Document:

exv4w1

Exhibit 4.1

CREDIT AGREEMENT

($85,000,000 TERM LOAN FACILITY WITH ACCORDION TO $150,000,000)

DATED AS OF SEPTEMBER 30, 2008

AMONG

OCEANEERING INTERNATIONAL, INC.,

AS BORROWER,

WELLS FARGO BANK, N.A.

AS ADMINISTRATIVE AGENT AND LENDER,

AND

THE OTHER LENDERS NOW OR HEREAFTER

PARTIES HERETO

 

 

	 	 	 	 	 
	SECTION 1. Definitions
	 	 	1	 
	Section 1.1 Certain Defined Terms
	 	 	1	 
	Section 1.2 Miscellaneous
	 	 	17	 
	 
	 	 	 	 
	SECTION 2. Commitments and Borrowings
	 	 	17	 
	Section 2.1 Loans
	 	 	17	 
	Section 2.2 Intentionally Left Blank
	 	 	18	 
	Section 2.3 Intentionally Left Blank
	 	 	18	 
	Section 2.4 Terminations or Reductions of Commitments
	 	 	18	 
	Section 2.5 Intentionally Left Blank
	 	 	18	 
	Section 2.6 Several Obligations
	 	 	18	 
	Section 2.7 Notes
	 	 	18	 
	Section 2.8 Use of Proceeds
	 	 	18	 
	Section 2.9 Increase of Commitments
	 	 	19	 
	 
	 	 	 	 
	SECTION 3. Borrowings, Payments, Prepayments and Interest Options
	 	 	19	 
	Section 3.1 Borrowings
	 	 	19	 
	Section 3.2 Payments; Prepayments
	 	 	20	 
	Section 3.3 Interest Options
	 	 	21	 
	 
	 	 	 	 
	SECTION 4.
Payments; Pro Rata Treatment; Computations, Etc.
	 	 	25	 
	Section 4.1 Payments
	 	 	25	 
	Section 4.2 Pro Rata Treatment
	 	 	26	 
	Section 4.3 Certain Actions, Notices, Etc.
	 	 	27	 
	Section 4.4 Non-Receipt of Funds by Agent
	 	 	27	 
	Section 4.5 Sharing of Payments, Etc.
	 	 	27	 
	 
	 	 	 	 
	SECTION 5. Conditions Precedent to Borrowings
	 	 	28	 
	Section 5.1 Initial Borrowings
	 	 	28	 
	Section 5.2 All Borrowings
	 	 	29	 
	 
	 	 	 	 
	SECTION 6. Representations and Warranties
	 	 	29	 
	Section 6.1 Organization
	 	 	29	 
	Section 6.2 Financial Statements
	 	 	29	 
	Section 6.3 Enforceable Obligations; Authorization
	 	 	30	 
	Section 6.4 Other Debt
	 	 	30	 
	Section 6.5 Litigation
	 	 	30	 
	Section 6.6 Taxes
	 	 	30	 
	Section 6.7 Regulations U and X
	 	 	31	 
	Section 6.8 Subsidiaries
	 	 	31	 
	Section 6.9 No Untrue or Misleading Statements
	 	 	31	 
	Section 6.10 ERISA
	 	 	31	 
	Section 6.11 Investment Company Act
	 	 	31	 
	Section 6.12 Intentionally Left Blank
	 	 	31	 
	Section 6.13 Fiscal Year
	 	 	31	 
	Section 6.14 Compliance
	 	 	31	 
	Section 6.15 Environmental Matters
	 	 	31	 

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	Section 6.16 Tax Shelter Regulations
	 	 	32	 
	 
	 	 	 	 
	SECTION 7. Affirmative Covenants
	 	 	32	 
	Section 7.1 Taxes, Existence, Regulations, Property, Etc.
	 	 	32	 
	Section 7.2 Financial Statements and Information
	 	 	33	 
	Section 7.3 Financial Tests
	 	 	33	 
	Section 7.4 Inspection
	 	 	34	 
	Section 7.5 Further Assurances
	 	 	34	 
	Section 7.6 Books and Records
	 	 	34	 
	Section 7.7 Insurance
	 	 	34	 
	Section 7.8 Notice of Certain Matters
	 	 	34	 
	Section 7.9 Capital Adequacy
	 	 	35	 
	Section 7.10 ERISA Information and Compliance
	 	 	35	 
	 
	 	 	 	 
	SECTION 8. Negative Covenants
	 	 	37	 
	Section 8.1 Limitations on Indebtedness and Preferred Stock of Restricted
Subsidiaries
	 	 	37	 
	Section 8.2 Priority Liabilities
	 	 	37	 
	Section 8.3 Limitations on Liens
	 	 	38	 
	Section 8.4 Dividends, Stock Purchases and Restricted Investments
	 	 	40	 
	Section 8.5 Mergers, Consolidations and Sales of Assets
	 	 	41	 
	Section 8.6 Limitation on Restricted Agreements
	 	 	43	 
	Section 8.7 Nature of Business
	 	 	44	 
	Section 8.8 Transactions with Affiliates
	 	 	44	 
	Section 8.9 Designation of Subsidiaries, Etc.
	 	 	44	 
	 
	 	 	 	 
	SECTION 9. Defaults
	 	 	46	 
	Section 9.1 Events of Default
	 	 	46	 
	Section 9.2 Right of Setoff
	 	 	48	 
	Section 9.3 Remedies Cumulative
	 	 	48	 
	 
	 	 	 	 
	SECTION 10. Agent
	 	 	48	 
	Section 10.1 Appointment, Powers and Immunities
	 	 	48	 
	Section 10.2 Reliance
	 	 	49	 
	Section 10.3 Defaults
	 	 	49	 
	Section 10.4 Material Written Notices
	 	 	50	 
	Section 10.5 Rights as a Lender
	 	 	50	 
	Section 10.6 Indemnification
	 	 	50	 
	Section 10.7 Non-Reliance on Agent and Other Lenders
	 	 	50	 
	Section 10.8 Failure to Act
	 	 	51	 
	Section 10.9 Resignation or Removal of Agent
	 	 	51	 
	Section 10.10 No Partnership
	 	 	51	 
	Section 10.11 Authority of Agent
	 	 	52	 
	 
	 	 	 	 
	SECTION 11. Miscellaneous
	 	 	52	 
	Section 11.1 Waiver
	 	 	52	 
	Section 11.2 Notices
	 	 	52	 
	Section 11.3 Expenses, Etc.
	 	 	52	 

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	Section 11.4 Indemnification
	 	 	53	 
	Section 11.5 Amendments, Etc.
	 	 	53	 
	Section 11.6 Successors and Assigns
	 	 	54	 
	Section 11.7 Limitation of Interest
	 	 	56	 
	Section 11.8 Survival
	 	 	57	 
	Section 11.9 Captions
	 	 	57	 
	Section 11.10 Counterparts
	 	 	57	 
	Section 11.11 Governing Law
	 	 	57	 
	Section 11.12 Severability
	 	 	57	 
	Section 11.13 Tax Forms
	 	 	57	 
	Section 11.14 Conflicts Between This Agreement and the Other Loan Documents
	 	 	58	 
	Section 11.15 Limitation on Charges; Substitute Lenders; Non-Discrimination
	 	 	58	 
	Section 11.16 Confidentiality
	 	 	58	 
	Section 11.17 Waiver of Right to Trial by Jury
	 	 	59	 
	Section 11.18 ENTIRE AGREEMENT
	 	 	59	 

EXHIBITS

A — Request for Extension of Credit

B — Rate Designation Notice

C — Note

D — Assignment and Acceptance

E — Compliance Certificate

F — Subsidiaries

G — Existing Affiliates

H — Existing Investments

I — Existing Indebtedness and Liens

- 4 -

 

CREDIT AGREEMENT

     THIS CREDIT AGREEMENT (this “Agreement”) is made and entered into as of September 30, 2008
(the “Effective Date”), by and among OCEANEERING INTERNATIONAL, INC., a Delaware corporation
(together with its permitted successors and assigns, herein called the “Borrower”); each of the
lenders which is or may from time to time become a party hereto (individually, a “Lender” and,
collectively, the “Lenders”); and WELLS FARGO BANK, N.A., a national banking association, as
administrative agent (in such capacity, together with its successors in such capacity, the
“Administrative Agent” or “Agent”).

     Accordingly, the parties hereto agree as follows:

SECTION
1. Definitions.

     Section 1.1 Certain Defined Terms.

     In this Agreement, terms defined above shall have the meanings ascribed to them above. Unless
a particular term, word or phrase is otherwise defined or the context otherwise requires,
capitalized terms, words and phrases used herein or in the Loan Documents (as hereinafter defined)
have the following meanings (all definitions that are defined in this Agreement or in the Loan
Documents in the singular have the same meanings when used in the plural and vice versa):

     “Additional Interest” means the aggregate of all amounts accrued or paid pursuant to the Notes
or any of the other Loan Documents (other than interest on the Notes at the Stated Rate) which,
under applicable laws, are or may be deemed to constitute interest on the indebtedness evidenced by
the Notes or any other amounts owing under any Loan Document.

     “Adjusted LIBOR” means, with respect to each Interest Period applicable to a LIBOR Borrowing,
a rate per annum equal to the quotient, expressed as a percentage, of (a) LIBOR with respect to
such Interest Period divided by (b) 1.0000 minus the Eurodollar Reserve Requirement in effect on
the first day of such Interest Period.

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

     “Affiliate” means any Person controlling, controlled by or under common control with any other
Person. For purposes of this definition, “control” (including “controlled by” and “under common
control with”) means the possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, whether through the ownership of voting
securities or otherwise.

     “Aggregate Commitments” means the aggregate amount of the Commitments of all the Lenders
which, as of the date hereof, shall be $85,000,000, but which may be decreased pursuant to
Section 2.4 hereof or increased pursuant to Section 2.9 hereof.

     “Agreement” means this Credit Agreement, as it may from time to time be amended, modified,
restated or supplemented.

     “Annual Financial Statements” means the consolidated annual financial statements of Borrower
and its Subsidiaries, including all notes thereto, which statements shall include a

- 1 -

 

consolidated balance sheet as of the end of the fiscal year relating thereto and a
consolidated income statement and a consolidated statement of cash flows for such fiscal year, all
setting forth in comparative form the corresponding figures from the previous fiscal year, all
prepared in conformity with GAAP in all material respects, and accompanied by the opinion of
independent certified public accountants of recognized national standing, which shall state that
such financial statements present fairly in all material respects the consolidated financial
position of the applicable Persons as of the date thereof and the results of consolidated
operations of the applicable Persons for the period covered thereby in conformity with GAAP. As
long as Borrower files an annual report on Form 10-K with the Securities and Exchange Commission,
such report and related financial statements, including notes thereto and opinion of independent
certified public accountants, included thereon shall be considered the “Annual Financial
Statements”.

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

     “Assignment and Acceptance” shall have the meaning ascribed to such term in Section
11.6(b) hereof.

     “Bankruptcy Code” means the United States Bankruptcy Code, as amended, and any successor
statute.

     “Base Rate” means for any day a rate per annum equal to the lesser of (a) the then applicable
Margin Percentage from time to time in effect plus the greater of (1) the Prime Rate for that day
and (2) the Federal Funds Rate for that day plus 1/2 of 1% or (b) the Ceiling Rate. If for any
reason Agent shall have determined (which determination shall be prima facie evidence of the
correctness thereof) that it is unable to ascertain the Federal Funds Rate for any reason,
including, without limitation, the inability or failure of Agent to obtain sufficient quotations in
accordance with the terms hereof, the Base Rate shall, until the circumstances giving rise to such
inability no longer exist, be the lesser of (a) the Prime Rate plus the then applicable Margin
Percentage from time to time in effect or (b) the Ceiling Rate.

     “Base Rate Borrowing” means that portion of the principal balance of the Loans at any time
bearing interest at the Base Rate.

     “Borrowing” means a borrowing consisting of simultaneous Loans of the same Interest Option
and, in the case of LIBOR Borrowings, having the same Interest Period made by each of the Lenders
pursuant to Section 3.3(b).

     “Business Day” means any day other than a day on which commercial banks are authorized or
required to close in Houston, Texas.

     “Capitalized Lease” means any lease the obligation for Rentals with respect to which is
required to be capitalized on a consolidated balance sheet of the lessee and its subsidiaries in
accordance with GAAP.

     “Ceiling Rate” means, on any day, with respect to any Lender, the maximum nonusurious rate of
interest, if any, permitted for that day under the law then applicable to such Lender, stated as a
rate per annum. On each day, if any, that the Texas Finance Code establishes the Ceiling

- 2 -

 

Rate for any Lender, the Ceiling Rate for such Lender shall be the “weekly ceiling” (as
defined in Section 303 of the Texas Finance Code) for that day. Agent may from time to time, as to
current and future balances, implement any other ceiling under the Texas Finance Code by notice to
Borrower, if and to the extent applicable to any Lender and permitted by the Texas Finance Code.
Without notice to Borrower or any other person or entity, the Ceiling Rate shall automatically
fluctuate upward and downward as and in the amount by which such maximum nonusurious rate of
interest permitted by applicable law fluctuates. Notwithstanding any choice of law set forth
herein or in any other Loan Document, to the maximum extent permitted under applicable laws, any
Lender may elect to have the usury laws of another jurisdiction apply to the Note and the Loans
held by such Lender.

     “Change of Control” shall be deemed to have occurred if any person (as such term is used in
Section 13(d) and Section 14(d)(2) of the Exchange Act as in effect on the date of the Closing) or
related persons constituting a group (as such term is used in Rule 13d-5 under the Exchange Act as
in effect on the date of the Closing), other than an Affiliate described on Exhibit G, (i)
become the “beneficial owners” (as such term is used in Rule 13d-3 under the Exchange Act as in
effect on the date hereof), directly or indirectly, of more than 50% of the total voting power of
all classes then outstanding of Borrower’s Voting Stock, or (ii) acquire after the date hereof (x)
the power to elect, appoint or cause the election or appointment of at least a majority of the
members of the board of directors of Borrower, through beneficial ownership of the capital stock of
Borrower or otherwise, or (y) all or substantially all of the properties and assets of Borrower.

     “Code” means the Internal Revenue Code of 1986, as amended, as now or hereafter in effect,
together with all regulations, rulings and interpretations thereof or thereunder by the Internal
Revenue Service.

     “Commitment” means, as to any Lender at any time, the obligation, if any, of such Lender to
make Loans pursuant to Section 2.1, in an aggregate principal amount at any one time
outstanding up to (but not exceeding) the amount, if any, set forth opposite such Lender’s name on
the signature pages hereof under the caption “Commitment”, or otherwise provided for in an
Assignment and Acceptance Agreement (as the same may be reduced from time to time pursuant to
Section 2.4 hereof or increased pursuant to Section 2.9).

     “Commitment Percentage” means, as to any Lender, the percentage equivalent of a fraction the
numerator of which is the sum of (i) the amount of such Lender’s unfunded Commitment and (ii) such
Lender’s outstanding Loans, and the denominator of which is the sum of (i) Aggregate Commitments at
such time and (ii) the aggregate principal amount of all outstanding Loans.

     “Compliance Certificate” shall have the meaning given to it in Section 7.2(c) hereof.

     “Consolidated Adjusted Net Worth” means as of the date of any determination thereof
Consolidated Net Worth excluding, to the extent included in the determination of Consolidated Net
Worth, any accumulated foreign currency translation adjustments or impairments as determined in
accordance with GAAP.

     “Consolidated EBITDA” for any period means the sum of (a)(i) Consolidated Net Income during
such period plus (to the extent deducted in determining Consolidated Net Income), (ii) all
provisions for any Federal, state or local income taxes made by Borrower and its Restricted

- 3 -

 

Subsidiaries during such period, (iii) all provisions for depreciation and amortization (other
than amortization of debt discount) made by Borrower and its Restricted Subsidiaries during such
period, (iv) any other non-cash charge to the extent such non-cash charge reduces Consolidated Net
Income (as reduced by any adjustment for the amount of cash pay-outs of non-cash charges from prior
fiscal periods), and (v) Consolidated Interest Expense during such period, minus (b) any gains or
losses on the sale or other disposition of Investments or fixed or capital investments (other than
gains or losses in the ordinary course of business as determined in accordance with GAAP), and any
taxes on such excluded gains and any tax deductions or credits on account of any such excluded
losses, all determined on a consolidated basis in accordance with GAAP.

     “Consolidated Indebtedness” means all Indebtedness of Borrower and its Restricted
Subsidiaries, determined on a consolidated basis eliminating intercompany items.

     “Consolidated Interest Expense” means for any period all interest (including the interest
component on Rentals on Capitalized Leases) and all amortization of debt discount and expense on
any particular Indebtedness (including, without limitation, payment-in-kind, zero coupon and other
like Securities) of Borrower and its Restricted Subsidiaries for which such calculations are being
made as determined in accordance with GAAP. Computations of Consolidated Interest Expense on a
pro-forma basis for Indebtedness having a variable interest rate shall be calculated at the rate in
effect on the date of any determination.

     “Consolidated Net Income” for any period means the gross revenues of Borrower and its
Restricted Subsidiaries for such period less all expenses and other proper charges (including taxes
on income), determined on a consolidated basis after eliminating earnings or losses attributable to
outstanding Minority Interests, but excluding in any event:

          (a) the proceeds of any life insurance policy;

          (b) net earnings and losses of any Restricted Subsidiary of Borrower accrued prior to the date
it became a Restricted Subsidiary of Borrower;

          (c) net earnings and losses of any Corporation (other than a Restricted Subsidiary of
Borrower), substantially all the assets of which have been acquired in any manner by Borrower or
any of its Restricted Subsidiaries, realized by such Corporation prior to the date of such
acquisition;

          (d) net earnings and losses of any Corporation (other than a Restricted Subsidiary of
Borrower) with which Borrower or a Restricted Subsidiary of Borrower shall have consolidated or
which shall have merged into or with Borrower or a Restricted Subsidiary of Borrower prior to the
date of such consolidation or merger;

          (e) net earnings of any business entity (other than a Restricted Subsidiary of Borrower) in
which Borrower or any Restricted Subsidiary of Borrower has an ownership interest unless such net
earnings shall have actually been received by Borrower or such Restricted Subsidiary of Borrower in
the form of cash distributions;

          (f) any portion of the net earnings of any Restricted Subsidiary of Borrower which for any
reason is unavailable for payment of dividends to Borrower or any other Restricted Subsidiary of
Borrower;

- 4 -

 

          (g) earnings and losses resulting from any reappraisal, revaluation, write-up or write-down of
assets other than in the ordinary course of business;

          (h) any reversal of any contingency reserve to the extent such contingency reserve was taken
prior to the date of the Effective Date, but including in any determination of Consolidated Net
Income changes in estimates made in accordance with GAAP; and

          (i) any other extraordinary gain or loss, including, without limitation, the cumulative effect
of changes to GAAP.

     “Consolidated Net Worth” means, as of the date of any determination thereof the amount of the
capital stock accounts (net of treasury stock, at cost) plus (or minus in the case of a deficit)
the surplus in retained earnings of Borrower and its Restricted Subsidiaries as determined in
accordance with GAAP.

     “Consolidated Total Capitalization” means as of the date of the end of the most recent prior
fiscal quarter, the sum of (a) Consolidated Indebtedness plus (b) Consolidated Adjusted Net Worth.

     “Controlled Group” means all members of a controlled group of corporations and all trades or
businesses (whether or not incorporated) under common control which, together with Borrower, are
treated as a single employer under Section 414 of the Code.

     “Corporation” means any corporation, limited liability company, partnership, joint venture,
joint stock association, business trust and other business entity.

     “Debt to Capitalization Ratio” means, as of any day, the ratio, expressed as a percentage, of
(a) Consolidated Indebtedness as of such date to (b) Consolidated Total Capitalization as of such
date.

     “Default” means an Event of Default or an event which with notice or lapse of time or both
would, unless cured or waived, become an Event of Default.

     “Distribution” in respect of Borrower and its Restricted Subsidiaries means:

          (a) dividends or other distributions on capital stock (including, without limitation,
preferred stock) of a corporation (except dividends or other distributions payable solely in shares
of common stock of such Corporation and dividends made to Borrower by any of its Restricted
Subsidiaries); and

          (b) redemption, acquisition or retirement of any shares of its capital stock or warrants,
rights or other options to purchase any shares of its capital stock (other than the redemption,
acquisition or retirement by Borrower or any of its Restricted Subsidiaries of any shares of
capital stock of a Restricted Subsidiary of Borrower).

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

     “Eligible Assignee” means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund;
and (d) any other Person (other than a natural person) approved by (i) the Agent and (ii) unless an
Event of Default has occurred and is continuing, the Borrower (each such approval not

- 5 -

 

to be unreasonably withheld or delayed); provided that notwithstanding the foregoing,
“Eligible Assignee” shall not include the Borrower or any of the Borrower’s Affiliates or
Subsidiaries.

     “Environmental Claim” means any third party (including Governmental Authorities and employees)
action, lawsuit, claim or proceeding (including claims or proceedings at common law or under the
Occupational Safety and Health Act or similar laws relating to safety of employees) which seeks to
impose liability for (i) noise; (ii) pollution or contamination of the air, surface water, ground
water or land or the clean-up of such pollution or contamination; (iii) solid, gaseous or liquid
waste generation, handling, treatment, storage, disposal or transportation; (iv) exposure to
Hazardous Substances; (v) the safety or health of employees or (vi) the manufacture, processing,
distribution in commerce or use of Hazardous Substances. An “Environmental Claim” includes, but is
not limited to, a common law action, as well as a proceeding to issue, modify or terminate an
Environmental Permit, or to adopt or amend a regulation to the extent that such a proceeding
attempts to redress violations of an applicable permit, license, or regulation as alleged by any
Governmental Authority.

     “Environmental Liabilities” means all liabilities arising from any Environmental Claim,
Environmental Permit or Requirement of Environmental Law under any theory of recovery, at law or in
equity, and whether based on negligence, strict liability or otherwise, including but not limited
to: remedial, removal, response, abatement, investigative, monitoring, personal injury and damage
to Property or injuries to persons, and any other related costs, expenses, losses, damages,
penalties, fines, liabilities and obligations, and all costs and expenses necessary to cause the
issuance, reissuance or renewal of any Environmental Permit including reasonable attorneys’ fees
and court costs.

     “Environmental Permit” means any permit, license, approval or other authorization under any
applicable Legal Requirement relating to pollution or protection of health or the environment,
including laws, regulations or other requirements relating to emissions, discharges, releases or
threatened releases of pollutants, contaminants or hazardous substances or toxic materials or
wastes into ambient air, surface water, ground water or land, or otherwise relating to the
manufacture, processing, distribution, use, treatment, storage, disposal, transport, or handling of
pollutants, contaminants or Hazardous Substances.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and all rules, regulations, rulings and interpretations adopted by the Internal Revenue
Service or the U.S. Department of Labor thereunder.

     “Eurodollar Rate” means for any day during an Interest Period for a LIBOR Borrowing a rate per
annum equal to the lesser of (a) the sum of (1) the Adjusted LIBOR in effect on the first day of
such Interest Period plus (2) the then applicable Margin Percentage from time to time in effect and
(b) the Ceiling Rate. Each Eurodollar Rate is subject to adjustments as provided for in
Sections 3.3(c) and 11.15 hereof.

     “Eurodollar Reserve Requirement” means, on any day, that percentage (expressed as a decimal
fraction and rounded, if necessary, to the next highest one ten thousandth [.0001]) which is in
effect on such day for determining all reserve requirements (including, without limitation, basic,
supplemental, marginal and emergency reserves) applicable to “Eurocurrency liabilities,” as
currently defined in Regulation D. Each determination of the Eurodollar Reserve

- 6 -

 

Requirement by Agent shall be conclusive and binding, absent manifest error, and may be
computed using any reasonable averaging and attribution method.

     “Event of Default” shall have the meaning assigned to it in Section 9.1 hereof.

     “Excluded Transactions” means the incurrence or issuance by the Borrower and its Subsidiaries
of the following:

          (a) Indebtedness in respect of any refinancing, refunding, remarketing, renewal or extension
(on or prior to the maturity thereof) of (without any increase in the principal amount thereof plus
any expenses (including any redemption premium, penalty, broken funding, settlement and other
costs) or any shortening of the final maturity thereof) Indebtedness outstanding on the closing
date (and any refinancing, refunding, remarketing, renewal or extension thereof);

          (b) Intercompany Indebtedness, including Guarantees of Indebtedness;

          (c) drawings on letters of credit, bonds or similar obligations permitted under this Agreement
if the proceeds are applied to the underlying obligation secured or supported thereby;

          (d) Indebtedness of the Borrower pursuant to the Loan Documents;

          (e) Indebtedness in respect of performance, surety and similar bonds and completion guarantees
provided by the Borrower or any of its Subsidiaries in the ordinary course of business;

          (f) Indebtedness in respect of Capitalized Leases entered into by the Borrower or any of its
Subsidiaries;

          (g) Indebtedness in respect of Swaps permitted under this Agreement; and

          (h) additional Indebtedness incurred by the Borrower and/or its Subsidiaries in an aggregate
principal amount not to exceed [$50,000,000] outstanding at any time.

     “Existing Credit Agreement” means that certain Amended and Restated Credit Agreement dated as
of January 2, 2004 executed by and among Borrower, Wells Fargo Bank, N.A., as Administrative Agent,
and certain lenders therein named, as the same may be amended, supplemented, modified and/or
restated from time to time. All references herein to the Existing Credit Agreement shall mean the
Existing Credit Agreement as it exists on the date hereof and without amendment except as may be
approved by the Majority Lenders (and regardless of whether the Existing Credit Agreement shall
have otherwise terminated in accordance with its provisions).

     “Federal Funds Rate” means, for any day, a fluctuating interest rate per annum equal for such
day to 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 for such day (or, if
such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of
New York, or, if such rate is not so published for any such day which is a Business Day, the
average of the quotations for such day on such transactions received by

- 7 -

 

Agent from three Federal funds brokers of recognized standing selected by Agent in its sole
and absolute discretion.

