guarantor, (iii) a Mortgage covering each of the
Mortgaged Properties, executed and delivered by a duly authorized officer of each Loan Party
thereto, (iv) the Intellectual Property Security Agreements, executed and delivered by a
duly authorized officer of each Loan Party thereto, (v) if requested by any Lender pursuant
to Section 2.04, a promissory note or notes conforming to the requirements of such Section
and executed and delivered by a duly authorized officer of the Borrower and (vi) a Lender
Addendum executed and delivered by each Lender and accepted by the Borrower.

     (e)   The Collateral Agent, for the ratable benefit of the Secured Parties, shall have
been granted on the Closing Date first priority perfected Liens on the Collateral (subject,
in the case of all Collateral other than Pledged Collateral, only to Liens expressly
permitted by Section 6.02) and customary Guarantees from the Subsidiary Guarantors and shall
have received such other reports, documents and agreements as the Collateral Agent shall
reasonably request and which are customarily delivered in connection with security interests
in real property assets. The Pledged Collateral shall have been duly and validly pledged
under the Guarantee and Collateral Agreement to the Collateral Agent, for the ratable
benefit of the Secured Parties, and certificates

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representing such Pledged Collateral,
accompanied by instruments of transfer and stock powers endorsed in blank, shall be in the
actual possession of the Collateral Agent.

     (f)   The Collateral Agent shall have received a duly executed Perfection Certificate
dated on or prior to the Closing Date. The Collateral Agent shall have received the results
of a recent Lien and judgment search in the jurisdiction of formation of the Borrower and
those of the Subsidiaries that shall be Subsidiary Guarantors or shall otherwise have assets
that are included in the Collateral, and such search shall reveal no Liens on any of the
assets of the Borrower or any of such Subsidiaries except, in the case of Collateral other
than Pledged Collateral, for Liens expressly permitted by Section 6.02 and except for Liens
to be discharged on or prior to the Closing Date pursuant to documentation reasonably
satisfactory to the Collateral Agent.

     (g)   The Acquisition and the Acquisition Transactions shall be consummated
simultaneously with the initial funding of the Loans hereunder in accordance with applicable
law and on the terms described in the term sheets to the Commitment Letter; the Merger
Agreement and all other related documentation shall be satisfactory to the Administrative
Agent; the Administrative Agent shall be satisfied with the capitalization, structure and
equity ownership of the Borrower after giving effect to the Transactions.

     (h)   After giving effect to the Transactions and the other transactions contemplated
hereby, the Borrower and the subsidiaries shall have outstanding no Indebtedness or
preferred stock other than (i) the Loans and other extensions of credit hereunder and (ii)
other Indebtedness permitted by Section 6.01. The Administrative Agent shall have received
satisfactory evidence that (i) the Existing Credit Facility shall have been terminated, all
amounts then due and payable or to become due and payable (other than indemnification
obligations not yet having been requested) thereunder shall have been paid in full and all
commitments and reimbursement obligations thereunder shall have been terminated and (ii)
satisfactory arrangements shall have been made for
the termination of all Liens granted in connection therewith, in each case on terms and
conditions reasonably satisfactory to the Administrative Agent.

     (i)   The Administrative Agent shall have received (i) the unaudited consolidated
balance sheet of the Company as of December 31, 2005 and the unaudited consolidated
statements of income and cash flows for the twelve months ended as of December 31, 2005, and
(ii) for each month ending after December 31, 2005, an unaudited income statement of the
Company for each such month and a balance sheet as of the end of such month, in each case
prepared in accordance with GAAP applied on a consistent basis throughout the periods
covered thereby. The financial statements described in clauses (i) and (ii) are subject to
normal recurring year-end adjustments and do not include footnotes.

     (j)   The Administrative Agent shall have received a certificate from the chief
financial officer of the Borrower certifying that the Borrower and each of the Subsidiaries,
after giving effect to the Transactions and the other transactions contemplated hereby, are
solvent.

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     (k)   All material non-governmental third party consents and approvals with respect to
the Transactions and the other transactions contemplated hereby to the extent required shall
have been obtained, all applicable appeal periods shall have expired and there shall be no
litigation, administrative or judicial action, actual or threatened, that could reasonably
be expected to restrain, prevent or impose materially burdensome conditions on the
Transactions or the other transactions contemplated hereby.

     (l)   All applicable waiting periods (and any extensions thereof) under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, shall have expired or
otherwise been terminated and, with respect to any necessary premerger filings with any
other administrative agency or commission, court, arbitrational tribunal, or other
governmental or regulatory authority or agency, any necessary filings have been made and
approvals obtained, or waiting periods shall have expired, as applicable. No action, suit,
proceeding, claim, arbitration or investigation before any court, arbitrational tribunal,
administrative agency or commission or other governmental or regulatory authority or agency,
or before any arbitrator, shall be pending or threatened in writing wherein an unfavorable
judgment, order, decree, stipulation or injunction would (i) prevent consummation of the
transactions contemplated by the Merger Agreement or (ii) cause the transactions
contemplated by the Merger Agreement to be rescinded following consummation.

ARTICLE V.

Affirmative Covenants

     The Borrower covenants and agrees with each Lender that so long as this Agreement shall remain
in effect and until the Commitments have been terminated and the principal of and
interest on each Loan, all Fees and all other expenses or amounts payable under any Loan
Document shall have been paid in full and all Letters of Credit have been canceled or have expired
and all amounts drawn thereunder have been reimbursed in full, the Borrower will, and will cause
each of the Subsidiaries to:

     SECTION 5.01. Existence; Businesses and Properties. (a) Other than with
respect to the China Joint Venture, do or cause to be done all things necessary to preserve, renew
and keep in full force and effect its legal existence, except as otherwise expressly permitted
under Section 6.05.

     (b)   Do or cause to be done all things necessary to obtain, preserve, renew, extend and keep
in full force and effect the rights, licenses, permits, franchises, authorizations, patents,
copyrights, trademarks and trade names material to the conduct of its business; maintain and
operate such business in substantially the manner in which it is presently conducted and operated;
comply in all material respects with all applicable laws, rules, regulations and decrees and orders
of any Governmental Authority, whether now in effect or hereafter enacted; except where the failure
to comply could not reasonably be expected to have a Material Adverse Effect; comply with the terms
of, and enforce its rights under, each material lease of real property and

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each other material
agreement so as to not permit any material uncured default on its part to exist thereunder; and at
all times maintain and preserve all property material to the conduct of such business and keep such
property in good repair, working order and condition (ordinary wear and tear excepted) in order
that the business carried on in connection therewith may be properly conducted at all times;
provided, however, that nothing in this Section 5.01(b) shall prevent (i) sales of
assets, consolidations or mergers by or involving the Borrower or any of its Subsidiaries in
accordance with Section 6.05, (ii) the withdrawal by the Borrower or any of its Subsidiaries of
their qualification as a foreign corporation in any jurisdiction where such withdrawal could not
reasonably be expected to have a Material Adverse Effect or (iii) the abandonment by the Borrower
or any of its Subsidiaries of any rights, franchises, licenses and patents that the Borrower
reasonably determines are not useful to its business.

     SECTION
5.02. Insurance. Keep its insurable properties adequately insured at
all times by financially sound and reputable insurers; maintain such other insurance, to such
extent and against such risks (and with such deductibles, retentions and exclusions), including
fire and other risks insured against by extended coverage, as is customary with companies in the
same or similar businesses operating in the same or similar locations, including public liability
insurance against claims for personal injury or death or property damage occurring upon, in, about
or in connection with the use of any properties owned, occupied or controlled by it; maintain such
other insurance as may be required by law; and maintain such other insurance as otherwise required
by the Security Documents (and comply with all covenants in the Security Documents with respect
thereto).

     SECTION 5.03. Obligations and Taxes. Pay its Material Indebtedness and other material obligations promptly and in accordance
with their terms and pay and discharge promptly when due all material taxes, assessments and
governmental charges or levies imposed upon it or upon its income or profits or in respect of its
property, before the same shall become delinquent or in default, as well as all lawful claims for
labor, materials and supplies or otherwise that, if unpaid, might give rise to a Lien upon such
properties or any part thereof; provided, however, that such payment and discharge
shall not be required with respect to any such tax, assessment, charge, levy or claim so long as
the validity or amount thereof shall be contested in good faith by appropriate proceedings and the
Borrower or the applicable Subsidiary shall have set aside on its books adequate reserves with
respect thereto to the extent required by GAAP and such contest operates to suspend collection of
the contested obligation, tax, assessment or charge and enforcement of a Lien and, in the case of a
Mortgaged Property, there is no risk of forfeiture of such property.

     SECTION 5.04. Financial Statements, Reports, etc. In the case of the Borrower,
furnish to the Administrative Agent who will distribute to each Lender:

     (a)   within 90 days after the end of each fiscal year, its consolidated balance sheet
and related statements of income, stockholders’ equity and cash flows showing the financial
condition of the Borrower and its consolidated Subsidiaries as of the close of such fiscal
year and the results of its operations and the operations of such Subsidiaries during such
year, together with comparative figures for the immediately preceding fiscal year, all
audited by Ernst & Young LL.P. or other independent public accountants of recognized
national standing and accompanied by an opinion of such accountants (which

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shall not be
qualified in any material respect) to the effect that such consolidated financial statements
fairly present in all material respects the financial condition and results of operations of
the Borrower and its consolidated Subsidiaries on a consolidated basis in accordance with
GAAP consistently applied;

     (b)   within 45 days after the end of each of the first three fiscal quarters of each
fiscal year, its consolidated balance sheet and related statements of income and cash flows
showing the financial condition of the Borrower and its consolidated Subsidiaries as of the
close of such fiscal quarter and the results of its operations and the operations of such
Subsidiaries during such fiscal quarter and the then elapsed portion of the fiscal year, and
comparative figures for the same periods in the immediately preceding fiscal year, all
certified by one of its Financial Officers as fairly presenting the financial condition and
results of operations of the Borrower and its consolidated Subsidiaries on a consolidated
basis in accordance with GAAP consistently applied, subject to normal year-end audit
adjustments and the absence of footnotes;

     (c)   concurrently with any delivery of financial statements under paragraph (a) or (b)
above, a certificate of a Financial Officer (i) certifying that no Event of Default or
Default has occurred or, if such an Event of Default or Default has occurred, specifying the
nature and extent thereof and any corrective action taken or proposed to be taken with
respect thereto and (ii) setting forth computations in reasonable detail satisfactory to the
Administrative Agent demonstrating compliance with the covenants contained in
Sections 6.11 and 6.12 and, in the case of a certificate delivered with the financial
statements required by paragraph (a) above, setting forth the Borrower’s calculation of
Excess Cash Flow;

     (d)   at least 90 days after the end of each fiscal year of the Borrower, detailed
consolidated projected income statements as of the end of and for such following fiscal year
and setting forth the assumptions used for purposes of preparing such income statements)
and, promptly when available, any significant revisions of such income statements;

     (e)   promptly after the same become publicly available, copies of all periodic and
other reports, proxy statements and other materials filed by the Borrower or any Subsidiary
with the Securities and Exchange Commission, or any Governmental Authority succeeding to any
or all of the functions of said Commission, or with any national securities exchange;

     (f)   promptly after the receipt thereof by the Borrower or any of the Subsidiaries, a
copy of any “management letter” (whether in final or draft form) received by any such person
from its certified public accountants and the management’s response thereto;

     (g)   promptly, from time to time, all documentation and other information required by
bank regulatory authorities under applicable “know your customer” and anti-money laundering
rules and regulations, including the U.S.A. Patriot Act and

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     (h)   promptly, from time to time, such other information regarding the operations,
business affairs and financial condition of the Borrower or any Subsidiary, or compliance
with the terms of any Loan Document, as the Administrative Agent may reasonably request.

     Documents required to be delivered pursuant to Section 5.04(a), (b) or (e) (to the extent any
such documents are included in materials otherwise filed with the Securities and Exchange
Commission) may be delivered by electronic mail, provided that the Borrower shall deliver paper
copies of such documents to the Administrative Agent upon written request.

     SECTION 5.05. Litigation and Other Notices. Furnish to the Administrative Agent,
within five Business Days of any Responsible Officer obtaining actual knowledge thereof:

     (a)   any Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect thereto;

     (b)   the filing or commencement of, or any threat or notice of intention of any person
to file or commence, any material action, suit or proceeding, whether at law or in equity or
by or before any arbitrator or Governmental Authority, against the Borrower or any
Subsidiary that could reasonably be expected to result in a Material Adverse Effect; and

     (c)   the occurrence of any ERISA Event described in clause (b) of the definition
thereof or any other ERISA Event that, alone or together with any other ERISA Events that
have occurred, could reasonably be expected to result in liability of the Borrower and the
Subsidiaries in an aggregate amount exceeding $10,000,000; and

     (d)   any development that has resulted in, or could reasonably be expected to result
in, a Material Adverse Effect.

     SECTION 5.06. Information Regarding Collateral. (a) Furnish to each of the
Administrative Agent and the Collateral Agent prompt written notice of any change (i) in any Loan
Party’s corporate name or in any trade name used to identify it in the conduct of its business or
in the ownership of its properties, (ii) in the location of any Loan Party’s chief executive office
or its principal place of business or (iii) any Loan’s Party Federal Taxpayer Identification
Number. The Borrower agrees not to effect or permit any change referred to in the preceding
sentence until after providing the Collateral Agent with all filings under the UCC and other
documents required for the Collateral Agent to file in order for the Collateral Agent to continue
at all times following such change to have a valid, legal and perfected security interest in all
the Collateral. The Borrower also agrees promptly to notify each of the Administrative Agent and
the Collateral Agent if any material portion of the Collateral is damaged or destroyed.

