Document:

exv10w1

 

Exhibit 10.1

EXECUTION VERSION

CREDIT AND GUARANTY AGREEMENT

dated as of February 9, 2007

among

COVANTA ENERGY CORPORATION,

COVANTA HOLDING CORPORATION,

as a Guarantor,

CERTAIN SUBSIDIARIES OF COVANTA ENERGY CORPORATION,

as Guarantors,

VARIOUS LENDERS,

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, Collateral Agent, Revolving Issuing Bank and

a Funded LC Issuing Bank,

UBS AG, STAMFORD BRANCH,

as a Funded LC Issuing Bank,

LEHMAN COMMERCIAL PAPER INC.

and

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED,

as Syndication Agents,

and

BANK OF AMERICA, N.A. and BARCLAYS BANK PLC,

as Documentation Agents

 

$1,270,000,000 Senior Secured Credit Facilities

 

J.P. MORGAN SECURITIES INC., LEHMAN BROTHERS INC. and

MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

Joint Lead Arrangers and Bookrunners

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	SECTION 1. DEFINITIONS AND INTERPRETATION	 	 	2	 
	 
	 	 	 	 	 	 
	1.1
	 	Definitions	 	 	2	 
	1.2
	 	Accounting Terms	 	 	46	 
	1.3
	 	Interpretation, etc.	 	 	46	 
	 
	 	 	 	 	 	 
	SECTION 2. LOANS AND LETTERS OF CREDIT	 	 	46	 
	 
	 	 	 	 	 	 
	2.1
	 	Term Loans	 	 	46	 
	2.2
	 	Revolving Loans	 	 	47	 
	2.3
	 	Swing Line Loans	 	 	48	 
	2.4
	 	Issuance of Letters of Credit and Purchase of Participations Therein	 	 	50	 
	2.5
	 	Pro Rata Shares; Availability of Funds	 	 	60	 
	2.6
	 	Use of Proceeds	 	 	60	 
	2.7
	 	Evidence of Debt; Register; Lenders’ Books and Records; Notes	 	 	61	 
	2.8
	 	Interest on Loans	 	 	62	 
	2.9
	 	Conversion/Continuation	 	 	64	 
	2.10
	 	Default Interest	 	 	64	 
	2.11
	 	Fees	 	 	65	 
	2.12
	 	Scheduled Payments	 	 	66	 
	2.13
	 	Voluntary Prepayments/Commitment Reductions	 	 	67	 
	2.14
	 	Mandatory Prepayments	 	 	69	 
	2.15
	 	Application of Prepayments	 	 	71	 
	2.16
	 	General Provisions Regarding Payments	 	 	72	 
	2.17
	 	Ratable Sharing	 	 	73	 
	2.18
	 	Making or Maintaining Eurodollar Rate Loans	 	 	73	 
	2.19
	 	Increased Costs; Capital Adequacy	 	 	75	 
	2.20
	 	Taxes; Withholding, etc.	 	 	77	 
	2.21
	 	Obligation to Mitigate	 	 	80	 
	2.22
	 	Defaulting Lenders	 	 	80	 
	2.23
	 	Removal or Replacement of a Lender	 	 	81	 
	2.24
	 	Incremental Facilities	 	 	82	 
	 
	 	 	 	 	 	 
	SECTION 3. CONDITIONS PRECEDENT	 	 	85	 
	 
	 	 	 	 	 	 
	3.1
	 	Closing Date	 	 	85	 
	3.2
	 	Conditions to Each Credit Extension	 	 	89	 
	 
	 	 	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES	 	 	89	 
	 
	 	 	 	 	 	 
	4.1
	 	Organization; Requisite Power and Authority; Qualification	 	 	90	 
	4.2
	 	Subsidiaries; Capital Stock and Ownership	 	 	90	 
	4.3
	 	Due Authorization	 	 	90	 
	4.4
	 	No Conflict	 	 	90	 

i

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	4.5
	 	Governmental Consents	 	 	91	 
	4.6
	 	Binding Obligation	 	 	91	 
	4.7
	 	Historical Financial Statements	 	 	91	 
	4.8
	 	Projections	 	 	91	 
	4.9
	 	No Material Adverse Change	 	 	92	 
	4.10
	 	Adverse Proceedings, etc.	 	 	92	 
	4.11
	 	Payment of Taxes	 	 	92	 
	4.12
	 	Properties	 	 	92	 
	4.13
	 	Environmental Matters	 	 	92	 
	4.14
	 	No Defaults	 	 	93	 
	4.15
	 	Material Contracts	 	 	93	 
	4.16
	 	Governmental Regulation	 	 	93	 
	4.17
	 	Margin Stock	 	 	94	 
	4.18
	 	Employee Matters	 	 	94	 
	4.19
	 	Employee Benefit Plans	 	 	94	 
	4.20
	 	Certain Fees	 	 	95	 
	4.21
	 	Solvency	 	 	95	 
	4.22
	 	Disclosure	 	 	95	 
	4.23
	 	Patriot Act	 	 	95	 
	4.24
	 	Financing Statements	 	 	95	 
	4.25
	 	Regulation H	 	 	96	 
	4.26
	 	Unrestricted Subsidiaries	 	 	96	 
	 
	 	 	 	 	 	 
	SECTION 5. AFFIRMATIVE COVENANTS	 	 	96	 
	 
	 	 	 	 	 	 
	5.1
	 	Financial Statements and Other Reports	 	 	96	 
	5.2
	 	Existence	 	 	99	 
	5.3
	 	Payment of Taxes and Claims	 	 	99	 
	5.4
	 	Maintenance of Properties	 	 	100	 
	5.5
	 	Insurance	 	 	100	 
	5.6
	 	Inspections	 	 	100	 
	5.7
	 	Lenders Meetings	 	 	101	 
	5.8
	 	Compliance with Laws	 	 	101	 
	5.9
	 	Environmental	 	 	101	 
	5.10
	 	Subsidiaries	 	 	104	 
	5.11
	 	Additional Material Real Estate Assets	 	 	105	 
	5.12
	 	Further Assurances	 	 	105	 
	5.13
	 	Post-Closing Matters	 	 	105	 
	5.14
	 	Designation of Subsidiaries	 	 	106	 
	 
	 	 	 	 	 	 
	SECTION 6. NEGATIVE COVENANTS	 	 	106	 
	 
	 	 	 	 	 	 
	6.1
	 	Indebtedness	 	 	106	 
	6.2
	 	Liens	 	 	111	 
	6.3
	 	No Further Negative Pledges	 	 	113	 
	6.4
	 	Restricted Junior Payments	 	 	114	 
	6.5
	 	Restrictions on Subsidiary Distributions	 	 	115	 

ii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	6.6
	 	Investments	 	 	116	 
	6.7
	 	Financial Covenants	 	 	118	 
	6.8
	 	Fundamental Changes; Disposition of Assets; Acquisitions	 	 	120	 
	6.9
	 	Disposal of Subsidiary Interests	 	 	121	 
	6.10
	 	Transactions with Shareholders and Affiliates	 	 	121	 
	6.11
	 	Conduct of Business	 	 	122	 
	6.12
	 	Amendments or Waivers of Certain Agreements	 	 	122	 
	6.13
	 	Fiscal Year	 	 	122	 
	6.14
	 	Hedge Agreements	 	 	123	 
	 
	 	 	 	 	 	 
	SECTION 7. GUARANTY	 	 	123	 
	 
	 	 	 	 	 	 
	7.1
	 	Guaranty of the Obligations	 	 	123	 
	7.2
	 	Contribution by Guarantors	 	 	123	 
	7.3
	 	Payment by Guarantors	 	 	124	 
	7.4
	 	Liability of Guarantors Absolute	 	 	124	 
	7.5
	 	Waivers by Guarantors	 	 	126	 
	7.6
	 	Guarantors’ Rights of Subrogation, Contribution, etc.	 	 	126	 
	7.7
	 	Subordination of Other Obligations	 	 	127	 
	7.8
	 	Continuing Guaranty	 	 	127	 
	7.9
	 	Authority of Guarantors or Company	 	 	128	 
	7.10
	 	Financial Condition of Company	 	 	128	 
	7.11
	 	Bankruptcy, etc.	 	 	128	 
	7.12
	 	Discharge of Guaranty Upon Sale of Guarantor	 	 	129	 
	 
	 	 	 	 	 	 
	SECTION 8. EVENTS OF DEFAULT	 	 	129	 
	 
	 	 	 	 	 	 
	8.1
	 	Events of Default	 	 	129	 
	 
	 	 	 	 	 	 
	SECTION 9. AGENTS	 	 	132	 
	 
	 	 	 	 	 	 
	9.1
	 	Appointment of Agents	 	 	132	 
	9.2
	 	Powers and Duties	 	 	133	 
	9.3
	 	General Immunity	 	 	133	 
	9.4
	 	Agents Entitled to Act as Lender	 	 	134	 
	9.5
	 	Lenders’ Representations, Warranties and Acknowledgment	 	 	135	 
	9.6
	 	Right to Indemnity	 	 	135	 
	9.7
	 	Successor Agent and Swing Line Lender	 	 	135	 
	9.8
	 	Collateral Documents and Guaranty	 	 	136	 
	 
	 	 	 	 	 	 
	SECTION 10. MISCELLANEOUS	 	 	137	 
	 
	 	 	 	 	 	 
	10.1
	 	Notices	 	 	137	 
	10.2
	 	Expenses	 	 	138	 
	10.3
	 	Indemnity	 	 	138	 
	10.4
	 	Set-Off	 	 	139	 
	10.5
	 	Amendments and Waivers	 	 	140	 
	10.6
	 	Successors and Assigns; Participations	 	 	142	 

iii

 

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	10.7
	 	Independence of Covenants	 	 	146	 
	10.8
	 	Survival of Representations, Warranties and Agreements	 	 	146	 
	10.9
	 	No Waiver; Remedies Cumulative	 	 	146	 
	10.10
	 	Marshalling; Payments Set Aside	 	 	146	 
	10.11
	 	Severability	 	 	147	 
	10.12
	 	Obligations Several; Independent Nature of Lenders’ Rights	 	 	147	 
	10.13
	 	Headings	 	 	147	 
	10.14
	 	APPLICABLE LAW	 	 	147	 
	10.15
	 	CONSENT TO JURISDICTION	 	 	147	 
	10.16
	 	WAIVER OF JURY TRIAL	 	 	148	 
	10.17
	 	Confidentiality	 	 	148	 
	10.18
	 	Usury Savings Clause	 	 	149	 
	10.19
	 	Counterparts	 	 	150	 
	10.20
	 	Effectiveness	 	 	150	 
	10.21
	 	Patriot Act	 	 	150	 
	10.22
	 	Electronic Execution of Assignments	 	 	150	 

iv

 

	 	 	 	 	 
	APPENDICES:
	 	A-1	 	Term Loan Commitments
	 
	 	A-2	 	Revolving Commitments
	 
	 	A-3	 	Funded Letter of Credit
	 
	 	B	 	Notice Addresses
	 
	 	 	 	 
	SCHEDULES:
	 	1.1(a)	 	Certain Adjustments to Financial Covenant Definitions
	 
	 	1.1(b)	 	Closing Date Excluded Subsidiaries
	 
	 	1.1(c)	 	Existing Funded Letters of Credit
	 
	 	1.1(d)	 	Closing Date Foreign Subsidiaries
	 
	 	1.1(e)	 	Detroit Letters of Credit
	 
	 	2.4(f)	 	Allocation of Credit Linked Deposits
	 
	 	3.1(d)	 	Certain Closing Date Indebtedness Events
	 
	 	4.1	 	Jurisdictions of Organization
	 
	 	4.2	 	Subsidiaries; Capital Stock and Ownership
	 
	 	4.12	 	Real Estate Assets
	 
	 	4.15	 	Material Contracts
	 
	 	4.26	 	Unrestricted Subsidiaries
	 
	 	5.13	 	Post-Closing Matters
	 
	 	6.1	 	Certain Indebtedness
	 
	 	6.1(x)(1)	 	Terms of Subordination – Affiliates
	 
	 	6.1(x)(2)	 	Terms of Subordination – Non-Affiliates
	 
	 	6.2	 	Certain Liens
	 
	 	6.6(g)	 	Certain Investments
	 
	 	6.6(m)	 	Certain Investments in China, Italy and Mauritius
	 
	 	6.7(a)	 	Collateral Accounts with respect to Restricted Project Cash
	 
	 	6.8-A	 	Certain Permitted Asset Sales
	 
	 	6.8-B	 	Foreign Subsidiary Restructuring
	 
	 	6.10	 	Certain Affiliate Transactions
	 
	 	 	 	 
	EXHIBITS:
	 	A-1	 	Funding Notice
	 
	 	A-2	 	Conversion/Continuation Notice
	 
	 	A-3	 	Issuance Notice
	 
	 	B-1	 	Term Loan Note
	 
	 	B-2	 	Revolving Loan Note
	 
	 	B-3	 	Swing Line Note
	 
	 	C	 	Compliance Certificate
	 
	 	D-1	 	Opinion of Latham & Watkins LLP
	 
	 	D-2	 	Opinion of Mr. Timothy Simpson
	 
	 	D-3	 	LeBoeuf, Lamb, Greene & MacRae LLP
	 
	 	E	 	Assignment Agreement
	 
	 	F	 	Certificate Regarding Non-bank Status
	 
	 	G-1	 	Closing Date Certificate
	 
	 	G-2	 	Solvency Certificate
	 
	 	H	 	Counterpart Agreement
	 
	 	I-1	 	Pledge and Security Agreement
	 
	 	I-2	 	Holding Pledge Agreement
	 
	 	J	 	Mortgage

v

 

	 	 	 	 	 
	 
	 	K	 	Joinder Agreement
	 
	 	L	 	Intercompany Subordination Agreement

vi

 

CREDIT AND GUARANTY AGREEMENT

     This CREDIT AND GUARANTY AGREEMENT, dated as of February 9, 2007, is entered into by and among
COVANTA ENERGY CORPORATION, a Delaware corporation (“Company”), COVANTA HOLDING CORPORATION, a
Delaware corporation (“Holding"), CERTAIN SUBSIDIARIES OF COMPANY, as Guarantors, THE LENDERS PARTY
HERETO FROM TIME TO TIME, JPMORGAN CHASE BANK, N.A., as Administrative Agent (“JPMC”, together with
its permitted successors in such capacity, the “Administrative Agent”) and as Collateral Agent
(together with its permitted successors in such capacity, the “Collateral Agent”), Revolving
Issuing Bank and a Funded LC Issuing Bank, UBS AG, STAMFORD BRANCH ("UBS"), as a Funded LC Issuing
Bank, LEHMAN COMMERCIAL PAPER INC. (“LCPI”) and MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED
(“MLPFS”), as Syndication Agents (each in such capacity, a “Syndication Agent”), and BANK OF
AMERICA, N.A. (“BA”) and BARCLAYS BANK PLC (“Barclays”), as Documentation Agents (each in such
capacity, a “Documentation Agent”).

RECITALS:

     WHEREAS, capitalized terms used in these Recitals shall have the respective meanings set forth
for such terms in Section 1.1 hereof;

     WHEREAS, Lenders have agreed to extend certain credit facilities to Company, in an aggregate
amount not to exceed $1,270,000,000, consisting of (i) $650,000,000 in aggregate principal amount
of Term Loans to be borrowed on the Closing Date and (ii) $300,000,000 in aggregate principal
amount of Revolving Commitments and (iii) up to $320,000,000 in aggregate face amount of Funded
Letters of Credit. The proceeds of the Term Loans will be used together with a portion of the
proceeds of the Related Transactions to refinance the Existing Indebtedness of Company and certain
of its Subsidiaries in accordance with the terms hereof (“Refinancing”) and to pay the related
fees, commissions, premiums and expenses. The proceeds under the Revolving Loan will be used,
after the Closing Date, to fund Restricted Junior Payments permitted hereunder, for Permitted
Acquisitions and to provide for ongoing working capital requirements of Company and its
Subsidiaries for general corporate purposes. The Funded Letters of Credit will be used to support
obligation of Company and its Subsidiaries under waste to energy projects and other Contractual
Obligations of Company and its Subsidiaries and for other general corporate purposes of Company and
its Subsidiaries;

     WHEREAS, contemporaneously with the closing of this Agreement, Holding will issue the
Convertible Debentures and consummate the Holding Equity Issuance, the proceeds of which, together
with the proceeds from the loans provided under this Agreement, will be used to consummate the
Refinancing;

     WHEREAS, Company has agreed to secure all of its Obligations by granting to Collateral Agent,
for the benefit of Secured Parties, a First Priority Lien on substantially all of its assets,
including to the extent permitted by existing Contractual Obligations and regulatory limitations
binding on Company or any of its Subsidiaries, a pledge of all of the Capital Stock of each of its
Domestic Subsidiaries (other than any Unrestricted Subsidiaries) directly owned by it

 

 

and 65% of all the Capital Stock of each of its Foreign Subsidiaries (other than any
Unrestricted Subsidiaries) directly owned by it (except to the extent expressly provided in Section
3.1(h)(iv) and the Pledge and Security Agreement); and

     WHEREAS, Guarantors, have agreed to guarantee the obligations of Company hereunder and to the
extent permitted by existing Contractual Obligations and regulatory limitations, binding on Company
or any of its Subsidiaries, to secure their respective Obligations by granting to Collateral Agent,
for the benefit of Secured Parties, a First Priority Lien on substantially all of their respective
assets, including (to the extent so permitted) a pledge of all of the Capital Stock of each of
their respective Domestic Subsidiaries (other than any Unrestricted Subsidiaries and certain
immaterial Restricted Subsidiaries) directly owned by them (including in the case of Holding,
Company) and 65% of all the Capital Stock of each of their respective Foreign Subsidiaries (other
than any Unrestricted Subsidiaries and certain immaterial Foreign Subsidiaries) directly owned by
them (except to the extent expressly provided in Section 3.1(h)(iv) and the Pledge and Security
Agreement) and all intercompany debt.

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, the parties hereto agree as follows:

SECTION 1. DEFINITIONS AND INTERPRETATION

     1.1 Definitions. The following terms used herein, including in the preamble, recitals,
exhibits and schedules hereto, shall have the following meanings:

     “Acquired EBITDA” means, with respect to any Acquired Entity or Business for any period, the
amount for such period of Consolidated Adjusted EBITDA of such Acquired Entity or Business
(determined as if references to Company and the Restricted Subsidiaries in the definition of
Consolidated Adjusted EBITDA were references to such Acquired Entity or Business and its
Subsidiaries), all as determined on a consolidated basis for such Acquired Entity or Business.

     “Acquired Entity or Business” has the meaning set forth in the definition of the term
“Consolidated Adjusted EBITDA”.

     “Act” as defined in Section 4.23.

     “Additional Credit Linked Deposit” as defined in Section 2.24.

     “Additional Funded Letter of Credit” as defined in Section 2.24.

     “Additional Funded Letter of Credit Commitment” as defined in Section 2.24.