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

     “Funding Loss” means, with respect to (a) Borrower’s payment of principal of a LIBOR Borrowing
on a day prior to the last day of the applicable Interest Period; (b) Borrower’s failure to borrow
a LIBOR Borrowing on the date specified by Borrower; (c) Borrower’s failure to make any prepayment
of the Loans (other than Base Rate Borrowings) on the date specified by Borrower, or (d) any
cessation of a Eurodollar Rate to apply to the Loans or any part thereof pursuant to Section
3.3, in each case whether voluntary or involuntary, any loss, expense, penalty, premium or
liability actually incurred by any Lender (including but not limited to any loss or expense
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any
Lender to fund or maintain a Loan).

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

     “Governmental Authority” means any foreign governmental authority, the United States of
America, any State of the United States, and any political subdivision of any of the foregoing, and
any central bank, agency, department, commission, board, bureau, court or other tribunal having
jurisdiction over Agent, any Lender, Borrower or their respective Property.

     “Guaranty” means, with respect to any Person, any obligation (except the endorsement in the
ordinary course of business of negotiable instruments for deposit or collection) of such Person
guaranteeing or in effect guaranteeing any Indebtedness, dividend or other obligation (other than
performance obligations (other than obligations for the payment of borrowed money)) of any other
Person in any manner, whether directly or indirectly, including (without limitation) obligations
incurred through an agreement, contingent or otherwise, by such Person:

          (a) to purchase such Indebtedness or obligation or any property constituting security
therefore;

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

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

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

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

- 8 -

 

     “Hazardous Substance” means petroleum products and any hazardous or toxic waste or substance
defined or regulated as such from time to time by any law, rule, regulation or order described in
the definition of “Requirements of Environmental Law”.

     “Honor Date” has the meaning assigned to it in Section 2.3(c)(i).

     “ICC” has the meaning assigned to it in Section 2.3(h).

     “Increase Effective Date” has the meaning assigned to it in Section 2.9(b).

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

     (a) its liabilities for borrowed money;

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

     (c) all liabilities appearing on its balance sheet in accordance with GAAP in respect
of Capitalized Leases;

     (d) all liabilities for borrowed money secured by any Lien with respect to any property
owned by such Person (whether or not it has assumed or otherwise become liable for such
liabilities); provided that, solely in the case of liabilities of any Person not a
Restricted Subsidiary or the Borrower secured by such a Lien, the amount of such
Indebtedness shall be deemed to be the lesser of (i) the net book value of the property so
encumbered and (ii) the amount of such liabilities;

     (e) all its liabilities in respect of standby letters of credit or instruments serving
a similar function issued or accepted for its account by banks and other financial
institutions (other than those representing obligations for performance guarantees);

     (f) Swaps of such Person; and

     (g) any Guaranty of such Person with respect to liabilities (other than performance
guaranties) of a type described in any of clauses (a) through (f) hereof;

provided, that in the case of computations of “Indebtedness” of Borrower or any of its Restricted
Subsidiary, notwithstanding clause (d) above, “Indebtedness” shall not include Indebtedness secured
by Liens permitted under Section 8.3(h).

     “Interest Coverage Ratio” means, as of the end of any fiscal quarter, the ratio of (a)
Consolidated EBITDA for the four quarter period preceding such day to (b) Consolidated Interest
Expense for such four quarter period.

     “Interest Options” means the Base Rate and each Eurodollar Rate, and “Interest Option” means
any of them.

- 9 -

 

     “Interest Payment Dates” means (a) for Base Rate Borrowings, the last day of each March, June,
September and December thereafter prior to the Maturity Date, and the Maturity Date; and (b) for
LIBOR Borrowings, the end of the applicable Interest Period (and if such Interest Period exceeds
three months’ duration, quarterly, commencing on the first quarterly anniversary of the first day
of such Interest Period) and the Maturity Date.

     “Interest Period” means, for each LIBOR Borrowing, a period commencing on the date such LIBOR
Borrowing began and ending on the numerically corresponding day which is, subject to availability
as set forth in Section 3.3(c)(iii), 1, 2, 3, 6 or twelve (12) months thereafter, as
Borrower shall elect in accordance herewith; provided, (1) unless Agent shall otherwise consent, no
Interest Period with respect to a LIBOR Borrowing shall commence on a date earlier than three (3)
Business Days after this Agreement shall have been fully executed; (2) any Interest Period with
respect to a LIBOR Borrowing which would otherwise end on a day which is not a LIBOR Business Day
shall be extended to the next succeeding LIBOR Business Day, unless such LIBOR Business Day falls
in another calendar month, in which case such Interest Period shall end on the next preceding LIBOR
Business Day; (3) any Interest Period with respect to a LIBOR Borrowing which begins on the last
LIBOR Business Day of a calendar month (or on a day for which there is no numerically corresponding
day in the calendar month at the end of such Interest Period) shall end on the last LIBOR Business
Day of the appropriate calendar month, and (4) no Interest Period for a Loan shall ever extend
beyond the Maturity Date.

     “Investments” shall mean all investments, in cash or by delivery of property, made directly or
indirectly in any property or assets or in any Person, whether by acquisition of shares of capital
stock, Indebtedness or other obligations or Securities or by loan, advance, capital contribution or
otherwise; provided that “Investments” shall not mean or include routine investments in property to
be used or consumed in the ordinary course of business.

     “Legal Requirement” means any law, statute, ordinance, decree, requirement, order, judgment,
rule, or regulation (or interpretation of any of the foregoing) of, and the terms of any license or
permit issued by, any Governmental Authority, whether presently existing or arising in the future.

     “LIBOR” means, for each Interest Period for any LIBOR Borrowing, the rate per annum (rounded
upwards, if necessary, to the next higher whole multiple of 1/100th of 1%) equal to the average of
the offered quotations appearing on Telerate Page 3750 (or if such Telerate Page shall not be
available, any successor or similar service as may be selected by Agent and Borrower) as of 11:00
a.m. central time (or as soon thereafter as practicable) on the day two LIBOR Business Days prior
to the first day of such Interest Period for deposits in United States dollars having a term
comparable to such Interest Period and in an amount comparable to the principal amount of the LIBOR
Borrowing to which such Interest Period relates. If none of such Telerate Page 3750 nor any
successor or similar service is available, then “LIBOR” shall mean, with respect to any Interest
Period for any applicable LIBOR Borrowing, the rate of interest per annum, rounded upwards, if
necessary, to the next higher whole multiple of 1/100th of 1%, quoted by Agent at or before 11:00
a.m. central time (or as soon thereafter as practicable), on the date two LIBOR Business Days
before the first day of such Interest Period, to be the arithmetic average of the prevailing rates
per annum at the time of determination and in accordance with the then existing practice in the
applicable market, for the offering to Agent by one or more prime banks selected by Agent in its
sole discretion, in the London interbank market, of deposits in United States

- 10 -

 

dollars for delivery on the first day of such Interest Period and having a maturity equal to
the length of such Interest Period and in an amount equal (or as nearly equal as may be) to the
LIBOR Borrowing to which such Interest Period relates. Each determination by Agent of LIBOR shall
be prima facie evidence of the correctness thereof, and may be computed using any reasonable
averaging and attribution method.

     “LIBOR Borrowing” means each portion of the principal balance of the Loans at any time bearing
interest at a Eurodollar Rate.

     “LIBOR Business Day” means a Business Day on which transactions in United States dollar
deposits between lenders may be carried on in the London interbank market.

     “Lien” means any mortgage, pledge, charge, encumbrance, security interest, collateral
assignment or other lien or restriction of any kind, whether based on common law, constitutional
provision, statute or contract, and shall include reservations, exceptions, encroachments,
easements, rights of way, covenants, conditions, restrictions and other title exceptions. For the
purposes of this Agreement, Borrower or any of its Subsidiaries shall be deemed to be the owner of
any property which it has acquired or holds subject to a conditional sale agreement, Capitalized
Lease or other arrangement pursuant to which title to the property has been retained by or vested
in some other Person for security purposes and such retention or vesting shall constitute a Lien.

     “Loan” means a loan provided for in Section 2.1 hereof.

     “Loan Documents” means, collectively, this Agreement, the Notes, all instruments and
agreements now or hereafter executed or delivered by Borrower to Agent or any Lender pursuant to
any of the foregoing or in connection with the Obligations or any commitment regarding the
Obligations, and all amendments, modifications, renewals, extensions, increases and rearrangements
of, and substitutions for, any of the foregoing.

     “Majority Lenders” means, at any time, Lenders having at least 51% of the sum of (i) the
unfunded Aggregate Commitments at such time and (ii) Total Outstandings.

     “MARAD Indebtedness” means Indebtedness of Borrower or any of its Restricted Subsidiaries owed
to, or guaranteed by, the U.S. Maritime Administration and incurred in connection with the
acquisition or purchase of fixed assets useful and intended to be used in carrying on the business
of Borrower or any of its Restricted Subsidiaries, provided that with respect to such Indebtedness,
none of the property or assets of Borrower or any of its Restricted Subsidiaries, other than the
fixed asset so acquired, shall be, directly or indirectly, liable for or secure in any manner
whatsoever the payment thereof.

     “Margin Percentage” means 0.75% with respect to Base Rate Borrowings and 1.75% with respect to
LIBOR Borrowings.

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

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

- 11 -

 

Notes or the Loan Documents, or (c) the validity or enforceability of this Agreement or the
Notes or the Loan Documents.

     “Material Domestic Subsidiary” means any Restricted Subsidiary which is organized or
incorporated under the laws of the United States of America, any state thereof or the District of
Columbia whose (a) attributable share of Consolidated EBITDA for the four quarter period ending on
the last day of the most recently ended fiscal quarter is greater than 5% or (b) attributable share
of the book value of total assets of Borrower and its Restricted Subsidiaries, determined on a
consolidated basis as of the last day of the most recently ended fiscal quarter, is greater than
5%.

     “Maturity Date” means September 29, 2009.

     “Minority Interests” means any shares of stock of any class of a Restricted Subsidiary of
Borrower (other than directors’ qualifying shares or Regulatory Shares as required by law) that are
not owned by Borrower and/or one or more of its Restricted Subsidiaries. Minority Interests shall
be valued by valuing Minority Interests constituting preferred stock at the voluntary or
involuntary liquidating value of such preferred stock, whichever is greater, and by valuing
Minority Interests constituting common stock at the book value of capital and surplus applicable
thereto adjusted, if necessary, to reflect any changes from the book value of such common stock
required by the foregoing method of valuing Minority Interests in preferred stock.

     “Net Proceeds” shall have the meaning assigned to such term in Section 8.5(b)(ii)(3).

     “Notes” shall have the meaning assigned to such term in Section 2.7 hereof.

     “Obligations” means, as at any date of determination thereof, the sum of the following: (i)
the aggregate principal amount of Loans outstanding hereunder on such date plus (ii) all other
outstanding liabilities, obligations and indebtedness of Borrower under this Agreement, any Note or
any other Loan Document on such date.

     “Organizational Documents” means, with respect to a corporation, the certificate of
incorporation, articles of incorporation and bylaws of such corporation; with respect to a
partnership, the partnership agreement establishing such partnership and with respect to a trust,
the instrument establishing such trust and with respect to any other Person, the agreements or
instruments pursuant to which such Person was formed; in each case including any and all
modifications thereof and any and all future modifications thereof.

     “Outstanding Amount” means, on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of Loans, occurring on such
date.

     “Participant” has the meaning assigned to such term in Section 11.6(d).

     “Past Due Rate” means, on any day, a rate per annum equal to the lesser of (i) the Ceiling
Rate for that day or (ii) the Base Rate plus the Margin Percentage for Base Rate Borrowings then in
effect plus two percent (2%).

     “PBGC” means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all
of its functions under ERISA.

- 12 -

 

     “Person” means any individual, Corporation, trust, limited liability company, unincorporated
organization, Governmental Authority or any other form of entity.

     “Plan” means an employee pension benefit plan which is covered by Title IV of ERISA or subject
to the minimum funding standards under Section 412 of the Code and is either (a) maintained by
Borrower or any member of the Controlled Group for employees of Borrower or any member of the
Controlled Group or (b) maintained pursuant to a collective bargaining agreement or any other
arrangement under which more than one employer makes contributions and to which Borrower or any
member of the Controlled Group is then making or accruing an obligation to make contributions or
has within the preceding five plan years made contributions.

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

     “Prime Rate” means, at any time, the rate of interest most recently announced within Wells
Fargo & Company at its principal office in San Francisco as its Prime Rate, with the understanding
that the Prime Rate is one of its base rates and serves as the basis upon which effective rates of
interest are calculated for those loans making reference thereto, and is evidenced by the recording
thereof after its announcement in such internal publication or publications as Wells Fargo &
Company may designate. Each change in the Prime Rate will be effective on the day the change is
announced within Wells Fargo & Company.

     “Principal Office” means the principal office of Agent, presently located at 1000 Louisiana,
9th Floor, Houston, Harris County, Texas 77002.

     “Priority Liability” means, as of the date of any determination thereof, (a) any Indebtedness
of Borrower secured by a Lien created pursuant to Section 8.3(l) hereof and (b) any
Indebtedness and any Preferred Stock of Restricted Subsidiaries other than Indebtedness or
Preferred Stock permitted under Section 8.1(a)(ii).

     “Proper Form” means in form and substance reasonably satisfactory to Agent.

     “Property” means any interest in any kind of property or asset, whether real, personal or
mixed, tangible or intangible.

     “Quarterly Dates” means the last day of each March, June, September and December, provided
that if any such date is not a Business Day, then the relevant Quarterly Date shall be the next
succeeding Business Day.

     “Quarterly Financial Statements” means the quarterly consolidated financial statements of
Borrower and its subsidiaries, which statements shall include a consolidated balance sheet as of
the end of such fiscal quarter and a consolidated income statement and a consolidated statement of
cash flows for such fiscal quarter and for the fiscal year to date, subject to normal year-end
adjustments, all setting forth in comparative form the corresponding figures as of the end of and
for the corresponding fiscal quarter of the preceding year, prepared in accordance with GAAP in all
material respects except that such statements are condensed and exclude detailed footnote
disclosures and attested by the chief financial officer or other authorized officer of Borrower as
fairly presenting, in all material respects, the consolidated financial condition of the applicable
Persons as of such date. As long as Borrower files a quarterly report on Form 10-Q with the

- 13 -

 

Securities and Exchange Commission, such report and related financial statements, including
notes thereto, shall be considered the “Quarterly Financial Statements”.

     “Rate Designation Date” means that Business Day which is (a) in the case of Base Rate
Borrowings, 11:00 a.m. central time, on the date one Business Day preceding the date of such
borrowing and (b) in the case of LIBOR Borrowings, 11:00 a.m. central time, on the date three LIBOR
Business Days preceding the first day of any proposed Interest Period.

     “Rate Designation Notice” means a written notice substantially in the form of Exhibit
B.

     “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System from
time to time in effect and includes any successor or other regulation relating to reserve
requirements applicable to member banks of the Federal Reserve System.

     “Regulatory Change” means, with respect to any Lender, any change on or after the Effective
Date in any Legal Requirement (including, without limitation, Regulation D) or the adoption or
change on or after such date of any interpretation, directive or request applying to a class of
lenders including such Lender under any Legal Requirements (whether or not having the force of law)
by any Governmental Authority.

     “Regulatory Shares” means, with respect to any Person, shares of the capital stock of such
Person required to be issued as qualifying shares to directors or shares issued to Persons other
than Borrower in response to regulatory requirements of foreign jurisdictions pursuant to a
resolution of the Board of Directors of such Person.

     “Related Parties” means, 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.

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

     “Request for Extension of Credit” means a request for extension of credit duly executed by any
responsible officer, which may include the president, the chief executive officer, the chief
financial officer, any vice president or the treasurer of Borrower or any other officer of Borrower
with responsibility for the administration of this Agreement, appropriately completed and
substantially in the form of Exhibit A attached hereto.

     “Requirements of Environmental Law” means all requirements imposed by any law (including for
example and without limitation The Resource Conservation and Recovery Act and The Comprehensive
Environmental Response, Compensation, and Liability Act), rule, regulation, or order of any
federal, state or local executive, legislative, judicial, regulatory or administrative agency,
board or authority in effect at the applicable time which relate to (i) noise;

- 14 -

 

(ii) pollution, protection or clean-up of the air, surface water, ground water or land; (iii)
solid, gaseous or liquid waste generation, treatment, storage, disposal or transportation; (iv)
exposure to Hazardous Substances; (v) the safety or health of employees or (vi) regulation of the
manufacture, processing, distribution in commerce, use, discharge or storage of Hazardous
Substances.

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

     “Restricted Investments” means all Investments, other than:

     (a) Investments by Borrower and its Restricted Subsidiaries in and to Wholly-owned
Restricted Subsidiaries, including any Investment in a Corporation which, after giving
effect to such Investment, will become a Wholly-owned Restricted Subsidiary;

     (b) Investments representing loans or advances in the usual and ordinary course of
business to officers and employees for expenses incidental to carrying on the business of
Borrower or any of its Restricted Subsidiaries;

     (c) Investments in property or assets to be used in the ordinary course of the business
of Borrower and its Restricted Subsidiaries as described on Exhibit H of this
Agreement;

     (d) Investments in commercial paper of Corporations organized under the laws of the
United States or any state thereof and loan participations maturing in 270 days or less from
the date of issuance which, at the time of acquisition by Borrower or any of its Restricted
Subsidiaries, are accorded a rating of “A-1” or better by Standard & Poor’s Ratings Group, a
division of McGraw-Hill, Inc., a New York corporation, or “P-1” or better by Moody’s
Investors Service, Inc.;

     (e) Investments in direct obligations in the United States of America or any agency or
instrumentality of the United States of America, the payment or guarantee of which
constitutes a full faith and credit obligation of the United States of America, in either
case, maturing within twelve months from the date of acquisition thereof;

     (f) Investments in direct obligations of other governments maturing within twelve
months from the date of acquisition thereof by Borrower or a Restricted Subsidiary of
Borrower; provided that at the time of such acquisition, the long-term Indebtedness of such
government is rated “AAA” by Standard & Poor’s Ratings Group or by Moody’s Investors
Service, Inc.;

     (g) Investments in certificates of deposit and time deposits maturing within one year
from the date of issuance thereof, issues by a bank or trust company organized under the
laws of the United States or any State thereof, having either (i) capital, surplus and
undivided profits aggregating at least $100,000,000 or (ii) total assets of $1,000,000,000;

     (h) Investments in repurchase agreements with respect to any Security described in
clause (e) entered into with a depository institution or trust company acting as principal
described in clause (g) if such repurchase agreements: (i) are by their terms

- 15 -

 

to be performed by the repurchase obligor and such repurchase agreements are deposited
with a bank or trust company of the type described in clause (g) and (ii) mature within
ninety days from the date of execution and delivery thereof; and

     (i) Investments of Borrower not described in the foregoing clauses (a) through (h);
provided that the aggregate amount of all such Investments shall not at the time any
Investment is made within the limitations of this clause (i) exceed 15% of Consolidated
Adjusted Net Worth.

     “Restricted Subsidiary” means any Subsidiary of the Borrower which is not an Unrestricted
Subsidiary.

     “Secretary’s Certificate” means a certificate, in Proper Form, of the Secretary or an
Assistant Secretary of a corporation certifying (a) that attached thereto are true and correct
copies of resolutions of the Board of Directors of such corporation authorizing the execution,
delivery and performance of the Loan Documents to be executed by such corporation; (b) the
incumbency and signature of the officer of such corporation executing such Loan Documents on behalf
of such corporation, and (c) that attached thereto are true and correct copies of the
Organizational Documents of such corporation.

     “Securities Act” means the Securities Act of 1933, as amended from time to time.

     “Security” shall have the same meaning as in Section 2(1) of the Securities Act.

     “Senior Financial Officer” means the chief executive officer, president, chief financial
officer, principal accounting officer, treasurer or controller of Borrower.

     “Senior Indebtedness” shall mean all Indebtedness for borrowed money of Borrower which is not
expressed to be subordinate or junior in rank to any other Indebtedness for borrowed money of
Borrower.

     “Stated Rate” means, with respect to any Lender, the effective weighted per annum rate of
interest applicable to the Loans made by such Lender; provided, that if on any day such rate shall
exceed the Ceiling Rate for that day, the Stated Rate shall be fixed at the Ceiling Rate on that
day and on each day thereafter until the total amount of interest accrued at the Stated Rate on the
unpaid principal balances of the Notes plus the Additional Interest equals the total amount of
interest which would have accrued if there had been no Ceiling Rate. Without notice to Borrower or
any other Person, the Stated Rate shall automatically fluctuate upward and downward in accordance
with the provisions of this definition.

     “Subsidiary” means, as to a particular parent Corporation, any Corporation of which more than
50% of the indicia of equity rights (whether outstanding capital stock or otherwise) is at the time
directly or indirectly owned by such parent Corporation.

     “Subsidiary Stock” is defined in Section 8.5(c).

     “Swaps” means, with respect to any Person, payment obligations with respect to interest rate
swaps, currency swaps and similar obligations obligating such Person to make payments, whether
periodically or upon the happening of a contingency. For the purposes of this Agreement, the
amount of the obligation under any Swap shall be the amount determined in

- 16 -

 

respect thereof as of the end of the then most recently ended fiscal quarter of such Person,
based on the assumption that such Swap had terminated at the end of such fiscal quarter, and in
making such determination, if any agreement relating to such Swap provides for the netting of
amounts payable by and to such Person thereunder or if any such agreement provides for the
simultaneous payment of amounts by and to such Person, then in each such case, the amount of such
obligation shall be the net amount so determined.

     “Taxes” shall have the meaning ascribed to it in Section 4.1(e) hereof.

     “Total Outstandings” means the aggregate Outstanding Amount of all Loans.

     “Unrestricted Subsidiary” means any Subsidiary of the Borrower designated by the Board of
Directors of Borrower as an “Unrestricted Subsidiary” on Exhibit F hereto or pursuant to
Section 8.9 hereto.

     “Unfunded Liabilities” means, with respect to any Plan, at any time, the amount (if any) by
which (a) the present value of all benefits under such Plan exceeds (b) the fair market value of
all Plan assets allocable to such benefits, all determined as of the then most recent actuarial
valuation report for such Plan, but only to the extent that such excess represents a potential
liability of any member of the Controlled Group to the PBGC or a Plan under Title IV of ERISA.
With respect to multi-employer Plans, the term “Unfunded Liabilities” shall also include contingent
liability for withdrawal liability under Section 4201 of ERISA to all multi-employer Plans to which
Borrower or any member of a Controlled Group for employees of Borrower contributes in the event of
complete withdrawal from such plans.

     “Voting Stock” means Securities of any class or classes, the holders of which are ordinarily,
in the absence of contingencies, entitled to elect a majority of the corporate directors (or
Persons performing similar functions).

     “Wells Fargo” means Wells Fargo Bank, N.A. and its successors.

     “Wholly-owned Restricted Subsidiary” means, at any time, any Restricted Subsidiary of Borrower
one hundred percent (100%) of all of the equity interests (except directors’ qualifying shares and
shares of capital stock owned by one or more individuals who are not citizens of the United States
of America and whose ownership of such capital stock is mandated by the law of any country other
than the United States of America) and voting interests of which are owned by any one or more of
Borrower and Borrower’s other Wholly-owned Restricted Subsidiaries at such time.

     Section 1.2 Miscellaneous. The words “hereof,” “herein,” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not any
particular provision of this Agreement.

SECTION 2. Commitments and Borrowings.

     Section 2.1 Loans. From time to time on or after the Effective Date and prior to
October 3, 2008, each Lender shall make loans under this Section 2.1 (each such loan, a
“Loan”) to Borrower in an aggregate principal amount at any one time outstanding up to but not
exceeding such Lender’s Commitment Percentage of the Aggregate Commitments. Loans repaid prior to
the Maturity Date may not be reborrowed. The aggregate of all Base Rate Borrowings to

- 17 -

 

be made by the Lenders in connection with a particular borrowing shall be equal to the lesser
of (a) the remaining unused portion of the Commitments or (b) $500,000 or an integral multiple of
$100,000 in excess thereof.

     Section 2.2  Intentionally Left Blank.

     Section 2.3 Intentionally Left Blank.

     Section 2.4 Terminations or Reductions of Commitments.

          (a) Mandatory. The Commitments shall be reduced by the amounts of any Loans made hereunder in
connection with such Commitments, and, in the event such Commitments are not earlier funded, all
Commitments in effect on the date of this Agreement, shall be terminated in their entirety on
October 3, 2008. Any Commitments created in accordance with Section 2.9 shall terminate subject to
the terms of such Commitments.

          (b) Intentionally Left Blank.

          (c) No Reinstatement. No termination of the Commitments may be reinstated without the written
approval of Agent and the Lenders.

     Section 2.5 Intentionally Left Blank.

     Section 2.6 Several Obligations. The failure of any Lender to make any Loan to be
made by it on the date specified therefor shall not relieve any other Lender of its obligation to
make its Loan or fund any such participation on such date, but neither Agent nor any Lender shall
be responsible or liable for the failure of any other Lender to make a Loan or fund a participation
to be made by such other Lender. Notwithstanding anything contained herein to the contrary, if a
Lender fails to make a Loan as and when required hereunder, then upon each subsequent event which
would otherwise result in funds being paid to the defaulting Lender, the amount which would have
been paid to the defaulting Lender shall be divided among the non-defaulting Lenders ratably
according to their respective shares of the outstanding Commitment Percentages until the
Obligations of each Lender (including the defaulting Lender) are equal to such Lender’s Commitment
Percentage of the total Obligations.

     Section 2.7 Notes. The Loans made by each Lender shall be evidenced by a single
promissory note of Borrower (each a “Note”) in substantially the form of Exhibit C hereto
payable to the order of such Lender in a principal amount equal to the Commitment of such Lender,
and otherwise duly completed. The promissory notes described in this Section are each, together
with all renewals, extensions, modifications and replacements thereof and substitutions therefor,
collectively called the “Notes”. Each Lender is hereby authorized by Borrower to endorse on the
schedule (or a continuation thereof) that may be attached to each Note of such Lender, to the
extent applicable, the date, amount, type of and the applicable period of interest for each Loan
made by such Lender to Borrower hereunder, and the amount of each payment or prepayment of
principal of such Loan received by such Lender, provided that any failure by such Lender to make
any such endorsement shall not affect the obligations of Borrower under such Note or hereunder in
respect of such Loan.