     (b)   In the case of the Borrower, each year, at the time of delivery of the annual financial
statements with respect to the preceding fiscal year pursuant to Section 5.04(a), deliver to the
Administrative Agent a certificate of a Financial Officer setting forth (i) any newly created or
acquired Intellectual Property or (ii) any change in the location of any office where books and
records relating to Collateral are maintained.

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     SECTION 5.07. Maintaining Records; Access to Properties and Inspections; Environmental
Assessments. Keep proper books of record and account in which full, true and correct
entries in conformity with GAAP and all requirements of law are made of all dealings and
transactions in relation to its business and activities. The Borrower will, and will cause each of
its subsidiaries to, permit any representatives designated by the Administrative Agent to visit and
inspect the financial records and the properties of the Borrower or any of its subsidiaries at
reasonable times and as often as reasonably requested and to make extracts from and copies of such
financial records, and permit any representatives designated by the Administrative Agent to discuss
the affairs, finances and condition of the Borrower, as the case may be, or any of its subsidiaries
with the officers thereof and with the participation of or prior notice to such officers,
independent accountants therefor.

     (b)   At its election, the Administrative Agent or any Lender may, at its own cost and
expense, retain an independent engineer or environmental consultant to conduct an environmental
assessment of any Mortgaged Property. The Borrower shall, and shall cause each of the Subsidiaries
to, cooperate in the performance of any such environmental assessment and permit any such engineer
or consultant designated by the Administrative Agent or such Lender to
have full access to each property or facility at reasonable times and after reasonable notice
to the Borrower of the plans to conduct such an environmental assessment. Environmental
assessments conducted under this paragraph shall be limited to visual inspections of the Mortgaged
Property or facility, interviews with representatives of the Loan Parties or facility personnel,
and review of applicable records and documents pertaining to the property or facility.

     SECTION 5.08. Use of Proceeds. Use the proceeds of the Loans and request the issuance
of Letters of Credit only for the purposes set forth in Section 3.13.

     SECTION 5.09. Additional Collateral, etc. (a) With respect to any Collateral
acquired after the Closing Date or, in the case of inventory or equipment, any material Collateral
moved after the Closing Date by the Borrower or any other Loan Party (other than any Collateral
described in paragraphs (b), (c) or (d) of this Section) as to which the Collateral Agent, for the
benefit of the Secured Parties, does not have a first priority perfected security interest,
promptly (and, in any event, within 10 days following the date of such acquisition) (i) execute and
deliver to the Administrative Agent and the Collateral Agent such amendments to the Guarantee and
Collateral Agreement or such other Security Documents as the Collateral Agent deems reasonably
necessary or advisable to grant to the Collateral Agent, for the benefit of the Secured Parties, a
security interest in such Collateral and (ii) take all actions reasonably necessary or advisable to
grant to, or continue on behalf of, the Collateral Agent, for the benefit of the Secured Parties, a
perfected first priority security interest in such Collateral, including the filing of UCC
financing statements in such jurisdictions as may be required by the Guarantee and Collateral
Agreement or by law or as may be reasonably requested by the Administrative Agent or the Collateral
Agent.

     (b)   With respect to any fee interest in any Collateral consisting of Real Property acquired
after the Closing Date by the Borrower or any other Loan Party, promptly (and, in any event, within
60 days following the date of such acquisition) (i) execute and deliver a first priority Mortgage
(subject to Liens permitted by Section 6.02) in favor of the Collateral Agent, for the benefit of
the Secured Parties, covering such real property and complying with the

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provisions herein and in
the Security Documents, (ii) provide the Secured Parties with title and extended coverage insurance
in an amount at least equal to the purchase price of such Real Property (or such other amount as
the Administrative Agent shall reasonably specify), together with such endorsements as are
reasonably required by the Administrative Agent and the Collateral Agent and are obtainable in the
state in which such Real Property is located, as well as a current ALTA survey thereof in form and
substance reasonably satisfactory to the Administrative Agent and the Collateral Agent, (iii) if
reasonably requested by the Administrative Agent, deliver to the Administrative Agent and the
Collateral Agent legal opinions relating to the matters described above, which opinions shall be in
form and substance, and from counsel, reasonably satisfactory to the Administrative Agent and the
Collateral Agent and (iv) deliver to the Administrative Agent a notice identifying, and upon the
Administrative Agent’s request, provide a copy of, the consultant’s reports, environmental site
assessments or other documents relied upon by the Borrower or any other Loan Party, if any, to
determine that any such real property included in such Collateral does not contain Hazardous
Materials of a
form or type or in a quantity or location that could reasonably be expected to result in a
material Environmental Liability.

     (c)   With respect to any Subsidiary (other than an Excluded Foreign Subsidiary and the China
Joint Venture) created or acquired after the Closing Date (which, for the purposes of this
paragraph, shall include any existing Subsidiary that ceases to be an Excluded Foreign Subsidiary
at any time after the Closing Date) by the Borrower or any of the Subsidiaries, promptly (and, in
any event, within 10 days following such creation or the date of such acquisition) (i) execute and
deliver to the Administrative Agent and the Collateral Agent such amendments to the Guarantee and
Collateral Agreement as the Administrative Agent or the Collateral Agent deems reasonably necessary
or advisable to grant to the Collateral Agent, for the benefit of the Secured Parties, a valid,
perfected first priority security interest in the Equity Interests in such new Subsidiary that are
owned by the Borrower or any of the Subsidiaries, (ii) deliver to the Collateral Agent the
certificates, if any, representing such Equity Interests, together with undated stock powers, in
blank, executed and delivered by a duly authorized officer of the Borrower or such Subsidiary, as
the case may be, (iii) cause such new Subsidiary (A) to become a party to the Guarantee and
Collateral Agreement (and provide Guarantees of the Obligations) and the Intellectual Property
Security Agreements and (B) to take such actions necessary or advisable to grant to the Collateral
Agent, for the benefit of the Secured Parties, a perfected first priority security interest in the
Collateral described in the Guarantee and Collateral Agreement and the Intellectual Property
Security Agreement with respect to such new Subsidiary, including the recording of instruments in
the United States Patent and Trademark Office and the United States Copyright Office and the filing
of UCC financing statements in such jurisdictions as may be required by the Guarantee and
Collateral Agreement, the Intellectual Property Security Agreement or by law or as may be requested
by the Administrative Agent or the Collateral Agent and (iv) if requested by the Administrative
Agent, deliver to the Administrative Agent and the Collateral Agent legal opinions relating to the
matters described above, which opinions shall be in form and substance, and from counsel,
reasonably satisfactory to the Administrative Agent and the Collateral Agent.

     (d)   With respect to any Excluded Foreign Subsidiary created or acquired after the Closing
Date by the Borrower or any of its Domestic Subsidiaries, promptly (and, in any event, within 10
days following such creation or the date of such acquisition) (i) execute and deliver to

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the
Administrative Agent and the Collateral Agent such amendments to the Guarantee and Collateral
Agreement as the Administrative Agent or the Collateral Agent deems necessary or advisable in order
to grant to the Collateral Agent, for the benefit of the Secured Parties, a perfected first
priority security interest in the Equity Interests in such new Excluded Foreign Subsidiary that is
owned by the Borrower or any of its Domestic Subsidiaries (provided that in no event shall more
than 65% of the total outstanding voting Equity Interests in any such new Excluded Foreign
Subsidiary be required to be so pledged), (ii) deliver to the Collateral Agent the certificates
representing such Equity Interests, together with undated stock powers, in blank, executed and
delivered by a duly authorized officer of the Borrower or such Domestic Subsidiary, as the case may
be, and take such other action as may be necessary or, in the reasonable opinion of the
Administrative Agent or the Collateral Agent, desirable to perfect the security interest of the
Collateral Agent thereon and (iii) if reasonably requested by the Administrative Agent, deliver to
the Administrative Agent and the Collateral Agent legal
opinions relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative Agent and the Collateral
Agent.

     SECTION 5.10. Further Assurances. From time to time duly authorize, execute and
deliver, or cause to be duly authorized, executed and delivered, such additional instruments,
certificates, financing statements, agreements or documents, and take all such actions (including
filing UCC and other financing statements), as the Administrative Agent or the Collateral Agent may
reasonably request, for the purposes of implementing or effectuating the provisions of this
Agreement and the other Loan Documents, or of more fully perfecting or renewing the rights of the
Administrative Agent, the Collateral Agent and the Secured Parties with respect to the Collateral
(or with respect to any additions thereto or replacements or proceeds or products thereof or with
respect to any other property or assets hereafter acquired by the Borrower or any Subsidiary which
may be deemed to be part of the Collateral) pursuant hereto or thereto. Upon the exercise by the
Administrative Agent, the Collateral Agent or any Lender of any power, right, privilege or remedy
pursuant to this Agreement or the other Loan Documents which requires any consent, approval,
recording, qualification or authorization of any Governmental Authority, the Borrower will execute
and deliver, or will cause the execution and delivery of, all applications, certifications,
instruments and other documents and papers that the Administrative Agent, the Collateral Agent or
such Lender may be required to obtain from the Borrower or any of the Subsidiaries for such
governmental consent, approval, recording, qualification or authorization.

     SECTION 5.11. Rating. The Borrower shall pay all reasonable and customary fees and
expenses, and shall otherwise use commercially reasonable efforts, to maintain ratings in respect
of the Facility with each of S&P and Moody’s. For the avoidance of doubt, the Borrower shall not
have any obligation to maintain any particular minimum rating in respect of the Facility.

     SECTION 5.12. Landlord Access Agreement. The Borrower shall use its commercially
reasonable efforts to obtain and deliver to the Collateral Agent, Landlord Access Agreements for
the properties listed in Schedule 5.12 within sixty (60) days of the Closing Date.

     SECTION 5.13. Bermuda Pledge Agreement. The Borrower shall, within 60 days of the
Closing Date deliver to the Administrative Agent (i) all documents and instruments in

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form and
substance reasonably satisfactory to the Administrative Agent required to effect a perfected first
priority pledge in favor of the Collateral Agent over 65% of the partnership interests in
Blackboard International L.P., and (ii) a favorable written opinion of Bermuda local counsel,
addressed to the Administrative Agent, the Issuing Bank, the Arranger and the Lenders and covering,
as of the date of delivery of such opinion, the matters referred to in Section 4.02(a)(C).

ARTICLE VI.

Negative Covenants

     The Borrower covenants and agrees with each Lender that, so long as this Agreement shall
remain in effect and until the Commitments have been terminated and the principal of and interest
on each Loan, all Fees and all other expenses or amounts payable under any Loan Document have been
paid in full and all Letters of Credit have been cancelled or have expired and all amounts drawn
thereunder have been reimbursed in full, the Borrower will not, nor will it cause or permit any of
the Subsidiaries to:

     SECTION 6.01. Indebtedness. Incur, create, assume or permit to exist any
Indebtedness, except:

     (a)   Indebtedness existing on the date hereof and set forth in Schedule 6.01 and any
Permitted Refinancing Indebtedness in respect of any such Indebtedness;

     (b)   Indebtedness created hereunder and under the other Loan Documents;

     (c)   unsecured intercompany Indebtedness of the Borrower and the Subsidiaries to the
extent permitted by Section 6.04(a) so long as such Indebtedness is subordinated to the
Obligations pursuant to an Affiliate Subordination Agreement;

     (d)   Capital Lease Obligations and Synthetic Lease Obligations in an aggregate
principal amount not exceeding $5,000,000 at any time outstanding;

     (e)   Indebtedness of any person that becomes a Subsidiary after the date hereof;
provided that (i) such Indebtedness exists at the time such persons becomes a
Subsidiary and is not created in contemplation of or in connection with such person becoming
a Subsidiary, (ii) immediately before and after such person becomes a Subsidiary, no Default
or Event of Default shall have occurred and be continuing and (iii) the aggregate principal
amount of Indebtedness permitted by this Section 6.01(e) shall not exceed $5,000,000 at any
time outstanding;

     (f)   unsecured Indebtedness of the Borrower or the Subsidiary Guarantors that is
subordinated to the Obligations, in each case (i) that does not mature, and is not subject
to mandatory repurchase, redemption or amortization (other than pursuant to customary asset
sale or change of control provisions requiring redemption or repurchase only if and to the
extent permitted by this Agreement) prior to the date that is six months after the

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Term Loan
Maturity Date, (ii) that is not exchangeable or convertible into Indebtedness of the
Borrower or any Subsidiary (other than other Indebtedness permitted by this clause) or any
preferred stock or other Equity Interest and (iii) solely to the extent the Net Proceeds
thereof are used to refinance Term Loans or refinance and permanently reduce commitments in
respect of Revolving Loans;

     (g)   Indebtedness (i) under performance bonds surety, statutory, appeal or similar
bonds, completion guarantees, letter of credit obligations, or to provide security
for workers’ compensation claims, in each case incurred in the ordinary course of
business and (ii) to finance insurance premiums in respect of director’ and officers’
insurance coverage;

     (h)   Indebtedness arising from the honoring by a bank or other financial institution
of a check, draft or similar instrument inadvertently drawn against insufficient funds in
the ordinary course of business; provided that such Indebtedness is promptly covered
by the Borrower or any Subsidiary;

     (i)   Indebtedness under Hedging Agreements permitted by Section 6.08;

     (j)   Indebtedness subject to Liens permitted under Section 6.02(i), so long as the
Indebtedness does not exceed the amount provided in Section 6.02(i);

     (k)   Indebtedness of the China Joint Venture in an aggregate principal amount not
exceeding $3,500,000, so long as such Indebtedness is not guaranteed by, directly or
indirectly collateralized by or otherwise recourse to the Borrower or any Subsidiary or any
of their Equity Interests or assets; and

     (l)   other unsecured Indebtedness of the Borrower or the Subsidiaries in an aggregate
principal amount not exceeding $5,000,000 at any time outstanding.