     “Additional Funded Letter of Credit Exposure” means with respect to any Lender, at any time,
the sum of (a) the amount of any Unpaid Drawings in respect of which payments from such Lender’s
Additional Credit Linked Deposit have been made (or were required to be made)
to a Funded LC Issuing Bank pursuant to Section 2.4(f) at such time and (b) such Lender’s Pro
Rata Share of the Additional Funded Letters of Credit Outstanding of any Series at such time

2

 

(excluding the portion thereof consisting of Unpaid Drawings in respect of which payments from such
Lender’s Additional Credit Linked Deposit have been made (or were required to be made) to a Funded
LC Issuing Bank pursuant to Section 2.4(f)); provided that at any time when the Additional
Funded Letters of Credit Outstanding of such Series is zero, the Additional Funded Letter of Credit
Exposure of any Lender for such Series shall be equal to such Lender’s Additional Funded Letter of
Credit Commitment of such Series.

     “Additional Funded Letter of Credit Participant” as defined in Section 2.24.

     “Additional Funded Letter of Credit Termination Date” means the earlier to occur of (i) the
date on which the Additional Credit Linked Deposits with respect to a particular Series have been
reduced to zero pursuant to Section 2.13(b)(iii), and (ii) the date of the termination of the
Additional Funded Letter of Credit Commitments of such Series pursuant to Section 8.1.

     “Additional Funded Letters of Credit Outstanding” means at any time, the sum of, without
duplication, (a) the aggregate Stated Amount of all outstanding Additional Funded Letters of Credit
of any Series and (b) the aggregate amount of all Unpaid Drawings in respect of all Additional
Funded Letters of Credit of such Series.

     “Additional Revolving Commitment” as defined in Section 2.24.

     “Additional Revolving Lender” as defined in Section 2.24.

     “Additional Revolving Loan” as defined in Section 2.24.

     “Additional Term Loan” as defined in Section 2.24.

     “Additional Term Loan Commitment” as defined in Section 2.24.

     “Additional Term Loan Exposure” means, with respect to any Lender as of any date of
determination, the outstanding principal amount of the Additional Term Loans of such Lender for a
Series.

     “Additional Term Loan Lender” as defined in Section 2.24.

     “Additional Term Loan Maturity Date” means the date that Additional Term Loans of a Series
shall become due and payable in full hereunder, as specified in the applicable Joinder Agreement,
including by acceleration or otherwise.

     “Adjusted Eurodollar Rate” means, for any Interest Rate Determination Date with respect to an
Interest Period for a Eurodollar Rate Loan or Credit Linked Deposit, the rate per annum obtained by
dividing (and rounding upward to the next whole multiple of 1/16 of 1.00%) (i) (a) the rate per
annum (rounded to the nearest 1/100 of 1.00%) equal to the offered rate which appears on the page
of the Telerate Screen which displays an average British Bankers Association Interest Settlement
Rate (such page currently being page number 3740 or 3750, as applicable) for deposits (for delivery
on the first day of such period) with a term equivalent to
such period in Dollars, determined as of approximately 11:00 a.m. (London, England time) on
such Interest Rate Determination Date, or (b) in the event the rate referenced in the preceding

3

 

clause (a) does not appear on such page or service or if such page or service shall cease to be
available, the rate per annum (rounded to the nearest 1/100 of 1.00%) equal to the rate determined
by Administrative Agent to be the offered rate on such other page or other service which displays
an average British Bankers Association Interest Settlement Rate for deposits (for delivery on the
first day of such period) with a term equivalent to such period in Dollars, determined as of
approximately 11:00 a.m. (London, England time) on such Interest Rate Determination Date, or (c) in
the event the rates referenced in the preceding clauses (a) and (b) are not available, the rate per
annum (rounded to the nearest 1/100 of 1.00%) equal to the offered quotation rate to first class
banks in the London interbank market by JPMC for deposits (for delivery on the first day of the
relevant period) in Dollars of amounts in same day funds comparable to the principal amount of the
applicable Loan or Credit Linked Deposit, for which the Adjusted Eurodollar Rate is then being
determined with maturities comparable to such period as of approximately 11:00 a.m. (London,
England time) on such Interest Rate Determination Date, by (ii) an amount equal to (a) one
minus (b) the Applicable Reserve Requirement.

     “Administrative Agent” as defined in the preamble hereto.

     “Adverse Proceeding” means any action, suit, proceeding (whether administrative, judicial or
otherwise), governmental investigation or arbitration at law or in equity, or before or by any
Governmental Authority, domestic or foreign (including any Environmental Claims), whether pending
or, to the knowledge of Company or any of its Subsidiaries, threatened against or affecting Company
or any of its Subsidiaries or any property of Company or any of its Subsidiaries.

     “Affected Lender” as defined in Section 2.18(b).

     “Affected Loans” as defined in Section 2.18(b).

     “Affiliate” means, as applied to any Person, 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.

     “Agent” means each of Administrative Agent, Collateral Agent, Syndication Agents and
Documentation Agents.

     “Aggregatable Restricted Subsidiaries” means two or more Restricted Subsidiaries (i) which for
the most recent Fiscal Year individually accounted for less than 5.00%, but collectively accounted
for more than 15.00%, of the consolidated revenues of Company and its Restricted Subsidiaries, or
(ii) which as at the end of the most recent Fiscal Year, individually owned less than 5.00%, but
collectively owned more than 15.00%, of the consolidated assets of Company and its Restricted
Subsidiaries.

     “Aggregate Amounts Due” as defined in Section 2.17.

     “Aggregate Payments” as defined in Section 7.2.

4

 

     “Agreement” means this Credit and Guaranty Agreement, dated as of February 9, 2007 as it may
be amended, supplemented or otherwise modified from time to time.

“Applicable Margin” means

     (i) with respect to Revolving Loans that are Eurodollar Rate Loans, (a) from the Closing Date
until the date of delivery of the Compliance Certificate and the financial statements for the first
full Fiscal Quarter ending after the Closing Date, 1.75% per annum; and (b) thereafter, a
percentage per annum, determined by reference to Leverage Ratio in effect from time to time as set
forth below:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Applicable Margin for Term
	 	 	Applicable Margin for	 	Loans, Funded Letters of Credit
	 	 	Revolving Loans	 	and Credit-Linked Deposits
	Leverage Ratio	 	(Eurodollar Loans)	 	(Eurodollar Loans)
	3 4.00:1.00
	 	 	2.00	%	 	 	1.75	%
	< 4.00:1.00
3 3.25:1.00
	 	 	1.75	%	 	 	1.50	%
	< 3.25:1.00
3 2.75:1.00
	 	 	1.50	%	 	 	1.50	%
	< 2.75:1.00
	 	 	1.25	%	 	 	1.50	%

     (ii) with respect to Swing Line Loans and Revolving Loans that are Base Rate Loans, an amount
equal to the Applicable Margin for Eurodollar Rate Loans as set forth in clause (i) minus 1.00% per
annum;

     (iii) with respect to the Term Loans that are Eurodollar Rate Loans, Funded Letters of Credit
and Credit Linked Deposits, (a) from the Closing Date until the date of delivery of the Compliance
Certificate and the financial statements for the first full Fiscal Quarter ending after the Closing
Date, 1.50% per annum; and (b) thereafter, a percentage per annum, determined by reference to
Leverage Ratio in effect from time to time as set forth above; and

     (iv) with respect to Term Loans that are Base Rate Loans, an amount equal to the Applicable
Margin for Eurodollar Rate Loans as set forth in clause (iii) minus 1.00% per annum. No change in
the Applicable Margin shall be effective until three Business Days after the date on which
Administrative Agent shall have received the applicable financial statements and a Compliance
Certificate pursuant to Section 5.1(c)(i) calculating the Leverage Ratio.

     At any time Company has not submitted to Administrative Agent the applicable information as
and when required under Section 5.1(c)(i), the Applicable Margin shall be
determined as if the Leverage Ratio were in excess of 4.00:1.00 until such time as each failure is
cured. Within one Business Day of receipt of the applicable information under Section 5.1(c)(i),

5

 

Administrative Agent shall give each Lender telefacsimile or telephonic notice (confirmed in
writing) of the Applicable Margin in effect from such date.

     “Applicable Reserve Requirement” means, at any time, for any Eurodollar Rate Loan or a Credit
Linked Deposit, the maximum rate, expressed as a decimal, at which reserves (including, without
limitation, any basic marginal, special, supplemental, emergency or other reserves) are required to
be maintained with respect thereto against “Eurocurrency liabilities” (as such term is defined in
Regulation D) under regulations issued from time to time by the Board of Governors of the Federal
Reserve System or other applicable banking regulator. Without limiting the effect of the
foregoing, the Applicable Reserve Requirement shall reflect any other reserves required to be
maintained by such member banks with respect to (i) any category of liabilities which includes
deposits by reference to which the applicable Adjusted Eurodollar Rate is to be determined, or (ii)
any category of extensions of credit or other assets which include Eurodollar Rate Loans. A
Eurodollar Rate Loan or a Credit Linked Deposit shall be deemed to constitute Eurocurrency
liabilities and as such shall be deemed subject to reserve requirements without benefits of credit
for proration, exceptions or offsets that may be available from time to time to the applicable
Lender. The rate of interest on Eurodollar Rate Loans or a Credit Linked Deposit shall be adjusted
automatically on and as of the effective date of any change in the Applicable Reserve Requirement.

     “ARC Indenture” means that certain Indenture, dated as of May 1, 2003, between American
Ref-Fuel Company LLC and Wachovia Bank, National Association as supplemented by the First
Supplemental Indenture, dated as of May 1, 2003 between American Ref-Fuel Company LLC and Wachovia
Bank, National Association.

     “ARC Notes” means the “Notes” as defined in the ARC Indenture.

     “Asset Sale” means a sale, lease or sub-lease (as lessor or sublessor), sale and leaseback,
assignment, conveyance, transfer or other disposition to, or any exchange of property with, any
Person (other than Company or any Guarantor Subsidiary), in one transaction or a series of
transactions, of all or any part of Company’s or any of its Restricted Subsidiaries’ businesses,
assets or properties of any kind, whether real, personal, or mixed and whether tangible or
intangible (other than Cash), whether now owned or hereafter acquired, including, without
limitation, the Capital Stock of any of Company’s Restricted Subsidiaries, other than (i) inventory
(or other assets) sold or leased in the ordinary course of business, (excluding any such sales by
operations or divisions discontinued), and (ii) Excluded Asset Sales.

     “Assignment Agreement” means an Assignment and Acceptance Agreement substantially in the form
of Exhibit E, with such amendments or modifications as may be approved by Administrative Agent and
Company.

     “Assignment Effective Date” as defined in Section 10.6(b).

     “Authorized Officer” means, as applied to any Person, any individual holding the position of
chief executive officer, general counsel, chief financial officer, chief accounting officer or
treasurer.

     “BA” as defined in the preamble hereto.

6

 

     “Bankruptcy Code” means Title 11 of the United States Code entitled “Bankruptcy,” as now and
hereafter in effect, or any successor statute.

     “Barclays” as defined in the preamble hereto.

     “Base Rate” means, for any day, a rate per annum equal to the greater of (i) the Prime Rate in
effect on such day and (ii) the Federal Funds Effective Rate in effect on such day plus 1/2 of 1.00%.
Any change in the Base Rate due to a change in the Prime Rate or the Federal Funds Effective Rate
shall be effective on the effective day of such change in the Prime Rate or the Federal Funds
Effective Rate, respectively.

     “Base Rate Loan” means a Loan bearing interest at a rate determined by reference to the Base
Rate.

     “Beneficiary” means each Agent, Issuing Bank, Lender and Lender Counterparty.

     “Business Day” means (i) any day excluding Saturday, Sunday and any day which is a legal
holiday under the laws of the State of New York or is a day on which banking institutions located
in such state are authorized or required by law or other governmental action to close and (ii) with
respect to all notices, determinations, fundings and payments in connection with the Adjusted
Eurodollar Rate or any Eurodollar Rate Loans or Credit Linked Deposit, the term “Business Day”
shall mean any day which is a Business Day described in clause (i) and which is also a day for
trading by and between banks in Dollar deposits in the London interbank market.

     “Calyon” means Calyon New York Branch.

     “Calyon Hedge Agreements” means (i) that certain Confirmation, dated July 8, 2005, between
Calyon and Company relating to the “Swap Transaction” referred to therein and (ii) that certain
Confirmation, dated March 17, 2006, between Calyon and Company relating to the “Swap Transaction”
referred to therein.

     “Capital Lease” means, as applied to any Person, any lease of any property (whether real,
personal or mixed) by that Person as lessee that, in conformity with GAAP, is or should be
accounted for as a capital lease on the balance sheet of that Person.

     “Capital Stock” means any and all shares, interests, participations or other equivalents
(however designated) of capital stock of a corporation, any and all equivalent ownership interests
in a Person (other than a corporation), including, without limitation, partnership interests and
membership interests, and any and all warrants, rights or options to purchase or other arrangements
or rights to acquire any of the foregoing from the issuer thereof.

     “Cash” means money, currency or a credit balance in any demand or Deposit Account.

     “Cash Equivalents” means, as at any date of determination, (i) marketable securities (a)
issued or directly and unconditionally guaranteed as to interest and principal by the United States
Government or (b) issued by any agency of the United States the obligations of which are backed

7

 

by
the full faith and credit of the United States, in each case maturing within one year after such
date; (ii) marketable direct obligations issued by any state of the United States of America or any
political subdivision of any such state or any public instrumentality thereof, in each case
maturing within one year after such date and having, at the time of the acquisition thereof, a
rating of at least A-1 from S&P or at least P-1 from Moody’s; (iii) commercial paper maturing no
more than one year from the date of creation thereof and having, at the time of the acquisition
thereof, a rating of at least A-1 from S&P or at least P-1 from Moody’s; (iv) certificates of
deposit or bankers’ acceptances maturing within one year after such date and issued or accepted by
any Lender or by any commercial bank organized under the laws of the United States of America or
any state thereof or the District of Columbia that (a) is at least “adequately capitalized” (as
defined in the regulations of its primary Federal banking regulator) and (b) has Tier 1 capital (as
defined in such regulations) of not less than $100,000,000; (v) shares of any money market mutual
fund that (a) has at least 95% of its assets invested continuously in the types of investments
referred to in clauses (i) and (ii) above, and (b) has net assets of not less than $500,000,000;
(vi) any repurchase agreement having a term of 30 days or less entered into with any commercial
banking institution satisfying the criteria set forth in clause (iv) which is secured by a fully
perfected security interest in any obligation of the type described in clause (i), above, (vii)
securities and investments held by Foreign Subsidiaries pursuant to the requirements of Project
documents to which they are a party, (viii) other investment-grade instruments and securities held
by Foreign Subsidiaries, (ix) auction rate securities or auction rate preferred stock having a rate
reset frequency of less than ninety (90) days and having, at the time of the acquisition thereof, a
rating of at least A from S&P or from Moody’s and (x) such other securities and investments held by
Excluded Subsidiaries and Foreign Subsidiaries as Company and Administrative Agent may agree.

     “Certificate re Non-Bank Status” means a certificate substantially in the form of Exhibit F.

     “Change of Control” means, at any time, (i) any Person other than Holding shall acquire direct
ownership, beneficially or of record, of any voting stock of Company or (ii) any person, entity or
“group” (within the meaning of Section 13(d) or 14(d) of the Exchange Act, but excluding any
employee benefit plan of Holding and its Subsidiaries and any person or entity acting in its
capacity as trustee, agent or other fiduciary or administrator of any such plan), other
than SZ Investments, LLC, Third Avenue Trust, LLC, D.E. Shaw Laminar Portfolios, LLC and EGI-FUND
(05-07) Investors, L.L.C. or any of their Affiliates, shall at any time have acquired direct or
indirect beneficial ownership (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act) of
35% of the outstanding voting stock of Holding or (iii) the majority of the seats (other than
vacant seats) on the board of directors (or similar governing body) of Company cease to be occupied
by Persons who either (A) were members of the board of directors of Company on the Closing Date or
(B) were nominated for election by the board of directors of Company, a majority of whom were
directors on the Closing Date or whose election or nomination for election was previously approved
by a majority of such directors.

     “Class” means, in each case, under this Agreement as originally in effect or as amended in
accordance with the terms hereof pursuant to Section 10.5, (i) with respect to Lenders, each of the
following classes of Lenders: (a) Lenders having Term Loan Exposure, (b) Lenders having Additional
Term Loan Exposure of each Series, (c) Lenders having Revolving Exposure

8

 

(including Swing Line
Lender), (d) Lenders having Funded Letters of Credit Exposure and (e) Lenders having Additional
Funded Letter of Credit Exposure of each Series; (ii) with respect to Loans, each of the following
classes of Loans: (a) Term Loans, (b) each Series of Additional Term Loans, (c) Revolving Loans
(including Swing Line Loans) and (d) Additional Revolving Loans; and (iii) with respect to
Commitments, each of the following classes of Commitments: (a) Term Loan Commitments, (b)
Revolving Commitments and (c) Funded Letter of Credit Commitments.

     “Closing Date” means the date on which the Term Loans are made.

     “Closing Date Certificate” means a Closing Date Certificate substantially in the form of
Exhibit G-1.

     “Collateral” means, collectively, all of the real, personal and mixed property (including
Capital Stock) in which Liens are purported to be granted pursuant to the Collateral Documents as
security for the Obligations.

     “Collateral Agent” as defined in the preamble hereto.

     “Collateral Documents” means the Pledge and Security Agreement, the Holding Pledge Agreement
and all other instruments, documents and agreements delivered by any Credit Party pursuant to this
Agreement or any of the other Credit Documents in order to grant to Collateral Agent, for the
benefit of Lenders, a Lien on any real, personal or mixed property of that Credit Party as security
for the Obligations.

     “Commitment” means any Revolving Commitment, Term Loan Commitment or Funded Letter of Credit
Commitment.

     “Commitment Fee Rate” means (a) from the Closing Date until the date of delivery of the
Compliance Certificate and the financial statements for the first full Fiscal Quarter ending after
the Closing Date, 0.50% per annum; and (b) thereafter, a percentage per annum, determined by
reference to Leverage Ratio in effect from time to time as set forth below:

	 	 	 	 	 
	Leverage Ratio	 	Commitment Fee Rate
	3 2.75:1.00
	 	 	0.375	%
	< 2.75:1.00
	 	 	0.250	%

     “Commodities Agreement” means any long-term or forward purchase contract or option contract to
buy, sell or exchange commodities or similar agreement or arrangement to which Company or any of
its Restricted Subsidiaries is a party unless, under the terms of such ordinary
course, non-speculative purchase contract, option contract agreement or arrangement Company
expects to make or take delivery of all of the commodities which are the subject thereof.

     “Company” as defined in the preamble hereto.