     Section 2.8 Use of Proceeds. The proceeds of the Borrowings shall be used (i) to
refinance certain existing Indebtedness of the Borrower, (ii) for working capital and general

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corporate purposes (including acquisitions) and (iii) to pay certain fees and expenses
incurred in connection with the transactions contemplated by this Agreement. Neither Agent nor any
Lender shall have any responsibility as to the use of any proceeds of the Borrowings.

     Section 2.9 Increase of Commitments.

          (a) Provided no Default or Event of Default has occurred and is continuing, upon notice to the
Agent (which shall promptly notify the Lenders), the Borrower may from time to time, request an
increase in the Aggregate Commitments by an aggregate amount of up to $65,000,000. At the time of
sending such notice, the Borrower (in consultation with the Agent) shall specify the time period
within which each Lender is requested to respond (which shall in no event be less than 10 Business
Days from the date of delivery of such notice to the Lenders). Each Lender shall notify the Agent
within such time period whether or not it agrees to increase its Commitment and, if so, whether by
an amount equal to, greater than, or less than its Commitment Percentage of such requested
increase. Any Lender not responding within such time period shall be deemed to have declined to
increase its Commitment. The Agent shall notify the Borrower and each Lender of the Lenders’
responses to each request made hereunder. To achieve the full amount of a requested increase, the
Borrower may also invite additional Eligible Assignees to become Lenders pursuant to a joinder
agreement in Proper Form. The Aggregate Commitments may not be increased pursuant to this Section
more than twice.

          (b) If the Aggregate Commitments are increased in accordance with this Section, the Agent and
the Borrower shall determine the effective date (the “Increase Effective Date”) and the final
allocation of such increase. The Agent shall promptly notify the Borrower and the Lenders of the
final allocation of such increase and the Increase Effective Date. As a condition precedent to
such increase, the Borrower shall deliver to the Agent a certificate of the Borrower dated as of
the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer
(i) certifying and attaching the resolutions adopted by the Borrower approving or consenting to
such increase, and (ii) certifying that, before and after giving effect to such increase, (A) the
representations and warranties contained in Section 6 hereof and the other Loan Documents are true
and correct in all material respects on and as of the Increase Effective Date, except to the extent
that such representations and warranties specifically refer to an earlier date, in which case they
are true and correct in all material respects as of such earlier date, and except that for purposes
of this Section 2.9, the representations and warranties contained in Section 6.2
shall be deemed to refer to the most recent statements furnished pursuant to subsections (a) and
(b) of Section 7.2, and (B) no Default or Event of Default exists.

          (c) This Section shall supersede any provisions in Sections 4.5, 11.5 or
11.6 to the contrary.

SECTION 3. Borrowings, Payments, Prepayments and Interest Options.

     Section 3.1 Borrowings. Borrower shall give Agent notice of each borrowing to be made
hereunder as provided in Section 4.3 hereof and Agent shall promptly notify each Lender of
such request. Not later than 12:00 noon central time on the date specified for each such borrowing
hereunder, each Lender shall make available the amount of the Loan, if any, to be made by it on
such date to Agent at its Principal Office, in immediately available funds, for the account of
Borrower. Such amounts received by Agent will be held in an account maintained by Borrower with
Agent. The amounts so received by Agent shall, subject to the terms and

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conditions of this Agreement, be made available to Borrower by wiring or otherwise
transferring, in immediately available funds, such amount to an account designated by Borrower and
approved by Agent.

     Section 3.2 Payments; Prepayments.

          (a) Optional Prepayments on Loans. Except as provided in Section 3.3 hereof, Borrower
shall have the right to prepay, on any Business Day, in whole or in part, without the payment of
any premium, penalty or fee (other than Funding Losses), any Loans at any time or from time to
time, provided that Borrower shall give Agent notice of each such prepayment as provided in
Section 4.3 hereof. Each optional prepayment on a Loan shall be in an amount equal to a
minimum of $1,000,000 plus integral multiples of $500,000.

          (b) Intentionally Left Blank.

          (c) Mandatory Prepayments. No later than five Business Days following date of receipt by
Borrower or any of its Subsidiaries of any cash proceeds (net of (i) attorneys’ fees, investment
banking fees, accountants’ fees, underwriting discounts and commissions, escrow fees, reserves,
related swap costs and commissions and other customary fees and expenses actually incurred in
connection with the issuance of applicable Indebtedness and other similar payment obligations
resulting therefrom (other than the obligations under this Agreement) that are required to be paid
concurrently or otherwise as a result of such issuance or incurrence and (ii) other amounts that
are to be refinanced or otherwise paid with all or part of the proceeds, including purchase money
financing or other asset acquisition, upgrade or repair enabling financing) from the incurrence of
any Indebtedness of Borrower or any of its Subsidiaries (other than with respect to any
Indebtedness under the Existing Credit Agreement and Excluded Transactions), Borrower shall prepay
the Loans in an aggregate amount equal to 100% of such net cash proceeds. Concurrently with any
such prepayment of the Loans, Borrower shall deliver to the Administrative Agent a certificate of
an authorized officer demonstrating the calculation of the amount of the applicable net proceeds.
In the event that Borrower shall subsequently determine that the actual net cash amount required to
be prepaid pursuant to this Section exceeded the amount set forth in such certificate, the Borrower
shall promptly make an additional prepayment of the Loans, and the Borrower shall concurrently
therewith deliver to the Administrative Agent a certificate of an authorized officer demonstrating
the derivation of such excess. Each mandatory prepayment shall be made without premium or penalty
other than the payment of all accrued and unpaid interest on the Loans prepaid and any applicable
breakage fees and funding losses pursuant to this Agreement.

          (d) Interest Payments. Accrued and unpaid interest on the unpaid principal balance of the
Loans shall be due and payable on the Interest Payment Dates and on the date of any prepayment of
the Loans.

          (e) Interest on Past Due Payments. Subject to Section 11.7 hereof, Borrower will pay
to Agent for the account of each Lender interest at the applicable Past Due Rate on any amount
payable by Borrower hereunder to or for the account of such Lender (but, if such amount is
interest, only to the extent legally allowed), which shall not be paid in full within five (5) days
after the date due (whether at stated maturity, by acceleration or otherwise), for the period
commencing on the expiration of such five (5) day period until the same is paid in full.

- 20 -

 

     Section 3.3 Interest Options.

          (a) Options Available. The outstanding principal balance of the Notes shall bear interest at
the Base Rate; provided, that (1) subject to Section 3.2(e), all past due amounts, both
principal and accrued and unpaid interest, shall bear interest at the Past Due Rate, and (2)
subject to the provisions hereof, Borrower shall have the option of having all or any portion of
the principal balances of the Notes from time to time outstanding bear interest at a Eurodollar
Rate. The records of Agent and each of the Lenders with respect to Interest Options, Interest
Periods and the amounts of Loans to which they are applicable shall be prima facie evidence of the
correctness thereof. Interest on the Loans shall be calculated at the Base Rate except where it is
expressly provided pursuant to this Agreement that a Eurodollar Rate is to apply. Interest on the
amount of each advance against the Notes shall be computed on the amount of that advance and from
the date it is made to but excluding the date of repayment thereof. Notwithstanding anything in
this Agreement to the contrary, for the full term of the Notes the interest rate produced by the
aggregate of all sums paid or agreed to be paid to the holders of the Notes for the use,
forbearance or detention of the debt evidenced thereby (including all interest on the Notes at the
Stated Rate plus the Additional Interest) shall not exceed the Ceiling Rate.

          (b) Designation and Conversion. Borrower shall have the right to designate or convert its
Interest Options in accordance with the provisions hereof. Provided no Event of Default has
occurred and is continuing and subject to the last sentence of Section 3.3(a) and the
provisions of Section 3.3(c), Borrower may elect to have a Eurodollar Rate apply or
continue to apply to all or any portion of the principal balance of the Notes. Each change in
Interest Options shall be a conversion of the rate of interest applicable to the specified portion
of the Loans, but such conversion shall not change the respective outstanding principal balances of
the Notes. The Interest Options shall be designated or converted in the manner provided below:

          (i) Borrower shall give Agent telephonic notice, promptly confirmed by a Rate
Designation Notice (and Agent shall promptly inform each Lender thereof). Each such
telephonic and written notice shall specify the amount of the Loan which is the subject of
the designation, if any; the amount of borrowings into which such borrowings are to be
converted or for which an Interest Option is designated; the proposed date for the
designation or conversion and the Interest Period or Periods, if any, selected by Borrower.
Such telephonic notice shall be irrevocable and shall be given to Agent no later than the
applicable Rate Designation Date.

          (ii) No more than five (5) LIBOR Borrowings shall be in effect at any time.

          (iii) Each advance, designation or conversion of a LIBOR Borrowing shall occur on a
LIBOR Business Day.

          (iv) Except as provided in Section 3.3(c) hereof, no LIBOR Borrowing may be
converted to a Base Rate Borrowing or another LIBOR Borrowing on any day other than the last
day of the applicable Interest Period.

          (v) Each request for a LIBOR Borrowing shall be in the amount equal to $5,000,000 or an
integral multiple of $1,000,000 in excess thereof.

- 21 -

 

          (vi) Subject to Section 3.3(c)(i), each designation of an Interest Option with
respect to the Notes shall apply to all of the Notes ratably in accordance with their
respective outstanding principal balances. If any Lender assigns an interest in its Note
when any LIBOR Borrowing is outstanding with respect thereto, then such assignee shall have
its ratable interest in such LIBOR Borrowing.

          (c) Special Provisions Applicable to LIBOR Borrowings.

          (i) Options Unlawful. If the adoption of any applicable Legal Requirement
after the Effective Date or any change after the Effective Date in any applicable Legal
Requirement or in the interpretation or administration thereof by any Governmental Authority
or compliance by any Lender with any request or directive (whether or not having the force
of law) issued after the Effective Date by any central bank or other Governmental Authority
shall at any time make it unlawful or impossible for any Lender to permit the establishment
of or to maintain any LIBOR Borrowing, the commitment of such Lender to establish such LIBOR
Borrowing shall forthwith be canceled and Borrower shall on the last day the Interest Period
relating to any outstanding LIBOR Borrowing (or within such earlier period as may be
required by applicable law) (1) convert the LIBOR Borrowing of such Lender to a Base Rate
Borrowing; (2) pay all accrued and unpaid interest to date on the amount so converted; and
(3) pay any amounts required to compensate each Lender for any additional cost or expense
which any Lender may incur as a result of such adoption of or change in such Legal
Requirement or in the interpretation or administration thereof and any Funding Loss which
any Lender may incur as a result of such conversion. If, when Agent so notifies Borrower,
Borrower has given a Rate Designation Notice specifying a LIBOR Borrowing but the selected
Interest Period has not yet begun, as to the applicable Lender such Rate Designation Notice
shall be deemed to be of no force and effect, as if never made, and the balance of the Loans
made by such Lender specified in such Rate Designation Notice shall bear interest at the
Base Rate until a different available Interest Option shall be designated in accordance
herewith.

          (ii) Increased Cost of Borrowings. Subject to Section 11.15, if the
adoption after the Effective Date of any applicable Legal Requirement or any change after
the Effective Date in any applicable Legal Requirement or in the interpretation or
administration thereof by any Governmental Authority or compliance by any Lender with any
request or directive (whether or not having the force of law) issued after the Effective
Date by any central bank or Governmental Authority shall at any time as a result of any
portion of the principal balances of the Notes being maintained on the basis of a Eurodollar
Rate:

     (1) subject any Lender to any Taxes, or any deduction or withholding
for any Taxes, on or from any payment due under any LIBOR Borrowing or other
amount due hereunder, other than income and franchise taxes of the United
States or its political subdivisions or such other jurisdiction in which the
applicable Lender has any office or applicable lending office; or

     (2) change the basis of taxation of payments due from Borrower to any
Lender under any LIBOR Borrowing (otherwise than by a change in

- 22 -

 

the rate of taxation of the gross revenues or overall net income of
such Lender); or

     (3) impose, modify, increase or deem applicable any reserve requirement
(excluding that portion of any reserve requirement included in the
calculation of the applicable Eurodollar Rate), special deposit requirement
or similar requirement (including, but not limited to, state law
requirements) against assets of any Lender, or against deposits with any
Lender, or against loans made by any Lender, or against any other funds,
obligations or other Property owned or held by any Lender; or

     (4) impose on any Lender any other condition regarding any LIBOR
Borrowing;

and the result of any of the foregoing is to increase the cost to any Lender
of agreeing to make or of making, renewing or maintaining such LIBOR
Borrowing, or reduce the amount of principal or interest received by any
Lender, then, within 15 Business Days after demand by Agent (accompanied by
a statement setting forth in reasonable detail the applicable Lender’s basis
therefor), Borrower shall pay to Agent additional amounts which shall
compensate each Lender for such increased cost or reduced amount. The
determination by any Lender of the amount of any such increased cost,
increased reserve requirement or reduced amount shall be prima facie
evidence of the correctness thereof. Borrower shall have the right, if it
receives from Agent any notice referred to in this paragraph, upon three
Business Days’ notice to Agent (which shall notify each affected Lender),
either (i) to repay in full (but not in part) any borrowing with respect to
which such notice was given, together with any accrued interest thereon, or
(ii) to convert the LIBOR Borrowing which is the subject of the notice to a
Base Rate Borrowing; provided, that any such repayment or conversion shall
be accompanied by payment of (x) the amount required to compensate each
Lender for the increased cost or reduced amount referred to in the preceding
paragraph; (y) all accrued and unpaid interest to date on the amount so
repaid or converted, and (z) any Funding Loss which any Lender may incur as
a result of such repayment or conversion. Each Lender will notify Borrower
through Agent of any event occurring after the date of this Agreement which
will entitle such Lender to compensation pursuant to this Section as
promptly as practicable after it obtains knowledge thereof and determines to
request such compensation, and (if so requested by Borrower through Agent)
will designate a different lending office of such Lender for the applicable
LIBOR Borrowing or will take such other action as Borrower may reasonably
request if such designation or action is consistent with the internal policy
of such Lender and legal and regulatory restrictions, will avoid the need
for, or reduce the amount of, such compensation and will not, in the sole
opinion of such Lender, be disadvantageous to such Lender (provided that
such Lender shall have no obligation so to designate a different lending
office which is located in the United States of America).

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          (iii) Inadequacy of Pricing and Rate Determination. If, for any reason with
respect to any Interest Period, Agent (or, in the case of clause 3 below, the applicable
Lender) shall have reasonably determined that:

     (1) Agent is unable through its customary general practices to
determine any applicable Eurodollar Rate, or

     (2) by reason of circumstances affecting the applicable market,
generally, Agent is not being offered deposits in United States dollars in
such market, for the applicable Interest Period and in an amount equal to
the amount of any applicable LIBOR Borrowing requested by Borrower, or

     (3) any applicable Eurodollar Rate will not adequately and fairly
reflect the cost to any Lender of making and maintaining such LIBOR
Borrowing hereunder for any proposed Interest Period,

then Agent shall give Borrower notice thereof and thereupon, (A) any Rate
Designation Notice previously given by Borrower designating the applicable
LIBOR Borrowing which has not commenced as of the date of such notice from
Agent shall be deemed for all purposes hereof to be of no force and effect,
as if never given, and (B) until Agent shall notify Borrower that the
circumstances giving rise to such notice from Agent no longer exist, each
Rate Designation Notice requesting the applicable Eurodollar Rate shall be
deemed a request for a Base Rate Borrowing, and any applicable LIBOR
Borrowing then outstanding shall be converted, without any notice to or from
Borrower, upon the termination of the Interest Period then in effect with
respect to it, to a Base Rate Borrowing.

          (iv) Funding Losses. Borrower shall indemnify each Lender against and hold
each Lender harmless from any Funding Loss. Subject to Section 11.15, this
indemnity shall survive the payment of the Notes. Within 15 Business Days after demand by
Agent (accompanied by a certificate of such Lender setting forth in reasonable detail the
amount and calculation of the amount claimed as to any Funding Losses, which shall be prima
facie evidence of the correctness thereof), Borrower shall pay to Agent, for the account of
such Lender, the amount of such Funding Losses.

          (d) Funding Offices; Adjustments Automatic; Calculation Year. Any Lender may, if it so
elects, fulfill its obligation as to any LIBOR Borrowing by causing a branch or affiliate of such
Lender to make such Loan and may transfer and carry such Loan at, to or for the account of any
branch office or affiliate of such Lender; provided, that in such event for the purposes of this
Agreement such Loan shall be deemed to have been made by such Lender and the obligation of Borrower
to repay such Loan shall nevertheless be to such Lender and shall be deemed held by it for the
account of such branch or affiliate. Without notice to Borrower or any other Person, each rate
required to be calculated or determined under this Agreement shall automatically fluctuate upward
and downward in accordance with the provisions of this Agreement. Interest at the Prime Rate and
at the Base Rate shall be computed on the basis of the actual number of days elapsed in a year
consisting of 365 or 366 days, as the case may be. All other interest required to be calculated or
determined under this Agreement shall be computed on

- 24 -

 

the basis of the actual number of days elapsed in a year consisting of 360 days, unless the
Ceiling Rate would thereby be exceeded, in which event, to the extent necessary to avoid exceeding
the Ceiling Rate, the applicable interest shall be computed on the basis of the actual number of
days elapsed in the applicable calendar year in which accrued.

          (e) Funding Sources. Notwithstanding any provision of this Agreement to the contrary, each
Lender shall be entitled to fund and maintain its funding of all or any part of the Loans in any
manner it sees fit, it being understood, however, that for the purposes of this Agreement all
determinations hereunder shall be made as if each Lender had actually funded and maintained each
LIBOR Borrowing during each Interest Period through the purchase of deposits having a maturity
corresponding to such Interest Period and bearing an interest rate equal to the Eurodollar Rate for
such Interest Period.

SECTION
4. Payments; Pro Rata Treatment; Computations, Etc.

     Section 4.1 Payments.

          (a) The Borrower shall repay to the Lenders on the Maturity Date the aggregate amount of Loans
outstanding on such date.

          (b) Except to the extent otherwise provided herein, all payments of principal, interest and
other amounts to be made by Borrower hereunder, under the Notes and under the other Loan Documents
shall be made in Dollars, in immediately available funds, to Agent at the Principal Office (or in
the case of a successor Agent, at the principal office of such successor Agent in the United
States), not later than 11:00 a.m. central time on the date on which such payment shall become due
(each such payment made after such time on such due date to be deemed to have been made on the next
succeeding Business Day).

          (c) Borrower shall, at the time of making each payment hereunder, under any Note or under any
other Loan Document, specify to Agent the Loans or other amounts payable by Borrower hereunder or
thereunder to which such payment is to be applied. Each payment received by Agent hereunder, under
any Note or under any other Loan Document for the account of a Lender shall be paid promptly to
such Lender, in immediately available funds. If Agent fails to send to any Lender the applicable
amount by the close of business on the date any such payment is received by Agent if such payment
is received prior to 11:00 a.m. central time (or on the next succeeding Business Day with respect
to payments which are received after 11:00 a.m. central time), Agent shall pay to the applicable
Lender interest on such amount from such date at the Federal Funds Rate. Borrower, the Lenders and
Agent acknowledge and agree that this provision and each other provision of this Agreement or any
of the other Loan Documents relating to the application of amounts in payment of the Obligations
shall be subject to the provisions of Section 4.2(f) regarding pro rata application of
amounts after an Event of Default shall have occurred and be continuing.

          (d) If the due date of any payment hereunder or under any Note falls on a day which is not a
Business Day, the due date for such payments (except as otherwise provided in clause (2) of the
definition of “Interest Period”) shall be extended to the next succeeding Business Day and interest
shall be payable for any principal so extended for the period of such extension.

- 25 -

 

          (e) All payments by Borrower hereunder or under any other Loan Document shall be made free and
clear of and without deduction for or on account of any present or future income, stamp, or other
taxes, fees, duties, withholding or other charges of any nature whatsoever imposed by any taxing
authority excluding in the case of Agent and each Lender taxes imposed on or measured by its net
income or franchise taxes imposed by the jurisdiction in which it is organized or through which it
acts for purposes of this Agreement (such non-excluded items being hereinafter referred to as
“Taxes”). If as a result of any change in law (or the interpretation thereof) after the date that
Agent or the applicable Lender became a party to this Agreement, any withholding or deduction from
any payment to be made to, or for the account of, such Person by Borrower hereunder or under any
other Loan Document is required in respect of any Taxes pursuant to any applicable law, rule, or
regulation, then Borrower will (i) pay to the relevant authority the full amount required to be so
withheld or deducted; (ii) to the extent available, promptly forward to Agent an official receipt
or other documentation reasonably satisfactory to Agent evidencing such payment to such authority;
and (iii) pay to Agent, for the account of each affected Person, such additional amount or amounts
as are necessary to ensure that the net amount actually received by such Lender will equal the full
amount such Person would have received had no such withholding or deduction been required. Each
such Person shall determine such additional amount or amounts payable to it (which determination
shall be prima facie evidence of the correctness thereof). If Agent or any Lender becomes aware
that any such withholding or deduction from any payment to be made by Borrower hereunder or under
any other Loan Document is required, then such Person shall promptly notify Agent and Borrower
thereof stating the reasons therefor and the additional amount required to be paid under this
Section. Each Lender shall execute and deliver to Agent and Borrower such forms as it may be
required to execute and deliver pursuant to Section 11.13 hereof. To the extent that any
such withholding or deduction results from the failure of a Lender to provide a form required by
Section 11.13 hereof (unless such failure is due to some prohibition under applicable Legal
Requirements), Borrower shall have no obligation to pay the additional amount required by clause
(iii) above. Anything in this Section notwithstanding, if any Lender elects to require payment by
Borrower of any material amount under this Section, Borrower may, within 60 days after the date of
receiving notice thereof and so long as no Default shall have occurred and be continuing, elect to
terminate such Lender as a party to this Agreement; provided that, concurrently with such
termination Borrower shall (i) if Agent and each of the other Lenders shall consent, pay that
Lender all principal, interest and fees and other amounts owed to such Lender through such date of
termination or (ii) have arranged for another financial institution approved by Agent (such
approval not to be unreasonably withheld or delayed) as of such date, to become a substitute Lender
for all purposes under this Agreement in the manner provided in Section 11.6; provided
further that, prior to substitution for any Lender, Borrower shall have given written notice to
Agent of such intention and the Lenders shall have the option, but no obligation, for a period of
60 days after receipt of such notice, to increase their Commitments in order to replace the
affected Lender in lieu of such substitution.

     Section 4.2 Pro Rata Treatment. Except to the extent otherwise provided herein: (a)
each borrowing from the Lenders under Section 2.1 hereof shall be made ratably from the
Lenders in accordance with their respective Commitments at such time; (b) each termination or
reduction of the Commitments of the Lenders under Section 2.4 hereof shall be applied, pro
rata, according to the Lenders’ respective Commitments at such time, and (c) each payment by
Borrower of principal of or interest on the Loans shall be made to Agent for the account of the
Lenders pro rata in accordance with the respective unpaid principal amounts of such Loans held by
the Lenders.

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     Section 4.3 Certain Actions, Notices, Etc. Notices to Agent of any termination or
reduction of Commitments and of borrowings and optional prepayments of Loans shall be irrevocable
and shall be effective only if received by Agent not later than 12:00 noon central time on the
number of Business Days prior to the date of the relevant termination, reduction, borrowing and/or
prepayment specified below:

	 	 	 
	 	 	Number of Business
Days
           Prior Notice
	Termination or Reduction of Commitments
	 	3 
	Loan repayment
	 	1 
	Borrowing of the Base Rate
	 	1 
	Selection of a Eurodollar Rate
	 	3 LIBOR Business Days
	Prepayment of Base Rate Borrowing
	 	1 
	Prepayment of LIBOR Borrowing
	 	3 LIBOR Business Days

Each such notice of termination or reduction shall specify the amount of the applicable Commitment
to be terminated or reduced. Each such notice of borrowing or prepayment shall specify the amount
of the Loans to be borrowed or prepaid and the date of borrowing or prepayment (which shall be a
Business Day). Agent shall promptly notify the affected Lenders of the contents of each such
notice.

     Section 4.4 Non-Receipt of Funds by Agent. Unless Agent shall have been notified by a
Lender or Borrower (the “Payor”) prior to the date on which such Lender is to make payment to Agent
of the proceeds of a Loan to be made by it hereunder or Borrower is to make a payment to Agent for
the account of one or more of the Lenders, as the case may be (such payment being herein called the
“Required Payment”), which notice shall be effective upon receipt, that the Payor does not intend
to make the Required Payment to Agent, Agent may assume that the Required Payment has been made and
may, in reliance upon such assumption (but shall not be required to), make the amount thereof
available to the intended recipient on such date and, if the Payor has not in fact made the
Required Payment to Agent, the recipient of such payment shall, on demand, pay to Agent the amount
made available by Agent, together with interest thereon in respect of the period commencing on the
date such amount was so made available by Agent until the date Agent recovers such amount at a rate
per annum equal to the Federal Funds Rate for such period.

     Section 4.5 Sharing of Payments, Etc. If a Lender shall obtain payment of any
principal of or interest on account of any Loan made by it under this Agreement or on any other
Obligation then due to such Lender hereunder, through the exercise of any right of set-off
(including, without limitation, any right of setoff or Lien granted under Section 9.2
hereof), banker’s lien, counterclaim or similar right or otherwise, it shall promptly purchase from
the other Lenders participations in the Loans made or other Obligations held, by the other Lenders
in such amounts, and make such other adjustments from time to time as shall be equitable to the end
that all the Lenders shall share the benefit of such payment (net of any expenses which may be
incurred by such Lender in obtaining or preserving such benefit) pro rata in accordance with the
unpaid Obligations then due to each of them; provided, however, that if all or any portion of

- 27 -

 

such excess payment is thereafter recovered from such purchasing Lender, such purchase from
each Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase
price to the extent of such recovery together with an amount equal to such Lender’s ratable share
(according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other amount paid or
payable by the purchasing Lender in respect of the total amount so recovered. To such end all the
Lenders shall make appropriate adjustments among themselves (by the resale of participations sold
or otherwise) if such payment is rescinded or must otherwise be restored. Borrower agrees, to the
fullest extent it may effectively do so under applicable law, that any Lender so purchasing a
participation in the Loans made or other Obligations held, by other Lenders may exercise all rights
of set-off, bankers’ lien, counterclaim or similar rights with respect to such participation as
fully as if such Lender were a direct holder of Loans or other Obligations in the amount of such
participation. Nothing contained herein shall require any Lender to exercise any such right or
shall affect the right of any Lender to exercise, and retain the benefits of exercising, any such
right with respect to any other indebtedness or obligation of Borrower.