     SECTION 6.02. Liens. Create, incur, assume or permit to exist any Lien on any
property or assets (including Equity Interests or other securities of any person, including any
Subsidiary) now owned or hereafter acquired by it or on any income or revenues or rights in respect
of any thereof, except:

     (a)   Liens on property or assets of the Borrower and the Subsidiaries existing on the
date hereof and set forth in Schedule 6.02; provided that such Liens shall secure
only those obligations which they secure on the date hereof and refinancings, extensions,
renewals and replacements thereof permitted hereunder;

     (b)   any Lien created under the Loan Documents;

     (c)   any Lien existing on any property or asset prior to the acquisition thereof by
the Borrower or any Subsidiary; provided that (i) such Lien is not created in
contemplation of or in connection with such acquisition, and (ii) such Lien does not apply
to any other property or assets of the Borrower or any Subsidiary;

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     (d)   Liens for taxes, assessments or governmental charges not yet due and payable or
which are being contested in compliance with Section 5.03;

     (e)   Liens in respect of property or assets of the Borrower or any of its Subsidiaries
imposed by operation of law, such as carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business (i) securing
obligations that are not due and payable, (ii) which do not in the aggregate materially
detract from the value of the property or assets of the Borrower and
its Subsidiaries, taken as a whole, and do not materially impair the use thereof in the
operation of the business of the Borrower and its Subsidiaries, taken as a whole, or (iii)
which are being contested in compliance with Section 5.03;

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

     (g)   deposits to secure the performance of bids, trade contracts (other than for
Indebtedness), leases (other than Capital Lease Obligations), statutory obligations, surety
and appeal bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

     (h)   zoning restrictions, easements, rights-of-way, restrictions on use of real
property and other similar encumbrances incurred in the ordinary course of business which,
in the aggregate, do not materially detract from the value of the property subject thereto
or interfere with the ordinary conduct of the business of the Borrower or any of the
Subsidiaries or the ability of the Borrower or any of the Subsidiaries to utilize such
property for its intended purpose;

     (i)   purchase money security interests in real property, improvements thereto or other
fixed or capital assets hereafter acquired (or, in the case of improvements, constructed) by
the Borrower or any Subsidiary; provided that (i) the aggregate outstanding
principal amount of all Indebtedness secured by Liens permitted by this paragraph (i) shall
not at any time exceed $10,000,000, (ii) such security interests are incurred, and the
Indebtedness secured thereby is created, within 90 days after such acquisition (or
construction) and (iii) such security interests do not apply to any other property or assets
of the Borrower or any Subsidiary;

     (j)   judgment Liens securing judgments not constituting an Event of Default under
Article VII;

     (k)   any interest or title of a lessor, sublessor licensee or licensor under any lease
or license entered into by the Borrower or any of its Subsidiaries in the ordinary course of
business and covering only the assets so leased or licensed;

     (l)   Liens securing Hedging Agreements permitted by Section 6.08;

     (m)   Liens on cash deposits and other funds maintained with a depositary institution,
in each case arising in the ordinary course of business by virtue of any

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statutory or common
law provision relating to banker’s liens; provided that (i) the applicable deposit
account is not a dedicated cash collateral account and is not subject to restrictions
against access by the Borrower or the Subsidiaries in excess of those set forth in
regulations promulgated by the Board and (ii) the applicable deposit account is not intended
by the Borrower or any of the Subsidiaries to provide collateral or security to the
applicable depositary institution or any other person.

     (n)   Liens granted in respect of property and assets of the China Joint Venture and
Liens on any Equity Interests in the China Joint Venture; and

     (o)   Liens not otherwise permitted by the foregoing paragraphs (a) through (m) to the
extent attaching to properties and assets with an aggregate fair value at the time of
attachment not in excess of, and securing liabilities not in excess of, $3,000,000 in the
aggregate at any time outstanding.

     SECTION 6.03. Sale and Lease-Back Transactions. Enter into any arrangement, directly
or indirectly, with any person whereby it shall sell or transfer any property, real or personal or
mixed, used or useful in its business, whether now owned or hereafter acquired, and thereafter rent
or lease such property or other property which it intends to use for substantially the same purpose
or purposes as the property being sold or transferred unless (a) the sale of such property is
permitted by Section 6.05, (b) any Capital Lease Obligations or Liens arising in connection
therewith are permitted by Sections 6.01 and 6.02, respectively, or (c) the sale and leaseback
involves the China Joint Venture and its property and no other Loan Party or its property.

     SECTION 6.04. Investments, Loans and Advances. Purchase, hold or acquire any Equity
Interests, evidences of indebtedness or other securities of, make or permit to exist any loans or
advances or capital contributions to, or make or permit to exist any investment or any other
interest in, any other person (all of the foregoing, “Investments”), except:

     (a)   (i) Investments by the Borrower and the Subsidiaries existing on the date hereof
in the Equity Interests of the Borrower and the Subsidiaries (including loans, advances or
capital contributions by the Borrower to its Subsidiaries or by any of the Borrower’s
Subsidiaries to another of its Subsidiaries) and (ii) additional Investments by the Borrower
and the Subsidiaries in the Equity Interests of the Borrower and the Subsidiaries;
provided that (A) any such Equity Interests (other than the Equity Interests in the
China Joint Venture) held by a Loan Party shall be pledged pursuant to the Guarantee and
Collateral Agreement (subject to the limitation referred to in Section 5.09(d) in the case
of any Excluded Foreign Subsidiary), (B) the aggregate amount of Investments (other than
Investments existing on the date hereof) by Loan Parties in Subsidiaries that are not
Subsidiary Guarantors shall not exceed $25,000,000 at any time outstanding and (C) if such
Investment shall be in the form of a loan or advance, such loan or advance shall be
unsecured and subordinated to the Obligations pursuant to an Affiliate Subordination
Agreement and, if such loan or advance shall be made by a Loan Party, it shall be evidenced
by a promissory note pledged to the Collateral Agent for the ratable benefit of the Secured
Parties pursuant to the Guarantee and Collateral Agreement

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provided, that this
clause (C) shall not apply to any such Indebtedness if such Indebtedness is convertible into
Equity Interests in Blackboard International B.V.;

     (b)   Permitted Investments;

     (c)   Investments received in connection with the bankruptcy or reorganization of, or
settlement of delinquent accounts and disputes with, customers and suppliers, in each case
in the ordinary course of business;

     (d)   the Borrower and the Subsidiaries may make loans and advances in the ordinary
course of business to their respective employees so long as the aggregate principal amount
thereof at any time outstanding (determined without regard to any write-downs or write-offs
of such loans and advances) shall not exceed $500,000;

     (e)   the Acquisition and Permitted Acquisitions;

     (f)   Investments existing on the date hereof and set forth on Schedule 6.04;

     (g)   extensions of trade credit in the ordinary course of business;

     (h)   Investments made as a result of the receipt of non-cash consideration from a
sale, transfer or other disposition of any asset in compliance with Section 6.05;

     (i)   Investments made by the China Joint Venture in an aggregate principal amount not
exceeding $3,500,000; and

     (j)   in addition to Investments permitted by paragraphs (a) through (h) above,
additional Investments by the Borrower and the Subsidiaries so long as the aggregate amount
invested, loaned or advanced pursuant to this paragraph (i) (determined without regard to
any write-downs or write-offs of such investments, loans and advances) does not exceed
$5,000,000 in the aggregate.

     SECTION 6.05. Mergers, Consolidations, Sales of Assets and Acquisitions. (a)
Merge into or consolidate with any other person, or permit any other person to merge into or
consolidate with it, or liquidate or dissolve, or sell, transfer, lease, issue or otherwise dispose
of (in one transaction or in a series of transactions) all or substantially all the assets (whether
now owned or hereafter acquired) of the Borrower or less than all the Equity Interests of any
Subsidiary, or purchase, lease or otherwise acquire (in one transaction or a series of
transactions) all or any substantial part of the assets of any other person, except for (i) the
purchase and sale by the Borrower or any Subsidiary of inventory in the ordinary course of
business, (ii) the sale or discount by the Borrower or any Subsidiary in each case without recourse
and in the ordinary course of business of overdue accounts receivable arising in the ordinary
course of business, but only in connection with the compromise or collection thereof consistent
with customary industry practice (and not as part of any bulk sale or financing transaction), (iii)
sales or dispositions of Equity Interests in the China Joint Venture, (iv) the Acquisition, and (v)
if at the time thereof and immediately after giving effect thereto no Event of Default or Default
shall have occurred and be continuing, (x) the merger or consolidation of any wholly owned
Subsidiary into or with the Borrower in a transaction in which the Borrower is the surviving
corporation, (y) the merger or

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consolidation of any wholly owned Subsidiary into or with any other
wholly owned Subsidiary in a transaction in which the surviving entity is a wholly owned Subsidiary
and no person other than the Borrower or a wholly owned Subsidiary receives any consideration
(provided that if any party to any such transaction is (A) a Loan Party, the
surviving entity of such transaction shall be a Loan Party and (B) a Domestic Subsidiary, the
surviving entity of such transaction shall be a Domestic Subsidiary) and (z) Permitted Acquisitions
by the Borrower or any Subsidiary.

     (b)   Except with respect to the China Joint Venture, engage in any Asset Sale otherwise
permitted under paragraph (a) above unless (i) such Asset Sale is for consideration at least 75% of
which is cash (and no portion of the remaining consideration shall be in the form of Indebtedness
of the Borrower or any Subsidiary), (ii) such consideration is at least equal to the fair market
value of the assets being sold, transferred, leased or disposed of and (iii) the fair market value
of all assets sold, transferred, leased or disposed of pursuant to this paragraph (b) shall not
exceed (A) $5,000,000 in any fiscal year.

     SECTION 6.06. Restricted Payments; Restrictive Agreements. (a) Declare or
make, or agree to declare or make, directly or indirectly, any Restricted Payment (including
pursuant to any Synthetic Purchase Agreement), or incur any obligation (contingent or otherwise) to
do so; provided, however, (i) that any Subsidiary may declare and pay dividends or
make other distributions ratably to its equity holders and (ii) the Borrower may repurchase its
outstanding Equity Interests (or options to purchase such Equity Interests) following the death,
disability, retirement or termination of employment of employees, officers or directors of the
Borrower or any of its Subsidiaries in an aggregate amount not exceeding $20,000,000.

     (b)   Enter into, incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (i) the ability of the Borrower or any Subsidiary to
create, incur or permit to exist any Lien upon any of its property or assets, or (ii) the ability
of any Subsidiary to pay dividends or other distributions with respect to any of its Equity
Interests or to make or repay loans or advances to the Borrower or any other Subsidiary or to
Guarantee Indebtedness of the Borrower or any other Subsidiary; provided that (A) the
foregoing shall not apply to restrictions and conditions imposed by law or by any Loan Document,
(B) the foregoing shall not apply to customary restrictions and conditions contained in agreements
relating to the sale of a Subsidiary pending such sale, provided such restrictions and
conditions apply only to the Subsidiary that is to be sold and such sale is permitted hereunder,
(C) the foregoing shall not apply to restrictions and conditions imposed on any Subsidiary that is
not a Loan Party by the terms of any Indebtedness of such Subsidiary permitted to be incurred
hereunder, (D) clause (i) of the foregoing shall not apply to restrictions or conditions imposed by
any agreement relating to secured Indebtedness permitted by this Agreement if such restrictions or
conditions apply only to the property or assets securing such Indebtedness, (E) clause (i) of the
foregoing shall not apply to customary provisions in leases and other contracts restricting the
assignment thereof (F) any holder of a Lien permitted by Section 6.02 may restrict the transfer of
the asset or assets subject thereto, and (G) the foregoing shall not apply to restrictions which
are not more restrictive than those contained in this Agreement contained in any documents
governing any Indebtedness incurred after the Closing Date in accordance with the provisions of
this Agreement.

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     SECTION 6.07. Transactions with Affiliates. Except for transactions otherwise permitted hereunder or transactions by or among Loan
Parties, sell or transfer any property or assets to, or purchase or acquire any property or assets
from, or otherwise engage in any other transactions with, any of its Affiliates, except that (a)
the Borrower or any Subsidiary may engage in any of the foregoing transactions in the ordinary
course of business at prices and on terms and conditions not less favorable to the Borrower or such
Subsidiary than could be obtained on an arm’s-length basis from unrelated third parties, (b)
Restricted Payments may be made to the extent provided in Section 6.06, (c) so long as no Event of
Default or Default shall have occurred and be continuing or would result therefrom, fees may be
paid to any of its Affiliates in an aggregate amount not to exceed $1,000,000 in any fiscal year
plus all out-of-pocket costs and expenses incurred by any such Affiliate, in each case in
connection with their performance of management, consulting, monitoring, financial advisory or
other services with respect to the Borrower and the Subsidiaries, and (d) customary fees may be
paid to directors of the Borrower.