9

 

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

     “Consolidated Adjusted Debt” means, as at any date of determination, the aggregate stated
balance sheet amount of (x) all Indebtedness of the type identified in clauses (i) through (iv) of
the definition of Indebtedness of Company and its Restricted Subsidiaries (excluding premiums and
discounts) and (y) Guaranty Indebtedness, determined on a consolidated basis in accordance with
GAAP minus (i) Restricted Project Cash, (ii) all Permitted Subordinated Indebtedness owing
to Holding, and (iii) Indebtedness in respect of the ARC Notes and the MSW Notes for so long as
such is permitted to be outstanding hereunder. For the avoidance of doubt, Performance Guaranties
and undrawn Letters of Credit shall not constitute Consolidated Adjusted Debt.

     “Consolidated Adjusted EBITDA” means, for any period, an amount determined for Company and its
Restricted Subsidiaries on a consolidated basis in accordance with GAAP equal to:

     (a) the sum, without duplication, of the amounts for such period of (i) Consolidated Net
Income, (ii) Consolidated Interest Expense, (iii) provisions for taxes, (iv) total depreciation
expense, (v) total amortization expense, (vi) decreases in unbilled service receivables, (vii)
minority interests, (viii) non-Cash compensation expense from the issuance of restricted stock and
stock options, (ix) Transaction Costs and all legal, accounting and other expenses incurred in
connection with the Transactions or the Related Transactions or any Permitted Acquisition or
Investment to the extent deducted in determining Consolidated Net Income for such period, (x)
write-offs of deferred financing expenses in connection with repayment of any Indebtedness
(including, without limitation, the Existing Indebtedness) and any amortization thereof, (xi)
extraordinary losses and unusual or non-recurring charges, severance, relocation costs and
curtailments or modifications to pensions and post-retirement employee benefit plans, (xii)
amortization of deferred financing costs, (xiii) restructuring charges or reserves (including
restructuring costs related to acquisitions after the date hereof and to closure/consolidation of
facilities), (xiv) the amount of net cost savings projected by Company in good faith to be realized
as a result of specified actions taken during such period (calculated on a pro forma basis as
though such cost savings had been realized on the first day of such period), net of the amount of
actual benefits realized during such period from such actions, provided that (A) such cost
savings are reasonably identifiable and factually supportable, (B) such actions are taken within 18
months after such actions, (C) no cost savings shall be added pursuant to this clause (xiv) to the
extent duplicative of any expenses or charges relating to such cost savings that are included in
clause (xiii) above with respect to such period and (D) a certificate executed by an Authorized
Officer of Company shall be delivered to the Administrative Agent stating that such cost savings
are based on reasonable estimates, information and assumptions and that such Authorized Officer has
no reason to believe that the projected cost savings will not be achieved, (xv) (A) the Acquired
EBITDA of any Person that is designated as a Restricted Subsidiary, property, business
or asset acquired by Company or any Restricted Subsidiary during such period (but not the
Acquired EBITDA of any related Person, property, business or assets to the extent not so acquired),
to the extent not subsequently sold, transferred or otherwise disposed by Company or such
Restricted Subsidiary (each such Person, property, business or asset acquired and not subsequently
so disposed of, an “Acquired Entity or Business”), based on the actual Acquired

10

 

EBITDA of such
Acquired Entity or Business for such period (including the portion thereof occurring prior to such
acquisition) and (B) for the purposes of the definition of the term “Permitted Acquisition” and
Section 6.7, an adjustment in respect of each Acquired Entity or Business equal to the amount of
the Pro Forma Adjustment with respect to such Acquired Entity or Business for such period
(including the portion thereof occurring prior to such acquisition) as specified in a certificate
executed by an Authorized Officer of Company and delivered to the Administrative Agent, and (xvi)
other non-Cash items reducing Consolidated Net Income (excluding any such non-Cash item to the
extent that it represents an accrual or reserve for potential Cash items to be paid within the next
twelve months or amortization of a prepaid Cash item that was paid in a prior period),
minus

     (b) non-Cash items (excluding any non-Cash item to the extent it represents the reversal of an
accrual or reserve for a potential Cash item that reduced Consolidated Adjusted EBITDA in any prior
period) plus increases in unbilled service receivables;

provided that, to the extent included in Consolidated Net Income,

     (i) there shall be excluded in determining Consolidated Adjusted EBITDA non-Cash
currency translation gains and losses related to currency remeasurements of Indebtedness
(including the net loss or gain resulting from Hedge Agreements for currency exchange risk),
and

     (ii) there shall be excluded in determining Consolidated Adjusted EBITDA for any
period, any adjustments resulting from the application of Statement of Financial Accounting
Standards No. 133,

     (iii) for purposes of determining the Leverage Ratio or Interest Coverage Ratio only,
there shall be excluded in determining Consolidated Adjusted EBITDA for any period the
Disposed EBITDA of any Person, property, business or asset sold, transferred or otherwise
disposed of, closed or classified as discontinued operations by the Company or any
Restricted Subsidiary during such period (each such Person, property, business or asset so
sold or disposed of, a “Sold Entity or Business”), based on the actual Disposed EBITDA of
such Sold Entity or Business for such period (including the portion thereof occurring prior
to such sale, transfer or disposition);

provided that with respect to any calculation period ending prior to the first anniversary
of the Closing Date, the foregoing shall be subject to adjustment as set forth in Schedule 1.1(a).

     “Consolidated Capital Expenditures” means, for any period, the aggregate of all expenditures
of Company and its Restricted Subsidiaries during such period determined on a consolidated basis
that, in accordance with GAAP, are or should be included in “additions to plant, property and
equipment” or similar items reflected in the consolidated statement of cash
flows of Company and its Restricted Subsidiaries. The following expenditures shall not
constitute Consolidated Capital Expenditures: (i) expenditures that are to be reimbursed by the
client (to the extent actually subsequently reimbursed) of a Project under the principal lease,
service or operating agreement relating to such Project pursuant to a Contractual Obligation on the
part of such client to reimburse such expenditures, (ii) expenditures incurred for the

11

 

development,
construction or acquisition of Projects after the Closing Date and expenditures on Projects
existing on the Closing Date for the purpose of increasing waste through-put, material recovery or
power output, in each case, to the extent financed with the proceeds of Limited Recourse Debt
expressly permitted pursuant to Section 6.1(i) or Investments expressly permitted pursuant to
Section 6.6(j), (iii) expenditures made with Net Asset Sale Proceeds permitted to be retained by
Company and its Subsidiaries for investment in long-term productive assets under Section 2.14(a)
and (iv) expenditures that are made or committed to be made within three hundred sixty days of
receipt of such proceeds from (or reimbursed through) Net Insurance/Condemnation Proceeds.

     “Consolidated Current Assets” means, as at any date of determination, the total assets of
Holding and its Restricted Subsidiaries on a consolidated basis that may properly be classified as
current assets in conformity with GAAP, excluding Cash and Cash Equivalents.

     “Consolidated Current Liabilities” means, as at any date of determination, the total
liabilities of Company and its Restricted Subsidiaries on a consolidated basis that may properly be
classified as current liabilities in conformity with GAAP, excluding the current portion of long
term debt.

     “Consolidated Interest Expense” means, for any period, total interest expense (including that
portion attributable to Capital Leases in accordance with GAAP and capitalized interest) of Company
and its Restricted Subsidiaries on a consolidated basis with respect to all outstanding
Indebtedness of Company and its Restricted Subsidiaries (including all commissions, discounts and
other fees and charges owed with respect to letters of credit and net costs under Hedge Agreements)
plus the amount of any Restricted Junior Payments paid by Company to Holding pursuant to
Section 6.4(c)(i), but excluding (to the extent otherwise included), however, (v) any amounts
referred to in Section 2.11(f) of this Agreement payable on or before the Closing Date, (w)
interest expense in respect of Permitted Subordinated Indebtedness owing to Holding, (x) interest
that is capitalized in connection with construction financing, (y) all Transaction Costs and (z)
(i) any write-offs of deferred financing expenses in connection with repayment of Indebtedness
(including, without limitation, the Existing Indebtedness) and (ii) amortization of deferred
financing costs.

     “Consolidated Net Income” means, for any period, (i) the net income (or loss) of Company and
its Restricted Subsidiaries on a consolidated basis for such period taken as a single accounting
period determined in conformity with GAAP, minus, to the extent otherwise included and
without duplication, (ii) (a) any after-tax gains (or losses) attributable to Asset Sales or
returned surplus assets of any Pension Plan, (b) (to the extent not included in clause (a) above)
any net extraordinary gains or (plus) net extraordinary losses and (c) income of any Unrestricted
Subsidiary, provided that Consolidated Net Income shall be increased by the amount of
dividends or other distributions actually paid to Company or one of the Restricted Subsidiaries by
such Unrestricted Subsidiary during such period in respect of the income earned by such
Unrestricted Subsidiary in such period or in any prior period (to the extent not previously
included in Consolidated Net Income).

     “Consolidated Working Capital” means, as at any date of determination, the excess of
Consolidated Current Assets over Consolidated Current Liabilities.

12

 

     “Contractual Obligation” means, as applied to any Person, any provision of any Security issued
by that Person or of any indenture, mortgage, deed of trust, contract, undertaking, agreement or
other instrument to which that Person is a party or by which it or any of its properties is bound
or to which it or any of its properties is subject.

     “Contributing Guarantors” as defined in Section 7.2.

     “Conversion/Continuation Date” means the effective date of a continuation or conversion, as
the case may be, as set forth in the applicable Conversion/Continuation Notice.

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

     “Convertible Debenture Indenture” means the Indenture dated as of January 18, 2007 between
Holding and Wells Fargo Bank, National Association, as trustee, as amended from time to time in
accordance with Section 6.12.

     “Convertible Debentures” means the $373,750,000 aggregate principal amount of 1.00% Senior
Convertible Debentures due February 1, 2027, issued pursuant to the terms of the Convertible
Debenture Indenture, including $48,750,000 aggregate principal amount of 1.00% Senior Convertible
Debentures due February 1, 2027 issued pursuant to the exercise in full of the underwriters’
over-allotment option under the terms of the Convertible Debenture Indenture.

     “Corporate Services Reimbursement Agreement” means the corporate services and expense
reimbursement agreement entered into by Holding and Company on March 10, 2004, as such agreement
may be amended, restated, supplemented or otherwise modified from time to time to the extent
permitted under Section 6.12.

     “Counterpart Agreement” means a Counterpart Agreement substantially in the form of Exhibit H
delivered by a Subsidiary of Company pursuant to Section 5.10.

     “Credit Date” means the date of a Credit Extension.

     “Credit Document” means any of this Agreement, the Notes, if any, the Intercompany
Subordination Agreement, the Collateral Documents, any letter of credit applications or
reimbursement agreements or other documents or certificates requested by an Issuing Bank executed
by Company in favor of an Issuing Bank relating to Letters of Credit, and all other certificates,
instruments or agreements executed and delivered by a Credit Party for the benefit of any Agent,
any Issuing Bank or any Lender in connection herewith.

     “Credit Extension” means and includes the making (but not the conversion or continuation) of a
Loan, the funding of Credit Linked Deposit on the Closing Date and the issuance, amendment,
extension or renewal of a Letter of Credit.

     “Credit Linked Deposit” means with respect to each Funded Letter of Credit Participant, the
payment, if any, made by such Funded Letter of Credit Participant pursuant to Section 2.4(i) or
such Funded Letter of Credit Participant’s Additional Credit Linked Deposit of any Series, as the
same may be (a) reduced from time to time pursuant to Section 2.4(f) and (h)

13

 

or 2.13(b)(iii) or (b)
reduced or increased from time to time pursuant to assignments by or to such Funded Letter of
Credit Participant pursuant to Section 10.6.

     “Credit Linked Deposit Account” means one or more operating and/or investment accounts
established by Administrative Agent that shall be used for the purposes set forth in Section 2.4.

     “Credit Party” means Company and each Guarantor and any other Restricted Subsidiary of Company
which is a party to a Credit Document.

     “Cumulative Excess Cash Flow” as defined in Section 6.4.

     “Currency Agreement” means any foreign exchange contract, currency swap agreement, futures
contract, option contract, synthetic cap or other similar agreement or arrangement, each of which
is for the purpose of hedging the foreign currency risk associated with Company’s and its
Subsidiaries’ operations and not for speculative purposes.

     “Default” means a condition or event that, after notice or lapse of time or both, would
constitute an Event of Default.

     “Default Excess” means, with respect to any Defaulting Lender, the excess, if any, of such
Defaulting Lender’s Pro Rata Share of the aggregate outstanding principal amount of Loans of all
Lenders (calculated as if all Defaulting Lenders (other than such Defaulting Lender) had funded all
of their respective Defaulted Loans) over the aggregate outstanding principal amount of all Loans
of such Defaulting Lender.

     “Default Period” means, with respect to any Defaulting Lender, the period commencing on the
date of the applicable Funding Default and ending on the earliest of the following dates: (i) the
date on which all Commitments are cancelled or terminated and/or the Obligations are declared or
become immediately due and payable, (ii) the date on which (a) the Default Excess with respect to
such Defaulting Lender shall have been reduced to zero (whether by the funding by such Defaulting
Lender of any Defaulted Loans of such Defaulting Lender or by the non-pro rata application of any
voluntary or mandatory prepayments of the Loans in accordance with the terms of Section 2.13 or
Section 2.14 or by a combination thereof) and (b) such Defaulting Lender shall have delivered to
Company and Administrative Agent a written reaffirmation of its intention to honor its obligations
hereunder with respect to its Commitments, and (iii) the date on which Company, Administrative
Agent and Requisite Lenders waive all Funding Defaults of such Defaulting Lender in writing.

     “Defaulted Loan” as defined in Section 2.22.

     “Defaulting Lender” as defined in Section 2.22.

     “Deposit Account” means a demand, time, savings, passbook or like account with a bank, savings
and loan association, credit union or like organization, other than an account evidenced by a
negotiable certificate of deposit.

14

 

     “Detroit Letters of Credit” means any Funded Letter of Credit as described on Schedule 1.1(e)
in an aggregate amount no greater than the amount set forth thereon, requested by Company to be
issued hereunder and having an expiration date no later than the date which is three years and
thirty-five days from the date of issuance.

     “Development Subsidiary” means, solely for the purpose of excluding such Subsidiary from
Company’s obligation to comply with Section 5.10 with respect to such Subsidiary, a Restricted
Subsidiary established by Company or any of its Restricted Subsidiaries for the sole purpose of
bidding on a prospective Project; provided that (i) any equity Investment in such
Subsidiary by Company or another Subsidiary of Company in aggregate when taken together with all
other equity Investments in Development Subsidiaries shall not exceed $10,000,000 at any one time
outstanding; (ii) such Subsidiary shall have no assets other than Cash pursuant to clause (i) of
this definition and intercompany Indebtedness permitted hereunder and the agreements to which it is
party and which are entered into in the ordinary course of business and are necessary for it to
develop or bid on prospective Projects and (iii) such Subsidiary’s sole business shall be limited
to those actions necessary to develop or bid on prospective Projects. At such time, if any, as
such Subsidiary shall incur any Indebtedness (other than intercompany Indebtedness permitted
hereunder), grant any Liens or make any Investment or Restricted Junior Payment or carry on any
activity after then that expressly permitted by sub-clause (iii) above, such Subsidiary shall cease
to be a Development Subsidiary.

     “Disposed EBITDA” means, with respect to any Sold Entity or Business for any period, the
amount for such period of Consolidated Adjusted EBITDA of such Sold Entity or Business (determined
as if references to the Company and the Restricted Subsidiaries in the definition of Consolidated
Adjusted EBITDA were references to such Sold Entity or Business and its Restricted Subsidiaries),
all as determined on a consolidated basis for such Sold Entity or Business.

     “Disqualified Lender” means each Person identified in writing by Company prior to the Closing
Date to Administrative Agent, unless Company shall subsequently otherwise agree in writing
delivered to the Administrative Agent (and the Administrative Agent may provide a list of
Disqualified Lenders to any Lender upon its reasonable request).

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

     “Domestic Subsidiary” means any Subsidiary of Company organized under the laws of the United
States of America, any State thereof or the District of Columbia.

     “Eligible Assignee” means (i) any Lender, any Affiliate of any Lender and any Related Fund
(any two or more Related Funds being treated as a single Eligible Assignee for purposes of Section
10.6), and (ii) any commercial bank, insurance company, investment or mutual fund or other entity
that is an “accredited investor” (as defined in Regulation D under the Securities Act)
and which extends credit or buys loans in the ordinary course; provided, that in the
case of any assignee of any Revolving Commitment, such Person extends credit on a revolving basis
as one of its businesses and provided, further, that no Disqualified Lender nor
Affiliate of Company or Holding shall be an Eligible Assignee.

15

 

     “Employee Benefit Plan” means any “employee benefit plan” as defined in Section 3(3) of ERISA
which is or was sponsored, maintained or contributed to by, or required to be contributed to by,
Company or any of its Subsidiaries.

     “Environmental Claim” means any investigation, notice of violation, claim, action, suit,
proceeding, demand, abatement order or other order or directive, by any Governmental Authority or
any other Person, arising (i) pursuant to or in connection with any actual or alleged violation of
any Environmental Law; (ii) in connection with any Release or threatened Release of Hazardous
Material; or (iii) in connection with any actual or alleged damage, injury, threat or harm to
health, safety, natural resources or the environment.

     “Environmental Laws” means any and all current or future foreign or domestic, federal or state
(or any subdivision of either of them), statutes, ordinances, orders, rules, regulations,
judgments, Governmental Authorizations, or any other requirements of Governmental Authorities
relating to (i) environmental matters, including those relating to any Release or threatened
Release of Hazardous Materials; (ii) the generation, use, storage, transportation, treatment,
processing, removal, remediation or disposal of Hazardous Materials; or (iii) occupational safety
and health, industrial hygiene, land use or the protection of human, plant or animal health or
welfare, in any manner applicable to Company or any of its Subsidiaries or any Facility.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to
time, and any successor thereto.

     “ERISA Affiliate” means, as applied to any Person, (i) any corporation which is a member of a
controlled group of corporations within the meaning of Section 414(b) of the Internal Revenue Code
of which that Person is a member; (ii) any trade or business (whether or not incorporated) which is
a member of a group of trades or businesses under common control within the meaning of Section
414(c) of the Internal Revenue Code of which that Person is a member; and (iii) any member of an
affiliated service group within the meaning of Section 414(m) or (o) of the Internal Revenue Code
of which that Person, any corporation described in clause (i) above or any trade or business
described in clause (ii) above is a member. Any former ERISA Affiliate of Company or any of its
Subsidiaries shall continue to be considered an ERISA Affiliate of Company or any such Subsidiary
within the meaning of this definition with respect to the period such entity was an ERISA Affiliate
of Company or such Subsidiary and with respect to liabilities arising after such period for which
Company or such Subsidiary could be liable under the Internal Revenue Code or ERISA.