SECTION 5. Conditions Precedent to Borrowings.

     Section 5.1 Initial Borrowings. The obligation of each Lender to make its initial
Borrowing hereunder is subject to the following conditions precedent, each of which shall have been
fulfilled or waived to the satisfaction of Agent:

          (a) Authorization and Status. Agent shall have received (i) copies of the Organizational
Documents of Borrower certified as true and correct by its secretary, assistant secretary or other
equivalent officer, (ii) evidence reasonably satisfactory to Agent of all action taken by Borrower
authorizing the execution, delivery and performance of the Loan Documents and all other documents
related to this Agreement to which it is a party (including, without limitation, a certificate of
the secretary, assistant secretary or other equivalent officer of each such party which is a
corporation setting forth the resolutions of its board of directors authorizing the transactions
contemplated thereby), and (iii) such certificates as may be appropriate to demonstrate the
qualification and good standing of Borrower in the jurisdiction of its organization and in each
other jurisdiction where the failure in which to qualify could reasonably be expected to have a
Material Adverse Effect.

          (b) Incumbency. Borrower shall have delivered to Agent a certificate in respect of the name
and signature of each of the officers (i) who is authorized to sign on its behalf the applicable
Loan Documents to which it is a party related to any Loan and (ii) who will, until replaced by
another officer or officers duly authorized for that purpose, act as its representative for the
purposes of signing documents and giving notices and other communications in connection with any
Loan. Agent and each Lender may conclusively rely on such certificates until they receive notice
in writing from Borrower to the contrary.

          (c) Notes. Agent shall have received the appropriate Notes of Borrower for each Lender, duly
completed and executed.

          (d) Loan Documents. Borrower shall have duly executed and delivered the Loan Documents to
which it is a party (in such number of copies as Agent shall have requested). Each

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such Loan Document shall be in substantially the form furnished to the Lenders prior to their
execution of this Agreement, together with such changes therein as Agent may approve.

          (e) Fees and Expenses. Borrower shall have paid to Agent all unpaid fees in the amounts
previously agreed upon in writing among Borrower and Agent.

          (f) Opinions of Counsel. Agent shall have received such opinions of counsel to Borrower as
Agent shall reasonably request with respect to Borrower and the Loan Documents.

          (g) Consents. Agent shall have received evidence reasonably satisfactory to the Majority
Lenders that all material consents of each Governmental Authority and of each other Person, if any,
reasonably required by the Agent in connection with (a) the Loans and (b) the execution, delivery
and performance of this Agreement and the other Loan Documents have been satisfactorily obtained.

          (h) Other Documents. Agent shall have received such other documents consistent with the terms
of this Agreement and relating to the transactions contemplated hereby as Agent may reasonably
request.

     Section 5.2 All Borrowings. The obligation of each Lender to make any Loan to be made
by it hereunder is subject to: (a) the accuracy, in all material respects, on the date of such
Loan of all representations and warranties of Borrower contained in this Agreement and the other
Loan Documents, except to the extent expressly limited to an earlier date; (b) Agent shall have
received the following, all of which shall be duly executed and in Proper Form: (1) a Request for
Extension of Credit as to the Loan no later than 12:00 noon central time on the Business Day on
which such Request for Extension of Credit must be given under Section 4.3 hereof and (2)
such other documents as Agent may reasonably require; (c) prior to the making of such Loan, there
shall have occurred no event which could reasonably be expected to have a Material Adverse Effect;
(d) no Default or Event of Default shall have occurred and be continuing, and (e) the making of
such Loan shall not be illegal or prohibited by any Legal Requirement. The submission by Borrower
of a Request for Extension of Credit shall be deemed to be a representation and warranty that the
conditions precedent to the applicable Loan have been satisfied.

SECTION 6. Representations and Warranties.

     To induce Agent and the Lenders to enter into this Agreement and to make the Borrowings,
Borrower represents and warrants (such representations and warranties to survive any investigation
and the making of the Borrowings) to the Lenders and Agent as follows:

     Section 6.1 Organization. Borrower and each of its Restricted Subsidiaries (a) is
duly organized, validly existing and in good standing under the laws of the jurisdiction of its
organization; (b) has all necessary corporate and organizational power and authority to conduct its
business as presently conducted, and (c) is duly qualified to do business and in good standing in
the jurisdiction of its organization and in all jurisdictions in which the failure to so qualify
could reasonably be expected to have a Material Adverse Effect.

     Section 6.2 Financial Statements. Borrower has furnished to Agent (i) audited
financial statements (including a balance sheet) as to Borrower which fairly present in all
material respects, in accordance with GAAP, the consolidated financial condition and the results

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of operations of Borrower and its Subsidiaries as of the end of the fiscal year ended
December 31, 2007, and (ii) unaudited financial statements (including a balance sheet) as to
Borrower which fairly present in all material respects, in accordance with GAAP (subject to
year-end adjustments and the absence of notes), the consolidated financial condition and the
results of operations of Borrower and its Subsidiaries as of the end of the fiscal quarters ended
March 31, 2008 and June 30, 2008. No events, conditions or circumstances have occurred from the
date that the actual financial statements were delivered to Agent through the Effective Date which
would cause said financial statements to be misleading in any material respect, provided that, with
respect to projected financial information, the Borrower represents only that such information was
prepared in good faith based on assumptions believed to be reasonable at the time, it being
recognized by the Lenders that such projections as to future events are not to be viewed as facts
and that actual results during the period or periods covered by any such projections may differ
from the projected results. There are no material instruments or liabilities which should be
reflected in such financial statements provided to Agent which are not so reflected that are
necessary in order for such financial statement presentation to conform to GAAP. Since
December 31, 2007, no event has occurred and no circumstance has arisen which could reasonably be
expected to cause a Material Adverse Effect.

     Section 6.3 Enforceable Obligations; Authorization. The Loan Documents are legal,
valid and binding obligations of Borrower, enforceable in accordance with their respective terms,
except as may be limited by bankruptcy, insolvency and other similar laws and judicial decisions
affecting creditors’ rights generally and by general equitable principles. The execution, delivery
and performance of the Loan Documents by Borrower (a) have all been duly authorized by all
necessary action; (b) are within the corporate power and authority of Borrower; (c) do not and will
not contravene or violate any Legal Requirement applicable to Borrower or the Organizational
Documents of Borrower, the contravention or violation of which could reasonably be expected to have
a Material Adverse Effect; (d) do not and will not result in the breach of, or constitute a default
under, any material agreement or instrument by which Borrower or any of its Property may be bound,
and (e) do not and will not result in the creation of any Lien upon any Property of Borrower,
except in favor of Agent or as expressly contemplated herein or therein. All necessary permits,
registrations and consents for such making and performance have been obtained.

     Section 6.4 Other Debt. Neither Borrower nor any its Restricted Subsidiaries is in
default in the payment of any other Indebtedness or under any agreement, mortgage, deed of trust,
security agreement or lease to which it is a party and which default could reasonably be expected
to have a Material Adverse Effect.

     Section 6.5 Litigation. There is no litigation or administrative proceeding, to the
knowledge of any executive officer of Borrower, pending or threatened against, nor any outstanding
judgment, order or decree against, Borrower or any of its Restricted Subsidiaries before or by any
Governmental Authority which does or could reasonably be expected to have a Material Adverse
Effect. Neither Borrower nor any its Restricted Subsidiaries is in default with respect to any
judgment, order or decree of any Governmental Authority where such default could reasonably be
expected to have a Material Adverse Effect.

     Section 6.6 Taxes. Borrower and each of its Restricted Subsidiaries has filed all tax
returns required to have been filed and paid all taxes shown thereon to be due, except those for
which extensions have been obtained and those which are being contested in good faith or where

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the failure to make required filings or pay required taxes could not reasonably be expected to
have a Material Adverse Effect.

     Section 6.7 Regulations U and X. None of the proceeds of any Loan will be used for
the purpose of purchasing or carrying directly or indirectly any margin stock or for any other
purpose would constitute this transaction a “purpose credit” within the meaning of Regulations U
and X of the Board of Governors of the Federal Reserve System, as any of them may be amended from
time to time.

     Section 6.8 Subsidiaries. As of the Effective Date, Borrower has no Subsidiaries
other than as set forth on Exhibit F hereto. There are no Unrestricted Subsidiaries of
Borrower as of the Effective Date.

     Section 6.9 No Untrue or Misleading Statements. No document, instrument or other
writing furnished to the Lenders by or on behalf of Borrower in connection with the transactions
contemplated in any Loan Document contains any untrue material statement of fact or omits to state
any such fact necessary to make the representations, warranties and other statements contained
herein or in such other document, instrument or writing not misleading in any material respect in
light of the circumstances in which they were made.

     Section 6.10 ERISA. With respect to each Plan, Borrower and each member of the
Controlled Group have fulfilled their obligations, including obligations under the minimum funding
standards of ERISA and the Code and are in compliance in all material respects with the provisions
of ERISA and the Code. No event has occurred which could result in a liability of Borrower or any
member of the Controlled Group to the PBGC or a Plan (other than to make contributions in the
ordinary course) could reasonably be expected to have a Material Adverse Effect. There have not
been any nor are there now existing any events or conditions that would cause the Lien provided
under Section 4068 of ERISA to attach to any Property of Borrower or any member of the Controlled
Group. Unfunded Liabilities as of the date hereof are not reasonably expected to result in a
Material Adverse Effect. No “prohibited transaction” has occurred with respect to any Plan.

     Section 6.11 Investment Company Act. Neither Borrower nor any its Restricted
Subsidiaries is an investment company within the meaning of the Investment Company Act of 1940, as
amended, or, directly or indirectly, controlled by or acting on behalf of any Person which is an
investment company, within the meaning of said Act.

     Section 6.12  Intentionally Left Blank.

     Section 6.13  Fiscal Year. The fiscal year of Borrower ends on December 31.

     Section 6.14 Compliance. Borrower and each of its Restricted Subsidiaries is in
compliance with all Legal Requirements applicable to it, except to the extent that the failure to
comply therewith could not reasonably be expected to have a Material Adverse Effect.

     Section 6.15 Environmental Matters. Borrower and each of its Restricted Subsidiaries
has, to the best knowledge of their respective executive officers, obtained and maintained in
effect all Environmental Permits (or the applicable Person has initiated the necessary steps to
transfer the Environmental Permits into its name or obtain such permits), the failure to obtain
which could reasonably be expected to have a Material Adverse Effect. Borrower and each of its

- 31 -

 

Restricted Subsidiaries and their Properties, business and operations have been and are, to
the best knowledge of their respective executive officers, in compliance with all applicable
Requirements of Environmental Law and Environmental Permits the failure to comply with which could
reasonably be expected to have a Material Adverse Effect. Borrower and each of its Restricted
Subsidiaries and their Properties, business and operations are not subject to any (A) Environmental
Claims or (B), to the best knowledge of their respective executive officers (after making
reasonable inquiry of the personnel and records of their respective Corporations), Environmental
Liabilities, in either case direct or contingent, arising from or based upon any act, omission,
event, condition or circumstance occurring or existing on or prior to the date hereof which could
reasonably be expected to have a Material Adverse Effect. None of the officers of Borrower or any
of its Restricted Subsidiaries has received any notice of any violation or alleged violation of any
Requirements of Environmental Law or Environmental Permit or any Environmental Claim in connection
with its Properties, liabilities, condition (financial or otherwise), business or operations which
could reasonably be expected to have a Material Adverse Effect. Borrower does not know of any
event or condition with respect to currently enacted Requirements of Environmental Laws presently
scheduled to become effective in the future with respect to any of the Properties of Borrower or
any of its Restricted Subsidiaries which could reasonably be expected to have a Material Adverse
Effect, for which good faith provisions have not been made by Borrower or such Restricted
Subsidiary in its business plan and projections of financial performance.

     Section 6.16 Tax Shelter Regulations. The Borrower does not intend to treat the Loans
and related transactions as being a “reportable transaction” (within the meaning of Treasury
Regulation Section 1.6011-4). In the event the Borrower determines to take any action inconsistent
with such intention, it will promptly notify the Agent thereof. If the Borrower so notifies the
Agent, the Borrower acknowledges that one or more of the Lenders may treat its Loans as part of a
transaction that is subject to Treasury Regulation Section 301.6112-1, and such Lender or Lenders,
as applicable, will maintain the lists and other records required by such Treasury Regulation.

SECTION 7. Affirmative Covenants.

     Borrower covenants and agrees with Agent and the Lenders that prior to the termination of this
Agreement it will do or cause to be done, and cause each of its Restricted Subsidiaries to do or
cause to be done, each and all of the following:

     Section 7.1 Taxes, Existence, Regulations, Property, Etc. At all times, except where
failure or noncompliance could not reasonably be expected to have a Material Adverse Effect: (a)
pay when due all taxes and governmental charges of every kind upon it or against its income,
profits or Property, unless and only to the extent that the same shall be contested diligently in
good faith and adequate reserves in accordance with GAAP have been established therefor; (b) do all
things necessary to preserve its existence, qualifications, rights and franchises; (c) comply with
all applicable Legal Requirements (including without limitation Requirements of Environmental Law)
in respect of the conduct of its business and the ownership of its Property, and (d) cause its
Property to be protected, maintained and kept in good repair and make all replacements and
additions to such Property as may be reasonably necessary to conduct its business properly and
efficiently.

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     Section 7.2 Financial Statements and Information. Furnish to Agent and each Lender
each of the following: (a) as soon as available and in any event within the later of (i) 90 days
after the end of each applicable fiscal year or (ii) five Business Days after Borrower’s applicable
Securities and Exchange Commission report filing date for such fiscal year, beginning with the
fiscal year ending on December 31, 2008, Annual Financial Statements, together with a
Borrower-prepared reconciliation of such Annual Financial Statements with annual financial
statements of Borrower and its Restricted Subsidiaries (attested by Borrower as true and correct in
all material respects); (b) as soon as available and in any event within the later of (i) 45 days
after the end of each fiscal quarter of each applicable fiscal year, beginning with the fiscal
quarter ending on September 30, 2008, or (ii) five Business Days after Borrower’s applicable
Securities and Exchange Commission report filing date for such fiscal quarter of each applicable
fiscal year, Quarterly Financial Statements, together with a Borrower-prepared reconciliation of
such Quarterly Financial Statements with quarterly financial statements of Borrower and its
Restricted Subsidiaries (attested by Borrower as true and correct in all material respects); (c)
concurrently with the financial statements provided for in Subsections 7.2(a) and (b) hereof, such
schedules, computations and other information, in reasonable detail, as may be reasonably required
by Agent to demonstrate compliance with the covenants set forth herein or reflecting any
non-compliance therewith as of the applicable date, all attested by a Senior Financial Officer as
true and correct in all material respects to the best knowledge of such officer and, commencing
with the quarterly financial statement prepared as of September 30, 2008, a compliance certificate
(“Compliance Certificate”) substantially in the form of Exhibit E hereto, duly executed by
such authorized officer; (d) promptly upon their becoming publicly available, each financial
statement, report, notice or definitive proxy statements sent by Borrower to shareholders generally
and each regular or periodic report and each registration statement, prospectus or written
communication (other than transmittal letters and other than registrations on Form S-8 under the
Securities Act, registrations of equity securities pursuant to Rule 415 under the Securities Act
which do not involve an underwritten public offering and reports on Form 11-K or pursuant to
Section 16(a) under the Exchange Act) in respect thereof filed by Borrower with, or received by
Borrower in connection therewith from, any securities exchange or the Securities and Exchange
Commission or any successor agency, (e) promptly after the Borrower has notified the Agent of any
intention by the Borrower to treat the Loans and related transactions as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4), a duly completed copy of
IRS Form 8886 or any successor form; (f) such other information relating to bilateral facilities
maintained outside of this Agreement, which may include information regarding the obligor, the
institution, the facility size and outstanding balances, and (g) such other information relating to
the condition (financial or otherwise), operations, prospects or business of Borrower or any of its
Restricted Subsidiaries as from time to time may be reasonably requested by Agent. Each delivery
of a financial statement pursuant to this Section 7.2 shall constitute a restatement of the
representations contained in the last two sentences of Section 6.2.

     Section 7.3 Financial Tests. Have and maintain:

          (a) Debt to Capitalization Ratio — a Debt to Capitalization Ratio of not greater than the
percentage set forth in the table below for the applicable fiscal quarter set forth in the table
below:

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	Fiscal Quarters Ending	 	Applicable Percentage
	September 30, 2008
	 	 	55	%
	December 31, 2008 and at all times
thereafter
	 	 	50	%

          (b) Interest Coverage Ratio — an Interest Coverage Ratio of not less than 3.00 to 1.00 at all
times.

     Section 7.4 Inspection. Permit Agent and each Lender upon 3 days’ prior notice
(unless a Default or an Event of Default has occurred which is continuing, in which case no prior
notice is required) to inspect its Property in a manner consistent with applicable safety
requirements and policies of insurance, to examine its files, books and records, except classified
governmental material, and make and take away copies thereof, and to discuss its affairs with its
officers and accountants, all during normal business hours and at such intervals and to such extent
as Agent may reasonably desire without unreasonably interfering with Borrower’s or its Restricted
Subsidiaries’ operations or business.

     Section 7.5 Further Assurances. Promptly execute and deliver, at Borrower’s expense,
any and all other and further instruments which may be reasonably requested by Agent to cure any
defect in the execution and delivery of any Loan Document in order to effectuate the transactions
contemplated by the Loan Documents.

     Section 7.6 Books and Records. Maintain books of record and account which permit
financial statements to be prepared in accordance with GAAP.

     Section 7.7 Insurance. Maintain insurance on its Property with responsible companies
in such amounts, with such deductibles and against such risks as are usually carried by owners of
similar businesses and Properties in the same general areas in which Borrower or any of its
Restricted Subsidiaries operates, and furnish Agent satisfactory evidence thereof promptly upon
reasonable request. Agent shall be provided with a certificate showing coverages provided under
the policies of insurance and such policies shall be endorsed to the effect that they will not be
canceled for nonpayment of premium, reduced or affected in any material manner without thirty (30)
days’ prior written notice to Agent.

     Section 7.8 Notice of Certain Matters. Give Agent written notice of the following
promptly after any executive officer of Borrower shall become aware of the same:

          (a) the issuance by any court or governmental agency or authority of any injunction, order or
other restraint prohibiting, or having the effect of prohibiting, the performance of this
Agreement, any other Loan Document, or the making of the Loans or the initiation of any litigation,
or any claim or controversy which would reasonably be expected to result in the initiation of any
litigation, seeking any such injunction, order or other restraint;

          (b) the filing or commencement of any action, suit or proceeding, whether at law or in equity
or by or before any court or any Governmental Authority involving claims which could reasonably be
expected to result in a Default hereunder or a Material Adverse Effect; and

 - 34 - 

 

          (c) any Event of Default or Default, specifying the nature and extent thereof and the action
(if any) which is proposed to be taken with the respect thereto.

          (d) Borrower will also notify Agent in writing at least 30 days prior to the date that it
changes its name or the location of its chief executive office or principal place of business or
the place where it keeps its books and records.

     Section 7.9 Capital Adequacy. If any Lender shall have determined that the adoption
after the Effective Date or effectiveness after the Effective Date (whether or not previously
announced) of any applicable law, rule, regulation or treaty regarding capital adequacy, or any
change therein after the Effective Date, or any change in the interpretation or administration
thereof after the Effective Date by any Governmental Authority, central bank or comparable agency
charged with the interpretation or administration thereof, or compliance by any Lender with any
request or directive after the Effective Date regarding capital adequacy (whether or not having the
force of law) of any such Governmental Authority, central bank or comparable agency has or would
have the effect of reducing the rate of return on the capital of such Lender or any corporation
controlling such Lender as a consequence of its obligations hereunder, under the Notes or other
Obligations held by it to a level below that which such Lender or such corporation could have
achieved but for such adoption, change or compliance (taking into consideration such Lender’s
policies with respect to capital adequacy) by an amount deemed by such Lender or such corporation
to be material, then from time to time, upon satisfaction of the conditions precedent set forth in
this Section, after demand by such Lender (with a copy to Agent) as provided below, pay (subject to
Sections 11.7 and 11.15 hereof) to such Lender such additional amount or amounts as
will compensate such Lender or such corporation for such reduction. The certificate of any Lender
setting forth such amount or amounts as shall be necessary to compensate it and the basis thereof
and reasons therefor shall be delivered as soon as practicable to Borrower and shall be prima facie
evidence of the correctness thereof. Borrower shall pay the amount shown as due on any such
certificate within fifteen (15) Business Days after the delivery of such certificate. In preparing
such certificate, a Lender may employ such assumptions and allocations of costs and expenses as it
shall in good faith deem reasonable and may use any reasonable averaging and attribution method.

     Section 7.10 ERISA Information and Compliance. Promptly furnish to Agent (i)
immediately upon receipt, a copy of any notice of complete or partial withdrawal liability under
Title IV of ERISA and any notice from the PBGC under Title IV of ERISA of an intent to terminate or
appoint a trustee to administer any Plan, (ii) if requested by Agent, promptly after the filing
thereof with the United States Secretary of Labor or the PBGC or the Internal Revenue Service,
copies of each annual and other report with respect to each Plan or any trust created thereunder,
(iii) immediately upon becoming aware of the occurrence of any “reportable event,” as such term is
defined in Section 4043 of ERISA, for which the disclosure requirements of Regulation Section
2615.3 promulgated by the PBGC have not been waived, or of any “prohibited transaction,” as such
term is defined in Section 4975 of the Code, in connection with any Plan or any trust created
thereunder, a written notice signed by an authorized officer of Borrower or the applicable member
of the Controlled Group specifying the nature thereof, what action Borrower or the applicable
member of the Controlled Group is taking or proposes to take with respect thereto, and, when known,
any action taken by the PBGC, the Internal Revenue Service or the Department of Labor with respect
thereto, (iv) promptly after the filing or receiving thereof by Borrower or any member of the
Controlled Group of any notice of the institution of any proceedings or other actions which may
result in the termination of any Plan,

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and (v) each request for waiver of the funding standards or extension of the amortization
periods required by Sections 303 and 304 of ERISA or Section 412 of the Code promptly after the
request is submitted by Borrower or any member of the Controlled Group to the Secretary of the
Treasury, the Department of Labor or the Internal Revenue Service, as the case may be. To the
extent required under applicable statutory funding requirements, Borrower will fund, or will cause
the applicable member of the Controlled Group to fund, all current service pension liabilities as
they are incurred under the provisions of all Plans from time to time in effect, and comply with
all applicable provisions of ERISA, in each case, except to the extent that failure to do the same
could not reasonably be expected to have a Material Adverse Effect. Borrower covenants that it
shall and shall cause each member of the Controlled Group to (1) make contributions to each Plan in
a timely manner and in an amount sufficient to comply with the contribution obligations under such
Plan and the minimum funding standards requirements of ERISA; (2) prepare and file in a timely
manner all notices and reports required under the terms of ERISA including but not limited to
annual reports; and (3) pay in a timely manner all required PBGC premiums, in each case, except to
the extent that failure to do the same could not reasonably be expected to have a Material Adverse
Effect.

     Section 7.11 Guaranty of Obligations by Material Domestic Subsidiaries.

          (a) In the event that no later than the date that any Compliance Certificate is required to be
delivered pursuant to Section 7.2(c), the Borrower determines that any of its Subsidiaries
is a Material Domestic Subsidiary and has not guaranteed the Obligations pursuant to this
Section 7.11(a), the Borrower shall promptly, but in any event within thirty (30) days
thereafter, notify the Administrative Agent in writing thereof. The Borrower will, promptly after
request by the Administrative Agent (but in any event within thirty (30) days after such request)
made from time to time, cause all of its Material Domestic Subsidiaries to guarantee the
Obligations pursuant to a guaranty in form and substance reasonably satisfactory to the
Administrative Agent (to the extent such Material Domestic Subsidiaries are not already subject to
such a guaranty); provided, however, that the aggregate amount of the Obligations guaranteed
pursuant to guaranties executed by Material Domestic Subsidiaries shall be capped at seven and
one-half percent (7-1/2%) of Consolidated Adjusted Net Worth.

          (b) The guarantees made under Section 7.11(a) shall terminate when (i) all the
Obligations have been performed or paid in full and (ii) the Lenders have no further commitments
under the Credit Agreement. In the event of (i) a guarantor of the Obligations is no longer a
Material Domestic Subsidiary or (ii) a dissolution, sale or other disposition (including by way of
merger or consolidation) of all or substantially all of the assets or all of the capital stock or
other equity of any guarantor of the Obligations occurs and such sale or disposition is permitted
by this Agreement (or permitted pursuant to a waiver, amendment, modification of or consent to a
transaction otherwise prohibited by any of such agreements), then, so long as no Event of Default
has occurred which is continuing, the Administrative Agent shall, upon written request by such
guarantor, release such guarantor from its liabilities and obligations under the applicable
guaranty pursuant to such documentation as Borrower may reasonably require. Except as provided in
the foregoing provisions of this Section 7.11(b), any release of a Material Domestic
Subsidiary from its liabilities under a guaranty made under Section 7.11(a) shall require
approval by all of the Lenders (notwithstanding anything to the contrary set forth in Section
11.5 hereof).

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SECTION 8. Negative Covenants.

     Borrower covenants and agrees with Agent and the Lenders that prior to the termination of this
Agreement it will not, and will not suffer or permit any of its Restricted Subsidiaries to, do any
of the following:

     Section 8.1 Limitations on Indebtedness and Preferred Stock of Restricted
Subsidiaries.

          (a) Permit any Restricted Subsidiary of Borrower to create, issue, assume, guarantee or
otherwise incur or in any manner become liable in respect of any Indebtedness or Preferred Stock,
except:

               (i) Indebtedness or Preferred Stock of a Restricted Subsidiary of Borrower outstanding
as of the Effective Date and described on Exhibit I hereto;

               (ii) Indebtedness or Preferred Stock of a Restricted Subsidiary of Borrower owing or
issued to Borrower or to a Wholly-owned Restricted Subsidiary; and

               (iii) additional Indebtedness or Preferred Stock of a Restricted Subsidiary of Borrower
created, issued, assumed, guaranteed or incurred within the limitations provided in
Section 8.2(b) hereof.