     SECTION 6.08. Business of the Borrower and Subsidiaries; Limitation on Hedging
Agreements. (a) Engage at any time in any business or business activity other than the
business conducted by it as of the date hereof and business activities reasonably incidental
thereto and reasonable extensions thereof.

     (b)   Enter into any Hedging Agreement other than (a) any such agreement or arrangement
entered into in the ordinary course of business and consistent with prudent business practice to
hedge or mitigate risks to which the Borrower or any Subsidiary is exposed in the conduct of its
business or the management of its liabilities or (b) any such agreement entered into to hedge
against fluctuations in interest rates or currency incurred in the ordinary course of business and
consistent with prudent business practice; provided that in each case such agreements or
arrangements shall not have been entered into for speculation purposes.

     SECTION 6.09. Other Indebtedness and Agreements; Amendments to Acquisition
Documentation. (a) Permit any waiver, supplement, modification, amendment, termination
or release of any indenture, instrument or agreement pursuant to which any Material Indebtedness of
the Borrower or any of the Subsidiaries (other than the China Joint Venture) is outstanding if the
effect of such waiver, supplement, modification, amendment, termination or release would materially
increase the obligations of the obligor or confer additional material rights on the holder of such
Indebtedness in a manner materially adverse to the Borrower, any of the Subsidiaries or the
Lenders.

     (b)   (i) Except in the case of the China Joint Venture, (i) make any payment whatsoever,
other than regular scheduled payments of principal and interest as and when due (to the extent not
prohibited by applicable subordination provisions), in respect of, or pay, or offer or commit to
pay, or directly or indirectly (including pursuant to any Synthetic Purchase Agreement) redeem,
repurchase, retire or otherwise acquire for consideration, or set apart any sum for the aforesaid
purposes, any Indebtedness, except (A) the payment of the Indebtedness created hereunder, (B)
refinancings of Indebtedness permitted by Section 6.01 and (C) the
payment of secured Indebtedness that becomes due as a result of the voluntary sale or transfer
of the property or assets securing such Indebtedness, or (ii) pay in cash any amount in respect of

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any Indebtedness or preferred Equity Interests that may at the obligor’s option be paid in kind or
in other securities.

     (c)   (i) Permit any waiver, supplement, modification, amendment, termination or release of,
or fail to enforce strictly the terms and conditions of, any of the indemnities and licenses
furnished to the Borrower and the Subsidiaries pursuant to the Acquisition Documentation such that
after giving effect thereto such indemnities or licenses shall be materially less favorable to the
interests of the Loan Parties or the Secured Parties with respect thereto or (ii) otherwise permit
any waiver, supplement, modification, amendment, termination or release of, or fail to enforce
strictly the terms and conditions of, any of the Acquisition Documentation except to the extent
that such waiver, supplement, modification, amendment, termination or release or failure to enforce
could not reasonably be expected to have a Material Adverse Effect.

     SECTION 6.10. Capital Expenditures. Permit the aggregate amount of Capital
Expenditures made by the Borrower and the Subsidiaries as of the last day of each fiscal quarter
set forth below, for the four fiscal quarters ending on such day, to exceed the amounts set forth
opposite such fiscal quarter

	 	 	 
	 	 	Amount
	Fiscal Quarter Ending	 	(expressed in millions)
	March 31, 2006
	 	$15,400,000
	June 30, 2006
	 	$15,300,000
	September 30, 2006
	 	$16,000,000
	December 31, 2006
	 	$17,000,000
	March 31, 2007
	 	$17,400,000
	June 30, 2007
	 	$17,900,000
	September 30, 2007
	 	$18,400,000
	December 31, 2007
	 	$18,700,000
	Each fiscal quarter ending in 2008
	 	$20,600,000
	Each fiscal quarter ending in 2009
	 	$22,700,000
	Each fiscal quarter ending in 2010
	 	$24,900,000
	Each fiscal quarter ending in 2011
	 	$29,700,000

     SECTION 6.11. Interest Coverage Ratio. Permit the Interest Coverage Ratio as of the last day of each fiscal quarter of the
Borrower, for the period of four consecutive fiscal quarters ending on such day to be less than
4.00 to 1.00.

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     SECTION 6.12. Leverage Ratio. Permit the Leverage Ratio as of the last day of each
fiscal quarter of the Borrower, for the period of four consecutive quarters ending on such day to
be greater than 3.25 to 1.00.

     SECTION 6.13. Fiscal Year. With respect to the Borrower, change its fiscal year-end
to a date other than December 31.

ARTICLE VII.

Events of Default

     In case of the happening of any of the following events (“Events of Default”):

     (a)   any representation or warranty made or deemed made in or in connection with any Loan
Document or the Borrowings or issuances of Letters of Credit hereunder, or any representation,
warranty, statement or information contained in any report, certificate, financial statement or
other instrument furnished in connection with or pursuant to any Loan Document, shall prove to have
been false or misleading in any material respect when so made, deemed made or furnished;

     (b)   default shall be made in the payment of any principal of any Loan or the reimbursement
with respect to any L/C Disbursement when and as the same shall become due and payable, whether at
the due date thereof or at a date fixed for prepayment thereof or by acceleration thereof or
otherwise;

     (c)   default shall be made in the payment of any interest on any Loan or L/C Disbursement or
any Fee or any other amount (other than an amount referred to in (b) above) due under any Loan
Document, when and as the same shall become due and payable, and such default shall continue
unremedied for a period of three Business Days;

     (d)   default shall be made in the due observance or performance by the Borrower or any
Subsidiary of any covenant, condition or agreement contained in Section 5.01(a), 5.02 or 5.08 or in
Article VI;

     (e)   default shall be made in the due observance or performance by the Borrower or any
Subsidiary of any covenant, condition or agreement contained in any Loan Document (other than those
specified in clauses (b), (c) or (d) above) and such default shall continue unremedied for a period
of 30 days following the earlier of (i) actual knowledge thereof by a Responsible Officer of a Loan
Party and (ii) written notice thereof by the Administrative Agent to the Borrower;

     (f)   (i) The Borrower or any Subsidiary shall (i) fail to pay any principal or interest,
regardless of amount, due in respect of any Material Indebtedness, when and as the same shall
become due and payable, or (ii) fail to observe or perform any other covenant, condition or
agreement contained in any agreement evidencing or governing any Material Indebtedness if the
effect of any such failure is to cause or permit (with or without the giving of notice, the lapse
of time or both) the holder or holders of any Material Indebtedness or any trustee or agent on its
or their behalf to cause any Material Indebtedness to become due, or to require the prepayment,

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repurchase, redemption or defeasance thereof, prior to its scheduled maturity; provided
that this clause (ii) shall not apply to Indebtedness that becomes due as a result of the voluntary
sale or transfer of the property or assets of the Borrower or any Subsidiary;

     (g)   an involuntary proceeding shall be commenced or an involuntary petition shall be filed
in a court of competent jurisdiction seeking (i) relief in respect of the Borrower or any
Subsidiary (other than the China Joint Venture), or of a substantial part of the property or assets
of the Borrower or a Subsidiary (other than the China Joint Venture), under Title 11 of the United
States Code, as now constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for the Borrower or any Subsidiary (other
than the China Joint Venture) or for a substantial part of the property or assets of the Borrower
or a Subsidiary (other than the China Joint Venture) or (iii) the winding-up or liquidation of the
Borrower or any Subsidiary (other than the China Joint Venture); and such proceeding or petition
shall continue undismissed for 60 days or an order or decree approving or ordering any of the
foregoing shall be entered;

     (h)   The Borrower or any Subsidiary (other than the China Joint Venture) shall (i)
voluntarily commence any proceeding or file any petition seeking relief under Title 11 of the
United States Code, as now constituted or hereafter amended, or any other Federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) consent to the institution of, or fail to
contest in a timely and appropriate manner, any proceeding or the filing of any petition described
in (g) above, (iii) apply for or consent to the appointment of a receiver, trustee, custodian,
sequestrator, conservator or similar official for the Borrower or any Subsidiary (other than the
China Joint Venture) or for a substantial part of the property or assets of the Borrower or any
Subsidiary (other than the China Joint Venture), (iv) file an answer admitting the material
allegations of a petition filed against it in any such proceeding, (v) make a general assignment
for the benefit of creditors, (vi) become unable, admit in writing its inability or fail generally
to pay its debts as they become due or (vii) take any action for the purpose of effecting any of
the foregoing;

     (i)   one or more judgments for the payment of money in an aggregate amount in excess of
$5,000,000 (to the extent not paid by insurance or fully covered by insurance above applicable
deductibles) shall be rendered against the Borrower, any Subsidiary or any combination thereof and
the same shall remain undischarged for a period of 30 consecutive days during which execution shall
not be effectively stayed, or any action shall be legally taken by a judgment creditor to levy upon
assets or properties of the Borrower or any Subsidiary to enforce any such judgment;

     (j)   an ERISA Event described in clause (b) of the definition thereof shall have occurred or
any other ERISA Event shall have occurred that, when taken together with all other such ERISA
Events, could reasonably be expected to result in liability of the Borrower and the Subsidiary
Guarantors in an aggregate amount exceeding $10,000,000;

     (k)   any Guarantee under the Guarantee and Collateral Agreement for any reason shall cease to
be in full force and effect (other than in accordance with its terms), or any Guarantor

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shall deny
that it has any further liability under its Guarantee (other than as a result of the discharge of
such Guarantor in accordance with the terms of the Loan Documents);

     (l)   any Lien purported to be created under any Security Document shall cease to be, or shall
be asserted by the Borrower or any other Loan Party not to be, a valid, perfected and, with respect
to the Secured Parties, first priority (except as otherwise expressly provided in this Agreement or
such Security Document) Lien on any material Collateral covered thereby, except to the extent that
any such loss of perfection or priority results from the failure of the Collateral Agent to
maintain possession of certificates representing Equity Interests pledged under the Guarantee and
Collateral Agreement; or

     (m)   there shall have occurred a Change in Control;

then, and in every such event (other than an event with respect to the Borrower described in
paragraph (g) or (h) above), and at any time thereafter during the continuance of such event either
or both of the following actions may be taken: (i) the Administrative Agent may, and at the request
of the Majority Facility Lenders with respect to the Revolving Credit Facility shall, by notice to
the Borrower, terminate forthwith the Revolving Credit Commitments and the Swingline Commitment and
(ii) the Administrative Agent may, and at the request of the Required Lenders shall, declare the
Loans then outstanding to be forthwith due and payable in whole or in part, whereupon the principal
of the Loans so declared to be due and payable, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under any other
Loan Document, shall become forthwith due and payable, without presentment, demand, protest or any
other notice of any kind, all of which are hereby expressly waived by the Borrower, anything
contained herein or in any other Loan Document to the contrary notwithstanding, and the
Administrative Agent and the Collateral Agent shall have the right to take all or any actions and
exercise any remedies available to a secured party under the Security Documents or applicable law
or in equity; and in any event with respect to the Borrower described in paragraph (g) or (h)
above, the Revolving Credit Commitments and the Swingline Commitment shall automatically terminate
and the principal of the Loans then outstanding, together with accrued interest thereon and any
unpaid accrued Fees and all other liabilities of the Borrower accrued hereunder and under any other
Loan Document, shall automatically become due and payable, without presentment, demand, protest or
any other notice of any kind, all of which are hereby expressly waived by the Borrower, anything
contained herein or in any other Loan Document to the contrary notwithstanding, and the
Administrative Agent and the Collateral Agent shall have the right to take all or any actions and
exercise any remedies available to a secured party under the Security Documents or applicable law
or in equity.

ARTICLE VIII.

The Agents and the Arranger

     Each of the Lenders and the Issuing Bank hereby irrevocably appoints each of the
Administrative Agent and the Collateral Agent (for purposes of this Article VIII, the
Administrative Agent and the Collateral Agent are referred to collectively as the “Agents”)
its agent and authorizes the Agents to take such actions on its behalf and to exercise such powers
as

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are delegated to such Agent by the terms of the Loan Documents, together with such actions and
powers as are reasonably incidental thereto. Without limiting the generality of the foregoing, the
Agents are hereby expressly authorized by the Lenders to execute any and all documents (including
releases and the Security Documents) with respect to the Collateral and the rights of the Secured
Parties with respect thereto, as contemplated by and in accordance with the provisions of this
Agreement and the Security Documents.

     Each bank serving as an Agent hereunder shall have the same rights and powers in its capacity
as a Lender as any other Lender and may exercise the same as though it were not an Agent, and such
bank and its Affiliates may accept deposits from, lend money to and generally engage in any kind of
business with the Borrower or any Subsidiary or any of their respective Affiliates as if it were
not an Agent hereunder.

     No Agent shall have any duties or obligations except those expressly set forth in the Loan
Documents. Without limiting the generality of the foregoing, (a) no Agent shall be subject to any
fiduciary or other implied duties, regardless of whether a Default has occurred and is continuing,
(b) no Agent shall have any duty to take any discretionary action or exercise any discretionary
powers, except discretionary rights and powers expressly contemplated hereby that the
Administrative Agent or the Collateral Agent is required to exercise in writing by the Required
Lenders (or such other number or percentage of the Lenders as shall be necessary under the
circumstances as provided in Section 9.08), and (c) except as expressly set forth in the Loan
Documents, no Agent shall have any duty to disclose, nor shall it be liable for the failure to
disclose, any information relating to the Borrower or any of the Subsidiaries that is communicated
to or obtained by the bank serving as any Agent or any of its Affiliates in any capacity. The
Administrative Agent and the Collateral Agent shall not be liable for any action taken or not taken
by it with the consent or at the request of the Required Lenders (or such other number or
percentage of the Lenders as shall be necessary under the circumstances as provided in Section
9.08) or in the absence of its own gross negligence or willful misconduct. No Agent shall be
deemed to have knowledge of any Default unless and until written notice thereof is given to such
Agent by the Borrower or a Lender, and no Agent shall be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in or in connection
with any Loan Document, (ii) the contents of any certificate, report or other document delivered
thereunder or in connection therewith, (iii) the performance or observance of any of the covenants,
agreements or other terms or conditions set forth in any Loan Document, (iv) the validity,
enforceability, effectiveness or genuineness of any Loan Document or any other agreement,
instrument or document, or (v) the satisfaction of any condition set forth in Article IV or
elsewhere in any Loan Document, other than to confirm receipt of items expressly required to be
delivered to such Agent.