     “ERISA Event” means (i) a “reportable event” within the meaning of Section 4043 of ERISA and
the regulations issued thereunder with respect to any Pension Plan (excluding those for which the
provision for 30-day notice to the PBGC has been waived by regulation); (ii) the failure to meet
the minimum funding standard of Section 412 of the Internal Revenue Code or
Section 302 of ERISA with respect to any Pension Plan (whether or not waived in accordance
with Section 412(d) of the Internal Revenue Code or Section 303(d) of ERISA) or the failure to make
by its due date a required installment under Section 412(m) of the Internal Revenue Code with
respect to any Pension Plan or the failure to make any required contribution to a Multiemployer
Plan; (iii) the provision by the administrator of any Pension Plan pursuant to

16

 

Section 4041(a)(2)
of ERISA of a notice of intent to terminate such plan in a distress termination described in
Section 4041(c) of ERISA; (iv) the withdrawal by Company, any of its Subsidiaries or any of their
respective ERISA Affiliates from any Pension Plan with two or more contributing sponsors or the
termination of any such Pension Plan resulting in liability to Company, any of its Subsidiaries or
any of their respective Affiliates pursuant to Section 4063 or 4064 of ERISA; (v) the institution
by the PBGC of proceedings to terminate any Pension Plan, or the occurrence of any event or
condition which might constitute grounds under ERISA for the termination of, or the appointment of
a trustee to administer, any Pension Plan; (vi) the imposition of liability on Company, any of its
Subsidiaries or any of their respective ERISA Affiliates pursuant to Section 4062(e) or 4069 of
ERISA or by reason of the application of Section 4212(c) of ERISA; (vii) the withdrawal of Company,
any of its Subsidiaries or any of their respective ERISA Affiliates in a complete or partial
withdrawal (within the meaning of Sections 4203 and 4205 of ERISA) from any Multiemployer Plan if
there is any potential material liability therefore, or the receipt by Company, any of its
Subsidiaries or any of their respective ERISA Affiliates of notice from any Multiemployer Plan that
it is in reorganization or insolvency pursuant to Section 4241 or 4245 of ERISA, or that it intends
to terminate or has terminated under Section 4041A or 4042 of ERISA; (viii) the occurrence of an
act or omission which could give rise to the imposition on Company, any of its Subsidiaries or any
of their respective ERISA Affiliates of fines, penalties, taxes or related charges under Chapter 43
of the Internal Revenue Code or under Section 409, Section 502(c), (i) or (l), or Section 4071 of
ERISA in respect of any Employee Benefit Plan; (ix) the assertion of a material claim (other than
routine claims for benefits) against any Employee Benefit Plan other than a Multiemployer Plan or
the assets thereof, or against Company, any of its Subsidiaries or any of their respective ERISA
Affiliates in connection with any Employee Benefit Plan; (x) receipt from the Internal Revenue
Service of notice of the failure of any Pension Plan (or any other Employee Benefit Plan intended
to be qualified under Section 401(a) of the Internal Revenue Code) to qualify under Section 401(a)
of the Internal Revenue Code, or the failure of any trust forming part of any Pension Plan to
qualify for exemption from taxation under Section 501(a) of the Internal Revenue Code; or (xi) the
imposition of a Lien pursuant to Section 401(a)(29) or 412(n) of the Internal Revenue Code or
pursuant to ERISA with respect to any Pension Plan.

     “Eurodollar Rate Loan” means a Loan bearing interest at a rate determined by reference to the
Adjusted Eurodollar Rate.

     “Event of Default” means each of the conditions or events set forth in Section 8.1.

     “Excess Cash Flow” means, for any period, an amount equal to:

     (a) the sum, without duplication, of:

     (i) Consolidated Net Income for such period,

     (ii) an amount equal to the amount of all non-cash charges to the extent
deducted in arriving at such Consolidated Net Income (excluding any such non-Cash
item to the extent that it represents an accrual or reserve for potential Cash items
to be paid within the next twelve months or amortization of a prepaid Cash item that
was paid in a prior period),

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     (iii) decreases in Consolidated Working Capital and long-term account
receivables for such period (other than such decreases arising from acquisitions by
the Company and the Restricted Subsidiaries completed during such period),

     (iv) an amount equal to the aggregate net non-cash loss on Asset Sales by the
Company and the Restricted Subsidiaries during such period to the extent deducted in
arriving at such Consolidated Net Income,

     (v) an amount equal to the loss, if any, of any Person accrued prior to the
date it becomes a Restricted Subsidiary of Company or is merged into or consolidated
with Company or any of its Restricted Subsidiaries or that Person’s assets are
acquired by Company or any of its Restricted Subsidiaries during such period to the
extent deducted in arriving at such Consolidated Net Income,

     (vi) an amount equal to the repayments, interest, returns, profits,
distributions, income and similar amounts actually received in cash from any Joint
Venture in which Company or any of its Restricted Subsidiaries owns a minority
interest or (except with respect to distributions) from any Unrestricted Subsidiary,
and

     (vii) an amount equal to minority interest expense during such period,

     minus

     (b) the sum, without duplication, of:

     (i) an amount equal to the amount of all non-cash credits included in arriving
at such Consolidated Net Income and extraordinary cash charges included,

     (ii) without duplication of amounts deducted pursuant to clause (xi) below in
prior fiscal years, the amount of Consolidated Capital Expenditures made in cash or
accrued during such period pursuant to Section 6.7(b), except to the extent that
such Consolidated Capital Expenditures were financed with the proceeds of
Indebtedness of the Company or the Restricted Subsidiaries,

     (iii) the aggregate amount of all principal payments of Indebtedness of the
Company and the Restricted Subsidiaries (including (A) the principal component of
payments in respect of Capital Leases and (B) the amount of any mandatory prepayment
of Term Loans pursuant to Section 2.14(a) to the extent required due to an Asset
Sale that resulted in an increase to Consolidated Net Income and not in excess of
the amount of such increase but excluding (X) all other prepayments
of Term Loans and (Y) all prepayments of Revolving Loans and Swing Line Loans)
made during such period (other than in respect of any revolving credit facility to
the extent there is not an equivalent permanent reduction in commitments
thereunder), except to the extent financed with the proceeds of other Indebtedness
of the Company or the Restricted Subsidiaries,

18

 

     (iv) any amount equal to the aggregate net non-cash gain on Asset Sales by the
Company and the Restricted Subsidiaries during such period to the extent included in
arriving at such Consolidated Net Income,

     (v) increases in Consolidated Working Capital and long-term account receivables
for such period (other than any such increases arising from acquisitions by the
Company and the Restricted Subsidiaries during such period),

     (vi) cash payments by Company and the Restricted Subsidiaries during such
period in respect of long-term liabilities of the Company and the Restricted
Subsidiaries other than Indebtedness,

     (vii) without duplication of amounts deducted pursuant to clause (xi) below in
prior fiscal years, the amount of Investments and acquisitions made during such
period pursuant to Section 6.6 (other than Section 6.6(a)) to the extent that such
Investments and acquisitions were financed with internally generated cash flow of
Company and the Restricted Subsidiaries,

     (viii) the amount of Restricted Junior Payments paid during such period
pursuant to Section 6.4(a), 6.4(b), 6.4(c) and 6.4(d) to the extent such Restricted
Junior Payments were financed with internally generated cash flow of the Company and
the Restricted Subsidiaries,

     (ix) the aggregate amount of expenditures actually made by the Company and the
Restricted Subsidiaries in cash during such period (including expenditures for the
payment of financing fees) to the extent that such expenditures are not expensed
during such period,

     (x) the aggregate amount of any premium, make-whole or penalty payments
actually paid in cash by the Company and the Restricted Subsidiaries during such
period that are required to be made in connection with any prepayment of
Indebtedness,

     (xi) without duplication of amounts deducted from Excess Cash Flow in prior
periods, the aggregate consideration required to be paid in cash by the Company or
any of the Restricted Subsidiaries pursuant to binding contracts (the “Contract
Consideration”) entered into prior to or during such period relating to Permitted
Acquisitions or Consolidated Capital Expenditures to be consummated or made during
the period of four consecutive fiscal quarters of the Company following the end of
such period, provided that to the extent the aggregate amount of internally
generated cash actually utilized to finance such Permitted Acquisitions during such
period of four consecutive fiscal quarters is less than the
Contract Consideration, the amount of such shortfall shall be added to the
calculation of Excess Cash Flow at the end of such period of four consecutive fiscal
quarters,

19

 

     (xii) the amount of cash taxes paid in such period to the extent they exceed
the amount of tax expense deducted in determining Consolidated Net Income for such
period,

     (xiii) all amounts paid in respect of Transaction Costs and fees, costs and
expenses in connection with the Related Transactions, any Permitted Acquisitions and
Investments permitted under Section 6.6;

     (xiv) an amount equal to the income, if any, of any Person accrued prior to
the date it becomes a Restricted Subsidiary of Company or is merged into or
consolidated with Company or any of its Restricted Subsidiaries or that Person’s
assets are acquired by Company or any of its Restricted Subsidiaries during such
period to the extent included in arriving at such Consolidated Net Income;

     (xv) equity income from any Joint Venture in which Company or any of its
Restricted Subsidiaries owns a minority interest to the extent included in arriving
at such Consolidated Net Income; and

     (xvi) cash payments to minority interests in Subsidiaries.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and
any successor statute.

     “Excluded Asset Sales” means the collective reference to (i) any sale or discount, in each
case without recourse, of notes or accounts receivable arising in the ordinary course of business,
but only in connection with the compromise or collection thereof or to resolve disputes that occur
in the ordinary course of business, (ii) any exchange of specific items of equipment between
Company and any of its Subsidiaries or among any Subsidiaries of Company, so long as the purpose of
each such exchange is to acquire replacement items of equipment which are the functional equivalent
of the item of equipment so exchanged, (iii) disposals of obsolete, worn out or surplus property in
the ordinary course of business, including, without limitation, Intellectual Property, (iv) the
sale, lease, license, transfer or other disposition of equipment, materials and other tangible
assets by Company or any Subsidiary of Company to any Subsidiary of Company; provided,
however, that the aggregate fair market value of all such equipment, materials and other tangible
assets sold, leased, licensed, transferred or otherwise disposed of pursuant to this clause (iv)
does not exceed $30,000,000 in the aggregate since the Closing Date, (v) sales of other assets for
aggregate consideration of less than $2,000,000 per Fiscal Year with respect to any transaction or
series of related transactions and less than $10,000,000 per Fiscal Year in the aggregate and (vi)
any license (other than an exclusive license) of intellectual property owned by Company or its
Subsidiaries in the ordinary course of business.

     “Excluded Subsidiary” means each (i) Domestic Subsidiary of Company or of any Subsidiary of
Company for which becoming a Credit Party would constitute a violation of (a) a Contractual
Obligation existing on the Closing Date or, thereafter, a bona fide Contractual
Obligation (the prohibition contained in which was not entered into in contemplation of this
provision), in favor of a Person (other than Company or any of its Subsidiaries or Affiliates) for
which the required consents have not been obtained or (b) applicable law affecting such

20

 

Subsidiary,
provided, that any such Subsidiary of Company or of another Subsidiary shall cease to be
covered under this clause at such time as such Subsidiary’s becoming a Credit Party would no longer
constitute a violation of such Contractual Obligation or applicable law, whether as a result of
obtaining the required consents or otherwise and (ii) each Domestic Subsidiary of Company
identified on Schedule 1.1(b)-1. The Excluded Subsidiaries, as of the Closing Date, by virtue of
clause (i), above, are listed on Schedule 1.1(b)-2.

     “Existing Indebtedness” means the Indebtedness under (i) that certain Amended and Restated
Credit Agreement, dated as of June 24, 2005, as amended and restated as of May 26, 2006, among
Company, Holding, Goldman Sachs Credit Partners L.P., as Administrative Agent, and other parties
thereto, (ii) that certain Second Lien Credit Agreement dated as of June 24, 2005 among Company,
Holding, Credit Suisse Cayman Islands Branch, as Administrative Agent and the other parties thereto
(as amended by the Amendment to Second Lien Credit Agreement dated as of May 26, 2006), (iii) the
ARC Indenture and (iv) the MSW Indentures.

     “Existing Indentures Amendments” as defined in Section 3.1(d)(ii).

     “Existing Letters of Credit” means those letters of credit, listed on Schedule 1.1(c),
outstanding on the Closing Date.

     “Expansion” means, with respect to any Project, additions or improvements to the existing
facilities of such Projects.

     “Facility” means any real property (including all buildings, fixtures or other improvements
located thereon) now, hereafter or heretofore owned, leased, operated or used by Company or any of
its Subsidiaries or any of their respective predecessors or Affiliates of Company, any of its
Subsidiaries, or any such predecessors.

     “Fair Share Contribution Amount” as defined in Section 7.2.

     “Fair Share” as defined in Section 7.2.

     “Federal Funds Effective Rate” means for any day, the rate per annum (expressed, as a decimal,
rounded upwards, if necessary, to the next higher 1/100 of 1.00%) equal to the weighted average of
the rates on overnight Federal funds transactions with members of the Federal Reserve System
arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank of New York
on the Business Day next succeeding such day; provided, (i) if such day is not a Business
Day, the Federal Funds Rate for such day shall be such rate on such transactions on the next
preceding Business Day as so published on the next succeeding Business Day, and (ii) if no such
rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day
shall be the average of the quotations received by Administrative Agent from three federal funds
broker of recognized standing selected by Administrative Agent.

     “Financial Plan” as defined in Section 5.1(h).

     “First Priority” means, with respect to any Lien purported to be created in any Collateral
pursuant to any Collateral Document, that such Lien is the only Lien to which such Collateral is
subject, other than any Permitted Lien.

21

 

     “Fiscal Quarter” means a fiscal quarter of any Fiscal Year.

     “Fiscal Year” means the fiscal year of Company and its Restricted Subsidiaries ending on
December 31 of each calendar year.

     “Flood Hazard Property” means any Real Estate Asset subject to a Mortgage in favor of
Collateral Agent, for the benefit of the Lenders, and located in an area designated by the Federal
Emergency Management Agency as having special flood or mud slide hazards.

     “Foreign Subsidiary” means any Subsidiary that is not a Domestic Subsidiary. The Foreign
Subsidiaries of Company, as of the Closing Date, are listed on Schedule 1.1(d).

     “Funded LC Issuing Bank” means initially each of JPMC and UBS and thereafter with respect to
any Funded Letter of Credit, any Lender (including any Person who is a Lender as of the Closing
Date but subsequently, after agreeing to become a Funded LC Issuing Bank, ceases to be a Lender)
which, at the request of Company, and with the consent of Administrative Agent (not to be
unreasonably withheld), agrees in such Lender’s sole discretion to become a Funded LC Issuing Bank
for the purposes of issuing such Funded Letter of Credit, together with its permitted successors
and assigns in such capacity.

     “Funded LC Participation Interests” means the right of any Funded Letter of Credit Participant
to receive any payments contemplated by this Agreement in respect of such Funded Letter of Credit
Participant’s Pro Rata Share of the Credit Linked Deposits in accordance with this Agreement.

     “Funded Letter of Credit” as defined in Section 2.4(b) or an Additional Funded Letter of
Credit.

     “Funded Letter of Credit Commitment” means the commitment of a Lender to make or otherwise
fund a Credit Linked Deposit and the Additional Funded Letter of Credit Commitment of such Lender
and “Funded Letter of Credit Commitments” means such commitments of all Lenders in the aggregate.
The amount of each Lender’s Funded Letter of Credit Commitment, if any, is set forth on Appendix
A-3 or in the applicable Joinder Agreement pursuant to Section 2.24 or in the applicable Assignment
Agreement, subject to any adjustment or reduction pursuant to the terms and conditions hereof. The
aggregate amount of the Funded Letter of Credit Commitments as of the Closing Date is $320,000,000.

     “Funded Letter of Credit Commitment Period” means the period from the Closing Date to but
excluding the Funded Letter of Credit Termination Date.

     “Funded Letter of Credit Exposure” means with respect to any Lender, at any time, the sum of
(a) the amount of any Unpaid Drawings in respect of which payments from such Lender’s Credit Linked
Deposit have been made (or were required to be made) to a Funded LC Issuing Bank pursuant to
Section 2.4(f) at such time and (b) such Lender’s Pro Rata Share of the Funded
Letters of Credit Outstanding at such time (excluding the portion thereof consisting of Unpaid
Drawings in respect of which payments from such Lender’s Credit Linked Deposit have been made (or
were required to be made) to a Funded LC Issuing Bank pursuant to Section 2.4(f)); provided
that at any time when the Funded Letters of Credit Outstanding is zero, the Funded

22

 

Letter of Credit
Exposure of any Lender shall be equal to such Lender’s Funded Letter of Credit Commitment.

     “Funded Letter of Credit Fee” as defined in Section 2.11(b).

     “Funded Letter of Credit Participant” means each Lender having a Funded Letter of Credit
Commitment.

     “Funded Letter of Credit Participation” as defined in Section 2.4(h).

     “Funded Letter of Credit Termination Date” means the earliest to occur of (i) the seventh
anniversary of the Closing Date; (ii) the date on which the Credit Linked Deposits have been
reduced to zero pursuant to Section 2.13(b)(iii); and (iii) the date of the termination of the
Funded Letter of Credit Commitments pursuant to Section 8.1.

     “Funded Letters of Credit Outstanding” means at any time, the sum of, without duplication, (a)
the aggregate Stated Amount of all outstanding Funded Letters of Credit and (b) the aggregate
amount of all Unpaid Drawings in respect of all Funded Letters of Credit.

     “Funding Default” as defined in Section 2.22.

     “Funding Guarantors” as defined in Section 7.2.

     “Funding Notice” means a notice substantially in the form of Exhibit A-1.

     “GAAP” means, subject to the limitations on the application thereof set forth in Section 1.2,
United States generally accepted accounting principles in effect as of the date of determination
thereof.

     “Governmental Acts” means any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or Governmental Authority.

     “Governmental Authority” means any federal, state, municipal, national or other government,
governmental department, commission, board, bureau, court, agency or instrumentality, political
subdivision or any entity or officer thereof exercising executive, legislative, judicial,
regulatory or administrative functions of any government or any court, in each case whether
associated with a state of the United States, the United States, or a foreign entity or government.

     “Governmental Authorization” means any permit, license, authorization, plan, directive,
consent order or consent decree of or from any Governmental Authority.

     “Grantor” as defined in the Pledge and Security Agreement.

     “GS” means Goldman Sachs Capital Markets, L.P.

     “GS Hedge Agreement” that certain Confirmation, dated August 3, 2005, between GS and Company
relating to the “Swap Transaction” referred to therein.

23

 

     “Guaranteed Obligations” as defined in Section 7.1.

     “Guarantor” means Holding and each Domestic Subsidiary of Company (other than Excluded
Subsidiaries, Development Subsidiaries and Unrestricted Subsidiaries).

     “Guarantor Subsidiary” means each Guarantor other than Holding.

     “Guaranty” means the guaranty of each Guarantor set forth in Section 7.