          (b) Indebtedness or Preferred Stock existing within the limitations of Section
8.1(a)(i) may be renewed, extended or refinanced (without increase in principal amount or
liquidation value, as the case may be, at the time of such renewal, extension or refunding and
subject only to covenants or restrictions which are not materially more onerous than those
applicable to such Indebtedness or Preferred Stock, as the case may be, at the time of original
issuance thereof) without regard to the limitations of Section 8.1(a)(iii), except that no
such Indebtedness or Preferred Stock may in any event be renewed, extended or refinanced if at the
time thereof and after giving effect thereto and to the application of the proceeds thereof, a
Default or Event of Default would exist.

     Section 8.2 Priority Liabilities. Create, issue, assume, guarantee or otherwise incur
or in any manner become liable in respect of any Priority Liability, unless:

          (a) in the case of Indebtedness of Borrower or any of its Restricted Subsidiaries secured by
any Lien created pursuant to Section 8.3(l), at the time of creation, issuance, assumption,
guarantee or incurrence thereof and after giving effect thereto and to the application of the
proceeds thereof:

               (i) no Default or Event of Default would exist;

               (ii) the aggregate amount of all Indebtedness of Borrower or any of its Restricted
Subsidiaries (other than such Indebtedness permitted pursuant to Section 8.1(a)(ii)
and other than such Indebtedness owing by Borrower to a Material Domestic Subsidiary)
secured by Liens created pursuant to Section 8.3(l) (including the Indebtedness then
to be created, issued, assumed, guaranteed or incurred, but excluding MARAD Indebtedness)
would not exceed 15% of Consolidated Adjusted Net Worth; and

 - 37 - 

 

               (iii) the aggregate amount of all Indebtedness of Borrower or any of its Restricted
Subsidiaries (other than such Indebtedness permitted pursuant to Section 8.1(a)(ii)
and other than such Indebtedness owing by Borrower to a Material Domestic Subsidiary)
secured by Liens created pursuant to Section 8.3(l) (including the Indebtedness then
to be created, issued, assumed, guaranteed or incurred and any MARAD Indebtedness) would not
exceed 25% of Consolidated Adjusted Net Worth;

          (b) in the case of Indebtedness or any Preferred Stock of a Restricted Subsidiary of Borrower
(other than Indebtedness permitted pursuant to Section 8.1(a)(i) or (ii) hereof),
at the time of creation, issuance, assumption, guarantee or incurrence thereof and after giving
effect thereto and to the application of the proceeds thereof:

               (i) no Default or Event of Default would exist; and

               (ii) the aggregate amount of all Indebtedness of Restricted Subsidiaries of Borrower
(other than such Indebtedness permitted pursuant to Section 8.1(a)(ii) and other
than such Indebtedness owing by Borrower to a Material Domestic Subsidiary) plus the
aggregate liquidation value of all Preferred Stock of Restricted Subsidiaries of Borrower
(including the Indebtedness or Preferred Stock then to be created, issued, assumed,
guaranteed or incurred) would not exceed 15% of Consolidated Adjusted Net Worth.

     Section 8.3 Limitations on Liens. Create or incur, or suffer to be incurred or to
exist, any Lien on its or their property or assets, whether now owned or hereafter acquired, or
upon any income or profits therefrom, or transfer any property for the purpose of subjecting the
same to the payment of obligations in priority to the payment of its or their general creditors, or
acquire or agree to acquire any property or assets upon conditional sales agreements or other title
retention devices, except the following:

          (a) Liens for property taxes and assessments or governmental charges or levies and Liens
securing claims or demands of mechanics, materialmen, vendors, carriers and warehousemen and other
like Persons; provided that payment thereof is not at the time required by Section 7.1;

          (b) Liens of or resulting from any judgment or award, the time for the appeal or petition for
rehearing of which shall not have expired, or in respect of which Borrower or a Restricted
Subsidiary of Borrower shall at any time in good faith be prosecuting an appeal or proceeding for a
review and in respect of which a stay of execution pending such appeal or proceeding for review
shall have been secured;

          (c) Liens incidental to the conduct of business or the ownership of properties and assets
(including Liens in connection with worker’s compensation, unemployment insurance and other like
laws, maritime, warehousemen’s and attorneys’ liens and statutory landlords’ liens and deposits
made to obtain insurance), customary statutory, common law and contractual rights of a bank to
set-off claims of such bank against cash on deposit with such bank, and Liens to secure the
performance of bids, tenders or trade contracts, or to secure statutory obligations, surety or
appeal bonds or other Liens of like general nature, in any such case incurred in the ordinary
course of business and not in connection with the borrowing of money; provided in each case,

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the obligation secured is not overdue or, if overdue, is being contested in good faith by
appropriate actions or proceedings;

          (d) minor survey exceptions or minor defects, irregularities in title, encumbrances,
easements, restrictions or reservations, or rights of others for rights-of-way, utilities and other
similar purposes, or zoning or other restrictions as to the use of real properties, which are
necessary for the conduct of the activities of Borrower and its Restricted Subsidiaries or which
customarily exist on properties of corporations engaged in similar activities and similarly
situated and which do not in any event materially impair their use in the operation of the business
of Borrower and its Restricted Subsidiaries;

          (e) Liens securing Indebtedness owed Borrower or to any Wholly-owned Subsidiary by any
Restricted Subsidiary of Borrower;

          (f) Liens existing as of the Effective Date and described on Exhibit I hereto;

          (g) Liens on the capital stock, partnership or other equity interests held, directly or
indirectly, by Borrower or any of its Restricted Subsidiaries in a joint venture, provided that the
proceeds of Indebtedness of Borrower or such Restricted Subsidiary secured by such Liens are in
their entirety contributed or advanced to such joint venture; provided, further, that (i) at the
time of the creation, issuance, assumption, guarantee or incurrence of any such Indebtedness by
Borrower or any of its Restricted Subsidiaries and after giving effect thereto and to the
application of the proceeds thereof, no Default or Event of Default would exist, (ii) any such
Indebtedness, created, issued, assumed, guaranteed or incurred by Borrower or any of its Restricted
Subsidiaries shall have been created within the applicable limitations of Section 8.2,
(iii) with respect to any such Indebtedness neither Borrower or any of its Restricted Subsidiaries,
nor any of the property or assets of Borrower or any of its Restricted Subsidiaries, other than
proceeds realized from the sale or other disposition of such capital stock, partnership or other
equity interests shall, directly or indirectly, be liable for or secure in any manner whatsoever
the payment thereof and (iv) other than Indebtedness arising from a Lien on assets of Borrower or
any of its Restricted Subsidiaries consisting of equity interest in an Unrestricted Subsidiary such
Indebtedness shall be incurred within the limitations provided in Section 8.2(b) hereof;

          (h) Liens on the capital stock, partnership or other equity interests held, directly or
indirectly, by Borrower or any of its Restricted Subsidiaries in a joint venture, provided that the
proceeds of Indebtedness created by an Unrestricted Subsidiary or any other Affiliate secured by
such Liens are in their entirety contributed or advanced to such joint venture; provided, further,
that with respect to any such Indebtedness neither Borrower or any of its Restricted Subsidiaries,
nor any of the property or assets of Borrower or any of its Restricted Subsidiaries, other than
proceeds realized from the sale or other disposition of such capital stock, partnership or other
equity interests shall, directly or indirectly, be liable for or secure in any manner whatsoever
the payment thereof;

          (i) Liens created or incurred after the Effective Date given to secure the payment of the
purchase price incurred in connection with the acquisition or purchase of assets useful and
intended to be used in carrying on the business of Borrower or any of its Restricted Subsidiaries,
so long as such Liens were not incurred, extended or renewed in contemplation of such acquisition
or purchase; provided that (i) the Lien shall attach solely to the assets acquired or purchased,
(ii) such Lien shall have been created or incurred no more than after 180 days of the

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date of acquisition or purchase, (iii) at the time of acquisition or purchase of such assets,
the aggregate amount remaining unpaid on all Indebtedness secured by Liens on such assets, whether
or not assumed by Borrower or any of its Restricted Subsidiaries, shall not exceed an amount equal
to the lesser of the total purchase price or fair market value at the time of acquisition or
purchase of such assets (as determined in good faith by the Board of Directors of Borrower), (iv)
if the Indebtedness secured by such Liens shall have been incurred by a Restricted Subsidiary of
Borrower, then and in such event such Indebtedness shall be incurred within the limitations
provided in Section 8.2(b) hereof, and (v) at the time of the creation, issuance,
assumption, guarantee or incurrence of such Indebtedness and after giving effect thereto and to the
application of the proceeds thereof, no Default or Event of Default would exist;

          (j) Liens created or incurred after the Effective Date existing on such assets at the time of
acquisition thereof or at the time of acquisition or purchase by Borrower or any of its Restricted
Subsidiaries of any business entity then owning such fixed assets, so long as such Liens were not
incurred, extended or renewed in contemplation of such acquisition or purchase; provided that (i)
the Lien shall attach solely to the assets acquired or purchased, (ii) if the Indebtedness secured
by such Lien shall have been assumed by a Restricted Subsidiary of Borrower, then and in such event
such Indebtedness shall be incurred within the limitations provided in Section 8.2(b)
hereof, and (iii) at the time of the assumption of such Indebtedness and after the concurrent
giving effect thereto, no Default or Event of Default would exist;

          (k) Liens created under charters entered into by Borrower or any of its Restricted
Subsidiaries in the ordinary course of its business, as owner or lessor of an asset, creating
leasehold interests therein; provided that the creation of such Liens is otherwise permitted within
the terms of this Agreement;

          (l) Liens created or incurred after the Effective Date given to secure Indebtedness of
Borrower or any of its Restricted Subsidiaries in addition to the Liens permitted by the preceding
clauses (a) through (k) hereof; provided that all Indebtedness secured by such Liens shall have
been incurred within the applicable limitations provided in Section 8.2; and

          (m) any extension, renewal or refunding of any Lien permitted by the preceding clauses (f)
through (k) of this Section in respect of the same property theretofore subject to such Lien in
connection with the extension, renewal or refunding of the Indebtedness secured thereby; provided
that (i) such extension, renewal or refunding of the Indebtedness to which such Lien relates shall
be without increase in the principal amount remaining unpaid as of the date of such extension,
renewal or refunding, (ii) such Lien shall attach solely to the same such property and (iii) at the
time of the extension, renewal or refunding of such Indebtedness and after giving effect thereto
and to the application of the proceeds thereof, no Default or Event of Default would exist.

          (n) to the extent that any restriction set forth in this Section conflicts with, or would
result in a default under, Section 8.6 of the Existing Credit Agreement, such restriction shall be
null and void and of no force or effect.

     Section 8.4 Dividends, Stock Purchases and Restricted Investments. Borrower will not
authorize or make a Distribution on its capital stock and neither Borrower nor any of its
Restricted Subsidiaries will make any Restricted Investment if, in any such case, after giving

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effect to the proposed Distribution or Restricted Investment (i) a Default or an Event of
Default would exist or (ii) the aggregate availability for borrowings under the Existing Credit
Agreement is less than $35,000,000. Borrower will not authorize a Distribution on its capital
stock which is not payable within 60 days of authorization. Borrower may make any Distribution
within 60 days after the declaration thereof if at the time of declaration such Distribution would
have complied with this Section. To the extent that any restriction set forth in this Section
conflicts with, or would result in a default under, Section 8.6 of the Existing Credit Agreement,
such restriction shall be null and void and of no force or effect.

     Section 8.5 Mergers, Consolidations and Sales of Assets.

          (a) Consolidate with or be a party to a merger with any other Person, or sell, lease or
otherwise dispose of all or substantially all of its assets; provided that:

               (i) any Restricted Subsidiary of Borrower may merge or consolidate with or into
Borrower or any Wholly-owned Restricted Subsidiary so long as in (1) any merger or
consolidation involving Borrower, Borrower shall be the surviving or continuing Corporation
and (2) in any merger or consolidation involving a Wholly-owned Restricted Subsidiary (and
not Borrower), the Wholly-owned Restricted Subsidiary shall be the surviving or continuing
Corporation;

               (ii) Borrower may consolidate or merge with any other Corporation if (1) Borrower is
the surviving Corporation in connection with such consolidation or merger and (2) at the
time of such consolidation or merger and immediately after giving effect thereto, (A) no
Default or Event of Default would exist and (B) Borrower would be permitted by the
provisions of Section 8.2(a) to incur at least $1.00 of additional Indebtedness.

          (b) Sell, lease, transfer, abandon as obsolete or otherwise dispose of assets (except assets
sold, leased or otherwise disposed of in the ordinary course of business for fair market value and
except as provided in Sections 8.5(a) and (c)); provided that the foregoing
restrictions do not apply to:

               (i) the sale, lease, transfer or other disposition of assets to Borrower or a
Wholly-owned Restricted Subsidiary by a Restricted Subsidiary of Borrower; or

               (ii) the sale, lease, transfer or other disposition of assets for cash or other
property to a Person or Persons if all of the following conditions are met:

     (1) in the opinion of (i) the Board of Directors of Borrower if the
fair market value of the assets exceeds $5,000,000 or (ii) otherwise a
Responsible Officer, the sale is for fair value and is in the best interests
of Borrower;

     (2) immediately after the consummation of the transaction and after
giving effect thereto, (A) no Default or Event of Default would exist and
(B) Borrower would be permitted by the provisions of Section 8.2(a)
to incur at least $1.00 of additional Indebtedness; and

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     (3) the entirety of the proceeds (net of expenses and taxes arising in
connection therewith) (“Net Proceeds”) from any such sale or other
disposition shall be applied within 360 days of receipt thereof by Borrower
or a Restricted Subsidiary of Borrower either (A) to the acquisition
(directly or through acquisition of a Restricted Subsidiary of Borrower) of
assets (other than cash, cash equivalents or Securities) useful and intended
to be used in the operation of the business of Borrower and its Restricted
Subsidiaries and having a fair market value (as determined in good faith by
(i) the Board of Directors of Borrower if the fair market value of the
assets exceeds $5,000,000 or (ii) otherwise a Responsible Officer) at least
equal to that of the assets so disposed of or (B) towards the offer of
prepayment at any applicable prepayment premium of Senior Indebtedness of
Borrower owing to any Person other than a Restricted Subsidiary of Borrower
or an Affiliate upon the terms and conditions hereinafter provided;
provided, that if for any reason whatsoever Borrower does not apply all of
the Net Proceeds from any such sale in compliance with clause (A) or (B) of
this Section 8.5(b)(ii)(3) within such 360 day period, then and in
such event the Commitments of the Lenders shall, unless the Majority Lenders
otherwise agree in writing, automatically be reduced effective as of the
expiration of such 360 day period by a sum equal to the amount by which the
aggregate Net Proceeds from all sales or other dispositions not so applied
exceed $10,000,000 in the aggregate.

Computations pursuant to this Section 8.5(b) shall include dispositions made
pursuant to Section 8.5(c) and computations pursuant to Section 8.5(c) shall
include dispositions made pursuant to this Section 8.5(b).

          (c) Sell, pledge or otherwise dispose of any shares of the stock or other ownership interests
(including as “stock” for the purposes of this Section 8.5(c) any options or warrants to
purchase stock or other Securities exchangeable for or convertible into stock or other ownership
interests) of a Restricted Subsidiary of Borrower (said stock, options, warrants and other
Securities herein called “Subsidiary Stock”) or any Indebtedness of any Restricted Subsidiary of
Borrower, nor will any Restricted Subsidiary of Borrower issue, sell, pledge or otherwise dispose
of any shares of its own Subsidiary Stock, provided that the foregoing restrictions do not apply
to:

               (i) the issue of directors’ qualifying shares or Regulatory Shares; or

               (ii) the issue of Subsidiary Stock to Borrower; or

               (iii) the sale or transfer by Borrower or any of its Restricted Subsidiaries of any
Subsidiary Stock to Borrower or to a Wholly-owned Restricted Subsidiary; or

               (iv) any other sale or other disposition at any one time to a Person (other than
directly or indirectly to an Affiliate) of the entire Investment of Borrower and its other
Restricted Subsidiaries in any Restricted Subsidiary of Borrower if all of the following
conditions are met:

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     (1) in the opinion of (i) Borrower’s Board of Directors if the fair
market value of the assets exceeds $5,000,000 or (ii) otherwise a
Responsible Officer, the sale is for fair value and is in the best interests
of Borrower;

     (2) immediately after the consummation of the transaction and after
giving effect thereto, such Restricted Subsidiary shall have no Indebtedness
of or continuing Investment in the capital stock of Borrower or of any of
its Restricted Subsidiaries and any such Indebtedness or Investment shall
have been discharged or acquired, as the case may be, by Borrower or a
Restricted Subsidiary of Borrower; and

     (3) immediately after the consummation of the transaction and after
giving effect thereto, (A) no Default or Event of Default would exist and
(B) Borrower would be permitted by the provisions of Section 8.2(a)
to incur at least $1.00 of additional Indebtedness; and

     (4) the entirety of the Net Proceeds from any such sale or other
disposition shall be applied within 360 days of receipt thereof by Borrower
or a Restricted Subsidiary of Borrower either (A) to the acquisition
(directly or through acquisition of a Restricted Subsidiary of Borrower) of
assets (other than cash, cash equivalents or Securities) useful and intended
to be used in the operation of the business of Borrower and its Restricted
Subsidiaries and having a fair market value (as determined in good faith by
(i) the Board of Directors of Borrower if the fair market value of the
assets exceeds $5,000,000 or (ii) otherwise a Responsible Officer) at least
equal to that of the assets so disposed of or (B) towards the offer of
prepayment at any applicable prepayment premium of Senior Indebtedness of
Borrower owing to any Person other than a Restricted Subsidiary of Borrower
or an Affiliate upon the terms and conditions hereinafter provided;
provided, that if for any reason whatsoever Borrower does not apply all of
the Net Proceeds from any such sale in compliance with clause (A) or (B) of
this Section 8.5(c)(iv)(4) within such 360 day period, then and in
such event the Commitments of the Lenders shall, unless the Majority Lenders
otherwise agree in writing, automatically be reduced effective as of the
expiration of such 360 day period by a sum equal to the amount by which the
aggregate Net Proceeds from all sales or other dispositions not so applied
exceed $10,000,000 in the aggregate.

Computations pursuant to this Section 8.5(c) shall include dispositions made
pursuant to Section 8.5(b) and computations pursuant to Section 8.5(b) shall
include dispositions made pursuant to this Section 8.5(c).

          (d) To the extent that any restriction set forth in this Section conflicts with, or would
result in a default under, Section 8.6 of the Existing Credit Agreement, such restriction shall be
null and void and of no force or effect.

     Section 8.6 Limitation on Restricted Agreements. Enter into, or suffer to exist, any
agreement with any Person which, directly or indirectly, prohibits or limits the ability of (x)

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Borrower to create, incur, or suffer to exist Liens on its property, provided,
however, that this clause (x) shall not prohibit any Lien permitted under Section
8.3 or any negative pledge incurred or provided in favor of any holder of Indebtedness
permitted by Sections 8.1 and 8.2 or (y) any Restricted Subsidiary of Borrower to
(a) pay dividends or make other distributions to Borrower or prepay any Indebtedness owed to
Borrower, (b) make loans or advances to Borrower, (c) create, incur, or suffer to exist Liens on
the property of such Restricted Subsidiary, provided, however, that this clause (c) shall not
prohibit any negative pledge incurred or provided in favor of any holder of Indebtedness permitted
by Sections 8.1 and 8.2 or (d) transfer any of its properties or assets to Borrower
other than for such restrictions existing under or by reason of (i) applicable law or any order or
ruling by any governmental authority; (ii) any agreement relating to any Indebtedness permitted
under this Agreement; (iii) customary non-assignment provisions of any contract; (iv) customary
restrictions on cash or other deposits imposed by customers under contracts entered into in the
ordinary course of business; (v) purchase money obligations for property acquired in the ordinary
course of business that impose restrictions on the property so acquired; (vi) contracts for the
sale of assets, including, without limitation, customary restrictions with respect to a Restricted
Subsidiary of Borrower pursuant to an agreement that has been entered into for the sale of all or
substantially all of the capital stock or assets of such Restricted Subsidiary; (vii) any agreement
or other instrument governing Indebtedness of a Person acquired by Borrower or any of its
Restricted Subsidiaries (or of a Subsidiary of such Person which becomes a Restricted Subsidiary of
Borrower) in existence at the time of such acquisition (but not created in contemplation thereof),
which restriction is not applicable to Borrower or any of its Restricted Subsidiaries, or assets of
any such Person, other than the Person, or assets or Subsidiaries of the Person, so acquired; or
(viii) provisions contained in agreements relating to Indebtedness which prohibit the transfer of
all or substantially all of the assets of the obligor thereunder unless the transferee shall assume
the obligations of the obligor under such agreement or instrument.

     Section 8.7 Nature of Business. Engage in any business if, as a result, the general
nature of the business, taken on a consolidated basis, which would then be engaged in by Borrower
and its Restricted Subsidiaries would be substantially changed from the general nature of the
business engaged in by Borrower and its Restricted Subsidiaries on the date of this Agreement and
businesses related thereto.

     Section 8.8 Transactions with Affiliates. Enter into or be a party to any transaction
or arrangement with any Affiliate (including, without limitation, the purchase from, sale to or
exchange of property with, or the rendering of any service by or for, any Affiliate), pursuant to
the reasonable requirements of Borrower’s or its applicable Restricted Subsidiary’s business and
upon fair and reasonable terms not significantly less favorable to Borrower or such Restricted
Subsidiary than would obtain in a comparable arm’s-length transaction with a Person other than an
Affiliate.

     Section 8.9 Designation of Subsidiaries, Etc. (a) Designate or redesignate any
Unrestricted Subsidiary as a Restricted Subsidiary of Borrower or designate or redesignate any
Restricted Subsidiary of Borrower as an Unrestricted Subsidiary unless the following conditions
precedent have been satisfied:

               (i) Borrower shall have given not less than 10 days’ prior written notice to Agent that
a Senior Financial Officer has made such determination,

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               (ii) at the time of such designation or redesignation and immediately after giving
effect thereto: (1) no Default or Event of Default would exist and (2) Borrower would be
permitted by the provisions of Section 8.2(a) to incur at least $1.00 of additional
Indebtedness,

               (iii) in the case of the designation of a Restricted Subsidiary of Borrower as an
Unrestricted Subsidiary and after giving effect thereto, (1) such Unrestricted Subsidiary so
designated shall not, directly or indirectly, own any Indebtedness or capital stock of
Borrower or any of its Restricted Subsidiaries, (2) such designation shall be deemed a sale
of assets and shall be permitted by the provisions of Section 8.5(b)(ii), (3)
neither Borrower nor any of its Restricted Subsidiaries shall be liable for any Indebtedness
of such Unrestricted Subsidiary so designated (other than Indebtedness which at the time of
incurrence shall be permitted within the limitations of Section 8.2(b) or at the
time of such designation shall be permitted within the limitations of Sections
8.4(a) and 8.2(b)), (4) no default or condition in respect of any Indebtedness
of such Unrestricted Subsidiary so designated could as a consequence of such default or
condition cause or permit any Indebtedness of Borrower or any of its Restricted Subsidiaries
to become, or to be declared, due and payable before its stated maturity or before its
regularly scheduled dates of payment, (5) any continuing Investment in the capital stock of
such Subsidiary held by Borrower or of any of its Restricted Subsidiaries shall at the time
of such designation be permitted (without reference to paragraph (a) of the definition of
“Restricted Investments”), within the limitations of Section 8.4, and (6) such
designation shall not result in the imposition of a Lien on the assets of Borrower or any of
its Restricted Subsidiaries, other than a Lien permitted within the limitations of
Section 8.3,

               (iv) in the case of the designation of an Unrestricted Subsidiary as a Restricted
Subsidiary of Borrower and after giving effect thereto: (i) all outstanding Indebtedness
and Preferred Stock of such Restricted Subsidiary so designated shall be permitted within
the applicable limitations of Section 8.2(b) and (ii) all existing Liens of such
Restricted Subsidiary so designated shall be permitted within the applicable limitations of
Section 8.3, other than Section 8.3(f) notwithstanding that any such Lien
existed as of the Effective Date),

               (v) in the case of the designation of a Restricted Subsidiary of Borrower as an
Unrestricted Subsidiary, such Restricted Subsidiary shall not at any time after the date of
this Agreement have previously been designated as an Unrestricted Subsidiary more than once,
and

               (vi) in the case of the designation of an Unrestricted Subsidiary as a Restricted
Subsidiary of Borrower, such Unrestricted Subsidiary shall not at any time after the date of
this Agreement have previously been designated as a Restricted Subsidiary of Borrower more
than once.

          (b) Provide a Guaranty of or otherwise become liable for Indebtedness of any
Unrestricted Subsidiary (other than Indebtedness which at the time of incurrence shall be
permitted within the limitations of Section 8.2(b) or at the time of such
designation shall be permitted within the limitations of Sections 8.4(a) and
8.2(b)).

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SECTION 9. Defaults.