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

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

     Subject to the appointment and acceptance of a successor Agent as provided below, each Agent
may resign at any time by notifying the Lenders, the Issuing Bank and the Borrower. Upon any such
resignation of the Administrative Agent or the Collateral Agent, the Required Lenders shall have
the right, in consultation with the Borrower, to appoint a successor. If no successor shall have
been so appointed by the Required Lenders and shall have accepted such appointment within 30 days
after the retiring Agent gives notice of its resignation, then the retiring Agent may, on behalf of
the Lenders and the Issuing Bank, appoint a successor Agent which shall be a bank with an office in
New York, New York, or an Affiliate of any such bank. Upon the acceptance of its appointment as
Agent hereunder by a successor, such successor shall succeed to and become vested with all the
rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations hereunder. The fees payable by the Borrower to a
successor Agent shall be the same as those payable to its predecessor unless otherwise agreed
between the Borrower and such successor. After an Agent’s resignation hereunder, the provisions of
this Article and Section 9.05 shall continue in effect for the benefit of such retiring Agent, its
sub-agents and their respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while acting as Agent.

     Each of the Arranger, the Syndication Agent and the Documentation Agent, in its capacity as
such, shall have no duties or responsibilities, and shall incur no liability, under this Agreement
or any other Loan Document.

     Each Lender acknowledges that it has, independently and without reliance upon the Agents, the
Arranger, the Syndication Agent, the Documentation Agent or any Lender and based on such documents
and information as it has deemed appropriate, made its own credit analysis and decision to enter
into this Agreement. Each Lender also acknowledges that it will, independently and without
reliance upon the Agents, the Arranger, the Syndication Agent, the Documentation Agent or any
Lender and based on such documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or based upon this
Agreement or any other Loan Document, any related agreement or any document furnished hereunder or
thereunder.

     To the extent required by any applicable law, the Administrative Agent may withhold from any
interest payment to any Lender an amount equivalent to any applicable withholding tax. If the
Internal Revenue Service or any other Governmental Authority asserts a claim that the
Administrative Agent did not properly withhold tax from amounts paid to or for the account of any
Lender because the appropriate form was not delivered or was not properly executed or because such
Lender failed to notify the Administrative Agent of a change in circumstance which rendered the
exemption from, or reduction of, withholding tax ineffective or for any other reason, such Lender
shall indemnify the Administrative Agent fully for all amounts paid, directly

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or indirectly, by the
Administrative Agent as tax or otherwise, including any penalties or interest and together with all
expenses (including legal expenses, allocated internal costs and out-of-pocket expenses) incurred.

ARTICLE IX.

Miscellaneous

     SECTION 9.01. Notices. Notices and other communications provided for herein shall be
in writing and shall be delivered by hand or overnight courier service, mailed by certified or
registered mail or sent by fax, as follows:

     (a)   if to the Borrower, to it at 1899 L Street, NW, 5th Floor, Washington
D.C., 20036, Attention of General Counsel (Fax No. (202) 466-3448);

     (b)   if to the Administrative Agent or the Collateral Agent, to Credit Suisse, Eleven
Madison Avenue, New York, NY 10010, Attention of Thomas Lynch, Agency Group Manager (Fax No.
(212) 325-8304); and

     (c)   if to a Lender, to it at its address (or fax number) set forth in the Lender
Addendum or the Assignment and Acceptance pursuant to which such Lender shall have become a
party hereto.

All notices and other communications given to any party hereto in accordance with the provisions of
this Agreement shall be deemed to have been given on the date of receipt if delivered by hand or
overnight courier service or sent by fax or on the date five Business Days after dispatch by
certified or registered mail if mailed, in each case delivered, sent or mailed (properly addressed)
to such party as provided in this Section 9.01 or in accordance with the latest unrevoked direction
from such party given in accordance with this Section 9.01.

     SECTION 9.02. Survival of Agreement. All covenants, agreements, representations and
warranties made by the Borrower herein and in the certificates or other instruments prepared or
delivered in connection with or pursuant to this Agreement or any other Loan Document shall be
considered to have been relied upon by the Lenders and the Issuing Bank and shall survive the
making by the Lenders of the Loans and the issuance of Letters of Credit by the Issuing Bank,
regardless of any investigation made by the Lenders or the Issuing Bank or on their behalf, and
shall continue in full force and effect as long
as the principal of or any accrued interest on any Loan or any Fee or any other amount payable
under this Agreement or any other Loan Document is outstanding and unpaid or any Letter of Credit
is outstanding and so long as the Commitments have not been terminated. The provisions of Sections
2.14, 2.16, 2.20 and 9.05 shall remain operative and in full force and effect regardless of the
expiration of the term of this Agreement, the consummation of the transactions contemplated hereby,
the repayment of any of the Loans, the expiration of the Commitments, the expiration of any Letter
of Credit, the invalidity or unenforceability of any term or provision of this Agreement or any
other Loan Document or any investigation made by or on behalf of the Administrative Agent, the
Collateral Agent, the Arranger, any Lender or the Issuing Bank.

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     SECTION 9.03. Binding Effect. This Agreement shall become effective when it shall
have been executed by each of the parties hereto and when the Administrative Agent shall have
received counterparts hereof which, when taken together, bear the signatures of each of the other
parties hereto.

     SECTION 9.04. Successors and Assigns. (a) Whenever in this Agreement any of
the parties hereto is referred to, such reference shall be deemed to include the permitted
successors and assigns of such party; and all covenants, promises and agreements by or on behalf of
the Borrower, the Administrative Agent, the Collateral Agent, the Issuing Bank or the Lenders that
are contained in this Agreement shall bind and inure to the benefit of their respective successors
and assigns.

     (b)   Each Lender may assign to one or more assignees all or a portion of its interests,
rights and obligations under this Agreement (including all or a portion of its Commitment and the
Loans at the time owing to it); provided, however, that (i) in the case of any
assignment of a Revolving Credit Commitment, each of the Issuing Bank, the Swingline Lender and the
Borrower must give its prior written consent to such assignment (which consent shall not be
unreasonably withheld or delayed); provided that the consent of the Borrower shall not be
required to any such assignment during the continuance of any Default, in respect of an assignment
to another Lender or Affiliate of a Lender or Related Fund of a Lender, or in connection with the
initial syndication of the Facility, (ii) the aggregate amount of the Commitment of the assigning
Lender subject to each such assignment (determined as of the date the Assignment and Acceptance
with respect to such assignment is delivered to the Administrative Agent) shall not be, unless with
the consent of the Administrative Agent, less than $1,000,000 (or, if less, the entire remaining
amount of such Lender’s Commitment) and shall be in an amount that is an integral multiple of
$1,000,000 (or the entire remaining amount of such Lender’s Commitment); provided that in
the case of Commitments assigned to or by two or more Related Funds of a Lender, such minimum
amounts shall apply to the aggregate Commitments so assigned, (iii) the parties to each such
assignment shall execute and deliver to the Administrative Agent an Assignment and Acceptance (such
Assignment and Acceptance to be electronically executed and delivered to the Administrative Agent
via an electronic settlement system then acceptable to the Administrative Agent (or, if previously
agreed with the Agent, manually)) and shall pay to the Administrative Agent a processing and
recordation fee of $3,500 (which fee may be waived or reduced in the sole discretion of the
Administrative Agent); provided that in the case of any contemporaneous assignments to or
by two or more Related
Funds of a Lender, only one such fee shall payable, and (iv) the assignee, if it shall not be
a Lender immediately prior to the assignment, shall deliver to the Administrative Agent an
Administrative Questionnaire and applicable tax forms. Upon acceptance and recording pursuant to
paragraph (e) of this Section 9.04, from and after the effective date specified in each Assignment
and Acceptance, (A) the assignee thereunder shall be a party hereto and, to the extent of the
interest assigned by such Assignment and Acceptance, have the rights and obligations of a Lender
under this Agreement and (B) the assigning Lender thereunder shall, to the extent of the interest
assigned by such Assignment and Acceptance, be released from its obligations under this Agreement
(and, in the case of an Assignment and Acceptance covering all or the remaining portion of an
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto but shall continue to be entitled to the

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benefits of Sections 2.14, 2.16, 2.20 and
9.05, as well as to any Fees accrued for its account and not yet paid).

     (c)   By executing and delivering an Assignment and Acceptance, the assigning Lender
thereunder and the assignee thereunder shall be deemed to confirm to and agree with each other and
the other parties hereto as follows: (i) such assigning Lender warrants that it is the legal and
beneficial owner of the interest being assigned thereby free and clear of any adverse claim and
that its Term Loan Commitment and Revolving Credit Commitment, and the outstanding balances of its
Term Loans and Revolving Loans, in each case without giving effect to assignments thereof which
have not become effective, are as set forth in such Assignment and Acceptance, (ii) except as set
forth in (i) above, such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in
connection with this Agreement, or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of this Agreement, any other Loan Document or any other instrument or document
furnished pursuant hereto, or the financial condition of the Borrower or any Subsidiary or the
performance or observance by the Borrower or any Subsidiary of any of its obligations under this
Agreement, any other Loan Document or any other instrument or document furnished pursuant hereto;
(iii) such assignee represents and warrants that it is legally authorized to enter into such
Assignment and Acceptance; (iv) such assignee confirms that it has received a copy of this
Agreement, together with copies of the most recent financial statements referred to in Section
3.05(a) or delivered pursuant to Section 5.04 and such other documents and information as it has
deemed appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (v) such assignee will independently and without reliance upon the Administrative
Agent, the Collateral Agent, the Arranger, such assigning Lender or any other Lender and based on
such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement; (vi) such assignee appoints
and authorizes the Administrative Agent and the Collateral Agent to take such action as agent on
its behalf and to exercise such powers under this Agreement as are delegated to the Administrative
Agent and the Collateral Agent, respectively, by the terms hereof, together with such powers as are
reasonably incidental thereto; and (vii) such assignee agrees that it will perform in accordance
with their terms all the obligations which by the terms of this Agreement are required to be
performed by it as a Lender.

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

     (e)   Upon its receipt of a duly completed Assignment and Acceptance executed by an assigning
Lender and an assignee, an Administrative Questionnaire and tax forms, if applicable,

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completed in
respect of the assignee (unless the assignee shall already be a Lender hereunder) and the written
consent of the Swingline Lender, the Issuing Bank and the Administrative Agent to such assignment,
the Administrative Agent shall promptly (i) accept such Assignment and Acceptance and (ii) record
the information contained therein in the Register. No assignment shall be effective unless it has
been recorded in the Register as provided in this paragraph (e).

     (f)   Each Lender may without the consent of the Borrower, the Swingline Lender, the Issuing
Bank or the Administrative Agent sell participations to one or more banks or other entities in all
or a portion of its rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans); provided, however, that (i) such Lender’s obligations
under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to
the other parties hereto for the performance of such obligations, (iii) the participating banks or
other entities shall be entitled to the benefit of the cost protection provisions contained in
Sections 2.14, 2.16 and 2.20 to the same extent as if they were Lenders (but, with respect to any
particular participant, to no greater extent than the Lender that sold the participation to such
participant) and (iv) the Borrower, the Administrative Agent, the Issuing Bank and the Lenders
shall continue to deal solely and directly with such Lender in connection with such Lender’s rights
and obligations under this Agreement, and such Lender shall retain the sole right to enforce the
obligations of the Borrower relating to the Loans or L/C Disbursements and to approve any
amendment, modification or waiver of any provision of this Agreement (other than amendments,
modifications or waivers decreasing any fees payable hereunder or the amount of principal of or the
rate at which interest is payable on the Loans, extending any scheduled principal payment date or
date fixed for the payment of interest on the Loans, increasing or extending the Commitments or
releasing any Guarantor or all or any substantial part of the Collateral).

     (g)   Any Lender or participant may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 9.04 or any pledge or proposed pledge
pursuant to Section 9.04(h), disclose to the assignee or participant or proposed assignee or
participant any information relating to the Borrower furnished to such Lender by or on behalf of
the Borrower; provided that, prior to any such disclosure of information designated by the
Borrower as confidential, each such assignee or participant or proposed assignee or participant
shall execute an agreement whereby such assignee or participant shall agree (subject to customary
exceptions) to preserve the confidentiality of such confidential information on terms no less
restrictive than those applicable to the Lenders pursuant to Section 9.16.

     (h)   Any Lender may at any time assign all or any portion of its rights under this Agreement
to secure extensions of credit to such Lender or in support of obligations owed by such Lender;
provided that no such assignment shall release a Lender from any of its obligations
hereunder or substitute any such assignee for such Lender as a party hereto.