     “Guaranty Indebtedness” means with respect to all Indebtedness of the type identified in
clauses (i) through (iv) of the definition of Indebtedness, to the extent such Indebtedness is owed
to any Person other than Holding or any Subsidiary of Company (x) the direct or indirect guaranty,
endorsement (otherwise than for collection or deposit in the ordinary course of business),
co-making, discounting with recourse or sale with recourse by Company or any of its Restricted
Subsidiaries of such Indebtedness and (y) any obligation of Company or any of its Restricted
Subsidiaries the primary purpose or intent of which is to provide assurance to an obligee with
respect to such Indebtedness that the obligation of the obligor thereof will be paid or discharged,
or any agreement relating thereto will be complied with, or the holders thereof will be protected
(in whole or in part) against loss in respect thereof.

     “Hazardous Materials” means any chemical, material or substance, exposure to which is
prohibited, limited or regulated by any Governmental Authority or which may or could pose a hazard
to the health and safety of the owners, occupants or any Persons in the vicinity of any Facility or
to the indoor or outdoor environment.

     “Hedge Agreements” means all interest rate or currency swaps, caps or collar agreements,
foreign exchange agreements, commodity contracts or similar arrangements entered into by Company or
its Subsidiaries providing for protection against fluctuations in interest rates, currency exchange
rates, commodity prices or the exchange of nominal interest obligations, either generally or under
specific contingencies, including any forward agreement or arrangement designed to hedge against
fluctuation in electricity rates pertaining to electricity produced by a Project, so long as the
contractual arrangements relating to such Project contemplate that Company or its Subsidiaries
shall deliver such electricity to third parties.

     “Highest Lawful Rate” means the maximum lawful interest rate, if any, that at any time or from
time to time may be contracted for, charged, or received under the laws applicable to any Lender
which are presently in effect or, to the extent allowed by law, under such applicable laws which
may hereafter be in effect and which allow a higher maximum nonusurious interest rate than
applicable laws now allow.

     “Historical Financial Statements” means as of the Closing Date, (i) the audited financial
statements of Holding for Fiscal Years 2003, 2004 and 2005, the audited financial statements of
Company for Fiscal Years 2003 and 2004 and the unaudited financial statements of
Company for Fiscal Year 2005, in each case consisting of balance sheet and the related
consolidated statements of income, stockholders’ equity and cash flows for such Fiscal Years, and
(ii) the unaudited financial statements of Holding and Company as at the most recently ended Fiscal
Quarter (if any) ending after the date of the most recent financial statements referenced in clause
(i) hereof and more than 45 days prior to the Closing Date, consisting of a

24

 

balance sheet and the
related consolidated statements of income, stockholders’ equity and cash flows for the three-,
six-or nine-month period, as applicable, ending on such date, and, in the case of clauses (i) and
(ii), (with respect to the financial statements of Holding and Company) certified by the chief
financial officer or chief accounting officer of Company that they fairly present, in all material
respects, the financial condition of Holding and Company at the dates indicated and the results of
their operations and their cash flows for the periods ended as indicated, subject to changes
resulting from audit and year-end adjustments.

     “Holding” as defined in the preamble hereto.

     “Holding Capital Contribution” means (i) any cash capital contribution or loan made to Company
by Holding after the Closing Date (other than with the proceeds of the Related Transactions to the
extent used to defease or repay the Existing Indebtedness), and (ii) in connection with any
Permitted Acquisition or Investment, any issuance by Holding of its Capital Stock as consideration
in whole or part therefor.

     “Holding Equity Issuance” means the issuance of 5,320,000 shares of common stock at $23.50 per
share by Holding and up to an additional 798,000 shares that may be issued to cover
over-allotments, if any.

     “Holding Pledge Agreement” means the Pledge Agreement executed by Holding in favor of the
Collateral Agent on the Closing Date substantially in the form of Exhibit I-2, as it may be
amended, supplemented or otherwise modified from time to time.

     “Holding Tax Sharing Agreement” means the tax sharing agreement among Danielson Holding
Corporation (predecessor to Holding), Company and Covanta Power International Holdings, Inc. dated
as of March 10, 2004, as amended by Amendment No. 1 thereto dated as of June 24, 2005, as such
agreement may be amended, restated, supplemented or otherwise modified from time to time to the
extent permitted under Section 6.12.

     “Increased Amount Date” as defined in Section 2.24.

     “Increased-Cost Lenders” as defined in Section 2.23.

     “Indebtedness”, as applied to any Person, means, without duplication, (i) all indebtedness for
borrowed money; (ii) that portion of obligations with respect to Capital Leases that is properly
classified as a liability on a balance sheet in conformity with GAAP; (iii) notes payable and
drafts accepted representing extensions of credit whether or not representing obligations for
borrowed money; (iv) any obligation owed for all or any part of the deferred purchase price of
property or services (excluding trade payables incurred in the ordinary course of business, having
a term of less than 12 months and payable in accordance with customary trade practices), which
purchase price is due more than six months from the date of incurrence of
the obligation in respect thereof; (v) all Indebtedness secured by any Lien on any property or
asset owned or held by that Person regardless of whether the Indebtedness secured thereby shall
have been assumed by that Person or is nonrecourse to the credit of that Person; (vi) the face
amount of any letter of credit issued for the account of that Person or as to which that Person is
otherwise liable for reimbursement of drawings; (vii) the direct or indirect guaranty,

25

 

endorsement
(otherwise than for collection or deposit in the ordinary course of business), co-making,
discounting with recourse or sale with recourse by such Person of the obligation of another; (viii)
any obligation of such Person the primary purpose or intent of which is to provide assurance to an
obligee that the obligation of the obligor thereof will be paid or discharged, or any agreement
relating thereto will be complied with, or the holders thereof will be protected (in whole or in
part) against loss in respect thereof; (ix) any liability of such Person for an obligation of
another through any agreement (contingent or otherwise) (a) to purchase, repurchase or otherwise
acquire such obligation or any security therefor, or to provide funds for the payment or discharge
of such obligation (whether in the form of loans, advances, stock purchases, capital contributions
or otherwise) or (b) to maintain the solvency or any balance sheet item, level of income or
financial condition of another if, in the case of any agreement described under subclauses (a) or
(b) of this clause (ix), the primary purpose or intent thereof is as described in clause (viii)
above; and (x) all obligations of such Person in respect of any exchange traded or over the counter
derivative transaction, including, without limitation, any Interest Rate Agreement and Currency
Agreement (and Hedge Agreements that protect against fluctuations in electricity rates), whether
entered into for hedging or speculative purposes; provided, in no event shall obligations
under any Interest Rate Agreement and any Currency Agreement be deemed “Indebtedness” for any
purpose under Section 6.7.

     “Indemnified Liabilities” means, collectively, any and all liabilities, obligations, losses,
damages (including natural resource damages), penalties, claims (including Environmental Claims),
reasonable out-of-pocket costs (including the costs of any investigation, study, sampling, testing,
abatement, cleanup, removal, remediation or other response action necessary to remove, remediate,
clean up or abate any Release or threatened Release of Hazardous Materials), and reasonable
out-of-pocket expenses of any kind or nature whatsoever (including the reasonable fees and
disbursements of counsel for Indemnitees in connection with any investigative, administrative or
judicial proceeding commenced or threatened by any Person, whether or not any such Indemnitee shall
be designated as a party or a potential party thereto, and any fees or expenses incurred by
Indemnitees in enforcing this indemnity), whether direct, indirect or consequential and whether
based on any federal, state or foreign laws, statutes, rules or regulations (including securities
and commercial laws, statutes, rules or regulations and Environmental Laws), on common law or
equitable cause or on contract or otherwise, that may be imposed on or incurred by any such
Indemnitee, in any manner relating to or arising out of (i) this Agreement or the other Credit
Documents or the transactions contemplated hereby or thereby (including the Lenders’ agreement to
make the Credit Extensions or the use or intended use of the proceeds thereof, or any enforcement
of any of the Credit Documents (including any sale of, collection from, or other realization upon
any of the Collateral or the enforcement of the Guaranty)); or (ii) any Environmental Claim or any
Release or threatened Release of Hazardous Materials arising from any past or present activity,
operation, land ownership, or practice of Company or any of its Subsidiaries, except to the extent,
in any such case, that any liability, obligation, loss, damage, penalty, claim, costs, expense or
disbursement results from the gross negligence, willful misconduct or bad faith of such Indemnitee.

     “Indemnitee” as defined in Section 10.3.

     “Installment” as defined in Section 2.12.

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     “Installment Date” as defined in Section 2.12.

     “Insurance Premium Financers” means Persons who are non-Affiliates of Company that advance
insurance premiums for Company and its Subsidiaries pursuant to Insurance Premium Financing
Arrangements.

     “Insurance Premium Financing Arrangements” means, collectively, such agreements with Insurance
Premium Financers pursuant to which such Insurance Premium Financers advance insurance premiums for
Company and its Subsidiaries. Such Insurance Premium Financing Arrangements (i) shall provide for
the benefit of such Insurance Premium Financers a security interest in no property of Company or
any of its Restricted Subsidiaries other than gross unearned premiums for the insurance policies
and related rights, (ii) shall not purport to prohibit any portion of the Liens created in favor of
Collateral Agent (for the benefit of Secured Parties) pursuant to the Collateral Documents, and
(iii) shall not contain any provision or contemplate any transaction prohibited by this Agreement
and shall otherwise be in form and substance reasonably satisfactory to Administrative Agent.

     “Insurance Subsidiaries” means Danielson Indemnity Company and its Subsidiaries.

     “Intercompany Master Note” means a promissory note evidencing Indebtedness of Holding, Company
and each of its Subsidiaries which (a) to the extent the Indebtedness evidenced thereby is owed to
any Credit Party, is pledged pursuant to the Collateral Documents, and (b) to the extent the
Indebtedness evidenced thereby is owed by a Subsidiary of Company, is senior Indebtedness of such
Subsidiary (except to the extent that requiring such Indebtedness to be senior would breach a
Contractual Obligation binding on such Subsidiary), except that any such Indebtedness owed by any
Credit Party to any Subsidiary which is not a Credit Party shall be unsecured and subordinated in
right of payment to the payment in full of the Obligations pursuant to the terms of such note.

     “Intercompany Subordination Agreement” means the Intercompany Subordination Agreement executed
by Holding, Company and each of its Subsidiaries and the Administrative Agent on the Closing Date
substantially in the form of Exhibit L, as it may be amended, supplemented or otherwise modified
from time to time.

     “Interest Coverage Ratio” means the ratio as of the last day of any Fiscal Quarter of (i)
Consolidated Adjusted EBITDA for the four-Fiscal Quarter period ending on such date to (ii)
Consolidated Interest Expense for such period; provided that with respect to any
calculation period ending prior to the first anniversary of the Closing Date, the foregoing shall
be subject to adjustment as set forth in Schedule 1.1(a).

     “Interest Payment Date” means with respect to (i) any Base Rate Loan, each March 31, June 30,
September 30 and December 31 of each year, commencing on the first such date to occur after the
Closing Date and the final maturity date of such Loan; and (ii) any Eurodollar Rate Loan, the last
day of each Interest Period applicable to such Loan; provided, in the case of
each Interest Period of longer than three months “Interest Payment Date” shall also include
each date that is three months, or an integral multiple thereof, after the commencement of such
Interest Period.

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     “Interest Period” means, (i) in connection with a Eurodollar Rate Loan, an interest period of
one-, two-, three- or six-months (or nine- or twelve-months, if consented to by each affected
Lender, such consent not to be unreasonably withheld by any such Lender if such interest period is
available to such Lender), as selected by Company in the applicable Funding Notice or
Conversion/Continuation Notice, (a) initially, commencing on the Credit Date or
Conversion/Continuation Date thereof, as the case may be; and (b) thereafter, commencing on the day
on which the immediately preceding Interest Period expires and (ii) in connection with a Credit
Linked Deposit, each period, the first commencing on or following the Closing Date in accordance
with Section 2.4(i)(ii) and thereafter commencing on the day on which the immediately preceding
Interest Period expires and ending on the numerically corresponding day in the calendar month that
is three months thereafter; provided that a single Interest Period shall at all times apply
to all Credit Linked Deposits; provided, in each case (1) if an Interest Period would
otherwise expire on a day that is not a Business Day, such Interest Period shall expire on the next
succeeding Business Day unless no further Business Day occurs in such month, in which case such
Interest Period shall expire on the immediately preceding Business Day; (2) any Interest Period
that begins on the last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest Period) shall,
subject to clauses (3) and (4) of this definition, end on the last Business Day of a calendar
month; (3) no Interest Period with respect to any portion of Term Loan shall extend beyond the Term
Loan Maturity Date, and (4) no Interest Period with respect to any portion of the Revolving Loans
shall extend beyond the Revolving Commitment Termination Date.

     “Interest Rate Agreement” means any interest rate swap agreement, interest rate cap agreement,
interest rate collar agreement, interest rate hedging agreement or other similar agreement or
arrangement, each of which is for the purpose of hedging the interest rate exposure associated with
Company’s and its Subsidiaries’ operations and not for speculative purposes.

     “Interest Rate Determination Date” means, with respect to any Interest Period, the date that
is two Business Days prior to the first day of such Interest Period.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended to the Closing
Date and from time to time thereafter, and any successor statute.

     “Investment” means (i) any direct or indirect purchase or other acquisition by Company or any
of its Restricted Subsidiaries of, or of a beneficial interest in, any of the Securities of any
other Person (other than a Guarantor Subsidiary); (ii) any direct or indirect redemption,
retirement, purchase or other acquisition for value, by any Restricted Subsidiary of Company from
any Person (other than Company or any Guarantor Subsidiary), of any Capital Stock of such Person;
(iii) any direct or indirect loan, advance (other than advances to employees for moving,
relocation, business, entertainment and travel expenses, drawing accounts and similar expenditures
in the ordinary course of business) or capital contribution by Company or any of its Restricted
Subsidiaries to any other Person (other than Company or any Guarantor Subsidiary), including all
Indebtedness and accounts receivable from that other Person but only to the extent
that the same are not current assets or did not arise from sales to that other Person in the
ordinary course of business and (iv) Commodities Agreements not constituting Hedge Agreements. The
amount of any Investment shall be the original cost of such Investment plus the cost of all

28

 

additions thereto, without any adjustments for increases or decreases in value, or write-ups,
write-downs or write-offs with respect to such Investment.

     “Issuance Notice” means an Issuance Notice substantially in the form of Exhibit A-3.

     “Issuing Bank” means each of a Funded LC Issuing Bank and a Revolving Issuing Bank.

     “Joinder Agreement” means an agreement substantially in the form of Exhibit K.

     “Joint Venture” means a joint venture, partnership or other similar arrangement, whether in
partnership or other legal form.

     “JPMC” as defined in the preamble hereto.

     “LCPI” as defined in the preamble hereto.

     “Lead Arranger” as defined in the preamble hereto.

     “Lender” means each financial institution listed on the signature pages hereto as a Lender and
any other Person that becomes a party hereto pursuant to an Assignment Agreement or a Joinder
Agreement pursuant to Section 2.24.

     “Lender Counterparty” means each Lender or any Affiliate of a Lender counterparty to a
Permitted Hedge Agreement (including any Person who is a Lender (and any Affiliate thereof) as of
the Closing Date but subsequently, whether before or after entering into a Permitted Hedge
Agreement, ceases to be a Lender) including, without limitation, each such Affiliate that enters
into a joinder agreement with Collateral Agent; provided that, (i) solely with respect to
the GS Hedge Agreement, GS shall be deemed a Lender Counterparty for purposes of the Credit
Documents and (ii) solely with respect to the Calyon Hedge Agreements, Calyon shall be deemed a
Lender Counterparty for purposes of the Credit Documents.

     “Letter of Credit” means a Revolving Letter of Credit or a Funded Letter of Credit.

     “Leverage Ratio” means the ratio as of the last day of any Fiscal Quarter of (i) Consolidated
Adjusted Debt as of such day to (ii) Consolidated Adjusted EBITDA for the four-Fiscal Quarter
period ending on such date; provided that with respect to any calculation period ending
prior to the first anniversary of the Closing Date, the foregoing shall be subject to adjustment as
set forth in Schedule 1.1(a).

     “Lien” means any lien, mortgage, pledge, collateral assignment, security interest, charge or
encumbrance of any kind (including any agreement to give any of the foregoing, any conditional sale
or other title retention agreement, and any lease in the nature thereof) and any option, trust or
other preferential arrangement having the practical effect of any of the foregoing.

     “Limited Recourse Debt” means, with respect to any Restricted Subsidiary of Company,
Indebtedness of such Subsidiary with respect to which the recourse of the holder or obligee of such
Indebtedness is limited to (i) assets associated with the Project (which in any event shall not
include assets held by any Guarantor Subsidiary other than a Guarantor Subsidiary, if any, whose

29

 

sole business is the ownership and/or operation of such Project and substantially all of whose
assets are associated with such Project) in respect of which such Indebtedness was incurred and/or
(ii) such Subsidiary or the equity interests in such Subsidiary, but in the case of clause (ii)
only if such Subsidiary’s sole business is the ownership and/or operation of such Project and
substantially all of such Subsidiary’s assets are associated with such Project. For purposes of
this Agreement, Indebtedness of a Restricted Subsidiary of Company shall not fail to be Limited
Recourse Debt solely by virtue of the fact that the holders of such Limited Recourse Debt have
recourse to Company or another Subsidiary of Company pursuant to a contingent obligation supporting
such Limited Recourse Debt or a Performance Guaranty, so long as such contingent obligation or
Performance Guaranty is unsecured and permitted under Section 6.1.

     “Loan” means a Term Loan, a Revolving Loan and a Swing Line Loan.

     “Margin Stock” as defined in Regulation U of the Board of Governors of the Federal Reserve
System as in effect from time to time.

     “Marketable Securities” means auction rate securities or auction rate preferred stock having a
rate reset frequency of less than ninety (90) days and having, at the time of the acquisition
thereof, a rating of at least A from S&P or from Moody’s.

     “Material Adverse Effect” means a material adverse effect on (i) the business, operations,
assets, liabilities or financial condition of Holding and its Subsidiaries taken as a whole; (ii)
the ability of the Credit Parties as a whole to perform their respective Obligations; (iii) the
rights, remedies and benefits available to, or conferred upon, the Secured Parties under any Credit
Document.

     “Material Contract” means any contract or other arrangement to which Company or any of its
Restricted Subsidiaries is a party (other than the Credit Documents and the principal agreements
and instruments entered into in connection with any refinancing thereof) for which breach,
nonperformance, cancellation or failure to renew could reasonably be expected to have a Material
Adverse Effect.

     “Material Real Estate Asset” means any fee-owned Real Estate Asset having a fair market value
in excess of $10,000,000 as of the date of the acquisition thereof.

     “Material Restricted Subsidiary” means any Restricted Subsidiary now existing or hereafter
acquired or formed which, on a consolidated basis for Company and all of its Restricted
Subsidiaries, (i) for the most recent Fiscal Year accounted for more than 5.00% of the consolidated
revenues of Company and its Restricted Subsidiaries, or (ii) as at the end of such Fiscal Year, was
the owner of more than 5.00% of the consolidated assets of Company and its Restricted Subsidiaries.