     Section 9.1 Events of Default. If any one or more of the following events (herein
called “Events of Default”) shall occur, then Agent may (and at the direction of the Majority
Lenders, shall) do any or all of the following: (1) without notice to Borrower or any other
Person, declare the Commitments terminated (whereupon the Commitments and obligation shall be
terminated); (2) declare the principal amount then outstanding of and the unpaid accrued interest
on the Loans and all fees and all other amounts payable hereunder, under the Notes and under the
other Loan Documents to be forthwith due and payable, whereupon such amounts shall be and become
immediately due and payable, without notice (including, without limitation, notice of acceleration
and notice of intent to accelerate), presentment, demand, protest or other formalities of any kind,
all of which are hereby expressly waived by Borrower; provided that in the case of the occurrence
of an Event of Default with respect to Borrower or any of its Restricted Subsidiaries referred to
in clause (f), (g) or (h) of this Section 9.1, the Commitments shall be automatically
terminated and the principal amount then outstanding of and unpaid accrued interest on the Loans
and all fees and all other amounts payable hereunder, under the Notes and under the other Loan
Documents shall be and become automatically and immediately due and payable, without notice
(including, without limitation, notice of acceleration and notice of intent to accelerate),
presentment, demand, protest or other formalities of any kind, all of which are hereby expressly
waived by Borrower; and (3) exercise any or all other rights and remedies available to Agent or any
of the Lenders under the Loan Documents, at law or in equity:

          (a) Payments — (i) Borrower shall fail to make any payment or required prepayment of any
installment of principal on the Loans payable under the Notes, this Agreement or the other Loan
Documents when due or (ii) Borrower fails to make any payment or required payment of interest with
respect to the Loans or any other fee or amount under the Notes, this Agreement or the other Loan
Documents when due and, in the case of clause (ii), such failure to pay continues unremedied for a
period of five days; or

          (b) Other Obligations — Borrower or any of its Restricted Subsidiaries shall default in the
payment when due of any principal of or interest on any Indebtedness having an outstanding
principal amount (other than the Loans) of at least, in the case of any single default, $3,000,000
and, in the case of all defaults collectively, $5,000,000 and such default shall continue beyond
any applicable period of grace and shall give rise to a right on the part of the holder of such
Indebtedness to accelerate such Indebtedness; or any event or condition shall occur which results
in the acceleration of the maturity of any such Indebtedness or enables (or, with the giving of
notice or lapse of time or both, would enable) the holder of any such Indebtedness or any Person
acting on such holder’s behalf to accelerate the maturity thereof and such event or condition shall
not be cured within any applicable period of grace; or

          (c) Representations and Warranties — any representation or warranty made or deemed made by or
on behalf of Borrower in this Agreement or any other Loan Document or in any certificate furnished
or made by Borrower to Agent or the Lenders in connection herewith or therewith shall prove to have
been incorrect, false or misleading in any material respect as of the date thereof or as of the
date as of which the facts therein set forth were stated or certified or deemed stated or
certified; or

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          (d) Affirmative Covenants — (i) default shall be made in the due observance or performance of
any of the covenants or agreements contained in Section 7.3 hereof or (ii) default is made
in the due observance or performance of any of the other covenants and agreements contained in
Section 7 hereof or any other affirmative covenant of Borrower contained in this Agreement
or any other Loan Document and such default continues unremedied for a period of 30 days after (x)
notice thereof is given by Agent to Borrower or (y) such default otherwise becomes known to any
executive officer of Borrower, whichever is earlier; or

          (e) Negative Covenants — default is made in the due observance or performance by Borrower of
any of the other covenants or agreements contained in Section 8 of this Agreement or of any
other negative covenant of Borrower contained in this Agreement or any other Loan Document; or

          (f) Involuntary Bankruptcy or Receivership Proceedings — a receiver, conservator, liquidator
or trustee of Borrower or any of its Restricted Subsidiaries or of any Property of any such Person
is appointed by the order or decree of any court or agency or supervisory authority having
jurisdiction, and such decree or order remains in effect for more than 60 days; or Borrower or any
of its Restricted Subsidiaries is adjudicated bankrupt or insolvent; or any of such Person’s
Property is sequestered by court order and such order remains in effect for more than 60 days; or a
petition is filed against Borrower or any of its Restricted Subsidiaries under any state or federal
bankruptcy, reorganization, arrangement, insolvency, readjustment or debt, dissolution, liquidation
or receivership law or any jurisdiction, whether now or hereafter in effect, and is not dismissed
within 60 days after such filing; or

          (g) Voluntary Petitions or Consents — Borrower or any of its Restricted Subsidiaries commences
a voluntary case or other proceeding or order seeking liquidation, reorganization, arrangement,
insolvency, readjustment of debt, dissolution, liquidation or other relief with respect to itself
or its debts or other liabilities under any bankruptcy, insolvency or other similar law now or
hereafter in effect or seeking the appointment of a trustee, receiver, liquidator, custodian or
other similar official of it or any substantial part of its Property, or consents to any such
relief or to the appointment of or taking possession by any such official in an involuntary case or
other proceeding commenced against it, or fails generally to, or cannot, pay its debts generally as
they become due or takes any corporate action to authorize or effect any of the foregoing; or

          (h) Assignments for Benefit of Creditors or Admissions of Insolvency — Borrower or any of its
Restricted Subsidiaries makes an assignment for the benefit of its creditors, or admits in writing
its inability to pay its debts generally as they become due, or consents to the appointment of a
receiver, trustee, or liquidator of such Person or of all or any substantial part of its Property;
or

          (i) Undischarged Judgments — a final judgment or judgments for the payment of money exceeding,
in the aggregate, $5,000,000 (exclusive of amounts covered by insurance) is rendered by any court
or other governmental body against Borrower or any of its Restricted Subsidiaries and such Person
does not discharge the same or provide for its discharge in accordance with its terms, or procure a
stay of execution thereof within 30 days from the date of entry thereof; or

          (j) Change of Control — any Change of Control shall occur; or

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          (k) Material Domestic Subsidiaries; Subsidiary Guaranties — any Subsidiary of Borrower shall
at any time execute and deliver any guaranty of any Indebtedness (or be subject to a requirement to
execute and deliver such guaranty) under the Existing Credit Agreement (unless such Subsidiary
shall concurrently execute and deliver to the Agent a guaranty of the Obligations); or

          (l) Existing Credit Facility — any “Event of Default” shall have occurred and be continuing
under the Existing Credit Agreement or Wells Fargo shall at any time cease to be the
“Administrative Agent” under the Existing Credit Agreement (other than by reason of a voluntary
resignation by Wells Fargo) or the Existing Credit Agreement shall be amended or modified in any
respect without the prior written approval of the Majority Lenders.

     Section 9.2 Right of Setoff. Upon the occurrence and during the continuance of any
Event of Default, each Lender is hereby authorized at any time and from time to time, without
notice to Borrower (any such notice being expressly waived by Borrower), to setoff and apply any
and all deposits, whether general or special, time or demand, provisional or final (but excluding
the funds held in accounts clearly designated as escrow or trust accounts held by Borrower for the
benefit of Persons which are not Affiliates of Borrower), whether or not such setoff results in any
loss of interest or other penalty, and including without limitation all certificates of deposit, at
any time held, and any other funds or Property at any time held, and other Indebtedness at any time
owing by such Lender to or for the credit or the account of Borrower against any and all of the
Obligations irrespective of whether or not such Lender or Agent will have made any demand under
this Agreement, the Notes or any other Loan Document. Each Lender agrees to promptly notify
Borrower and Agent after any such setoff and application, provided that the failure to give such
notice will not affect the validity of such setoff and application. The rights of Agent and the
Lenders under this Section are in addition to other rights and remedies (including without
limitation other rights of setoff) which Agent or the Lenders may have. This Section is subject to
the terms and provisions of Sections 4.5 and 11.7 hereof.

     Section 9.3 Remedies Cumulative. No remedy, right or power conferred upon Agent or
any Lender is intended to be exclusive of any other remedy, right or power given hereunder or now
or hereafter existing at law, in equity, or otherwise, and all such remedies, rights and powers
shall be cumulative.

SECTION 10. Agent.

     Section 10.1 Appointment, Powers and Immunities. Each Lender hereby irrevocably
appoints and authorizes Agent to act as its agent hereunder and under the other Loan Documents with
such powers as are specifically delegated to Agent by the terms hereof and thereof, together with
such other powers as are reasonably incidental thereto. Any Loan Documents executed in favor of
Agent shall be held by Agent for the ratable benefit of the Lenders. Agent (“Agent” as used in this
Section 10 shall include reference to its Affiliates and its own and its Affiliates’
respective officers, shareholders, directors, employees and agents) (a) shall not have any duties
or responsibilities except those expressly set forth in this Agreement and the other Loan
Documents, and shall not by reason of this Agreement or any other Loan Document be a trustee or
fiduciary for any Lender; (b) shall not be responsible to any Lender for any recitals, statements,
representations or warranties contained in this Agreement or any other Loan Document, or in any
certificate or other document referred to or provided for in, or received by

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any of them under, this Agreement or any other Loan Document, or for the value, validity,
effectiveness, genuineness, enforceability, execution, filing, registration, collectibility,
recording, perfection, existence or sufficiency of this Agreement or any other Loan Document or any
other document referred to or provided for herein or therein or any Property covered thereby or for
any failure by Borrower or any other Person to perform any of its obligations hereunder or
thereunder, and shall not have any duty to inquire into or pass upon any of the foregoing matters;
(c) shall not be required to initiate or conduct any litigation or collection proceedings hereunder
or under any other Loan Document except to the extent requested by the Majority Lenders; (d) shall
not be responsible for any mistake of law or fact or any action taken or omitted to be taken by it
hereunder or under any other Loan Document or any other document or instrument referred to or
provided for herein or therein or in connection herewith or therewith, INCLUDING, WITHOUT
LIMITATION, PURSUANT TO ITS OWN NEGLIGENCE, except for its own gross negligence or willful
misconduct; (e) shall not be bound by or obliged to recognize any agreement among or between
Borrower and any Lender to which Agent is not a party, regardless of whether Agent has knowledge of
the existence of any such agreement or the terms and provisions thereof; (f) shall not be charged
with notice or knowledge of any fact or information not herein set out or provided to Agent in
accordance with the terms of this Agreement or any other Loan Document; (g) shall not be
responsible for any delay, error, omission or default of any mail, telegraph, cable or wireless
agency or operator, and (h) shall not be responsible for the acts or edicts of any Governmental
Authority. Agent may employ agents and attorneys-in-fact and shall not be responsible for the
negligence or misconduct of any such agents or attorneys-in-fact selected by it with reasonable
care.

     Section 10.2 Reliance. Agent shall be entitled to rely upon any certification, notice
or other communication (including any thereof by telephone, telegram or cable) believed by it to be
genuine and correct and to have been signed or sent by or on behalf of the proper Person or
Persons, and upon advice and statements of legal counsel (which may be counsel for Borrower),
independent accountants and other experts selected by Agent. Agent shall not be required in any
way to determine the identity or authority of any Person delivering or executing the same. As to
any matters not expressly provided for by this Agreement or any other Loan Document, Agent shall in
all cases be fully protected in acting, or in refraining from acting, hereunder and thereunder in
accordance with instructions of the Majority Lenders, and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders. If any order, writ, judgment or decree
shall be made or entered by any court affecting the rights, duties and obligations of Agent under
this Agreement or any other Loan Document, then and in any of such events Agent is authorized, in
its sole discretion, to rely upon and comply with such order, writ, judgment or decree which it is
advised by legal counsel of its own choosing is binding upon it under the terms of this Agreement,
the relevant Loan Document or otherwise; and if Agent complies with any such order, writ, judgment
or decree, then it shall not be liable to any Lender or to any other Person by reason of such
compliance even though such order, writ, judgment or decree may be subsequently reversed, modified,
annulled, set aside or vacated.

     Section 10.3 Defaults. Agent shall not be deemed to have knowledge of the occurrence
of a Default or Event of Default (other than the non-payment of principal of or interest on Loans)
unless Agent has received notice from a Lender or Borrower specifying such Default or Event of
Default and stating that such notice is a “Notice of Default.” In the event that Agent receives
such a Notice of Default, Agent shall give prompt notice thereof to the Lenders (and shall give
each Lender prompt notice of each such non-payment). Agent shall (subject to Section 10.7
hereof) take such action with respect to such Notice of Default as shall

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be directed by the Majority Lenders and within its rights under the Loan Documents and at law
or in equity, provided that, unless and until Agent shall have received such directions, Agent may
(but shall not be obligated to) take such action, or refrain from taking such action, permitted
hereby with respect to such Notice of Default as it shall deem advisable in the best interests of
the Lenders and within its rights under the Loan Documents, at law or in equity.

     Section 10.4 Material Written Notices. In the event that Agent receives any written
notice of a Material nature from Borrower under the Loan Documents, Agent shall promptly inform
each of the Lenders thereof.

     Section 10.5 Rights as a Lender. With respect to its Commitments and the Loans made
by it, Wells Fargo in its capacity as a Lender hereunder shall have the same rights and powers
hereunder as any other Lender and may exercise the same as though it were not acting in its agency
capacity, and the term “Lender” or “Lenders” shall, unless the context otherwise indicates, include
Agent in its individual capacity. Agent may (without having to account therefor to any Lender)
accept deposits from, lend money to and generally engage in any kind of banking, trust, letter of
credit, agency or other business with Borrower (and any of its Affiliates) as if it were not acting
as Agent; and Agent may accept fees and other consideration from Borrower (in addition to the fees
heretofore agreed to between Borrower and Agent) for services in connection with this Agreement or
otherwise without having to account for the same to the Lenders.

     Section 10.6 Indemnification. The Lenders agree to indemnify Agent (to the extent not
reimbursed under Section 11.3 or Section 11.4 hereof, but without limiting the
obligations of Borrower under said Sections 11.3 and 11.4), ratably in accordance
with the Lenders’ respective Commitments (or, after termination of the Commitments, ratably in
accordance with the Loans held by them, respectively), for any and all liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind
and nature whatsoever, REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF ANY
INDEMNIFIED PARTIES, which may be imposed on, incurred by or asserted against Agent in any way
relating to or arising out of this Agreement or any other Loan Document or any other documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby
(including, without limitation, the costs and expenses which Borrower is obligated to pay under
Sections 11.3 and 11.4 hereof, interest, penalties, attorneys’ fees and amounts
paid in settlement, but excluding, unless a Default has occurred and is continuing, normal
administrative costs and expenses incident to the performance of its agency duties hereunder) or
the enforcement of any of the terms hereof or thereof or of any such other documents; provided that
no Lender shall be liable for any of the foregoing to the extent they arise from the gross
negligence or willful misconduct of the party to be indemnified. The obligations of the Lenders
under this Section 10.6 shall survive the termination of this Agreement and the repayment
of the Obligations.

     Section 10.7 Non-Reliance on Agent and Other Lenders. Each Lender agrees that it has
received current financial information with respect to Borrower that it has, independently and
without reliance on Agent or any other Lender and based on such documents and information as it has
deemed appropriate, made its own credit analysis of Borrower and decision to enter into this
Agreement and that it will, independently and without reliance upon Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own analysis and decisions in taking or not taking action under this

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Agreement or any of the other Loan Documents. Agent shall not be required to keep itself
informed as to the performance or observance by Borrower of this Agreement or any of the other Loan
Documents or any other document referred to or provided for herein or therein or to inspect the
Properties or books of any Person. Except for notices, reports and other documents and information
expressly required to be furnished to the Lenders by Agent hereunder or under the other Loan
Documents, Agent shall not have any duty or responsibility to provide any Lender with any credit or
other information concerning the affairs, financial condition or business of any Person which may
come into the possession of Agent.

     Section 10.8 Failure to Act. Except for action expressly required of Agent hereunder
or under the other Loan Documents, Agent shall in all cases be fully justified in failing or
refusing to act hereunder and thereunder unless it shall receive further assurances to its
satisfaction by the Lenders of their indemnification obligations under Section 10.6 hereof
against any and all liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.

     Section 10.9 Resignation or Removal of Agent. Subject to the appointment and
acceptance of a successor Agent as provided below, Agent may resign at any time by giving notice
thereof to the Lenders and Borrower, and Agent may be removed at any time with or without cause by
the Majority Lenders; provided, that Agent shall continue as Agent until such time as any successor
shall have accepted appointment as Agent hereunder. Upon any such resignation or removal, (i) the
Majority Lenders with the consent of Borrower unless an Event of Default has occurred and is
continuing shall have the right to appoint a successor Agent so long as such successor Agent is
also a Lender at the time of such appointment and (ii) the Majority Lenders shall have the right to
appoint a successor Agent that is not a Lender at the time of such appointment so long as Borrower
consents to such appointment (which consent shall not be unreasonably withheld). If no successor
Agent shall have been so appointed by the Majority Lenders and accepted such appointment within 30
days after the retiring Agent’s giving of notice of resignation or the Majority Lenders’ removal of
the retiring Agent, then the retiring Agent may, on behalf of the Lenders, appoint a successor
Agent. Any successor Agent shall be a bank which has an office in the United States and a combined
capital and surplus of at least $250,000,000. Upon the acceptance of any appointment as Agent
hereunder by a successor Agent, such successor Agent shall thereupon 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 and under any other Loan Documents.
Such successor Agent shall promptly specify by notice to Borrower its Principal Office referred to
in Section 3.1 and Section 4 hereof. After any retiring Agent’s resignation or
removal hereunder as Agent, the provisions of this Section 10 shall continue in effect for
its benefit in respect of any actions taken or omitted to be taken by it while it was acting as
Agent.

     Section 10.10 No Partnership. Neither the execution and delivery of this Agreement
nor any of the other Loan Documents nor any interest the Lenders, Agent or any of them may now or
hereafter have in all or any part of the Obligations shall create or be construed as creating a
partnership, joint venture or other joint enterprise between the Lenders or among the Lenders and
Agent. The relationship between the Lenders, on the one hand, and Agent, on the other, is and
shall be that of principals and agent only, and nothing in this Agreement or any of the other Loan
Documents shall be construed to constitute Agent as trustee or other fiduciary for any Lender or to
impose on Agent any duty, responsibility or obligation other than those expressly provided for
herein and therein.

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     Section 10.11 Authority of Agent. Each Lender acknowledges that the rights and
responsibilities of Agent under this Agreement and the Loan Documents with respect to any action
taken by Agent or the exercise or non-exercise by Agent of any option, right, request, judgment or
other right or remedy provided for herein or resulting or arising out of this Agreement and/or the
other Loan Documents shall, as between Agent and the Lenders, be governed by this Agreement and by
such other agreements with respect thereto as may exist from time to time among them, but, as
between Agent and Borrower, Agent shall be conclusively presumed to be acting as agent for the
Lenders with full and valid authority so to act or refrain from acting; and Borrower shall not be
under any obligation, or entitlement, to make any inquiry respecting such authority.

SECTION 11. Miscellaneous.

     Section 11.1 Waiver. No waiver of any Default or Event of Default shall be a waiver
of any other Default or Event of Default. No failure on the part of Agent or any Lender to
exercise and no delay in exercising, and no course of dealing with respect to, any right, power or
privilege under any Loan Document shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or privilege thereunder preclude any other or further exercise
thereof or the exercise of any other right, power or privilege. The remedies provided in the Loan
Documents are cumulative and not exclusive of any remedies provided by law or in equity.

     Section 11.2 Notices. All notices and other communications provided for herein
(including, without limitation, any modifications of, or waivers or consents under, this Agreement)
shall be given or made by telegraph, telecopy (confirmed by mail), cable or other writing and
telecopied, telegraphed, cabled, mailed or delivered to the intended recipient at the “Address for
Notices” specified below its name on the signature pages hereof (or provided for in an Assignment
and Acceptance); or, as to any party hereto, at such other address as shall be designated by such
party in a notice (given in accordance with this Section) (i) as to Borrower, to Agent, (ii) as to
Agent, to Borrower and to each Lender, and (iii) as to any Lender, to Borrower and Agent. Except
as otherwise provided in this Agreement, all such notices or communications shall be deemed to have
been duly given when (i) transmitted by electronic mail, telecopier or delivered to the telegraph
or cable office, (ii) personally delivered (iii) one Business Day after deposit with a nationally
recognized overnight mail or delivery service, postage prepaid or (iv) three Business Days’ after
deposit in a receptacle maintained by the United States Postal Service, postage prepaid, registered
or certified mail, return receipt requested, in each case given or addressed as aforesaid.

     Section 11.3 Expenses, Etc. Whether or not any Loan is ever made, Borrower shall pay
or reimburse within 10 Business Days after written demand (a) Agent for paying the reasonable fees
and expenses of legal counsel to Agent, together with the reasonable fees and expenses of each
local counsel to Agent, in connection with the preparation, negotiation, execution and delivery of
this Agreement (including the exhibits and schedules hereto) and the other Loan Documents and the
making of the Loans, and any modification, supplement or waiver of any of the terms of this
Agreement or any other Loan Document; (b) Agent for any reasonable and customary lien search fees;
(c) Agent for reasonable out-of-pocket expenses incurred in connection with the preparation,
documentation of the Loans or any of the Loan Documents; (d) Agent for paying all transfer, stamp,
documentary or other similar taxes, assessments or charges levied by any governmental or revenue
authority in respect of this Agreement or any other Loan Document or any other document referred to
herein or therein, and (e) following the occurrence

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and during the continuation of an Event of Default, any Lender or Agent for paying all amounts
reasonably expended, advanced or incurred by such Lender or Agent to satisfy any obligation of
Borrower under this Agreement or any other Loan Document, to collect the Obligations or to enforce,
protect, preserve or defend the rights of the Lenders or Agent under this Agreement or any other
Loan Document, including, without limitation, fees and expenses incurred in connection with such
Lender’s or Agent’s participation as a member of a creditor’s committee in a case commenced with
Borrower or any of its Restricted Subsidiaries as debtor under the Bankruptcy Code or other similar
law, fees and expenses incurred in connection with lifting the automatic stay prescribed in Section
362 of the Bankruptcy Code and fees and expenses incurred in connection with any action pursuant to
Section 1129 of the Bankruptcy Code and all other reasonable and customary out-of-pocket expenses
incurred by such Lender or Agent in connection with such matters, together with interest thereon at
the Past Due Rate on each such amount from the due date until the date of reimbursement to such
Lender or Agent.

     Section 11.4 Indemnification. Borrower shall indemnify each of Agent, the Lenders,
and each affiliate thereof and their respective directors, officers, employees and agents from, and
hold each of them harmless against, any and all losses, liabilities, claims or damages to which any
of them may become subject, REGARDLESS OF WHETHER CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF
ANY INDEMNIFIED PARTIES, insofar as such losses, liabilities, claims or damages arise out of or
result from any (i) actual or proposed use by Borrower of the proceeds of any extension of credit
(whether a Loan) by any Lender hereunder; (ii) breach by Borrower of this Agreement or any other
Loan Document; (iii) violation by Borrower or any of its Restricted Subsidiaries of any Legal
Requirement, or (iv) investigation, litigation or other proceeding relating to any of the
foregoing, and Borrower shall reimburse Agent, each Lender, and each Affiliate thereof and their
respective directors, officers, employees and agents, upon demand for any reasonable and customary
expenses (including reasonable and customary legal fees) incurred in connection with any such
investigation or proceeding; provided, however, that Borrower shall not have any obligations
pursuant to this Section with respect to any losses, liabilities, claims, damages or expenses
incurred by the Person seeking indemnification by reason of the gross negligence or willful
misconduct of that Person or with respect to any disputes between or among any of Agent and
Lenders. Nothing in this Section is intended to limit the obligations of Borrower under any other
provision of this Agreement. In the case of any indemnification hereunder, Agent or the respective
Lender, as appropriate, shall give written notice to Borrower of any such claim or demand being
made against an indemnified person and Borrower shall have the non-exclusive right to join in the
defense against any such claim or demand, provided that if Borrower provides a defense, the
indemnified person shall bear its own cost of defense unless there is a conflict of interests
between Borrower and such indemnified person. No Indemnified Person may settle any claim to be
indemnified without the consent of Borrower, such consent not to be unreasonably withheld or
delayed.

     Section 11.5 Amendments, Etc. No amendment or modification of this Agreement, the
Notes or any other Loan Document shall in any event be effective against Borrower unless the same
shall be agreed or consented to in writing by such Person. No amendment, modification or waiver of
any provision of this Agreement, the Notes or any other Loan Document, nor any consent to any
departure by Borrower therefrom, shall in any event be effective against the Lenders unless the
same shall be agreed or consented to in writing by the Majority Lenders, and each such waiver or
consent shall be effective only in the specific instance and for the specific purpose for which
given; provided, that no amendment, modification, waiver or consent shall, unless in writing and
signed by each Lender affected thereby, do any of the following: (a)

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increase any Commitment of any of the Lenders (or reinstate any termination or reduction of
the Commitments) or subject any of the Lenders to any additional obligations; (b) reduce the
principal of, or interest on, any Loan or fee hereunder; (c) postpone or extend the Maturity Date
or any scheduled date fixed for any payment of principal of, or interest on, any Loan, fee or other
sum to be paid hereunder or waive any Event of Default described in Section 9.1(a) hereof;
(d) change the percentage of any of the Commitments or of the aggregate unpaid principal amount of
any of the Loans, or the percentage of Lenders, which shall be required for the Lenders or any of
them to take any action under this Agreement, or (e) change any provision contained in Sections
7.9, 11.3 or 11.4 hereof or this Section 11.5. Notwithstanding
anything in this Section 11.5 to the contrary, no amendment, modification, waiver or
consent shall be made with respect to Section 10 without the consent of Agent to the extent
it affects Agent, as Agent.

     Section 11.6 Successors and Assigns.