     (i)   Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such
in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to the Borrower pursuant to this Agreement;

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provided that
(i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a
Loan by an SPC hereunder shall utilize the Commitment of the Granting Lender to the same extent,
and as if, such Loan were made by such Granting Lender. Each party hereto hereby agrees that no
SPC shall be liable for any indemnity or similar payment obligation under this Agreement (all
liability for which shall remain with the Granting Lender). In furtherance of the foregoing, each
party hereto hereby agrees (which agreement shall survive the termination of this Agreement) that,
prior to the date that is one year and one day after the payment in full of all outstanding
commercial paper or other senior indebtedness of any SPC, it will not institute against, or join
any other person in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings under the laws of the United States or any State thereof. In
addition, notwithstanding anything to the contrary contained in this Section 9.04, any SPC may (i)
with notice to, but without the prior written consent of, the Borrower and the Administrative Agent
and without paying any processing fee therefor, assign all or a portion of its interests in any
Loans to the Granting Lender or to any financial institutions (consented to by the Borrower and
Administrative Agent) providing liquidity and/or credit support to or for the account of such SPC
to support the funding or maintenance of Loans and (ii) disclose on a confidential basis any
non-public information relating to its Loans to any rating agency, commercial paper dealer or
provider of any surety, guarantee or credit or liquidity enhancement to such SPC.

     (j)   The Borrower shall not assign or delegate any of its rights or duties hereunder without
the prior written consent of the Administrative Agent, the Issuing Bank and each Lender, and any
attempted assignment without such consent shall be null and void.

     SECTION 9.05. Expenses; Indemnity. (a) The Borrower agrees to pay (i) all
reasonable out-of-pocket costs and expenses incurred by the Administrative Agent, the Collateral
Agent, the Syndication Agent, the Documentation Agent, the Arranger, the Issuing Bank and the
Swingline Lender in connection with the syndication of the credit facilities provided for herein
and the preparation and administration of this Agreement and the other Loan Documents or in
connection with any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the transactions hereby or thereby contemplated shall be consummated) and (ii) all
out-of-pocket costs and expenses incurred by the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Documentation Agent, the Arranger, the Issuing Bank or any Lender in
connection with the enforcement or protection of its rights in connection with this Agreement and the
other Loan Documents or in connection with the Loans made or Letters of Credit issued hereunder,
including in each case the fees, disbursements and other charges of Latham & Watkins LLP, counsel
for the Administrative Agent and the Collateral Agent, and, in connection with any such enforcement
or protection, the fees, disbursements and other charges of any counsel for the Administrative
Agent, the Collateral Agent, the Syndication Agent, the Documentation Agent, the Arranger, the
Issuing Bank or any Lender.

     (b)   The Borrower agrees to indemnify the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Documentation Agent, the Arranger, each Lender, the Issuing Bank and each
Related Party of any of the foregoing persons (each such person being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses,
claims,

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damages, liabilities and related costs and expenses, including reasonable counsel fees,
disbursements and other charges, incurred by or asserted against any Indemnitee arising out of, in
any way connected with, or as a result of (i) the execution or delivery of this Agreement or any
other Loan Document or any agreement or instrument contemplated thereby, the performance by the
parties thereto of their respective obligations thereunder or the consummation of the Transactions
and the other transactions contemplated thereby, (ii) the use of the proceeds of the Loans or
issuance of Letters of Credit, (iii) any claim, litigation, investigation or proceeding relating to
any of the foregoing, whether or not any Indemnitee is a party thereto or (iv) any actual or
alleged presence or Release of Hazardous Materials on any property owned or operated by the
Borrower or any of the Subsidiaries, or any Environmental Liability related in any way to the
Borrower or any of the Subsidiaries; provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related
costs and expenses are determined by a court of competent jurisdiction by final and nonappealable
judgment to have resulted primarily from the gross negligence or willful misconduct of such
Indemnitee (and, upon any such determination, any indemnification payments with respect to such
losses, claims, damages, liabilities or related costs and expenses previously received by such
Indemnitee shall be subject to reimbursement by such Indemnitee).

     (c)   To the extent that the Borrower fails to pay any amount required to be paid by them to
the Administrative Agent, the Collateral Agent, the Syndication Agent, the Documentation Agent, the
Arranger, the Issuing Bank or the Swingline Lender under paragraph (a) or (b) of this Section, each
Lender severally agrees to pay to the Administrative Agent, the Collateral Agent, the Syndication
Agent, the Documentation Agent, the Arranger, the Issuing Bank or the Swingline Lender, as the case
may be, such Lender’s pro rata share (determined as of the time that the applicable unreimbursed
expense or indemnity payment is sought) of such unpaid amount; provided that the
unreimbursed expense or indemnified loss, claim, damage, liability or related expense, as the case
may be, was incurred by or asserted against the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Documentation Agent, the Arranger, the Issuing Bank or the Swingline Lender
in its capacity as such. For purposes hereof, a Lender’s “pro rata share” shall be determined
based upon its share of the sum of the Aggregate Revolving Credit Exposure, outstanding Term Loans
and unused Commitments at the time.

     (d)   To the extent permitted by applicable law, the Borrower shall not assert, and hereby
waives, any claim against any Indemnitee, on any theory of liability, for special, indirect,
consequential or punitive damages (as opposed to direct or actual damages) arising out of, in
connection with, or as a result of, this Agreement or any agreement or instrument contemplated
hereby, the Transactions, any Loan or Letter of Credit or the use of the proceeds thereof.

     (e)   The provisions of this Section 9.05 shall remain operative and in full force and effect
regardless of the expiration of the term of this Agreement, the consummation of the Transactions or
the other transactions contemplated hereby, the repayment of any of the Loans, the expiration of
the Commitments, the expiration of any Letter of Credit, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any investigation made by or on
behalf of the Administrative Agent, the
Collateral Agent, the

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Syndication Agent, the Documentation
Agent, the Arranger, any Lender or the Issuing Bank. All amounts due under this Section 9.05 shall
be payable on written demand therefor.

     SECTION 9.06. Right of Setoff. If an Event of Default shall have occurred and be
continuing, each Lender is hereby authorized at any time and from time to time, except to the
extent prohibited by law, to set off and apply any and all deposits (general or special, time or
demand, provisional or final) at any time held and other indebtedness at any time owing by such
Lender to or for the credit or the account of the Borrower against any of and all the obligations
of the Borrower now or hereafter existing under this Agreement and other Loan Documents held by
such Lender, irrespective of whether or not such Lender shall have made any demand under this
Agreement or such other Loan Document and although such obligations may be unmatured. The rights
of each Lender under this Section 9.06 are in addition to other rights and remedies (including
other rights of setoff) which such Lender may have.

     SECTION 9.07. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN
LETTERS OF CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN
ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH LETTER OF CREDIT SHALL BE
GOVERNED BY, AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER
OF CREDIT, OR IF NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS AND PRACTICE FOR
DOCUMENTARY CREDITS MOST RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER OF CREDIT WAS
ISSUED, BY THE INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS TO MATTERS
NOT GOVERNED BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 9.08. Waivers; Amendment. (a) No failure or delay of the
Administrative Agent, the Collateral Agent, any Lender or the Issuing Bank in exercising any power
or right hereunder or under any other Loan
Document shall operate as a waiver thereof, nor shall any single or partial exercise of any
such right or power, or any abandonment or discontinuance of steps to enforce such a right or
power, preclude any other or further exercise thereof or the exercise of any other right or power.
The rights and remedies of the Administrative Agent, the Collateral Agent, the Issuing Bank and the
Lenders hereunder and under the other Loan Documents are cumulative and are not exclusive of any
rights or remedies that they would otherwise have. No waiver of any provision of this Agreement or
any other Loan Document or consent to any departure by the Borrower or any other Loan Party
therefrom shall in any event be effective unless the same shall be permitted by paragraph (b)
below, and then such waiver or consent shall be effective only in the specific instance and for the
purpose for which given. No notice or demand on the Borrower in any case shall entitle the
Borrower to any other or further notice or demand in similar or other circumstances.

     (b)   Neither this Agreement nor any provision hereof may be waived, amended or modified
except pursuant to an agreement or agreements in writing entered into by the Borrower and the
Required Lenders; provided, however, that no such agreement shall (i) decrease the
principal amount of, or extend the maturity of or any scheduled principal payment date or date for
the payment of any interest on any Loan or any date for reimbursement of an L/C

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Disbursement, or
waive or excuse any such payment or any part thereof, or decrease the rate of interest on any Loan
or L/C Disbursement, without the prior written consent of each Lender affected thereby, (ii)
increase or extend the Commitment or decrease or extend the date for payment of any Fees of any
Lender without the prior written consent of such Lender, (iii) amend or modify the pro rata
requirements of Section 2.17, the provisions of Section 9.04(j), the provisions of this Section or
the definition of the term “Required Lenders,” or release any Guarantor, without the prior written
consent of each Lender, (iv) amend or modify the definition of the term “Majority Facility Lenders”
without the prior written consent of each Lender affected thereby, (v) release all or any
substantial part of the Collateral without the prior written consent of each Lender, (vi) change
the provisions of any Loan Document in a manner that by its terms adversely affects the rights in
respect of payments due to Lenders holding Loans of one Class differently from the rights of
Lenders holding Loans of any other Class without the prior written consent of Lenders holding a
majority in interest of the outstanding Loans and unused Commitments of each adversely affected
Class (vii) modify the protections afforded to an SPC pursuant to the provisions of Section 9.04(i)
without the written consent of such SPC; or (viii) amend the definition of ‘Interest Period’ so as
to permit intervals in excess of six months without the prior consent of each Lender; provided
further that no such agreement shall amend, modify or otherwise affect the rights or duties of
the Administrative Agent, the Collateral Agent, the Issuing Bank or the Swingline Lender hereunder
or under any other Loan Document without the prior written consent of the Administrative Agent, the
Collateral Agent, the Issuing Bank or the Swingline Lender, as applicable.

     SECTION 9.09. Interest Rate Limitation. Notwithstanding anything herein to the
contrary, if at any time the interest rate applicable to any Loan or participation in any L/C
Disbursement, together with all fees, charges and other amounts which are treated as interest on
such Loan or participation in such L/C Disbursement under applicable law (collectively the
“Charges”), shall exceed the maximum lawful rate (the “Maximum Rate”) which may be
contracted for, charged, taken, received or
reserved by the Lender holding such Loan or participation in accordance with applicable law,
the rate of interest payable in respect of such Loan or participation hereunder, together with all
Charges payable in respect thereof, shall be limited to the Maximum Rate and, to the extent lawful,
the interest and Charges that would have been payable in respect of such Loan or participation but
were not payable as a result of the operation of this Section 9.09 shall be cumulated and the
interest and Charges payable to such Lender in respect of other Loans or participations or periods
shall be increased (but not above the Maximum Rate therefor) until such cumulated amount, together
with interest thereon at the Federal Funds Effective Rate to the date of repayment, shall have been
received by such Lender.

     SECTION 9.10. Entire Agreement. This Agreement, the other Loan Documents and the
agreements from time to time in writing between the Borrower and the Administrative Agent with
respect to the Administrative Agent Fees constitute the entire contract between the parties
relative to the subject matter hereof. Any other previous agreement among the parties with respect
to the subject matter hereof is superseded by this Agreement and the other Loan Documents. Nothing
in this Agreement or in the other Loan Documents, expressed or implied, is intended to confer upon
any person (other than the parties hereto and thereto, their respective successors and assigns
permitted hereunder (including any Affiliate of the Issuing Bank that issues any Letter of Credit)
and, to the extent expressly contemplated hereby, the Related Parties of each of the Administrative
Agent, the Collateral Agent, the Syndication Agent, the

86

 

Documentation Agent, the Arranger, the
Issuing Bank and the Lenders ) any rights, remedies, obligations or liabilities under or by reason
of this Agreement or the other Loan Documents.

     SECTION 9.11. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY
LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY
OF THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT
AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN
DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION 9.11.

     SECTION 9.12. Severability. In the event any one or more of the provisions contained
in this Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in
any respect, the validity, legality and enforceability of the remaining provisions contained herein
and therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect
the validity of such provision
in any other jurisdiction). The parties shall endeavor in good-faith negotiations to replace
the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which
comes as close as possible to that of the invalid, illegal or unenforceable provisions.

     SECTION 9.13. Counterparts. This Agreement may be executed in counterparts (and by
different parties hereto on different counterparts), each of which shall constitute an original but
all of which when taken together shall constitute a single contract, and shall become effective as
provided in Section 9.03. Delivery of an executed signature page to this Agreement or of a Lender
Addendum by facsimile transmission shall be as effective as delivery of a manually signed
counterpart of this Agreement.

     SECTION 9.14. Headings. Article and Section headings and the Table of Contents used
herein are for convenience of reference only, are not part of this Agreement and are not to affect
the construction of, or to be taken into consideration in interpreting, this Agreement.

     SECTION 9.15. Jurisdiction; Consent to Service of Process. (a) The Borrower
hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of any New York State court or Federal court of the United States of America sitting
in New York City, and any appellate court from any thereof, in any action or proceeding arising out
of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of
any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all
claims in respect of any such action or proceeding may be heard and determined in such New York
State or, to the extent permitted by law, in such Federal court. Each of the parties hereto agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in
other jurisdictions by suit on the judgment or in any other

87

 

manner provided by law. Nothing in
this Agreement shall affect any right that the Administrative Agent, the Collateral Agent, the
Syndication Agent, the Documentation Agent, the Arranger, the Issuing Bank or any Lender may
otherwise have to bring any action or proceeding relating to this Agreement or the other Loan
Documents against either the Borrower or its properties in the courts of any jurisdiction.