     “MLPFS” as defined in the preamble hereto.

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

     “Mortgage” means a Mortgage, substantially in the form of Exhibit J, as it may be amended,
supplemented or otherwise modified from time to time.

30

 

     “MSW I Indenture” means that certain Indenture in respect of the Series A and Series B
81/2% Senior Secured Notes due 2010, dated as of June 25, 2003, among MSW
Energy Holdings LLC, MSW Energy Finance Co., Inc., the guarantors named therein and Wells Fargo
Bank Minnesota, National Association, as trustee, as such indenture may be further amended,
restated, supplemented, refinanced, replaced or modified from time to time.

     “MSW II Indenture” means that certain Indenture in respect of the Series A and Series B
73/8% Senior Secured Notes due 2010, dated as of November 24, 2003, among MSW
Energy Holdings II LLC, MSW Energy Finance Co. II, Inc., the guarantors named therein and Wells
Fargo Bank Minnesota, National Association, as trustee, as such indenture may be further amended,
restated, supplemented, refinanced, replaced or modified from time to time.

     “MSW Indentures” means the MSW I Indenture and the MSW II Indenture.

     “MSW Notes” means the notes issued under the MSW Indentures.

     “Multiemployer Plan” means a “multiemployer plan” as defined in Section 3(37) of ERISA which
is contributed to by Company, any of its Subsidiaries or their respective ERISA Affiliates.

     “NAIC” means The National Association of Insurance Commissioners, and any successor thereto.

     “Net Asset Sale Proceeds” means, with respect to any Asset Sale, an amount equal to: (i) Cash
payments (including any Cash received by way of deferred payment pursuant to, or by monetization
of, a note receivable or otherwise, but only as and when so received) received by Company or any of
its Restricted Subsidiaries from such Asset Sale, minus (ii) any bona fide direct costs
incurred in connection with such Asset Sale (or if such costs have not then been incurred or
invoiced, Company’s good faith estimate thereof), including (a) income or gains taxes payable by
the seller as a result of any gain recognized in connection with such Asset Sale, (b) payment of
the outstanding principal amount of, premium or penalty, if any, and interest on any Indebtedness
(other than the Loans) that is secured by a Lien on the stock or assets in question and that is
required to be repaid under the terms thereof as a result of such Asset Sale, (c) other taxes
actually payable (to the extent actually subsequently so paid) upon or in connection with the
closing of such Asset Sale (including any transfer taxes or taxes on gross receipts), (d) any taxes
payable or reasonably estimated to be payable in connection with any transactions effected (or
deemed effected) to make prepayments (e.g., taxes payable upon repatriation of funds from
Subsidiaries), (e) actual, reasonable and documented out-of-pocket fees and expenses (including
legal fees, fees to advisors and severance costs that are due (pursuant to a Contractual
Obligation, or pursuant to a written employment policy applicable to terminated employees
generally, of Company or any of its Restricted Subsidiaries in effect prior to such Asset Sale or
pursuant to applicable law) and payable to employees of Company and its Restricted Subsidiaries
that are terminated as a result thereof) paid to Persons other than
Company and its Restricted Subsidiaries and their respective Affiliates in connection with
such Asset Sale (including fees necessary to obtain any required consents of such Persons to such
Asset Sale), and (f) a reasonable reserve for any indemnification payments (fixed or contingent)
attributable to seller’s indemnities and representations and warranties to purchaser in respect of

31

 

such Asset Sale undertaken by Company or any of its Restricted Subsidiaries in connection with such
Asset Sale; provided, however, that Net Asset Sale Proceeds shall be reduced in an
amount equal to the amount of proceeds Restricted Subsidiaries of Company are legally bound or
required, pursuant to agreements in effect on the Closing Date, or which were entered into after
the Closing Date with respect to the financing or acquisition of a Project to use for prepayment
thereunder (including any premium, penalty and interest due in connection with such prepayment).

     “Net Insurance/Condemnation Proceeds” means an amount equal to: (i) any Cash payments or
proceeds received by Company or any of its Restricted Subsidiaries (a) under any casualty insurance
policy in respect of a covered loss thereunder (other than payments for business interruption)
occurring after the Closing Date or (b) as a result of the taking of any assets of Company or any
of its Restricted Subsidiaries by any Person pursuant to the power of eminent domain, condemnation
or otherwise, or pursuant to a sale of any such assets to a purchaser with such power under threat
of such a taking, minus (ii) (a) any actual and reasonable costs incurred by Company or any
of its Restricted Subsidiaries in connection with the adjustment or settlement of any claims of
Company or such Subsidiary in respect thereof, and (b) any bona fide direct costs incurred in
connection with any adjustment or settlement or any such sale as referred to in clause (i)(b) of
this definition, including income taxes payable as a result of any gain recognized in connection
therewith and any actual, reasonable and documented out-of-pocket fees and expenses (including
legal fees, fees to advisors and severance costs that are due (pursuant to a Contractual
Obligation, or pursuant to a written employment policy applicable to terminated employees
generally, of Company or any of its Restricted Subsidiaries in effect prior to such event or
pursuant to applicable law) and payable to employees of Company and its Restricted Subsidiaries
that are terminated as a result thereof) paid to Persons other than Company and its Restricted
Subsidiaries and their respective Affiliates in connection with such event; provided, that
if any costs, fees or expenses that may be deducted under this clause (ii) have not been incurred
or invoiced at the time of any determination of Net Insurance/Condemnation Proceeds, Company may
deduct its good faith estimate thereof to the extent actually subsequently so paid;
provided, however, that Net Insurance/Condemnation Proceeds shall be reduced in an
amount equal to the amount of proceeds Restricted Subsidiaries of Company are legally bound or
required, pursuant to agreements in effect on the Closing Date, or which were entered into after
the Closing Date with respect to the financing or acquisition of a Project to use for prepayment
thereunder (including any premium, penalty and interest due in connection with such prepayment).

     “New Term Loans” as defined in Section 2.4(f).

     “Non-Consenting Lender” as defined in Section 2.23.

     “Non-US Agent” means (a) each Agent that is a foreign person as defined in Treasury
Regulations section 1.1441-1(c)(2) or (b) each Agent that is a wholly-owned domestic entity that is
disregarded for United States federal tax purposes under Treasury Regulations section
301.7701-2(c)(2) as an entity separate from its owner and whose single owner is a foreign
person within the meaning of Treasury Regulations section 1.1441-1(c)(2).

32

 

     “Non-US Lender” means (a) each Lender and each Issuing Bank that is a foreign person as
defined in Treasury Regulations section 1.1441-1(c)(2) or (b) each Lender and each Issuing Bank
that is a wholly-owned domestic entity that is disregarded for United States federal tax purposes
under Treasury Regulations section 301.7701-2(c)(2) as an entity separate from its owner and whose
single owner is a foreign person within the meaning of Treasury Regulations section 1.1441-1(c)(2).

     “Nonpublic Information” means information which has not been disseminated in a manner making
it available to investors generally, within the meaning of Regulation D.

     “Not Otherwise Applied” means, with reference to any amount of Net Asset Sale Proceeds of any
transaction or event or of Excess Cash Flow or any amount of a Holding Capital Contribution, that
such amount (a) was not required to be applied to prepay the Loans pursuant to Section 2.14, and
(b) was not previously applied in determining the permissibility of a transaction under the Credit
Documents where such permissibility was (or may have been) contingent on receipt of such amount or
utilization of such amount for a specified purpose. The Company shall promptly notify the
Administrative Agent of any application of such amount as contemplated by (b) above.

     “Note” means a Term Loan Note, a Revolving Loan Note or a Swing Line Note.

     “Notice” means a Funding Notice, an Issuance Notice, or a Conversion/Continuation Notice.

     “Obligations” means all obligations of every nature of each Credit Party from time to time
owed to the Agents (including former Agents), the Lenders or any of them, the Issuing Banks and
Lender Counterparties, under any Credit Document or Permitted Hedge Agreement (including, without
limitation, with respect to a Permitted Hedge Agreement, obligations owed thereunder to any person
who was a Lender or an Affiliate of a Lender at the time such Permitted Hedge Agreement was entered
into), whether for principal, interest (including interest which, but for the filing of a petition
in bankruptcy with respect to such Credit Party, would have accrued on any Obligation, whether or
not a claim is allowed against such Credit Party for such interest in the related bankruptcy
proceeding), reimbursement of amounts drawn under Letters of Credit, payments for early termination
of Permitted Hedge Agreements, fees, expenses, indemnification or otherwise.

     “Obligee Guarantor” as defined in Section 7.7.

     “Organizational Documents” means (i) with respect to any corporation, its certificate or
articles of incorporation or organization, as amended, and its by-laws, as amended, (ii) with
respect to any limited partnership, its certificate of limited partnership, as amended, and its
partnership agreement, as amended, (iii) with respect to any general partnership, its partnership
agreement, as amended, and (iv) with respect to any limited liability company, its articles of
organization, as amended, and its operating agreement, as amended. In the event any term or
condition of this Agreement or any other Credit Document requires any Organizational
Document to be certified by a secretary of state or similar governmental official, the
reference to

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any such “Organizational Document” shall only be to a document of a type customarily
certified by such governmental official.

     “Outstanding ARC Notes” means the ARC Notes not tendered pursuant to the Tender Offer and
Consent Solicitation and outstanding as of the Closing Date, the aggregate principal amount of
which shall not exceed $192,000,000.

     “Outstanding MSW Notes” means, collectively, the Outstanding MSW I Notes and the Outstanding
MSW II Notes.

     “Outstanding MSW I Notes” means the MSW Notes under the MSW I Indenture not tendered pursuant
to the Tender Offer and Consent Solicitation and outstanding as of the Closing Date, the aggregate
principal amount of which shall not exceed $196,000,000.

     “Outstanding MSW II Notes” means the MSW Notes under the MSW I Indenture not tendered pursuant
to the Tender Offer and Consent Solicitation and outstanding as of the Closing Date, the aggregate
principal amount of which shall not exceed $224,100,000.

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

     “Pension Plan” means any employee benefit plan, other than a Multiemployer Plan, which is
subject to Title IV of ERISA, Section 412 of the Internal Revenue Code or Section 302 of ERISA
which is or was sponsored, maintained or contributed to by, or required to be contributed to by,
Company, any of its Subsidiaries or any of their respective ERISA Affiliates.

     “Performance Guaranty” means any performance guaranty agreement entered into by Company or any
of its Subsidiaries under which Company or any such Subsidiary (i) guarantees the performance of a
Subsidiary of Company under a principal lease, service, construction or operating agreement
relating to a Project or (ii) is otherwise obligated to provide support in connection with
Projects.

     “Permitted Acquisition” means any acquisition by Company or any of its Restricted
Subsidiaries, whether by purchase, merger or otherwise, of all or substantially all of the assets
of or a business line or unit or a division of, any Person, or all or a majority of the Capital
Stock of any Person (or the acquisition of any additional Capital Stock of a Person which is a
Subsidiary of Company (but not then a wholly-owned direct or indirect Subsidiary));
provided, that

     (i) immediately prior to, and after giving effect thereto, no Default or Event of
Default shall have occurred and be continuing or would result therefrom;

     (ii) all transactions in connection therewith shall be consummated, in all material
respects, in accordance with all applicable laws and in conformity with all applicable
Governmental Authorizations;

     (iii) to the extent a Guarantor Subsidiary is acquired, Company shall have taken, or
caused to be taken, as of the date such Person becomes a Guarantor Subsidiary of Company,
each of the actions set forth in Sections 5.10 and/or 5.11, as applicable,

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unless, following a request by Company, such actions are not required by Administrative
Agent;

     (iv) Company and its Restricted Subsidiaries shall be in compliance with the financial
covenants set forth in Section 6.7 on a Pro Forma Basis after giving effect to such
acquisition as of the last day of the Fiscal Quarter most recently ended;

     (v) Company shall have delivered to Administrative Agent (A) at least 10 Business Days
prior to such proposed acquisition, a Compliance Certificate evidencing compliance with
Section 6.7 as required under clause (iv) above, together with all relevant financial
information with respect to such acquired assets, including, without limitation, the
aggregate consideration for such acquisition and any other information required to
demonstrate compliance with Section 6.7; and

     (vi) any Person or assets or division as acquired in accordance herewith shall be in
the same business or lines of business in which Company and/or its Restricted Subsidiaries
are engaged as of the Closing Date or in which Company and/or its Restricted Subsidiaries
are expressly permitted hereunder to engage in.

     “Permitted Hedge Agreement” means each of the GS Hedge Agreement, the Calyon Hedge Agreements
and any Hedge Agreement entered into with a Lender Counterparty.

     “Permitted Liens” means each of the Liens permitted pursuant to Section 6.2.

     “Permitted Refinancing” means, with respect to any Person, any refinancing, replacement,
renewal or extension of any Indebtedness of such Person in whole or in part; provided that
(a) the principal amount (or accreted value, if applicable) thereof does not exceed the principal
amount (or accreted value, if applicable) of the Indebtedness so refinanced, replaced, renewed or
extended except by an amount equal to any reasonable and customary transaction costs and fees and
any premium on the Indebtedness required to be paid in connection with such refinancing,
replacement, renewal or extension unless the increase in the principal amount of such Indebtedness
is permitted under Section 6.1 (provided that such limitation shall not apply with respect
to Indebtedness that a client of a Project undertakes to service through the lease, service or
operating agreement for such Project), (b) at the time thereof, no Event of Default shall have
occurred and be continuing or would result therefrom, and (c) with respect to a Permitted
Refinancing in respect of Indebtedness permitted pursuant to Section 6.1(i), 6.1(g) or 6.1(n), (i)
such refinancing, replacement, renewal or extension has a final maturity date equal to or later
than the final maturity date of, and has a Weighted Average Life to Maturity equal to or greater
than the Weighted Average Life to Maturity of, the Indebtedness being refinanced, replaced, renewed
or extended (provided, that such limitation shall not apply with respect to Indebtedness
that a client of a Project undertakes to service through the lease, service or operating agreement
for such Project), (ii) such refinancing, replacement, renewal or extension shall be at the then
prevailing market rates and the non-economic terms and conditions thereof are not less favorable to
the obligor therein or to the Lenders than the Indebtedness being refinanced, replaced, renewed or
extended, taken as a whole (considering the economic benefits and disadvantages to Company and its
Restricted Subsidiaries from such refinancing, replacement, renewal or extension, as well as the
economic

35

 

benefits and disadvantages to Company and its Restricted Subsidiaries of the Project (if any)
to which such Indebtedness relates), (iii) to the extent such Indebtedness being refinanced,
replaced, renewed or extended is subordinated in right of payment to the Obligations, such
refinancing, replacement, renewal or extension is subordinated in right of payment to the
Obligations on terms at least as favorable to the Lenders as those contained in the documentation
governing the Indebtedness being refinanced, replaced, renewed or extended, and (iv) such
refinancing, replacement, renewal or extension is incurred by the Person who is an obligor under
the Indebtedness being refinanced, replaced, renewed or extended and no other Person is an obligor
thereunder.

     “Permitted Subordinated Indebtedness” means all unsecured Indebtedness of Company or any
Guarantor Subsidiary that shall have been subordinated to all Indebtedness of Company or any
Guarantor Subsidiary under this Agreement and otherwise containing terms and conditions set forth
in Schedule 6.1(x)(1) with respect to Indebtedness of Company or any Guarantor Subsidiary to
Affiliates thereof or in Schedule 6.1(x)(2) with respect to Indebtedness of Company or any
Guarantor Subsidiary to non-Affiliates thereof.

     “Permitted Subordinated Indebtedness Documentation” means any documentation governing any
Permitted Subordinated Indebtedness.

     “Person” means and includes natural persons, corporations, limited partnerships, general
partnerships, limited liability companies, limited liability partnerships, joint stock companies,
Joint Ventures, associations, companies, trusts, banks, trust companies, land trusts, business
trusts or other organizations, whether or not legal entities, and Governmental Authorities.

     “Phase I Environmental Assessment” means, with respect to any Facility, a report that (i)
conforms to the ASTM Standard Practice for Environmental Site Assessments: Phase I Environmental
Site Assessment Process, E 1527-00, or, if reasonably requested by Administrative Agent, the
USEPA’s standards for all appropriate inquiry, (ii) was conducted no more than six months prior to
the date such report is required to be delivered hereunder, by one or more environmental
consulting firms reasonably satisfactory to Administrative Agent, and (iii) shall expressly
specify, or shall be accompanied by a letter stating, in form and substance reasonably satisfactory
to Administrative Agent, that the report may be relied on by Administrative Agent and the Lenders
or Administrative Agent shall have received a letter so stating in form and substance reasonably
satisfactory to Administrative Agent.

     “Platform” as defined in Section 5.1(k).

     “Pledge and Security Agreement” means the Pledge and Security Agreement executed by Company
and each Guarantor Subsidiary on the Closing Date substantially in the form of Exhibit I-1, as it
may be amended, supplemented or otherwise modified from time to time.

     “Post-Acquisition Period” means, with respect to any Permitted Acquisition, the period
beginning on the date such Permitted Acquisition is consummated and ending on the last day of the
sixth full consecutive fiscal quarter immediately following the date on which such Permitted
Acquisition is consummated.

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     “Prime Rate” means the rate of interest quoted in The Wall Street Journal Money Rates Section
as the Prime Rate (currently defined as the base rate on corporate loans posted by at least 75% of
the nation’s thirty (30) largest banks), as in effect from time to time. The Prime Rate is a
reference rate and does not necessarily represent the lowest or best rate actually charged to any
customer. Administrative Agent or any other Lender may make commercial loans or other loans at
rates of interest at, above or below the Prime Rate.

     “Principal Office” means, for each of Administrative Agent, Swing Line Lender and the Issuing
Banks, such Person’s “Principal Office” as set forth on Appendix B, or such other office or office
of a third party or sub-agent, as appropriate, as such Person may from time to time designate in
writing to Company, Administrative Agent and each Lender.

     “Pro Forma Adjustment” means, for any Test Period that includes all or any part of a fiscal
quarter included in any Post-Acquisition Period, with respect to the Acquired EBITDA of the
applicable Acquired Entity or Business or the Consolidated Adjusted EBITDA of Company, the pro
forma increase or decrease in such Acquired EBITDA or such Consolidated Adjusted EBITDA, as the
case may be, projected by Company in good faith as a result of (a) actions taken during such
Post-Acquisition Period for the purposes of realizing reasonably identifiable and factually
supportable cost savings or (b) any additional costs incurred during such Post-Acquisition Period,
in each case in connection with the combination of the operations of such Acquired Entity or
Business with the operations of Company and the Restricted Subsidiaries; provided that, so
long as such actions are taken during such Post-Acquisition Period or such costs are incurred
during such Post-Acquisition Period, as applicable, the cost savings related to such actions or
such additional costs, as applicable, it may be assumed, for purposes of projecting such pro forma
increase or decrease to such Acquired EBITDA or such Consolidated Adjusted EBITDA, as the case may
be, that such cost savings will be realizable during the entirety of such Test Period, or such
additional costs, as applicable, will be incurred during the entirety of such Test Period;
provided further, that any such pro forma increase or decrease to such Acquired
EBITDA or such Consolidated Adjusted EBITDA, as the case may be, shall be without duplication for
cost savings or additional costs already included in such Acquired EBITDA or such Consolidated
Adjusted EBITDA, as the case may be, for such Test Period; provided further, that
no Pro Forma Adjustment may be made unless a certificate executed by an Authorized Officer of
Company is delivered to the Administrative Agent stating that such cost savings or costs are based
on reasonable estimates, information and assumptions and that such Authorized Officer has no reason
to believe that the projected cost savings or costs will not be achieved.