          (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their respective successors and assigns permitted hereby, except that the
Borrower may not assign or otherwise transfer any of its rights or obligations hereunder, other
than as permitted by Section 8.5 hereof, without the prior written consent of each Lender
and no Lender may assign or otherwise transfer any of its rights or obligations hereunder except
(i) to an Eligible Assignee in accordance with the provisions of paragraph (b) of this Section,
(ii) by way of participation in accordance with the provisions of paragraph (d) of this Section or
(iii) by way of pledge or assignment of a security interest subject to the restrictions of
paragraph (f) of this Section (and any other attempted assignment or transfer by any party hereto
shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to
confer upon any Person (other than the parties hereto, their respective successors and assigns
permitted hereby, Participants to the extent provided in paragraph (d) of this Section and, to the
extent expressly contemplated hereby, the Related Parties of each of the Agent and the Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) Any Lender may at any time assign to one or more Eligible Assignees all or a portion of
its rights and obligations under this Agreement (including all or a portion of its Commitment and
the Loans owing to it); provided that (i) except in the case of an assignment of the entire
remaining amount of the assigning Lender’s Commitment and the Loans at the time owing to it or in
the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund with respect
to a Lender, the aggregate amount of the Commitment (which for this purpose includes Loans
outstanding thereunder) or, if the applicable Commitment is not then in effect, the principal
outstanding balance of the Loan 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
Agent or, if “Trade Date” is specified in the Assignment and Acceptance, as of the Trade Date)
shall not be less than $5,000,000, unless each of the Agent and, so long as no Event of Default has
occurred and is continuing, the Borrower otherwise consent (each such consent not to be
unreasonably withheld or delayed); (ii) each partial assignment shall be made as an assignment of a
proportionate part of all the assigning Lender’s rights and obligations under this Agreement with
respect to the Loan or the Commitment assigned; (iii) except in the case of an assignment to a
Lender or an Affiliate of a Lender or an Approved Fund with respect to a Lender, any assignment of
a Commitment must be approved by the Agent and, unless an Event of Default has occurred and is
continuing, the Borrower (each such approval not to be unreasonably withheld or delayed; and (iv)
the parties to each assignment shall execute and deliver to the Agent, at least five days prior to
the proposed

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effective date of such assignment, an Assignment and Acceptance in substantially the form of
Exhibit D hereto (each an “Assignment and Acceptance”), together with a processing and
recordation fee of $3,000, and the Eligible Assignee, if it shall not be a Lender, shall deliver to
the Agent an Administrative Questionnaire. Subject to acceptance and recording thereof by the
Agent pursuant to paragraph (c) of this Section, from and after the “Effective Date” specified in
each Assignment and Acceptance, the Eligible Assignee thereunder shall be a party to this Agreement
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 the assigning Lender thereunder shall, except for
any assigning Lender assigning to an Affiliate or an Approved Fund for which (so long as no Event
of Default shall have occurred or is continuing) the Borrower shall not have consented, 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 of the
assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a
party hereto) but shall continue to be entitled to the benefits of Sections 3.3(c)(ii),
3.3(c)(iv), 11.4 and 4.1(E) with respect to facts and circumstances
occurring prior to the effective date of such assignment. Any assignment or transfer by a Lender
of rights or obligations under this Agreement that does not comply with this paragraph shall be
treated for purposes of this Agreement as a sale by such Lender of a participation in such rights
and obligations in accordance with paragraph (d) of this Section, subject to compliance with the
requirements of such paragraph (d).

          (c) The Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at
one of its offices 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 Commitments of, and principal
amounts of the Loans owing to, each Lender pursuant to the terms hereof from time to time (the
“Register”). The entries in the Register, in the absence of manifest error, shall be
conclusive, and the Borrower, the Agent and the Lenders may treat each Person whose name is
recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of
this Agreement, notwithstanding notice to the contrary. The Register shall be available for
inspection by the Borrower and any Lender, at any reasonable time and from time to time upon
reasonable prior notice.

          (d) Any Lender may at any time, without the consent of, or notice to, the Borrower or the
Agent, sell participations to any Person (other than a natural person or the Borrower or any of the
Borrower’s Affiliates or Subsidiaries) (each, a “Participant”) in all or a portion of such
Lender’s rights and/or obligations under this Agreement (including all or a portion of its
Commitment and/or the Loans owing to it); provided that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations and (iii) the Borrower, the Agent and
the other Lenders shall continue to deal solely and directly with such Lender in connection with
such Lender’s rights and obligations under this Agreement. Any agreement or instrument pursuant to
which a Lender sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or waiver of any
provision of this Agreement; provided that such agreement or instrument may provide that
such Lender will not, without the consent of the Participant, agree to any amendment, modification
or waiver described in clauses (a) through (e) of Section 11.5 that affects such
Participant. Subject to paragraph (e) of this Section, the Borrower agrees that each Participant
shall be entitled to the benefits of Sections 3.3(c)(ii), 3.3(c)(iv) and
4.1(e) to the same extent (but only to the extent of its transferor Lender) as if it were a
Lender and had acquired its

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interest by assignment pursuant to paragraph (b) of this Section. To the extent permitted by
law, each Participant also shall be entitled to the benefits of Section 9.2 as though it
were a Lender (but only to the extent of its transferor Lender), provided such Participant agrees
to be subject to Section 4.5 as though it were a Lender.

          (e) A Participant shall not be entitled to receive any greater payment under Sections
3.3(c)(ii) and 4.1(e) than the applicable Lender would have been entitled to receive
with respect to the participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent. A Participant which is
organized under the laws of a jurisdiction outside the United States shall not be entitled to the
benefits of Section 4.1(e) unless the Borrower is notified of the participation sold to
such Participant and such Participant agrees, for the benefit of the Borrower, to comply with
Section 11.13 as though it were a Lender.

          (f) Any Lender may at any time pledge or assign a security interest in all or any portion of
its rights under this Agreement to secure obligations of such Lender, including without limitation
any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no
such pledge or assignment shall release such Lender from any of its obligations hereunder or
substitute any such pledgee or assignee for such Lender as a party hereto.

     Section 11.7 Limitation of Interest. The parties hereto intend to strictly comply
with all applicable federal and Texas laws, including applicable usury laws (or the usury laws of
any jurisdiction whose usury laws are deemed to apply to the Notes or any other Loan Documents).
Accordingly, the provisions of this Section 11.7 shall govern and control over every other
provision of this Agreement or any other Loan Document which conflicts or is inconsistent with this
Section, even if such provision declares that it controls. As used in this Section, the term
“interest” includes the aggregate of all charges, fees, benefits or other compensation which
constitute interest under applicable law, provided that, to the maximum extent permitted by
applicable law, (a) any non-principal payment shall be characterized as an expense or as
compensation for something other than the use, forbearance or detention of money and not as
interest, and (b) all interest at any time contracted for, reserved, charged or received shall be
amortized, prorated, allocated and spread, in equal parts during the full term of the Obligations.
In no event shall Borrower or any other Person be obligated to pay, or Agent or any Lender have any
right or privilege to reserve, receive or retain, (a) any interest in excess of the maximum amount
of nonusurious interest permitted under the laws of the State of Texas or the applicable laws (if
any) of the United States or of any other jurisdiction, or (b) total interest in excess of the
amount which such Person could lawfully have contracted for, reserved, received, retained or
charged had the interest been calculated for the full term of the Obligations at the Ceiling Rate.
The daily interest rates to be used in calculating interest at the Ceiling Rate shall be determined
by dividing the applicable Ceiling Rate per annum by the number of days in the calendar year for
which such calculation is being made. None of the terms and provisions contained in this Agreement
or in any other Loan Document (including, without limitation, Section 9.1 hereof) which
directly or indirectly relate to interest shall ever be construed without reference to this
Section 11.7, or be construed to create a contract to pay for the use, forbearance or
detention of money at an interest rate in excess of the Ceiling Rate. If the term of any
Obligation is shortened by reason of acceleration of maturity as a result of any Default or by any
other cause, or by reason of any required or permitted prepayment, and if for that (or any other)
reason Agent or any Lender at any time, including but not limited to, the stated maturity, is owed
or receives (and/or has received) interest in excess of interest calculated at the Ceiling Rate,
then and in any

 - 56 - 

 

such event all of any such excess interest shall be canceled automatically as of the date of
such acceleration, prepayment or other event which produces the excess, and, if such excess
interest has been paid to such Person, it shall be credited pro tanto against the then-outstanding
principal balance of Borrower’s obligations to such Person, effective as of the date or dates when
the event occurs which causes it to be excess interest, until such excess is exhausted or all of
such principal has been fully paid and satisfied, whichever occurs first, and any remaining balance
of such excess shall be promptly refunded to its payor.

     Section 11.8 Survival. The obligations of Borrower under Sections 7.9,
11.3 and 11.4 hereof and all other obligations of Borrower in any other Loan
Document (to the extent stated therein) and the obligations of the Lenders under Sections
4.1(e), 10.6, 11.7, 11.13 and 11.16 hereof, shall,
notwithstanding anything herein to the contrary, survive the repayment of the Loans and the
termination of the Commitments.

     Section 11.9 Captions. Captions and section headings appearing herein are included
solely for convenience of reference and are not intended to affect the interpretation of any
provision of this Agreement.

     Section 11.10 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one and the same agreement and any of
the parties hereto may execute this Agreement by signing any such counterpart.

     Section 11.11 Governing Law. THIS AGREEMENT AND (EXCEPT AS THEREIN PROVIDED) THE
OTHER LOAN DOCUMENTS SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE APPLICABLE LAWS OF
THE STATE OF TEXAS AND THE UNITED STATES OF AMERICA FROM TIME TO TIME IN EFFECT.

     Section 11.12 Severability. Whenever possible, each provision of the Loan Documents
shall be interpreted in such manner as to be effective and valid under applicable law. If any
provision of any Loan Document shall be invalid, illegal or unenforceable in any respect under any
applicable law, the validity, legality and enforceability of the remaining provisions of such Loan
Document shall not be affected or impaired thereby.

     Section 11.13 Tax Forms. Each Lender which is organized under the laws of a
jurisdiction outside the United States shall, on the day of the initial borrowing from each such
Lender hereunder and from time to time thereafter if requested by Borrower or Agent, provide Agent
and Borrower with the forms prescribed by the Internal Revenue Service of the United States
certifying as to such Lender’s status for purposes of determining exemption from United States
withholding taxes with respect to all payments to be made to such Lender hereunder or other
documents satisfactory to such Lender, Borrower and Agent indicating that all payments to be made
to such Lender hereunder are not subject to United States withholding tax or are subject to such
tax at a rate reduced by an applicable tax treaty. If a Lender determines, as a result of any
change in either (i) applicable law, regulation or treaty, or in any official application thereof
or (ii) its circumstances, that it is unable to submit any form or certificate that it is obligated
to submit pursuant to this Section, or that it is required to withdraw or cancel any such form or
certificate previously submitted, it shall promptly notify Borrower and Agent of such fact. Unless
Borrower and Agent shall have received such forms or such documents indicating that payments
hereunder are not subject to United States withholding tax or are subject to such tax at a rate
reduced by an applicable tax treaty, Borrower or Agent shall withhold taxes from such

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payments at the applicable statutory rate. Each Lender agrees to indemnify and hold harmless
from any United States taxes, penalties, interest and other expenses, costs and losses incurred or
payable by (i) Agent as a result of such Lender’s failure to submit any form or certificate that it
required to provide pursuant to this Section or (ii) Borrower or Agent as a result of their
reliance on any representation, form or certificate which such Lender has provided to them pursuant
to this Section.

     Section 11.14 Conflicts Between This Agreement and the Other Loan Documents. In the
event of any conflict between the terms of this Agreement and the terms of any of the other Loan
Documents, the terms of this Agreement shall control.

     Section 11.15 Limitation on Charges; Substitute Lenders; Non-Discrimination. Anything
in Sections 3.3(c) or 7.9 notwithstanding:

          (a) Borrower shall not be required to pay to any Lender reimbursement or indemnification with
regard to any costs or expenses described in such Sections, unless such Lender notifies Borrower of
such costs or expenses within 90 days after the date paid or incurred;

          (b) none of the Lenders shall be permitted to pass through to Borrower charges and costs under
such Sections on a discriminatory basis (i.e., which are not also passed through by such Lender to
other customers of such Lender similarly situated where such customer is subject to documents
providing for such pass through); and

          (c) if any Lender elects to pass through to Borrower any material charge or cost under such
Sections or elects to terminate the availability of LIBOR Borrowings for any material period of
time, Borrower may, within 60 days after the date of such event and so long as no Default shall
have occurred and be continuing, elect to terminate such Lender as a party to this Agreement;
provided that, concurrently with such termination Borrower shall (i) if Agent and each of the other
Lenders shall consent, pay that Lender all principal, interest and fees and other amounts owed to
such Lender through such date of termination or (ii) have arranged for another financial
institution approved by Agent (such approval not to be unreasonably withheld or delayed) as of such
date, to become a substitute Lender for all purposes under this Agreement in the manner provided in
Section 11.6; provided further that, prior to substitution for any Lender, Borrower shall
have given written notice to Agent of such intention and the Lenders shall have the option, but no
obligation, for a period of 60 days after receipt of such notice, to increase their Commitments in
order to replace the affected Lender in lieu of such substitution.

     Section 11.16 Confidentiality. Each Lender agrees to exercise its best efforts to
keep any information delivered or made available by Borrower which is clearly indicated to be
confidential information, confidential from anyone other than Persons employed or retained by such
Lender or any of its Affiliates who are or are expected to become engaged in evaluating, approving,
structuring or administering the Loans; provided that nothing herein shall prevent any Lender from
disclosing such information (a) to any other Lender; (b) pursuant to subpoena or upon the order of
any court or administrative agency; (c) upon the request or demand of any regulatory agency or
authority having jurisdiction over such Lender; (d) which has been publicly disclosed; (e) to the
extent reasonably required in connection with any litigation to which Agent, any Lender, Borrower
or their respective Affiliates may be a party; (f) to the extent reasonably required in connection
with the exercise of any remedy hereunder; (g) to such Lender’s bank

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counsel and independent auditors; and (h) to any actual or proposed participant or assignee of
all or part of its rights hereunder which has agreed in writing to be bound by the provisions of
this Section.

     Notwithstanding anything to the contrary, “information” shall not include, and the Agent and
each Lender may disclose without limitation of any kind, any information with respect to the “tax
treatment” and “tax structure” (in each case, within the meaning of Treasury Regulation Section
1.6011-4) of the transactions contemplated hereby and all materials of any kind (including opinions
or other tax analyses) that are provided to the Agent or such Lender relating to such tax treatment
and tax structure; provided that with respect to any document or similar item that in either case
contains information concerning the tax treatment or tax structure of the transaction as well as
other information, this sentence shall only apply to such portions of the document or similar item
that relate to the tax treatment or tax structure of the Loans and transactions contemplated
hereby.

     Section 11.17 Waiver of Right to Trial by Jury.  EACH PARTY TO THIS
AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE
OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO
THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO ANY LOAN DOCUMENT, OR THE
TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER
FOUNDED IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH
CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT
ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.

     Section 11.18 ENTIRE AGREEMENT. THE CREDIT AGREEMENT AND ALL OTHER LOAN DOCUMENTS
EXECUTED BY ANY OF THE PARTIES PRIOR HERETO OR SUBSTANTIALLY CONCURRENTLY HEREWITH CONSTITUTE A
WRITTEN CREDIT AGREEMENT WHICH REPRESENTS THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES.
THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

[REMAINDER OF PAGE LEFT BLANK INTENTIONALLY]

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the Effective Date.

	 	 	 	 	 	 	 
	 	 	OCEANEERING INTERNATIONAL, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Robert P. Mingoia
 

	 	 
	 

	 	Name:
	 	Robert P. Mingoia	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	 	 	11911 FM 529	 	 
	 	 	Houston, Texas 77041	 	 
	 	 	Attention: Chief Financial Officer	 	 
	 	 	Telecopy No.: (713) 329-4653	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	WELLS FARGO BANK, N.A., as Administrative Agent and
as a Lender	 	 
	 
	 	 	 	 	 	 
	 
	 	By:	 	/s/ Corbin M. Womoc 	 	 
	 

	 	Name:
	 	Corbin M. Womoc 

	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Assistant Vice President 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	Address for Notices:	 	 
	 
	 	 	 	 	 	 
	Commitment:
	 	 	 	 	 	 
	$60,000,000.00	 	1000 Louisiana	 	 
	 	 	9th Floor, MAC T5002-031	 	 
	 	 	Houston, TX 77002	 	 
	 	 	Attention: Phil Lauinger	 	 

Signature Page to Credit Agreement

 

 

	 	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Thomas Okamoto 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Thomas Okamoto 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	Vice President 	 	 
	 

	 	 	 	 	 	 
	Commitment:
	 	 	 	 	 	 
	$25,000,000.00	 	712 Main Street, 12th Floor	 	 
	 	 	TX2-S039	 	 
	 	 	Houston, TX 77002	 	 
	 	 	Attention: Mona Foch	 	 

Signature Page to Credit Agreementexv4w1

Exhibit 4.1

AMENDED AND RESTATED

CERTIFICATE OF DESIGNATIONS, PREFERENCES AND RIGHTS

OF

SERIES A CONVERTIBLE PREFERRED STOCK

OF

LCC INTERNATIONAL, INC.

(Pursuant to Section 151 of the

Delaware General Corporation Law)

     LCC International, Inc., a corporation organized and existing under the laws of the State of
Delaware (the “Company”), hereby certifies that, pursuant to authority vested in the Board of
Directors of the Company by Article 4.3 of the Restated Certificate of Incorporation of the Company
(the “Certificate of Incorporation”), the following resolutions were adopted on September 4, 2008
by the Board of Directors of the Company pursuant to Section 151 of the Delaware General
Corporation Law:

     “RESOLVED that, pursuant to authority vested in the Board of Directors of the Company by
Article 4.3 of the Restated Certificate of Incorporation, out of the total authorized number of
10,000,000 shares of preferred stock, par value $0.01 per share (the “Preferred Stock”), there
shall be designated a series of 3,500,000 shares which shall be issued in and constitute a single
series to be known as “Series A Convertible Preferred Stock” (hereinafter called the “Series A
Preferred Stock”). The shares of Series A Preferred Stock having the voting powers, designations,
preferences and other special rights, and qualifications, limitations and restrictions thereof set
forth below:

     1. Certain Definitions.

     As used in this Certificate of Designations, Preferences and Rights of Series A Convertible
Preferred Stock of LCC International, Inc. (the “Certification of Designations”), the following
terms shall have the respective meanings set forth below:

     “Affiliate”, as applied to any Person, means any other Person directly or indirectly
controlling, controlled by, or under common control with, that Person. For the purposes of this
definition, “control” (including, with correlative meanings, the terms “controlling”, “controlled
by” and “under common control with”), as applied to any Person, means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of that
Person, whether through the ownership of voting securities or by contract or otherwise.

 

 

     “Business Day” means a day, other than a Saturday, Sunday or legal holiday, on which
commercial banks in New York City are open for the general transaction of business.

     “Closing Date” has the meaning ascribed to such term in the Exchange and Settlement
Agreement.

     “Common Stock” means the Class A Common Stock, $0.01 par value per share, of the
Company, including the stock into which the Series A Preferred Stock is convertible, and any
securities into which the Common Stock may be reclassified.

     “Conversion Price” means either the Initial Conversion Price, the End-of-period
Conversion Price or the Minimum Conversion Price, as applicable.

     “Conversion Shares” has the meaning ascribed to that term in Section 4.4 herein.

     “End-of-period Conversion Price” means, as of any date of determination, the lower of
(i) the average of the closing bid prices of the Common Stock on each of last ten Trading Days
ending immediately prior to the date of determination and (ii) $1.50 (appropriately adjusted for
any stock split, reverse stock split, stock dividend or other reclassification or combination of
the Common Stock occurring after the Original Issuance Date).

     “Equity Securities” means the securities issued in the Qualified Financing, including
any warrants or equity-linked securities issued in connection therewith.

     “Exchange Agreement” means the Exchange Agreement dated September 4, 2008, among the
Company and the Investors named therein.

     “Exchange and Settlement Agreement” means the Exchange and Settlement Agreement dated
as of December 27, 2007, among the Company and the investors named therein.

     “Fixed Dividend Date” has the meaning ascribed to that term in Section 2.1 herein.

     “Initial Conversion Price” means $1.50, subject to adjustment as provided herein.

     “Holder” or “Holders” means the holder or holders of the Series A Preferred
Stock.

     “Junior Securities” means the Common Stock, all other Common Stock equivalents of the
Company and each other class of capital stock or series of Preferred Stock of the Company
established hereafter by the Board of Directors of the Company, the terms of which do not expressly
provide that it ranks on a parity with or senior to the

-2-

 

Series A Preferred Stock as to rights on dividends, liquidation, winding-up and dissolution.

     “Market Price”, as of a particular date (the “Valuation Date”), shall mean the
following: (a) if the Common Stock is then listed on the Nasdaq Global Market or the Nasdaq Capital
Market (“Nasdaq”) or another national stock exchange, the closing sale price of one share of Common
Stock on such exchange on the last Trading Day prior to the Valuation Date; (b) if the Common Stock
is then quoted on the National Association of Securities Dealers, Inc. OTC Bulletin Board (the
“Bulletin Board”) or such similar quotation system or association, the closing sale price of one
share of Common Stock on the Bulletin Board or such other quotation system or association on the
last Trading Day prior to the Valuation Date or, if no such closing sale price is available, the
average of the high bid and the low asked price quoted thereon on the last trading day prior to the
Valuation Date; (c) if such security is then included in the “pink sheets,” the closing sale price
of one share of Common Stock on the “pink sheets” on the last Trading Day prior to the Valuation
Date or, if no such closing sale price is available, the average of the high bid and the low ask
price quoted on the “pink sheets” as of the end of the last Trading Day prior to the Valuation
Date; or (d) if the Common Stock is not then listed on a national stock exchange or quoted on the
Bulletin Board, the “pink sheets” or such other quotation system or association, the fair market
value of one share of Common Stock as of the Valuation Date, as determined in good faith by the
Board of Directors of the Company and the Holder. If the Common Stock is not then listed on a
national securities exchange or quoted on the Bulletin Board, the “pink sheets” or other quotation
system or association, the Board of Directors of the Company shall respond promptly, in writing, to
an inquiry by the Holder as to the fair market value of a share of Common Stock as determined by
the Board of Directors of the Company. In the event that the Board of Directors of the Company and
the Holders of a majority of the Series A Preferred Stock then outstanding are unable to agree upon
the fair market value in respect of subpart (d) of this paragraph, the Company and the Holders of a
majority of the Series A Preferred Stock then outstanding shall jointly select an appraiser, who is
experienced in such matters. The decision of such appraiser shall be final and conclusive, and the
cost of such appraiser shall be borne equally by the Company and the Holders.

     “Minimum Conversion Price” has the meaning ascribed to that term in Section 4.2(e)
herein.

     “Original Issuance Date” means the Closing Date.

     “Parity Securities” means the Series B Preferred Stock and each other class of capital
stock or Preferred Stock of the Company established hereafter by the Board of Directors of the
Company, the terms of which expressly provide that such class or series will rank on a parity with
the Series A Preferred Stock as to rights on dividends, liquidation, winding-up and dissolution.

     “Person” shall be construed in the broadest sense and means and includes any natural
person, a partnership, a corporation, an association, a joint stock company, a

-3-

 

limited liability company, a trust, a joint venture, an unincorporated organization and other
entity or governmental or quasi-governmental entity.

     “Qualified Financing” means a private placement by the Company of its Equity
Securities to one or more accredited investors (a majority of which (by dollars invested) are not
affiliates of the Company or of any Holder) pursuant to which the Company receives gross proceeds
of at least $10 million.

     “Registration Rights Agreement” means the Registration Rights Agreement, dated April
19, 2007, among the Company and the initial holders of the Series A Preferred Stock, as amended by
the Exchange and Settlement Agreement and as further amended by the Exchange Agreement.

     “Senior Securities” means each other class of capital stock or series of Preferred
Stock of the Company established hereafter by the Board of Directors of the Company, the terms of
which expressly provide that such class or series will rank senior to the Series A Preferred Stock
as to rights on dividends, liquidation, winding-up and dissolution.

     “Series A Stated Value” means $3.35.

     “Subsidiary” means any corporation, association or other business entity (i) at least
50% of the outstanding voting securities of which are at the time owned or controlled, directly or
indirectly, by the Company; or (ii) with respect to which the Company possesses, directly or
indirectly, the power to direct or cause the direction of the affairs or management of such Person.

     “Trading Day” means (i) if the relevant stock or security is listed or admitted for
trading on The New York Stock Exchange, Inc., Nasdaq or any other national securities exchange, a
day on which such exchange is open for business; (ii) if the relevant stock or security is quoted
on a system of automated dissemination of quotations of securities prices, a day on which trades
may be effected through such system; or (iii) if the relevant stock or security is not listed or
admitted for trading on any national securities exchange or quoted on any system of automated
dissemination of quotation of securities prices, a day (a) on which the relevant stock or security
is traded in a regular way in the over-the-counter market and (b) for which a closing bid and a
closing asked price for such stock or security are available, which shall mean a day, other than a
Saturday or Sunday, on which The New York Stock Exchange, Inc. is open for trading.

     2. Dividends.

          2.1 Declaration. Prior to December 21, 2008 (the “Fixed Dividend Date”), dividends on
the Series A Preferred Stock may be declared and paid from time to time as determined by the
Company’s Board of Directors, in its sole discretion, out of funds legally available therefor;
provided, however, that the Company shall not declare, pay or set aside any dividends or
distributions on shares of Common Stock (other than dividends

-4-

 

payable solely in shares of Common Stock), unless the holders of Series A Preferred Stock first
receive, or simultaneously receive, a dividend or distribution on each outstanding share of Series
A Preferred Stock equal to the product of (i) the per share dividend or distribution to be
declared, paid or set aside for the Common Stock, multiplied by (ii) the number of shares of Common
Stock into which such share of Series A Preferred Stock is then convertible. From and after the
Fixed Dividend Date, dividends on the Series A Preferred Stock shall accrue (whether declared or
paid) at the rate of 2% per annum (expressed as a percentage of the Series A Stated Value) (the
“Series A Preferred Dividends”). The Series A Preferred Dividends shall be cumulative,
whether or not earned or declared, and shall be paid on each six month anniversary of the Original
Issuance Date, upon the conversion of the Series A Preferred Stock or, if earlier, the liquidation,
dissolution or winding up of the Company in accordance with the terms hereof in additional shares
of Series A Preferred Stock (valued, for this purpose at the Series A Stated Value per share) or,
at the Company’s option, in cash.

          2.2 Priority. Holders of the Series A Preferred Stock shall be entitled to receive,
when, as and if declared by the Company’s Board of Directors and ratably on a pari passu basis with
the Series A Preferred Stock dividends or distributions on shares of Common Stock pursuant to
Section 2.1 above. The Company shall not declare, pay or set aside any dividends or distributions
on shares of Series A Preferred Stock or Common Stock (other than dividends payable solely in
shares of Common Stock) or any Parity Securities or Junior Securities, until the holders of Series
A Preferred Stock first receive, or simultaneously receive, a dividend or distribution on each
outstanding share of Series A Preferred Stock equal to the product of (i) the per share dividend or
distribution to be declared, paid or set aside for the Common Stock, multiplied by (ii) the number
of shares of Common Stock into which such share of Series A Preferred Stock is then convertible,
together with all amounts accrued and unpaid for dividends on the Series A Preferred Stock
subsequent to the Fixed Dividend Date.