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

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

     SECTION 9.16. Confidentiality. Each of the Administrative Agent, the Collateral Agent, the Issuing Bank and the Lenders
agrees to maintain the confidentiality of the, and to cause its respective affiliates, agents and
representatives to maintain the confidentiality of, the Information (as defined below) and all
extracts therefrom and analyses or other materials based thereon, except that Information may be
disclosed (a) to its and its Affiliates’ officers, directors, employees and agents, including
accountants, legal counsel and other advisors who need to know such Information (it being
understood that the persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential and that the
Administrative Agent, the Collateral Agent, the Issuing Bank and each Lender, as applicable, shall
be responsible for compliance with the provisions of this Section 9.16 by each of its Affiliates to
which it discloses Information under this clause (a) and each officer, director, employee and agent
of any such Affiliate), (b) to the extent requested by any regulatory authority or quasi-regulatory
authority (such as the National Association of Insurance Commissioners), (c) to the extent required
by applicable laws or regulations or by any subpoena or similar legal process, (d) in connection
with the exercise of any remedies hereunder or under the other Loan Documents or any suit, action
or proceeding relating to the enforcement of its rights hereunder or thereunder, (e) subject to an
agreement containing provisions substantially the same as those of this Section 9.16, to (i) any
actual or prospective assignee of or participant in any of its rights or obligations under this
Agreement and the other Loan Documents or (ii) any actual or prospective counterparty (or its
advisors) to any swap or derivative transaction relating to the Borrower or any Subsidiary or any
of their respective obligations, (f) with the prior written consent of the Borrower or (g) to the
extent such Information becomes publicly available other than as a result of a breach of this
Section 9.16. For the purposes of this Section, “Information” shall mean all information
received from the Borrower and related to the Borrower or its business, other than any such
information that was available to the Administrative Agent, the Collateral Agent, the Issuing Bank
or any Lender on a nonconfidential basis prior to its disclosure by the Borrower; provided
that the source of such information was not known by the Administrative Agent, the Collateral Agent
or such Lender, as the case may be, to be bound by a confidentiality agreement or other legal or
contractual obligation of confidentiality with respect to such information. Any person required to
maintain the confidentiality of Information as

88

 

provided in this Section 9.16 shall be considered to
have complied with its obligation to do so if such person has exercised the same degree of care to
maintain the confidentiality of such Information as such person would accord its own confidential
information. Notwithstanding any other express or implied agreement, arrangement or understanding
to the contrary, each of the parties hereto agrees that each other party hereto (and each of its
employees, representatives or agents) are permitted to disclose to any persons, without limitation,
the tax treatment and tax structure of the Loans and the other transactions contemplated by the
Loan Documents and all materials of any kind (including opinions and tax analyses) that are
provided to the Loan Parties, the Lenders, the Arranger or any Agent related to such tax treatment
and tax aspects. To the extent not inconsistent with the immediately preceding sentence, this
authorization does not extend to disclosure of any other information or any other term or detail
not related to the tax treatment or tax aspects of the Loans or the transactions contemplated by
the Loan Documents.

     SECTION 9.17. Delivery of Lender Addenda. Each initial Lender shall become a party to this Agreement by delivering to the
Administrative Agent a Lender Addendum duly executed by such Lender, the Borrower and the
Administrative Agent.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

	 	 	 	 	 
	 	BLACKBOARD INC.

 	 
	 	By:  	/s/ Michael L. Chasen
 	 
	 	 	Name:  	Michael L. Chasen 	 
	 	 	Title:  	Chief Executive Officer 	 
	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Administrative Agent, Collateral Agent, Issuing
Bank, Swingline Lender and Arranger
 	 
	 
	 	By:  	/s/ Bill O’Daly
 	 
	 	 	Name:  	Bill O’Daly 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	/s/ Cassandra Droogan
 	 
	 	 	Name:  	Cassandra Droogan 	 
	 	 	Title:  	Vice President 	 
	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,
as Syndication Agent
 	 
	 
	 	By:  	/s/ Bill O’Daly
 	 
	 	 	Name:  	Bill O’Daly 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                                  /s/ Cassandra Droogan
 	 
	 	 	Name:  	Cassandra Droogan 	 
	 	 	Title:  	Vice President 	 

 

 

	 	 	 	 	 

	 	 	 	 	 
	 	CREDIT SUISSE, CAYMAN ISLANDS BRANCH,

as Documentation Agent

 	 
	 	By:  	/s/ Bill O’Daly
 	 
	 	 	Name:  	Bill O’Daly 	 
	 	 	Title:  	Director 	 
	 
	 	 	 
	 	By:  	                                                  /s/ Cassandra Droogan
 	 
	 	 	Name:  	Cassandra Droogan 	 
	 	 	Title:  	Vice Presidentexv10w3

 

ESCROW AGREEMENT

     This Escrow Agreement is entered into as of February 28, 2006, by and among Blackboard Inc., a
Delaware corporation (the “Buyer”), Dennis Beckingham and Marc Poirier (the “Indemnification
Representatives”) and American Stock Transfer & Trust Company (the “Escrow Agent”).

     WHEREAS, the Buyer and WebCT, Inc. (the “Company”) have entered into an Agreement and Plan of
Merger dated October 12, 2005 (the “Merger Agreement”) by and among the Company, the Buyer and a
subsidiary of the Buyer, pursuant to which such subsidiary will be merged (the “Merger”) into the
Company which, as the surviving corporation (the “Surviving Corporation”), will become a
wholly-owned subsidiary of the Buyer;

     WHEREAS, the Merger Agreement provides that an escrow fund will be established to secure the
indemnification obligations of the stockholders of the Company receiving consideration pursuant to
Section 1.5 of the Merger Agreement (collectively, the “Indemnifying Stockholders”) to the Buyer;
and

     WHEREAS, the parties hereto desire to establish the terms and conditions pursuant to which
such escrow fund will be established and maintained;

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     1. Consent of Indemnifying Stockholders. The Indemnifying Stockholders have, by virtue
of their approval of the Merger Agreement, consented to: (a) the establishment of this escrow to
secure the Indemnifying Stockholders’ indemnification obligations under Article VI of the Merger
Agreement in the manner set forth herein, (b) the appointment of the Indemnification
Representatives as their representatives for purposes of this Agreement and as attorneys-in-fact
and agents for and on behalf of each Indemnifying Stockholder, and the taking by the
Indemnification Representatives of any and all actions and the making of any decisions required or
permitted to be taken or made by them under this Agreement and (c) all of the other terms,
conditions and limitations in this Agreement.

     2. Escrow and Indemnification.

          (a) Escrow Fund. Simultaneously with the execution of this Agreement, the Buyer or
the Transitory Subsidiary shall deposit with the Escrow Agent, by wire transfer or delivery of a
check of the Buyer payable to the Escrow Agent, the sum of $18,000,000, as determined pursuant to
Section 1.9 of the Merger Agreement. The Escrow Agent hereby acknowledges receipt of such sum.
Such sum, together with any further sums deposited by the Buyer or the Surviving Corporation
pursuant to the final sentence of Section 1.6(a) of the Merger Agreement and any interest earned
thereon, is referred to herein as the “Escrow Fund.” The Escrow Fund shall be held as a trust fund
and shall not be subject to any lien, attachment, trustee process or any other judicial process of
any creditor of any party hereto. The Escrow Fund shall be invested in accordance with Section 4.
The Escrow Agent agrees to hold the Escrow Fund in an escrow account subject to the terms and
conditions of this Agreement.

 

 

          (b) Indemnification. The Indemnifying Stockholders have agreed in Article VI of the
Merger Agreement, to indemnify and hold harmless the Buyer from and against specified Damages (as
defined in the Merger Agreement), in accordance with and subject to the terms thereof. The Escrow
Fund shall be security for such indemnity obligation of the Indemnifying Stockholders, subject to
the limitations, and in the manner provided, in this Agreement and the Merger Agreement.

          (c) Transferability. The respective interests of the Indemnifying Stockholders in the
Escrow Fund shall not be assignable or transferable, other than by operation of law. Notice of any
such assignment or transfer by operation of law shall be given to the Escrow Agent and the Buyer,
and no such assignment or transfer shall be valid until such notice is given.

     3. Disbursement of Escrow Fund.

          (a) Disbursement by Escrow Agent. The Escrow Agent shall disburse the Escrow Fund
only in accordance with (i) a written instrument delivered to the Escrow Agent that is executed by
both the Buyer and the Indemnification Representatives and that instructs the Escrow Agent as to
the disbursement of some or all of the Escrow Fund, (ii) an order of a court of competent
jurisdiction, a copy of which is delivered to the Escrow Agent by either the Buyer or the
Indemnification Representatives, that instructs the Escrow Agent as to the disbursement of some or
all of the Escrow Fund, or (iii) the provisions of Section 3(b) hereof.

          (b) Disbursement Following Termination Date. Within two business days after February
28, 2007 (the “Termination Date”), the Buyer and the Indemnification Representatives shall deliver
to the Escrow Agent a written instrument that is executed by both the Buyer and the Indemnification
Representatives and that instructs the Escrow Agent as to the disbursement of some or all of the
Escrow Fund. Within five business days after the Termination Date, the Escrow Agent shall
distribute to the Indemnifying Stockholders all of the Escrow Fund then held in escrow.
Notwithstanding the foregoing, if the Buyer has delivered to the Escrow Agent on or before the
Termination Date a copy of a Claim Notice (as defined in the Merger Agreement) and the Escrow Agent
has not received written notice of the resolution of the claim covered thereby, or if the Buyer has
delivered to the Escrow Agent on or before the Termination Date a copy of an Expected Claim Notice
(as defined in the Merger Agreement) and the Escrow Agent has not received written notice of the
resolution of the anticipated claim covered thereby, the Escrow Agent shall retain in escrow after
the Termination Date an amount equal to the Claimed Amount (as defined in the Merger Agreement)
covered by such Claim Notice or equal to the estimated amount of Damages set forth in such Expected
Claim Notice, as the case may be. Any funds so retained in escrow shall be disbursed only in
accordance with the terms of clauses (i) or (ii) of Section 3(a) hereof.

          (c) Method of Disbursement. Any distribution of all or a portion of the Escrow Fund
to the Indemnifying Stockholders shall be made in accordance with the percentages set forth
opposite such holders’ respective names on Attachment A hereto; provided,
however, that the Escrow Agent shall withhold the distribution of the portion of the Escrow
Fund otherwise payable to an Indemnifying Stockholder who has not, according to a written notice
provided by the Buyer to the Escrow Agent, prior to such distribution, surrendered pursuant to the
terms of the Merger Agreement his, her or its stock certificates formerly representing shares

 

 

of stock of the Company or instrument formerly representing an option or warrant of the
Company; and provided further that such Attachment A shall be appropriately revised by the
Buyer in the event the Buyer or the Surviving Corporation deposits additional funds with the Escrow
Agent pursuant to the final sentence of Section 1.6(a) of the Merger Agreement following the date
of this Agreement. Any such withheld amounts shall be delivered to the Buyer promptly after the
Termination Date, and shall be delivered by the Buyer to the Indemnifying Stockholders to whom such
amounts would have otherwise been distributed promptly upon surrender of such certificates or
instruments. Distributions to the Indemnifying Stockholders shall be made by mailing checks to
such holders at their respective addresses shown on Attachment A (or such other address as
may be provided in writing to the Escrow Agent by any such holder). Pursuant to Section 1.16 of the
Merger Agreement, the Escrow Agent has the right to deduct and withhold taxes from any payments to
be made hereunder if such withholding is required by law. Each of the Buyer and the
Indemnification Representatives shall provide notice to the Escrow Agent (with a concurrent copy to
the other parties) to the extent that it is aware of any such withholding obligations. To the
extent that amounts are so withheld, such withheld amounts shall be treated as having been
delivered to the Indemnifying Stockholder in respect of which such deduction and withholding was
made.

     4. Investment of Escrow Fund.

          (a) Permitted Investments. Any monies held in the Escrow Fund shall be invested by
the Escrow Agent, to the extent permitted by law and as directed by the Indemnification
Representatives, in (i) obligations issued or guaranteed by the United States of America or any
agency or instrumentality thereof, (ii) obligations (including certificates of deposit and bankers’
acceptances) of domestic commercial banks which at the date of their last public reporting had
total assets in excess of $500,000,000, (iii) commercial paper rated at least A-1 or P-1 or, if not
rated, issued by companies having outstanding debt rated at least AA or Aa and (iv) money market
mutual funds invested exclusively in some or all of the securities described in the foregoing
clauses (i), (ii) and (iii). Absent receipt of specific written investment instructions from the
Indemnification Representatives, the Escrow Agent shall have no obligation or duty to invest (or
otherwise pay interest on) the Escrow Fund. The Escrow Agent shall have no liability for any
investment losses, including without limitation any market loss on any investment liquidated prior
to maturity in order to make a payment required hereunder.

          (b) Tax Reporting. The parties hereto agree that, for tax reporting purposes, all
interest or other income earned from the investment of the Escrow Fund or any portion thereof in
any tax year (i) to the extent such interest or other income is distributed by the Escrow Agent to
any person or entity pursuant to the terms of this Agreement during such tax year, shall be
reported as allocated to such person or entity, and (ii) otherwise shall be reported as allocated
to the Indemnifying Stockholders, based on the percentages set forth on Attachment A.