     “Pro Forma Basis” means, with respect to compliance with any test or covenant hereunder, that
(A) to the extent applicable, the Pro Forma Adjustment shall have been made and (B) all Specified
Transactions and the following transactions in connection therewith shall be deemed to have
occurred as of the first day of the applicable period of measurement in such test or covenant: (a)
income statement items (whether positive or negative) attributable to the property or Person
subject to such Specified Transaction, (i) in the case of a disposition of all or substantially all
Capital Stock in any Subsidiary of Company or any division, product line, or facility used for
operations of Company or any of its Subsidiaries, shall be excluded, and (ii) in the case of a
Permitted Acquisition or Investment described in the definition of “Specified Transaction,” shall
be included, (b) any retirement of Indebtedness, and (c) any Indebtedness

37

 

incurred or assumed by Company or any of the Restricted Subsidiaries in connection therewith
and if such Indebtedness has a floating or formula rate, shall have an implied rate of interest for
the applicable period for purposes of this definition determined by utilizing the rate which is or
would be in effect with respect to such Indebtedness as at the relevant date of determination;
provided that, without limiting the application of the Pro Forma Adjustment pursuant to (A)
above, the foregoing pro forma adjustments may be applied to any such test or covenant solely to
the extent that such adjustments are consistent with the definition of Consolidated Adjusted EBITDA
and give effect to events (including operation expense reductions) that are (i) (x) directly
attributable to such transaction, (y) expected to have a continuing impact on Company or the
Restricted Subsidiaries and (z) factually supportable or (ii) otherwise consistent with the
definition of Pro Forma Adjustment.

     “Project” means any waste-to-energy facility, waste disposal, treatment, transfer,
transportation or collection facility and facilities and operations related or ancillary thereto,
electrical generation plant, cogeneration plant, water treatment facility, renewable energy
facility or other facility for the generation of electricity or other forms of energy (including
steam) or engaged in another line of business in which Company and its Subsidiaries are permitted
to be engaged hereunder for which a Subsidiary or Subsidiaries of Company was, is or will be (as
the case may be) an owner, operator, manager or builder, provided, however, that a
Project shall cease to be a Project of Company and its Subsidiaries at such time that Company or
any of its Subsidiaries ceases to have any existing or future rights or obligations (whether direct
or indirect, contingent or matured) associated therewith.

     “Projections” as defined in Section 4.8.

     “Pro Rata Share” means (i) with respect to all payments, computations and other matters
relating to the Term Loan of any Lender, the percentage obtained by dividing (a) the Term Loan
Exposure of that Lender by (b) the aggregate Term Loan Exposure of all Lenders; (ii) with respect
to all payments, computations and other matters relating to the Revolving Commitment or Revolving
Loans of any Lender or any Revolving Letters of Credit issued or participations purchased therein
by any Lender or any participations in any Swing Line Loans purchased by any Lender, the percentage
obtained by dividing (a) the Revolving Exposure of that Lender by (b) the aggregate Revolving
Exposure of all Lenders; (iii) with respect to all payments, computations and other matters
relating to Additional Term Loans of a particular Series, the percentage obtained by dividing (a)
the Additional Term Loan Exposure of that Lender with respect to that Series by (b) the aggregate
Additional Term Loan Exposure of all Lenders with respect to that Series; (iv) with respect to all
payments, computations and other matters relating to Funded Letters of Credit or Credit Linked
Deposit or Funded Letter of Credit Participations of any Lender, the percentage obtained by
dividing (a) the Funded Letter of Credit Exposure of that Lender by (b) the aggregate Funded Letter
of Credit Exposure of all Lenders; and (v) with respect to all payments, computations and other
matters relating to Additional Funded Letters of Credit or Additional Credit Linked Deposit or
Additional Funded Letter of Credit Participations of any Lender of a particular Series, the
percentage obtained by dividing (a) the Additional Funded Letter of Credit Exposure of that Lender
with respect to that Series by (b) the aggregate Additional Funded Letter of Credit Exposure of all
Lenders with respect to that Series. For all other purposes with respect to each Lender, “Pro Rata
Share” means the percentage obtained by dividing (A) an amount equal to the sum of the Term Loan
Exposure,

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Additional Term Loan Exposure, the Revolving Exposure, Funded Letter of Credit Exposure and
Additional Funded Letter of Credit Exposure of that Lender, by (B) an amount equal to the sum of
the aggregate Term Loan Exposure, the aggregate Additional Term Loan Exposure, the aggregate
Revolving Exposure, the aggregate Funded Letter of Credit Exposure and the aggregate Additional
Funded Letter of Credit Exposure of all Lenders.

     “Real Estate Asset” means, at any time of determination, any interest (fee, leasehold or
otherwise) then owned by Company or any Guarantor Subsidiary in any real property.

     “Reduced Leverage Ratio Amount” means, with respect to the last day of any Fiscal Quarter, a
correlative ratio set forth for such day in Section 6.7(a) except that 0.5 shall be deducted from
the first term in such ratio.

     “Refinancing” as defined in the second recital.

     “Refunded Swing Line Loans” as defined in Section 2.3(b)(iv).

     “Register” as defined in Section 2.7(b).

     “Regulation D” means Regulation D of the Board of Governors of the Federal Reserve System, as
in effect from time to time.

     “Reimbursement Date” as defined in Section 2.4(e).

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

     “Related Transactions” means each of (i) Holding Equity Issuance and (ii) Convertible
Debentures offering.

     “Release” means any release, spill, emission, leaking, pumping, pouring, injection, escaping,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of any Hazardous Material
into the environment (including the abandonment or disposal of any barrels, containers or other
closed receptacles containing any Hazardous Material), including the movement of any Hazardous
Material through the air, soil, surface water or groundwater.

     “Relevant Return” as defined in Section 2.4(i)(ii).

     “Remedial Action” means all actions taken to (i) clean up, remove, remediate, contain, treat,
monitor, assess, evaluate or in any other way address Hazardous Materials in the environment; (ii)
perform pre-remedial studies and investigations and post-remedial operation and maintenance
activities; or (iii) any response actions authorized by 42 U.S.C. 9601 et seq. or applicable state
law.

     “Replacement Lender” as defined in Section 2.23.

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     “Requisite Class Lenders” means, at any time of determination, (i) for the Class of Lenders
having Term Loan Exposure, Lenders holding more than 50% of the aggregate Term Loan Exposure of all
Lenders; (ii) for the Class of Lenders having Revolving Exposure, Lenders holding more than 50% of
the aggregate Revolving Exposure of all Lenders; (iii) for each Class of Lenders having Additional
Term Loan Exposure, Lenders holding more than 50% of the aggregate Additional Term Loan Exposure of
that Class; (iv) for the Class of Lenders having Funded Letter of Credit Exposure, Lenders holding
more than 50% of the aggregate Funded Letter of Credit Exposure of all Lenders; and (v) for each
Class of Lenders having Additional Funded Letter of Credit Exposure, Lenders holding more than 50%
of the aggregate Additional Funded Letter of Credit Exposure of that Class.

     “Requisite Lenders” means one or more Lenders having or holding Term Loan Exposure, Revolving
Exposure, Additional Term Loan Exposure, Funded Letter of Credit Exposure and Additional Funded
Letter of Credit Exposure and representing more than 50% of the sum of (i) the aggregate Term Loan
Exposure of all Lenders, (ii) the aggregate Revolving Exposure of all Lenders, (iii) the aggregate
Additional Term Loan Exposure of all Lenders, (iv) the aggregate Funded Letter of Credit Exposure
of all Lenders, and (v) the aggregate Additional Funded Letter of Credit Exposure of all Lenders.

     “Restricted Junior Payment” means (i) any dividend or other distribution, direct or indirect,
on account of any shares of any class of stock of Company now or hereafter outstanding, except a
dividend payable solely in shares of stock to the holders of that class; (ii) any redemption,
retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or
indirect, of any shares of any class of stock of Company now or hereafter outstanding; (iii) any
payment made to retire, or to obtain the surrender of, any outstanding warrants, options or other
rights to acquire shares of any class of stock of Company now or hereafter outstanding; (iv)
management or similar fees payable to Holding or any of its Affiliates (other than Company or
Guarantor Subsidiary) or (v) any payment or prepayment of principal of, premium, if any, or
interest on, or any other amount in respect of any Permitted Subordinated Indebtedness of Company
or any Restricted Subsidiary owed to Holding.

     “Restricted Project Cash” means, as of any date of determination, the sum of the amounts on
deposit in each collateral account specified on Schedule 6.7(a) that are designated to pay debt
service principal or construction costs, as debt service reserves or to redeem the Indebtedness
secured thereby to the extent excess proceeds remain in the relevant account after completion of
construction of the relevant Project and each other collateral account identified in writing to the
Administrative Agent which is established after the Closing Date by a Restricted Subsidiary which
is not a Guarantor Subsidiary as a debt service principal account, a debt service reserve fund or a
reserve account (which such reserve account secures the Limited Recourse Debt that is the source of
the amounts therein) so long as the proceeds in such reserve account are designated to pay
construction costs or debt service during construction or, if excess proceeds remain in such
account after completion of construction of the relevant Project, to redeem the Limited Recourse
Debt secured thereby.

     “Restricted Subsidiary” means any Subsidiary of Company other than an Unrestricted Subsidiary.

40

 

     “Revolving Commitment” means the commitment of a Lender to make or otherwise fund any
Revolving Loan pursuant to Section 2.2(a) and/or Section 2.24 and to acquire participations in
Revolving Letters of Credit and Swing Line Loans hereunder and “Revolving Commitments” means such
commitments of all Lenders in the aggregate. The amount of each Lender’s Revolving Commitment, if
any, is set forth on Appendix A-2 or in the applicable Joinder Agreement pursuant to Section 2.24
or in the applicable Assignment Agreement, subject to any adjustment or reduction pursuant to the
terms and conditions hereof. The aggregate amount of the Revolving Commitments as of the Closing
Date is $300,000,000.

     “Revolving Commitment Period” means the period from the Closing Date to but excluding the
Revolving Commitment Termination Date.

     “Revolving Commitment Termination Date” means the earliest to occur of (i) the sixth
anniversary of the Closing Date, (ii) the date the Revolving Commitments are permanently reduced to
zero pursuant to Section 2.13(b), and (iii) the date of the termination of the Revolving
Commitments pursuant to Section 8.1.

     “Revolving Exposure” means, with respect to any Lender as of any date of determination, (i)
prior to the termination of the Revolving Commitments, that Lender’s Revolving Commitment; and (ii)
after the termination of the Revolving Commitments, the sum of (a) the aggregate outstanding
principal amount of the Revolving Loans of that Lender, (b) in the case of any Issuing Bank, the
aggregate Revolving Letter of Credit Usage in respect of all Revolving Letters of Credit issued by
that Lender (net of any participations by Lenders in such Revolving Letters of Credit), (c) the
aggregate amount of all participations by that Lender in any outstanding Revolving Letters of
Credit or any unreimbursed drawing under any Revolving Letter of Credit, (d) in the case of Swing
Line Lender, the aggregate outstanding principal amount of all Swing Line Loans (net of any
participations therein by other Lenders), and (e) the aggregate amount of all participations
therein by that Lender in any outstanding Swing Line Loans.

     “Revolving Issuing Bank” means with respect to any Revolving Letter of Credit, any Lender
(including any Person who is a Lender as of the Closing Date but subsequently, after agreeing to
become a Revolving Issuing Bank, ceases to be a Lender) which, at the request of Company, and with
the consent of Administrative Agent (not to be unreasonably withheld), agrees in such Lender’s sole
discretion to become a Revolving Issuing Bank for the purposes of issuing such Revolving Letter of
Credit, together with its permitted successors and assigns in such capacity. As of the Closing
Date, JPMC shall be a Revolving Issuing Bank.

     “Revolving Lender” means a Lender having a Revolving Commitment.

     “Revolving Letter of Credit” means a commercial or standby letter of credit issued or to be
issued by an Issuing Bank pursuant to Section 2.4(a) of this Agreement.

     “Revolving Letter of Credit Participant” as defined in Section 2.4(g).

     “Revolving Letter of Credit Sublimit” means the lesser of (i) $200,000,000 and (ii) the
aggregate unused amount of the Revolving Commitments then in effect.

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     “Revolving Letter of Credit Usage” means, as at any date of determination, the sum of (i) the
aggregate Stated Amount of all outstanding Revolving Letters of Credit, and (ii) the aggregate
amount of all drawings under Revolving Letters of Credit honored by an Issuing Bank and not
theretofore reimbursed by or on behalf of Company.

     “Revolving Loan” means a Loan made by a Lender to Company pursuant to Section 2.2(a) or any
Additional Revolving Loan.

     “Revolving Loan Note” means a promissory note in the form of Exhibit B-2, as it may be
amended, supplemented or otherwise modified from time to time.

     “S&P” means Standard & Poor’s Ratings Group, a division of The McGraw Hill Corporation.

     “Secured Parties” has the meaning assigned to that term in the Pledge and Security Agreement.

     “Securities” means any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or arrangement, options,
warrants, bonds, debentures, notes, or other evidences of Indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing.

     “Securities Act” means the Securities Act of 1933, as amended from time to time, and any
successor statute.

     “Series” as defined in Section 2.24.

     “Sold Entity or Business” has the meaning set forth in the definition of the term
“Consolidated Adjusted EBITDA”.

     “Solvency Certificate” means a Solvency Certificate of the chief financial officer of Holding
substantially in the form of Exhibit G-2.

     “Solvent” means, with respect to any Credit Party, that as of the date of determination, both
(i) (a) the sum of such Credit Party’s debt (including contingent liabilities) does not exceed the
present fair saleable value of such Credit Party’s and its Subsidiaries, present assets; (b) such
Credit Party’s capital is not unreasonably small in relation to its business as contemplated on the
Closing Date and reflected in the Projections or with respect to any transaction contemplated or
undertaken after the Closing Date; and (c) such Person has not incurred and does not intend to
incur, or believe that it will incur, debts beyond its ability to pay such debts as they become due
(whether at maturity or otherwise); and (ii) such Person is “solvent” within the meaning given
that term and similar terms under applicable laws relating to fraudulent transfers and conveyances.
For purposes of this definition, the amount of any contingent liability at any time shall be
computed as the amount that, in light of all of the facts and circumstances existing at such time,
represents the amount that can reasonably be expected to become an actual or matured

42

 

liability (irrespective of whether such contingent liabilities meet the criteria for accrual
under Statement of Financial Accounting Standard No. 5).

     “Specified Transaction” means, with respect to any period, any Investment, incurrence or
repayment of Indebtedness, Restricted Junior Payment, Subsidiary designation, Additional Term Loan,
Additional Revolving Commitment or Additional Funded Letter of Credit Commitment that by the terms
of this Agreement requires a test or covenant hereunder to be calculated on a “Pro Forma Basis.”

     “Stated Amount” of any Letter of Credit shall mean the maximum amount from time to time
available to be drawn thereunder, determined without regard to whether any conditions to drawing
could then be met.

     “Subsidiary” means, with respect to any Person, any corporation, partnership, limited
liability company, association, joint venture or other business entity of which more than 50% of
the total voting power of shares of stock or other ownership interests entitled (without regard to
the occurrence of any contingency) to vote in the election of the Person or Persons (whether
directors, managers, trustees or other Persons performing similar functions) having the power to
direct or cause the direction of the management and policies thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof; provided, in determining the percentage of ownership
interests of any Person controlled by another Person, no ownership interest in the nature of a
“qualifying share” of the former Person shall be deemed to be outstanding. Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a
Subsidiary or Subsidiaries of Company.

     “Swing Line Lender” means JPMC in its capacity as Swing Line Lender hereunder, together with
its permitted successors and assigns in such capacity.

     “Swing Line Loan” means a Loan made by the Swing Line Lender to Company pursuant to Section
2.3.

     “Swing Line Note” means a promissory note in the form of Exhibit B-3, as it may be amended,
supplemented or otherwise modified from time to time.

     “Swing Line Sublimit” means the lesser of (i) $25,000,000, and (ii) the aggregate unused
amount of Revolving Commitments then in effect.

     “Syndication Agent” as defined in the preamble hereto.

     “Tax” means any present or future tax, levy, impost, duty, assessment, charge, fee, deduction
or withholding of any nature and whatever called, by whomsoever, on whomsoever and wherever
imposed, levied, collected, withheld or assessed; provided, “Tax on the overall net income”
of a Person shall be construed as a reference to a tax imposed by the jurisdiction in which that
Person is organized or in which that Person’s applicable principal office (and/or, in the case of a
Lender, its lending office) is located or in which that Person (and/or, in the case of a Lender,
its lending office) is deemed to be doing business on all or part of the net income, profits or
gains (whether worldwide, or only insofar as such income, profits or gains are considered to

43

 

arise in or to relate to a particular jurisdiction, or otherwise) of that Person (and/or, in
the case of a Lender, its applicable lending office).

     “Tender Offer and Consent Solicitation” as defined in Section 3.1(d)(ii).

     “Tender Offer and Consent Solicitation Statement” means the Offer to Purchase and Consent
Solicitation Statement, dated January 23, 2007, with respect to the ARC Notes and the MSW Notes.

     “Term Loan” means (i) a Term Loan made by a Lender to Company on the Closing Date pursuant to
Section 2.1(a), (ii) a New Term Loan subsequently deemed made pursuant to Section 2.4(f) or (iii)
an Additional Term Loan.

     “Term Loan Commitment” means the commitment of a Lender to make or otherwise fund a Term Loan
and the Additional Term Loan Commitment of a Lender; “Term Loan Commitments” means such commitments
of all Lenders in the aggregate. The amount of each Lender’s Term Loan Commitment, if any, is set
forth on Appendix A-1 or in the applicable Joinder Agreement pursuant to Section 2.24 or the
applicable Assignment Agreement, subject to any adjustment or reduction pursuant to the terms and
conditions hereof. The aggregate amount of the Term Loan Commitments as of the Closing Date is
$650,000,000.

     “Term Loan Exposure” means, with respect to any Lender, as of any date of determination, the
outstanding principal amount of the Term Loans of such Lender; provided, at any time prior
to the making of the Term Loans, the Term Loan Exposure of any Lender shall be equal to such
Lender’s Term Loan Commitment.