     3. Liquidation. Upon any liquidation, dissolution or winding up of the Company,
whether voluntary or involuntary, the holders of the shares of Series A Preferred Stock shall be
entitled, prior and in preference to any distribution to the holders of the Common Stock or any
other Junior Securities and pari passu to any distribution to the holders of the Series A Preferred
Stock and any other Parity Securities, to be paid an amount per share equal to the Series A Stated
Value plus any accrued and unpaid dividends on the Series A Preferred Stock subsequent to the Fixed
Dividend Date (the “Liquidation Preference”). If upon such liquidation, dissolution or
winding up of the Company, whether voluntary or involuntary, the assets to be distributed among the
holders of the Series A Preferred Stock shall be insufficient to permit payment to the holders of
the Series A Preferred Stock of their respective liquidation amount, then the entire assets of the
Company to be distributed shall be distributed pro rata to the holders of Series A Preferred Stock
according to the preferential amounts due thereon. Neither the consolidation nor merger of the
Company into or with any other entity or entities nor the consolidation or merger of any entity or
entities into the Company shall be deemed to be a liquidation within the meaning of this Section 3,
but the sale, lease or conveyance of all

-5-

 

or substantially all the Company’s assets shall be deemed a liquidation within the meaning of this
Section 3.

     4. Conversion.

          4.1 Conversion at the Option of the Company; Redemption.

          (a) All Series A Preferred Stock outstanding on the 18-month anniversary of the Closing Date
(the “Determination Date”) shall convert into such number of fully paid and nonassessable
whole shares of Common Stock as is obtained by multiplying the number of shares of Series A
Preferred Stock so to be converted by the Series A Stated Value and the per share dividends accrued
and unpaid thereon and dividing the result by the End-of-period Conversion Price then in effect,
unless the Company has redeemed all, but not less than all, of the outstanding Series A Preferred
Stock as provided in clause (e) below. Not later than ten (10) Business Days prior to the
Determination Date, the Company shall give irrevocable written notice to the Holders if the Company
will not convert the outstanding Series A Preferred Stock in accordance with the provisions of this
Section 4.1(a) and instead will redeem the outstanding Series A Preferred Stock in accordance with
the provisions of Section 4.1(e).

          (b) No later than the Business Day immediately prior to the Determination Date, the Holder
shall deliver to the Company the certificates representing the shares of such Holder’s Series A
Preferred Stock to be converted on the Determination Date (or, in lieu thereof, an appropriate lost
security affidavit in the event such certificates shall have been lost or destroyed, together with
a customary indemnity agreement) to the Company at its principal office (or such other office or
agency of the Company as the Company may designate by notice in writing to the Holder), together
with a statement of the name or names (with address) in which the certificate or certificates for
the shares of Common Stock issuable upon such conversion shall be issued. Promptly following the
Determination Date and the surrender of such certificates (or, in lieu thereof, delivery of an
appropriate lost security affidavit in the event such certificates shall have been lost or
destroyed, together with a customary indemnity agreement), the Company shall issue and deliver, or
cause to be issued and delivered, to the Holder, registered in such name or names as the Holder may
direct in writing, certificates representing the shares of Common Stock into which such Holder’s
shares of Series A Preferred Stock (and all accrued dividends thereon) have been converted. The
conversion shall be deemed to have been effected as of the close of business on the Determination
Date, and at such time, the rights of the Holder shall cease with respect to the Series A Preferred
Stock, and the Person or Persons in whose name or names any Common Stock shall be issuable upon
such conversion shall be deemed to have become the holder or holders of record of such Common
Stock.

          (c) No fractional interest in any Common Stock shall be issued upon any conversion of the
Series A Preferred Stock pursuant to this Section 4.1. If any fractional interest would, except
for the provisions of the first sentence of this Section

-6-

 

4.1(c), be delivered upon such conversion, such fractional interest shall be rounded down to
nearest whole number or amount, as applicable.

          (d) [Intentionally Omitted.]

          (e) If not converted prior thereto pursuant to Section 4.2 or Section 4.3 hereof, the Company
shall have the right to redeem all or any part of the issued and outstanding shares of Series A
Preferred Stock immediately prior to the Determination Date at a per share redemption price equal
to the Series A Stated Value plus all accrued and unpaid dividends to and including the
Determination Date (the “Redemption Price”). To effect such redemption, not later than ten
(10) Business Days prior to the Determination Date, the Company shall give irrevocable written
notice to the Holders that the Company will redeem the outstanding Series A Preferred Stock in
accordance with the provisions of this Section 4.1(e). If the Company is effecting a redemption,
on the Determination Date, (i) the Company shall pay the Redemption Price to the Holder in
immediately available funds to an account previously specified in writing by the Holder, and (ii)
upon the payment of the Redemption Price, the Series A Preferred Stock shall cease to be issued and
outstanding and certificates formerly representing shares of Series A Preferred Stock shall
evidence only the right to receive the Redemption Price, without interest, upon the surrender
thereof (or, in lieu thereof, an appropriate lost security affidavit in the event such certificates
shall have been lost or destroyed, together with a customary indemnity agreement) to the Company at
its principal office (or such other office or agency of the Company as the Company may designate by
notice in writing to the Holder). Any partial redemption shall be made on a pro rata basis.
Shares of Series A Preferred Stock redeemed by the Company may not be reissued as Series A
Preferred Stock and shall become authorized and undesignated shares of Preferred Stock of the
Company.

          4.2 Mandatory Conversion.

          (a) Subject to Section 4.2(e), upon the consummation of a Qualified Financing, all of the
shares of Series A Preferred Stock and all accrued and unpaid dividends thereon shall,
automatically and without any action on the part of the Holder, convert on a dollar-for-dollar
basis, into Equity Securities. The date on which the Qualified Financing is consummated is
hereinafter referred to as the “Mandatory Conversion Date.” The Company shall notify the Holder at
least five Business Days prior to the expected Mandatory Conversion Date. The Holder shall keep
such notice confidential and shall not effect any transaction in securities of the Company from and
after receipt of the Company’s notice and until such transactions are again permitted pursuant to
the Qualified Financing Documents.

          (b) No later than the Business Day immediately prior to the Mandatory Conversion Date, the
Holder shall deliver to the Company the certificates representing all of the Holder’s shares of
Series A Preferred Stock (or, in lieu thereof, an appropriate lost security affidavit in the event
such certificates shall have been lost or destroyed, together with a customary indemnity agreement)
to the Company at its principal office (or such

-7-

 

other office or agency of the Company as the Company may designate by notice in writing to the
Holder), together with a statement of the name or names (with address) in which the certificate or
certificates for the Equity Securities issuable upon such conversion shall be issued. Promptly
following the Mandatory Conversion Date and the surrender of such certificates (or, in lieu
thereof, delivery of an appropriate lost security affidavit in the event such certificates shall
have been lost or destroyed, together with a customary indemnity agreement), the Company shall
issue and deliver, or cause to be issued and delivered, to the Holder, registered in such name or
names as the Holder may direct in writing, certificates representing the Equity Securities into
which such Holder’s shares of Series A Preferred Stock (and all accrued dividends thereon) have
been converted. The conversion shall be deemed to have been effected, as of the close of business
on the Mandatory Conversion Date, and at such time, the rights of the Holder shall cease with
respect to the Series A Preferred Stock, and the Person or Persons in whose name or names any
Equity Securities shall be issuable upon such conversion shall be deemed to have become the holder
or holders of record of such Equity Securities. If such certificates are not surrendered as
provided above, on the Mandatory Conversion Date, the Series A Preferred Stock shall cease to be
issued and outstanding and certificates formerly representing shares of Series A Preferred Stock
shall evidence only the right to receive the Equity Securities upon the surrender thereof (or, in
lieu thereof, an appropriate lost security affidavit in the event such certificates shall have been
lost or destroyed, together with a customary indemnity agreement) to the Company at its principal
office (or such other office or agency of the Company as the Company may designate by notice in
writing to the Holder).

          (c) No fractional interest in any Conversion Security shall be issued upon any conversion of
the Series A Preferred Stock pursuant to this Section 4.2. If any fractional interest would,
except for the provisions of the first sentence of this Section 4.2(c), be delivered upon such
conversion, such fractional interest shall be rounded down to nearest whole number or amount, as
applicable.

          (d) [Intentionally Omitted.]

          (e) Notwithstanding any other provision in this Section 4.2, if the effective per share price
at which shares of Common Stock are issued or issuable in the Qualified Financing is less than
$1.50 (appropriately adjusted for any stock split, reverse stock split, stock dividend or other
reclassification or combination of the Common Stock occurring after the date hereof) (the “Minimum
Conversion Price”), the Company shall have the option to make the provisions of this Section 4.2
inapplicable with respect to such Qualified Financing. Any such option must be exercised, if at
all, by giving written notice thereof to the Holders not less than ten (10) days prior to the
scheduled Mandatory Conversion Date. In the event that the Company notifies the Holders that it is
electing pursuant to this Section 4.2(e) to make the provisions of this Section 4.2 inapplicable to
a Qualified Financing because the effective price is less than the Minimum Conversion Price, each
Holder shall have the right, exercisable at any time within five days of receipt of the Company’s
notice, to force the automatic conversion of its shares of Series A Preferred Stock pursuant to the
provisions of this Section 4.2 at the Minimum Conversion

-8-

 

Price. The provisions of Section 4.2(d) shall remain applicable to any conversion at the Minimum
Conversion Price and, in the event that the Company is not able to convert all of the shares of
Series A Preferred Stock as to which such election is made, the shares to be converted shall be
determined on a pro rata basis among all Holders exercising rights to convert.

          4.3 Optional Conversion.

          (a) Subject to the terms and conditions of this Section 4, the Holder of any shares of Series
A Preferred Stock shall have the right, at its option at any time, to convert any such shares of
Series A Preferred Stock into such number of fully paid and nonassessable whole shares of Common
Stock as is obtained by multiplying the number of shares of Series A Preferred Stock so to be
converted by the Series A Stated Value and the per share dividends accrued and unpaid thereon and
dividing the result by the Initial Conversion Price then in effect. Such rights of conversion
shall be exercised by the Holder thereof by surrender of a certificate or certificates for the
shares to be converted (or, in lieu thereof, an appropriate lost security affidavit in the event
such certificates shall have been lost or destroyed, together with a customary indemnity agreement)
to the Company at its principal office (or such other office or agency of the Company as the
Company may designate by notice in writing to the holder or holders of the Series A Preferred
Stock) at any time during its usual business hours on the date set forth in such notice, together
with a properly completed notice of conversion with a statement of the name or names in which the
certificate or certificates for shares of Common Stock, shall be issued. Such conversion shall be
deemed to have been effected and the Initial Conversion Price shall be determined as of the close
of business on the date on which such written notice shall have been received by the Company and
the certificate or certificates for such shares shall have been surrendered as aforesaid (or, in
lieu thereof, an appropriate lost security affidavit in the event such certificates shall have been
lost or destroyed, together with a customary indemnity agreement).

          (b) No fractional shares shall be issued upon conversion of the Series A Preferred Stock into
Common Stock, and the number of shares of Common Stock to be issued shall be rounded down to the
nearest whole share. In case the number of shares of Series A Preferred Stock represented by the
certificate or certificates surrendered pursuant to Section 4.3(a) exceeds the number of shares
converted, the Company shall upon such conversion, execute and deliver to the holder thereof at the
expense of the Company, a new certificate for the number of shares of Series A Preferred Stock
represented by the certificate or certificates surrendered which are not to be converted.

          (c) [Intentionally Omitted.]

          4.4 Conversion Procedures; Buy In. Promptly following the effective date of any
conversion of Series A Preferred Stock, the Company shall use its commercially reasonable best
efforts to issue and deliver, or cause to be issued and delivered, to the Holder, registered in
such name or names (with address and tax identification number) as such Holder may direct, subject
to compliance with applicable laws to the extent such designation shall involve a transfer, a
certificate or certificates for

-9-

 

the number of whole shares of Common Stock issuable upon the conversion of such share or shares of
Series A Preferred Stock (the “Conversion Shares”). If the Company fails to deliver to the Holder
such certificate or certificates by the tenth Business Day after the effective date of any such
conversion, and if after the effective date of any such conversion the Holder is required by its
brokerage firm to purchase (in an open market transaction or otherwise) shares of Common Stock to
deliver in satisfaction of a sale by such Holder of the Conversion Shares which the Holder was
entitled to receive upon the conversion relating thereto (a “Buy-In”), then the Company shall pay
in cash to the Holder the amount by which (x) the Holder’s total purchase price (including any
brokerage commissions) for the shares of Common Stock so purchased exceeds (y) the product of (1)
the aggregate number of shares of Common Stock that such Holder was entitled to receive from the
conversion at issue multiplied by (2) the actual sale price at which the sell order giving rise to
such purchase obligation was executed (including any brokerage commissions). For example, if the
Holder purchases shares of Common Stock having a total purchase price of $11,000 to cover a Buy-In
with respect to an attempted conversion of shares of Preferred Stock with respect to which the
actual sale price (including any brokerage commissions) giving rise to such purchase obligation was
a total of $10,000 under clause (A) of the immediately preceding sentence, the Company shall be
required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating
the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company,
evidence of the amount of such loss. Nothing herein shall limit a Holder’s right to pursue a decree
of specific performance and/or injunctive relief with respect to the Company’s failure to timely
deliver certificates representing shares of Common Stock upon conversion of the shares of Preferred
Stock as required pursuant to the terms hereof.

          4.5 Stock Splits and Dividends. If the Company shall, at any time or from time to
time while the Series A Preferred Stock is outstanding, pay a dividend or make a distribution on
its Common Stock in shares of Common Stock, subdivide its outstanding shares of Common Stock into a
greater number of shares or combine its outstanding shares of Common Stock into a smaller number of
shares or issue by reclassification of its outstanding shares of Common Stock any shares of its
capital stock (including any such reclassification in connection with a consolidation or merger in
which the Company is the continuing corporation), then the Initial Conversion Price and Minimum
Conversion Price in effect immediately prior to the date upon which such change shall become
effective shall be adjusted by the Company so that the holder thereafter converting its shares of
Series A Preferred Stock shall be entitled to receive the number of shares of Common Stock or other
capital stock which the such holder would have received if the shares of Series A Preferred Stock
had been converted immediately prior to such event. Such adjustments shall be made successively
whenever any event listed above shall occur.

          4.6 Reorganization or Reclassification. If any capital reorganization or
reclassification of the capital stock of the Company shall be effected in such a way (including,
without limitation, by way of consolidation or merger) that holders of Common Stock but not holders
of Series A Preferred Stock shall be entitled to receive

-10-

 

stock, securities or assets with respect
to or in exchange for Common Stock then, as a condition of such reorganization or reclassification,
lawful and adequate provision shall be made whereby each holder of a share or shares of Series A
Preferred Stock shall thereafter have the right to receive, upon the basis and upon the terms and
conditions specified herein and in lieu of the shares of Common Stock of the Company immediately
theretofore receivable upon the conversion of such share or shares of the Series A Preferred Stock,
such shares of stock, securities or assets as may be issued or payable with respect to or in
exchange for a number of outstanding shares of Common Stock equal to the number of shares of such
stock immediately theretofore so receivable had such reorganization or reclassification not taken
place and in any such case appropriate provision shall be made with respect to the rights and
interests of such holder to the end that the provisions hereof (including without limitation
provisions for adjustments of the Conversion Price) shall thereafter be applicable, as nearly as
may be, in relation to any shares of stock, securities or assets thereafter deliverable upon the
exercise of such conversion rights (including an immediate adjustment, by reason of such
reorganization or reclassification, of the Initial Conversion Price and Minimum Conversion Price to
the value for the Common Stock reflected by the terms of such reorganization or reclassification.
In the event of a merger or consolidation of the Company as a result of which a greater or lesser
number of shares of common stock of the surviving corporation are issuable to holders of the Common
Stock of the Company outstanding immediately prior to such merger or consolidation, the Initial
Conversion Price and Minimum Conversion Price in effect immediately prior to such merger or
consolidation shall be adjusted in the same manner as though there were a subdivision or
combination of the outstanding shares of Common Stock of the Company.

          4.7 Distributions. In case the Company shall fix a payment date for the making of a
distribution to all holders of Common Stock (including any such distribution made in connection
with a consolidation or merger in which the Company is the continuing corporation) of evidences of
indebtedness or assets, or subscription rights or warrants, the Conversion Price to be in effect
after such payment date shall be determined by multiplying the Initial Conversion Price in effect
immediately prior to such payment date by a fraction, the numerator of which shall be the total
number of shares of Common Stock outstanding multiplied by the Market Price per share of Common
Stock immediately prior to such payment date, less the fair market value (as determined by the
Company’s Board of Directors in good faith) of said assets or evidences of indebtedness so
distributed, or of such subscription rights or warrants, and the denominator of which shall be the
total number of shares of Common Stock outstanding multiplied by such Market Price per share of
Common Stock immediately prior to such payment date.

          4.8 Effective Date of Adjustment. An adjustment to the Initial Conversion Price shall
become effective immediately after the payment date in the case of each dividend or distribution
and immediately after the effective date of each other event which requires an adjustment.

-11-

 

          4.9 Amount of Adjustment. All calculations under this Section 4 shall be made to the
nearest one-tenth (1/10) of a cent or to the nearest one-tenth (1/10) of a share, as the case may
be.

          4.10 Subsequent Adjustments. In the event that, as a result of an adjustment made
pursuant to this Section 4, holders of Series A Preferred Stock shall become entitled to receive
any shares of capital stock of the Company other than shares of Common Stock, the number of such
other shares so receivable upon the conversion of the Series A Preferred Stock shall be subject
thereafter to adjustment from time to time in a manner and on terms as nearly equivalent as
practicable to the provisions with respect to the Conversion Shares contained herein.

          4.11 Notice of Adjustment. Upon any adjustment of the Initial Conversion Price, then,
and in each such case the Company shall give written notice thereof by first class mail, postage
prepaid, addressed to each Holder of shares of Series A Preferred Stock at the address of such
Holder as shown on the books of the Company, which notice shall state the Initial Conversion Price
resulting from such adjustment, setting forth in reasonable detail the method of calculation and
the facts upon which such calculation is based.

          4.12 Other Notices. In case at any time:

          (1) the Company shall declare any dividend upon its Common Stock payable in cash or stock or
make any other distribution to the holders of its Common Stock;

          (2) the Company shall offer for subscription pro rata to the holders of its Common Stock any
additional shares of such stock of any class or other rights;

          (3) there shall be any capital reorganization or reclassification of the capital stock of the
Company, or a consolidation or merger of the Company with, or a sale of all or substantially all
its assets to, another corporation; or

          (4) there shall be a voluntary or involuntary dissolution, liquidation or winding up of the
Company;

then, in any one or more of said cases, the Company shall give, by first class mail, postage
prepaid, addressed to each holder of any shares of Series A Preferred Stock at the address of such
holder as shown on the books of the Company, (a) at least fifteen (15) days prior written notice of
the date on which the books of the Company shall close or a record shall be taken for such
dividend, distribution or subscription rights or for determining rights to vote in respect of any
such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation or
winding up, and (b) in the case of any such reorganization, reclassification, consolidation,
merger, sale, dissolution, liquidation or winding up, at least fifteen (15) days prior written
notice of the date when the same shall take place. Such notice in accordance with the foregoing
clause (a) shall

-12-

 

also specify, in the case of any such dividend, distribution or subscription
rights, the date on which the holders of Common Stock shall be entitled thereto, and such notice in
accordance with the foregoing clause (b) shall also specify the date on which the holders of Common
Stock shall be entitled to exchange their Common Stock for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, sale, dissolution, liquidation
or winding up, as the case may be.

          4.13 Stock to be Reserved.

          (a) The Company will at all times reserve and keep available out of its authorized but
unissued Common Stock solely for the purpose of issuance upon the conversion of the Series A
Preferred Stock as herein provided, such number of shares of Common Stock as shall then be issuable
upon the conversion of all outstanding shares of Series A Preferred Stock. All shares of Common
Stock which shall be so issued shall be duly and validly issued and fully paid and nonassessable
and free from all liens, duties and charges arising out of or by reason of the issue thereof
(including, without limitation, in respect of taxes) and, without limiting the generality of the
foregoing, the Company covenants that it will from time to time take all such action as may be
requisite to assure that the par value per share of the Common Stock is at all times equal to or
less than the lowest Conversion Price in effect hereunder. The Company will take all such action
within its control as may be necessary on its part to assure that all such shares of Common Stock
may be so issued without violation of any applicable law or regulation, or of any requirements of
any national securities exchange upon which the Common Stock of the Company may be listed. The
Company will not take any action which results in any adjustment of any Conversion Price if after
such action the total number of shares of Common Stock issued and outstanding and thereafter
issuable upon exercise of all options and conversion of all convertible securities, including upon
conversion of the Series A Preferred Stock, would exceed the total number of shares of such class
of Common Stock then authorized by the Company’s Certificate of Incorporation.

          (b) All shares of Series A Preferred Stock which shall be so issued shall be duly and validly
issued and fully paid and nonassessable and free from all liens, duties and charges arising out of
or by reason of the issue thereof (including, without limitation, in respect of taxes).

          4.14 No Reissuance of Series A Preferred Stock. Shares of Series A Preferred Stock
that are converted into shares of Common Stock as provided herein shall cease to be outstanding and
shall be retired and may not be reissued as Series A Preferred Stock but may be reissued as all or
part of another series of Preferred Stock.

          4.15 Issue Tax. The issuance of certificates for shares of Common Stock upon
conversion of the Series A Preferred Stock shall be made without charge to the holders thereof for
any issuance tax, stamp tax, transfer tax, duty or charge in respect thereof, provided that the
Company shall not be required to pay any tax, duty or charge which may be payable in respect of any
transfer involved in the issuance and delivery of

-13-

 

any certificate in a name other than that of the
holder of the Series A Preferred Stock which is being converted.

          4.16 Closing of Books. The Company will at no time close its transfer books against
the transfer of any Series A Preferred Stock or of any shares of Common Stock issued or issuable
upon the conversion of any shares of Series A Preferred Stock in any manner which interferes with
the timely conversion of such Series A Preferred Stock; provided, however, nothing herein shall be
construed to prevent the Company from setting record dates for the holders of its securities.

     5. Voting. In addition to any class voting rights provided by law and this
Certificate of Designation, the Holders of Series A Preferred Stock shall have the right to vote
together with the holders of Common Stock as a single class on any matter on which the holders of
Common Stock are entitled to vote (including the election of directors). With respect to the voting
rights of the Holders of the Series A Preferred Stock pursuant to the preceding sentence, each
Holder of Series A Preferred Stock shall be entitled to one vote for each share of Common Stock
that would be issuable to such Holder upon the permitted conversion at the then Initial Conversion
Price of all the shares of Series A Preferred Stock held by such Holder on the record date for the
determination of shareholders entitled to vote; provided, that only shares permitted to be
converted hereunder without stockholder approval will be entitled to vote until such stockholder
approval is obtained.

     6. Certain Restrictions. In addition to any other vote of the Holders of Series A
Preferred Stock required by law or by the Certificate of Incorporation, without the prior consent
of the Holders of a majority of the Series A Preferred Stock then outstanding, given in person or
by proxy, either in writing or at a special meeting called for that purpose, at which meeting the
holders of the shares of such Series A Preferred Stock shall vote together as a class, the Company
will not:

          (a) authorize, create, designate, establish or issue (whether by merger or otherwise) (i) an
increased number of shares of Series A Preferred Stock or (ii) any other Parity Securities or
Senior Securities or reclassify any shares of Common Stock into Parity Securities or Senior
Securities;

          (b) amend, alter or repeal, whether by merger, consolidation or otherwise, the Certificate of
Incorporation or By-laws of the Company or the Resolutions contained in this Certificate of
Designations and the powers, preferences, privileges, relative, participating, optional and other
special rights and qualifications, limitations and restrictions thereof, which would adversely
affect any right, preference, privilege or voting power of the Series A Preferred Stock, or which
would increase the amount of authorized shares of the Series A Preferred Stock or of any Senior
Securities;

          (c) repay, repurchase or offer to repay, repurchase or otherwise acquire shares of its Common
Stock or Junior Securities;

-14-

 

          (d) enter into any agreement or understanding with respect to any of the foregoing; or

          (e) pay cash dividends or distributions on Junior Securities of the Company.

     7. No Waiver. Except as otherwise modified or provided for herein, the Holders of
Series A Preferred Stock shall also be entitled to, and shall not be deemed to have waived, any
other applicable rights granted to such holders under the Delaware General Corporation Law.

     8. No Impairment. The Company will not, through any reorganization, transfer of
assets, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or
seek to avoid the observance or performance of any of the terms to be observed or performed
hereunder by the Company but will at all time in good faith assist in the carrying out of all the
provisions of Article 4.3 of the Company’s Certificate of Incorporation and in the taking of all
such action as may be necessary or appropriate in order to protect the conversion rights and
liquidation preferences granted hereunder of the holders of the Series A Preferred Stock against
impairment.

     9. Equity Treatment Under GAAP. The terms set forth in this Certificate of
Designations are intended to result in the treatment of the Series A Preferred Stock as equity
securities under generally accepted accounting principles.

     10. No Preemptive Rights. No Holder of any shares of Series A Preferred Stock shall
have any preemptive right to subscribe to any issue of the same or other capital stock of the
Company.

     11. Amendment; Waiver. Any term of the Series A Preferred Stock may be amended or
waived upon the written consent of the Company and the Holders of a majority of the Series A
Preferred Stock then outstanding, and such amendment (and any amendment to this Certificate of
Designations implementing such amendment) shall not require the approval of the stockholders of the
Company generally.

     12. Action By Holders. Any action or consent to be taken or given by the holders of
the Series A Preferred Stock may be given either at a meeting of the Holders of the Series A
Preferred Stock called and held for such purpose or by written consent.

[Signature Page Follows]

-15-

 

     IN WITNESS WHEREOF, the undersigned has executed this Amended and Restated Certificate of
Designations, Preferences and Rights this 4th day of September, 2008.

	 	 	 	 	 	 	 
	 	 	LCC INTERNATIONAL, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Louis Salamone, Jr.
 

	 	 
	 

	 	Name:
	 	Louis Salamone, Jr.	 	 
	 

	 	Title:
	 	Executive Vice President and	 	 
	 

	 	 	 	Chief Financial Officer	 	 

Amended
and Restated Series A Certificate of Designations

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