          (c) Certification of Tax Identification Number. The parties hereto agree to provide
the Escrow Agent with a certified tax identification number by signing and returning a Form W-9 (or
Form W-8, in the case of non-U.S. persons) to the Escrow Agent prior to the date on which any
income earned on the investment of the Escrow Fund is credited to such Escrow Fund. The parties
hereto understand that, in the event their tax identification numbers are not certified to the
Escrow Agent, the Internal Revenue Code, as amended from time to time, may

 

 

require withholding of a portion of any interest or other income earned on the investment of
the Escrow Fund.

     5. Fees and Expenses. The Buyer shall (a) pay all of the fees of the Escrow Agent for
the services to be rendered by the Escrow Agent hereunder, which are set forth on Attachment
B hereto, and (b) reimburse the Escrow Agent for all of its reasonable expenses (including
reasonable attorney’s fees and expenses) incurred in connection with the performance of its duties
under this Agreement.

     6. Limitation of Escrow Agent’s Liability.

          (a) Limitation on Liability. The Escrow Agent shall incur no liability with respect
to any action taken or suffered by it in reliance upon any notice, direction, instruction, consent,
statement or other documents believed by it to be genuine and duly authorized, nor for other action
or inaction, except its own willful misconduct or gross negligence. The Escrow Agent shall not be
responsible for the validity or sufficiency of this Agreement or any other agreement referred to
herein. In all questions arising under the Escrow Agreement, the Escrow Agent may rely on the
advice of counsel, and the Escrow Agent shall not be liable to anyone for anything done, omitted or
suffered in good faith by the Escrow Agent based on such advice. The Escrow Agent shall not be
required to take any action hereunder involving any expense unless the payment of such expense is
made or provided for in a manner reasonably satisfactory to it. In no event shall the Escrow Agent
be liable for indirect, punitive, special or consequential damages.

          (b) Indemnification. The Buyer and the Indemnifying Stockholders agree to indemnify
the Escrow Agent for, and hold it harmless against, any loss, liability or expense incurred without
gross negligence or willful misconduct on the part of Escrow Agent, arising out of or in connection
with its carrying out of its duties hereunder. The Buyer, on the one hand, and the Indemnifying
Stockholders, on the other hand, shall each be liable for one-half of such amounts.
Notwithstanding the foregoing, the Buyer shall be liable for any amounts owed to the Escrow Agent
pursuant to this Section 6(b) that are in excess of the amount then remaining in the Escrow Fund.

     7. Liability and Authority of Indemnification Representatives; Successors and
Assignees.

          (a) Limitation on Liability. The Indemnification Representatives shall incur no
liability to the Indemnifying Stockholders with respect to any action taken or suffered by them in
reliance upon any notice, direction, instruction, consent, statement or other documents believed by
them to be genuinely and duly authorized, nor for other action or inaction except their own willful
misconduct or gross negligence. The Indemnification Representatives may, in all questions arising
under the Escrow Agreement, rely on the advice of counsel and the Indemnification Representatives
shall not be liable to the Indemnifying Stockholders for anything done, omitted or suffered in good
faith by the Indemnification Representatives based on such advice. The Indemnification
Representatives are authorized by the Indemnifying Stockholders to incur expenses on behalf of the
Indemnifying Stockholders in acting hereunder. If the Indemnification Representatives shall incur
any loss, cost or expense in connection with

 

 

their acting as such, the Indemnifying Stockholders will, on the written request of the
Indemnification Representatives, reimburse the Indemnification Representatives for a proportionate
amount thereof, determined on a pro rata basis based on the percentage of the aggregate
Consideration received by each such Indemnifying Stockholder pursuant to the Merger Agreement.
Without limiting the generality of the foregoing, the Indemnification Representatives are
authorized to deduct from any payment due to the Indemnifying Stockholders from the Escrow Fund the
amount of such reimbursement, provided that, with respect to amounts still subject to claims by the
Buyer, no such deduction from the Escrow Fund shall be made without the consent of the Buyer. The
parties hereto understand and agree that the Indemnification Representatives are acting solely on
behalf of and as agents for the Indemnifying Stockholders and not in their personal capacity, and
in no event shall the Indemnification Representatives be personally liable to the Indemnifying
Stockholders hereunder.

          (b) Indemnification. Each Indemnifying Stockholder agrees to indemnify the
Indemnification Representatives, on a pro rata basis based on the percentage of the aggregate
Consideration received by each Indemnifying Stockholder pursuant to this Agreement, for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may at any time be imposed on, incurred by or
asserted against the Indemnification Representatives in any way relating to or arising out of this
Agreement or any documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or the enforcement of any of the terms hereof or thereof;
provided, however, that no Indemnifying Stockholder shall be liable for any of the
foregoing to the extent they arise from an Indemnification Representative’s gross negligence or
willful misconduct. An Indemnification Representative shall be fully justified in refusing to take
or to continue to take any action hereunder unless he shall first be fully indemnified to his
reasonable satisfaction by the Indemnifying Stockholders against any and all liability and expense
which may be incurred by him by reason of taking or continuing to take any such action.

          (c) Successor Indemnification Representatives. In the event of the death or permanent
disability of any Indemnification Representative, or his or her resignation as an Indemnification
Representative, a successor Indemnification Representative shall be appointed by the other
Indemnification Representative or, absent its appointment, a successor Indemnification
Representative shall be elected by a majority vote of the Indemnifying Stockholders, with each such
Indemnifying Stockholder (or his, her or its successors or assigns) to be given a vote equal to the
number of votes represented by the shares of stock of the Company held by such Indemnifying
Stockholder immediately prior to the effective time of the Merger). Each successor Indemnification
Representative shall have all of the power, authority, rights and privileges conferred by this
Agreement upon the original Indemnification Representatives, and the term “Indemnification
Representatives” as used herein shall be deemed to include successor Indemnification
Representatives

          (d) Power and Authority. The Indemnification Representatives, acting jointly but not
singly, shall have full power and authority to represent the Indemnifying Stockholders, and their
successors, with respect to all matters arising under this Agreement and all actions taken by any
Indemnification Representative hereunder shall be binding upon the Indemnifying Stockholders, and
their successors, as if expressly confirmed and ratified in writing by each of

 

 

them. Without limiting the generality of the foregoing, the Indemnification Representatives,
acting by a majority thereof, shall have full power and authority to interpret all of the terms and
provisions of this Agreement, to compromise any claims asserted hereunder and to authorize payments
to be made with respect thereto, on behalf of the Indemnifying Stockholders and their successors.
All actions to be taken by the Indemnification Representatives hereunder shall be evidenced by, and
taken upon, the written direction of both Indemnification Representatives.

          (e) Reliance by Escrow Agent. The Escrow Agent may rely on the Indemnification
Representatives as the exclusive agents of the Indemnifying Stockholders under this Agreement and
shall incur no liability to any party with respect to any action taken or suffered by it in
reliance thereon.

     8. Amounts Payable by Indemnifying Stockholders. The amounts payable by the
Indemnifying Stockholders to the Escrow Agent under this Agreement (i.e., the indemnification
obligations pursuant to Section 6(b)) shall be payable solely as follows. The Escrow Agent shall
notify the Indemnification Representatives of any such amount payable by the Indemnifying
Stockholders as soon as it becomes aware that any such amount is payable, with a copy of such
notice to the Buyer. On the sixth business day after the delivery of such notice, the Escrow Agent
shall disburse such amount from the Escrow Fund (up to the amount then available in the Escrow
Fund) to the party to whom such amount is owed in satisfaction of such indemnification obligations
of the Indemnifying Stockholders; provided that if the Buyer or the Indemnification Representatives
deliver to the Escrow Agent (with a copy to the Indemnification Representatives or the Buyer, as
applicable), within five business days after delivery of such notice by the Escrow Agent, a written
notice contesting the legitimacy or reasonableness of such amount, then the Escrow Agent shall not
disburse the disputed portion of such claimed amount except in accordance with the terms of clauses
(i) or (ii) of Section 3(a) hereof.

     9. Termination. This Agreement shall terminate upon the disbursement by the Escrow
Agent of all of the Escrow Funds in accordance with this Agreement; provided that the provisions of
Sections 6 and 7 shall survive such termination.

     10. Successor Escrow Agent. In the event the Escrow Agent becomes unavailable or
unwilling to continue in its capacity herewith, the Escrow Agent may resign and be discharged from
its duties or obligations hereunder by delivering a resignation to the parties to this Escrow
Agreement, not less than 60 days’ prior to the date when such resignation shall take effect. The
Buyer may appoint a successor Escrow Agent without the consent of the Indemnification
Representatives so long as such successor is a bank with assets of at least $500 million, and may
appoint any other successor Escrow Agent with the consent of the Indemnification Representatives,
which shall not be unreasonably withheld. If, within such notice period, the Buyer provides to the
Escrow Agent written instructions with respect to the appointment of a successor Escrow Agent and
directions for the transfer of any Escrow Fund then held by the Escrow Agent to such successor, the
Escrow Agent shall act in accordance with such instructions and promptly transfer such Escrow Fund
to such designated successor. If no successor Escrow Agent is named as provided in this Section 10
prior to the date on which the resignation of the Escrow Agent is to properly take effect, the
Escrow Agent may apply to a court of competent jurisdiction for appointment of a successor Escrow
Agent.

 

 

     11. General.

          (a) Entire Agreement. Except for those provisions of the Merger Agreement referenced
herein, this Agreement constitutes the entire agreement among the parties and supersedes any prior
understandings, agreements or representations by or among the parties, written or oral, with
respect to the subject matter hereof.

          (b) Succession and Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties named herein and their respective successors and permitted assigns.

          (c) Counterparts and Facsimile Signature. This Agreement may be executed in two or
more counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument. This Agreement may be executed by facsimile signature.

          (d) Headings. The section headings contained in this Agreement are inserted for
convenience only and shall not affect in any way the meaning or interpretation of this Agreement.

          (e) Notices. All notices, instructions and other communications hereunder shall be in
writing. Any notice, instruction or other communication hereunder shall be deemed duly delivered
four business days after it is sent by registered or certified mail, return receipt requested,
postage prepaid, or one business day after it is sent for next business day delivery via a
reputable nationwide overnight courier service, in each case to the intended recipient as set forth
below:

If to the Buyer:

Blackboard Inc.

1899 L Street, N.W.

Washington, DC 20036

Attention: General Counsel

If to the Indemnification Representatives:

Dennis Beckingham

Senior Vice President and Chief Financial Officer

Thomson Learning

200 First Stamford Place, Suite 400

Stamford, CT 06902

Marc Poirier

Managing Director

@Ventures

200 Brickstone Square

Andover, MA 01810

 

 

If to the Escrow Agent:

American Stock Transfer & Trust Company

6201 15th Avenue

Brooklyn, NY 11219

Attention: General Counsel

Any party may give any notice, instruction or other communication hereunder using any other means
(including personal delivery, expedited courier, messenger service, telecopy, telex, ordinary mail
or electronic mail), but no such notice, instruction or other communication shall be deemed to have
been duly given unless and until it actually is received by the party to whom it is intended. Any
party may change the address to which notices, instructions, or other communications hereunder are
to be delivered by giving the other parties notice in the manner set forth in this Section.

          (f) Governing Law. This Agreement shall be governed by and construed in accordance
with the internal laws of the State of Delaware without giving effect to any choice or conflict of
law provision or rule (whether of the State of Delaware or any other jurisdiction) that would cause
the application of laws of any jurisdiction other than those of the State of Delaware.

          (g) Amendments and Waivers. This Agreement may be amended only with the written
consent of the Buyer, the Escrow Agent and both of the Indemnification Representatives. No waiver
of any right or remedy hereunder shall be valid unless the same shall be in writing and signed by
the party giving such waiver. No waiver by any party with respect to any condition, default or
breach of covenant hereunder shall be deemed to extend to any prior or subsequent condition,
default or breach of covenant hereunder or affect in any way any rights arising by virtue of any
prior or subsequent such occurrence.

          (h) Submission to Jurisdiction. Each of the parties hereto (i) submits to the
jurisdiction of any state or federal court sitting in the State of Delaware in any action or
proceeding arising out of or relating to this Agreement, (ii) agrees that all claims in respect of
such action or proceeding may be heard and determined in any such court, (iii) waives any claim of
inconvenient forum or other challenge to venue in such court, (iv) agrees not to bring any action
or proceeding arising out of or relating to this Agreement in any other court and (v) waives any
right it may have to a trial by jury with respect to any action or proceeding arising out of or
relating to this Agreement. Each party agrees to accept service of any summons, complaint or other
initial pleading made in the manner provided for the giving of notices in Section 11(e), provided
that nothing in this Section 11(h) shall affect the right of any party to serve such summons,
complaint or other initial pleading in any other manner permitted by law.

[Remainder of page intentionally left blank]

 

 

IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the day and year first
above written.

	 	 	 	 	 
	 	BLACKBOARD INC.

 	 
	 	By /s/ Michael L. Chasen
 	 
	 	 	 
	 	 	 
	 
	 	 	 
	 	                                    /s/ Dennis Beckingham
 	 
	 	DENNIS BECKINGHAM 	 
	 	 	 
	 
	 	 	 
	 	                                   /s/ Marc Poirier
 	 
	 	MARC POIRIER 	 
	 	 	 
	 
	 	AMERICAN STOCK TRANSFER & TRUST COMPANY

 	 
	 	By:  	/s/ Herbert J. Lemmer
 	 
	 	 	Herbert J. Lemmer 	 
	 	 	Vice President

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