     “Term Loan Maturity Date” means the earlier of (i) the seventh anniversary of the Closing
Date, and (ii) the date that all the Term Loans, the New Term Loans and the Additional Term Loans
of any Series shall become due and payable in full hereunder, whether by acceleration or otherwise.

     “Term Loan Note” means a promissory note in the form of Exhibit B-1, as it may be amended,
supplemented or otherwise modified from time to time.

     “Termination Date” means the first date on which (i) each Commitment has expired or been
terminated, (ii) the principal amount of all Loans and all other Obligations then due and payable
have been paid in full, (iii) all Letters of Credit have been cancelled or have expired or have
been cash collateralized or otherwise secured to the satisfaction of the Issuing Bank thereof and
(iv) the Funded LC Issuing Banks have repurchased all outstanding Funded LC Participation Interests
with the remaining Credit Linked Deposits and deposited such purchase price with the Administrative
Agent to be repaid to the Funded Letter of Credit Participants according to their Pro Rata Shares
of the Credit Linked Deposits.

     “Terminated Lender” as defined in Section 2.23.

     “Test Period” means, for any determination under this Agreement, the four consecutive Fiscal
Quarters of the Company then last ended.

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     “Total Credit Linked Deposit” means, at any time, the sum of all Credit Linked Deposits at
such time.

     “Total Funded Letter of Credit Commitment” means the sum of the Funded Letter of Credit
Commitments of all the Lenders.

     “Total Utilization of Revolving Commitments” means, as at any date of determination, the sum
of (i) the aggregate principal amount of all outstanding Revolving Loans (other than Revolving
Loans made for the purpose of repaying any Refunded Swing Line Loans or reimbursing an Issuing Bank
for any amount drawn under any Revolving Letter of Credit, but not yet so applied), (ii) the
aggregate principal amount of all outstanding Swing Line Loans, and (iii) the Revolving Letter of
Credit Usage.

     “Transaction Costs” means the fees, costs and expenses payable by Company in connection with
the Transactions within 180 days of the Closing Date.

     “Transactions” means the Refinancing, the Tender Offer and Consent Solicitation and the
entering into the Credit Documents.

     “Treasury Regulations” means the final and temporary (but not proposed) income tax regulations
promulgated under the Internal Revenue Code, as such regulations may be amended from time to time
(including corresponding provisions of succeeding regulations).

     “Type of Loan” means (i) with respect to either Term Loans or Revolving Loans, a Base Rate
Loan or a Eurodollar Rate Loan, and (ii) with respect to Swing Line Loans, a Base Rate Loan.

     “UBS” as defined in the preamble hereto.

     “UCC” means the Uniform Commercial Code (or any similar or equivalent legislation) as in
effect in any applicable jurisdiction.

     “Unadjusted Eurodollar Rate Component” means that component of the interest costs to Company
in respect of a Eurodollar Rate Loan that is based upon the rate obtained pursuant to clause (i) of
the definition of Adjusted Eurodollar Rate.

     “Unpaid Drawing” as defined in Section 2.4(e).

     “Unrestricted Subsidiary” means (i) each Subsidiary of Company listed on Schedule 4.26 and
(ii) any Subsidiary of the Company designated by the board of directors of Holding as an
Unrestricted Subsidiary pursuant to Section 5.14 subsequent to the date hereof, and in each case,
any Subsidiary formed or acquired by an Unrestricted Subsidiary following such Unrestricted
Subsidiary’s designation pursuant to clause (i) or (ii).

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
number of years obtained by dividing: (i) the sum of the products obtained by multiplying (a) the
amount of each then remaining installment, sinking fund, serial maturity or other required payments
of principal, including payment at final maturity, in respect thereof, by

45

 

(b) the number of years (calculated to the nearest one-twelfth) that will elapse between such
date and the making of such payment; by (ii) the then outstanding principal amount of such
Indebtedness.

     1.2 Accounting Terms. Except as otherwise expressly provided herein, all accounting terms not
otherwise defined herein shall have the meanings assigned to them in conformity with GAAP.
Financial statements and other information required to be delivered by Company to Lenders pursuant
to Sections 5.1(a) and 5.1(b) shall be prepared in accordance with GAAP (subject, in the case of
Section 5.1(a), to final year-end adjustments and the absence of footnotes) as in effect at the
time of such preparation (and delivered together with the reconciliation statements provided for in
Section 5.1(d), if applicable). Subject to the foregoing, calculations in connection with the
definitions, covenants and other provisions used in Section 6.7 hereof shall utilize accounting
principles and policies in conformity with those used to prepare the Historical Financial
Statements. If at any time any change in GAAP would affect the computation of any financial ratio
or requirement set forth in any Credit Document, and Company or Administrative Agent shall so
request, Administrative Agent and Company shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in GAAP (subject to the
approval of Requisite Lenders), provided that, until so amended, such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change therein and Company
shall provide to Administrative Agent and Lenders reconciliation statements provided for in Section
5.1(d).

     1.3 Interpretation, etc. Any of the terms defined herein may, unless the context otherwise
requires, be used in the singular or the plural, depending on the reference. References herein to
any Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix, a Schedule or an
Exhibit, as the case may be, hereof unless otherwise specifically provided. The use herein of the
word “include” or “including”, when following any general statement, term or matter, shall not be
construed to limit such statement, term or matter to the specific items or matters set forth
immediately following such word or to similar items or matters, whether or not no limiting language
(such as “without limitation” or “but not limited to” or words of similar import) is used with
reference thereto, but rather shall be deemed to refer to all other items or matters that fall
within the broadest possible scope of such general statement, term or matter. The use herein of
the word “issue” or “issuance” with respect to any Letter of Credit shall be deemed to include any
amendment, extension or renewal thereof.

SECTION 2. LOANS AND LETTERS OF CREDIT

     2.1 Term Loans.

          (a) Loan Commitments. Subject to the terms and conditions hereof, each Lender
severally agrees to make, on the Closing Date, a Term Loan to Company in an amount equal to such
Lender’s Term Loan Commitment.

Company may make only one borrowing under the Term Loan Commitment which shall be on the Closing
Date. Any amount borrowed under this Section 2.1 and subsequently repaid or prepaid may not be
reborrowed. Subject to Sections 2.13(a) and 2.14, all amounts owed hereunder with respect to the
Term Loans shall be paid in full no later than the Term Loan

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Maturity Date. Each Lender’s Term
Loan Commitment shall terminate immediately and without further action on the Closing Date after
giving effect to the funding of such Lender’s Term Loan Commitment on such date.

          (b) Borrowing Mechanics for Term Loans.

          (i) Company shall deliver to Administrative Agent a fully executed Funding Notice no
later than one day prior to the Closing Date. Promptly upon receipt by Administrative Agent
of such Certificate, Administrative Agent shall notify each Lender of the proposed
borrowing.

          (ii) Each Lender shall make its Term Loan available to Administrative Agent not later
than 12:00 p.m. (New York City time) on the Closing Date, by wire transfer of same day funds
in Dollars, at the Principal Office designated by Administrative Agent. Upon satisfaction
or waiver of the conditions precedent specified herein, Administrative Agent shall make the
proceeds of the Term Loans available to Company on the Closing Date by causing an amount of
same day funds in Dollars equal to the proceeds of all such Loans received by Administrative
Agent from Lenders to be credited to the account of Company at the Principal Office
designated by Administrative Agent or to such other account as may be designated in writing
to Administrative Agent by Company.

     2.2 Revolving Loans.

          (a) Revolving Commitments. During the Revolving Commitment Period, subject to the
terms and conditions hereof, each Lender severally agrees to make Revolving Loans to Company in an
aggregate amount up to but not exceeding such Lender’s Revolving Commitment; provided, that
after giving effect to the making of any Revolving Loans in no event shall the Total Utilization of
Revolving Commitments exceed the Revolving Commitments then in effect. Amounts borrowed pursuant
to this Section 2.2(a) may be repaid and reborrowed during the Revolving Commitment Period. Each
Lender’s Revolving Commitment shall expire on the Revolving Commitment Termination Date and all
Revolving Loans and all other amounts owed hereunder with respect to the Revolving Loans and the
Revolving Commitments shall be paid in full no later than such date.

          (b) Borrowing Mechanics for Revolving Loans.

          (i) Except pursuant to Section 2.4(d), Revolving Loans that are Base Rate Loans shall
be made in an aggregate minimum amount of $500,000 and integral multiples of $250,000 in
excess of that amount, and Revolving Loans that are Eurodollar Rate Loans shall be in an
aggregate minimum amount of $500,000 and integral multiples of $250,000 in excess of that
amount.

          (ii) Whenever Company desires that Lenders make Revolving Loans, Company shall deliver
to Administrative Agent a fully executed and delivered Funding Notice no later than 10:00
a.m. (New York City time) at least three Business Days in advance of the proposed Credit
Date in the case of a Eurodollar Rate Loan, and at least one Business Day in advance of the
proposed Credit Date in the case of a Revolving

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Loan that is a Base Rate Loan. Except as
otherwise provided herein, a Funding Notice for a Revolving Loan that is a Eurodollar Rate
Loan shall be irrevocable on and after the related Interest Rate Determination Date, and
Company shall be bound to make a borrowing in accordance therewith.

          (iii) Notice of receipt of each Funding Notice in respect of Revolving Loans, together
with the amount of each Lender’s Pro Rata Share thereof, if any, together with the
applicable interest rate, shall be provided by Administrative Agent to each applicable
Lender by telefacsimile or electronic transmission means with reasonable promptness, but
(provided Administrative Agent shall have received such notice by 10:00 a.m. (New
York City time)) not later than 2:00 p.m. (New York City time) on the same day as
Administrative Agent’s receipt of such Notice from Company.

          (iv) Each Lender shall make the amount of its Revolving Loan available to
Administrative Agent not later than 12:00 p.m. (New York City time) on the applicable Credit
Date by wire transfer of same day funds in Dollars, at the Principal Office designated by
Administrative Agent. Except as provided herein, upon satisfaction or waiver of the
conditions precedent specified herein, Administrative Agent shall make the proceeds of such
Revolving Loans available to Company on the applicable Credit Date by causing an amount of
same day funds in Dollars equal to the proceeds of all such Revolving Loans received by
Administrative Agent from Lenders to be credited to the account of Company as may be
designated in writing to Administrative Agent by Company.

     2.3 Swing Line Loans.

          (a) Swing Line Loans Commitments. During the Revolving Commitment Period, subject to
the terms and conditions hereof, Swing Line Lender hereby agrees to make Swing Line Loans to
Company in the aggregate amount up to but not exceeding the Swing Line Sublimit; provided,
that after giving effect to the making of any Swing Line Loan, in no event shall the Total
Utilization of Revolving Commitments exceed the Revolving Commitments then in effect. Amounts
borrowed pursuant to this Section 2.3 may be repaid and reborrowed during the Revolving Commitment
Period. Swing Line Lender’s Revolving Commitment shall expire on the Revolving Commitment
Termination Date and all Swing Line Loans and all other amounts owed hereunder with respect to the
Swing Line Loans and the Revolving Commitments shall be paid in full no later than such date.

          (b) Borrowing Mechanics for Swing Line Loans.

          (i) Swing Line Loans shall be made in an aggregate minimum amount of $500,000 and
integral multiples of $250,000 in excess of that amount.

          (ii) Whenever Company desires that Swing Line Lender make a Swing Line Loan, Company
shall deliver to Administrative Agent a Funding Notice no later than 12:00 p.m. (New York
City time) on the proposed Credit Date.

          (iii) Swing Line Lender shall make the amount of its Swing Line Loan available to
Administrative Agent not later than 2:00 p.m. (New York City time) on the

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applicable Credit
Date by wire transfer of same day funds in Dollars, at Administrative Agent’s Principal
Office. Except as provided herein, upon satisfaction or waiver of the conditions precedent
specified herein, Administrative Agent shall make the proceeds of such Swing Line Loans
available to Company on the applicable Credit Date by causing an amount of same day funds in
Dollars equal to the proceeds of all such Swing Line Loans received by Administrative Agent
from Swing Line Lender to be credited to the account of Company as may be designated in
writing to Administrative Agent by Company.

          (iv) With respect to any Swing Line Loans which have not been voluntarily prepaid by
Company pursuant to Section 2.13, Swing Line Lender may at any time in its sole and absolute
discretion, deliver to Administrative Agent (with a copy to Company), no later than 11:00
a.m. (New York City time) at least one Business Day in advance of the proposed Credit Date,
a notice (which shall be deemed to be a Funding Notice given by Company) requesting that
each Lender holding a Revolving Commitment make Revolving Loans that are Base Rate Loans to
Company on such Credit Date in an amount equal to the amount of such Swing Line Loans (the
“Refunded Swing Line Loans”) outstanding on the date such notice is given which Swing Line
Lender requests Lenders to prepay. Anything contained in this Agreement to the contrary
notwithstanding, (1) the proceeds of such Revolving Loans made by the Lenders other than
Swing Line Lender shall be immediately delivered by Administrative Agent to Swing Line
Lender (and not to Company) and applied to repay a corresponding portion of the Refunded
Swing Line Loans and (2) on the day such Revolving Loans are made, Swing Line Lender’s Pro
Rata Share of the Refunded Swing Line Loans shall be deemed to be paid with the proceeds of
a Revolving Loan made by Swing Line Lender to Company, and such portion of the Swing Line
Loans deemed to be so paid shall no longer be outstanding as Swing Line Loans and shall no
longer be due under the Swing Line Note of Swing Line Lender but shall instead constitute
part of Swing Line Lender’s outstanding Revolving Loans to Company and shall be due under
the Revolving Loan Note issued by Company to Swing Line Lender. Company hereby authorizes
Administrative Agent and Swing Line Lender to charge Company’s accounts with Administrative
Agent and Swing Line Lender (up to the amount available in each such account) in order to
immediately pay Swing Line Lender the amount of the Refunded Swing Line Loans to the extent
of the proceeds of such Revolving Loans made by Lenders, including the Revolving Loans
deemed to be made by Swing Line Lender, are not sufficient to repay in full the Refunded
Swing Line Loans. If any portion of any such amount paid (or deemed to be paid) to Swing
Line Lender should be recovered by or on behalf of Company from Swing Line Lender in
bankruptcy, by assignment for the benefit of creditors or otherwise, the loss of the amount
so recovered shall be ratably shared among all Lenders in the manner contemplated by Section
2.17.

          (v) If for any reason Revolving Loans are not made pursuant to Section 2.3(b)(iv) in an
amount sufficient to repay any amounts owed to Swing Line Lender in respect of any
outstanding Swing Line Loans on or before the third Business Day after demand for payment
thereof by Swing Line Lender, each Lender holding a Revolving Commitment shall be deemed to,
and hereby agrees to, have purchased a participation in such outstanding Swing Line Loans,
and in an amount equal to its Pro

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Rata Share of the applicable unpaid amount together with
accrued interest thereon. Upon one Business Day’s notice from Swing Line Lender, each
Lender holding a Revolving Commitment shall deliver to Swing Line Lender an amount equal to
its respective participation in the applicable unpaid amount in same day funds at the
Principal Office of Swing Line Lender. In order to evidence such participation each Lender
holding a Revolving Commitment agrees to enter into a participation agreement at the request
of Swing Line Lender in form and substance reasonably satisfactory to Swing Line Lender. In
the event any Lender holding a Revolving Commitment fails to make available to Swing Line
Lender the amount of such Lender’s participation as provided in this paragraph, Swing Line
Lender shall be entitled to recover such amount on demand from such Lender together with
interest thereon for three Business Days at the rate customarily used by Swing Line Lender
for the correction of errors among banks and thereafter at the Base Rate, as applicable.

          (vi) Notwithstanding anything contained herein to the contrary, (1) each Lender’s
obligation to make Revolving Loans for the purpose of repaying any Refunded Swing Line Loans
pursuant to the second preceding paragraph and each Lender’s obligation to purchase a
participation in any unpaid Swing Line Loans pursuant to the immediately preceding paragraph
shall be absolute and unconditional and shall not be affected by any circumstance, including
without limitation (A) any set-off, counterclaim, recoupment, defense or other right which
such Lender may have against Swing Line Lender, any Credit Party or any other Person for any
reason whatsoever; (B) the occurrence or continuation of a Default or Event of Default; (C)
any adverse change in the business, operations, properties, assets, condition (financial or
otherwise) or prospects of any Credit Party; (D) any breach of this Agreement or any other
Credit Document by any party thereto; or (E) any other circumstance, happening or event
whatsoever, whether or not similar to any of the foregoing; provided that such
obligations of each Lender are subject to the condition that Swing Line Lender believed in
good faith that all conditions under Section 3.2 to the making of the applicable Refunded
Swing Line Loans or other unpaid Swing Line Loans, were satisfied at the time such Refunded
Swing Line Loans or unpaid Swing Line Loans were made, or the satisfaction of any such
condition not satisfied had been waived by the Requisite Lenders prior to or at the time
such Refunded Swing Line Loans or other unpaid Swing Line Loans were made; and (2) Swing
Line Lender shall not be obligated to make any Swing Line Loans (A) if it has elected not to
do so after the occurrence and during the continuation of a Default or Event of Default or
(B) at a time when a Funding Default exists unless Swing Line Lender has entered into
arrangements satisfactory to it and Company to eliminate Swing Line Lender’s risk with
respect to the Defaulting Lender’s participation in such Swing Line Loan, including by cash
collateralizing such Defaulting Lender’s Pro Rata Share of the outstanding Swing Line Loans.

     2.4 Issuance of Letters of Credit and Purchase of Participations Therein.

          (a) Revolving Letters of Credit. During the Revolving Commitment Period, subject to
the terms and conditions hereof, each Revolving Issuing Bank agrees to issue Revolving Letters of
Credit for the account of Company and for the benefit of Company or any of its Subsidiaries in the
aggregate amount up to but not exceeding the Revolving Letter of

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Credit Sublimit; provided,
(i) each Revolving Letter of Credit shall be denominated in Dollars; (ii) the Stated Amount of each
Revolving Letter of Credit shall not be less than $5,000 or such lesser amount as is acceptable to
the applicable Revolving Issuing Bank; (iii) after giving effect to such issuance, in no event
shall the Total Utilization of Revolving Commitments exceed the Revolving Commitments then in
effect; (iv) after giving effect to such issuance, in no event shall the Revolving Letter of Credit
Usage exceed the Revolving Letter of Credit Sublimit then in effect; (v) in no event shall any
standby Revolving Letter of Credit have an expiration date later than the earlier of (1) the date
that is five (5) Business Days prior to the Revolving Commitment Termination Date and (2) the date
which is one year from the date of issuance of such standby Revolving Letter of Credit; (vi) in no
event shall any commercial Revolving Letter of Credit (x) have an expiration date later than the
earlier of (1) the Revolving Commitment Termination Date and (2) the date which is 180 days from
the date of issuance of such commercial Revolving Letter of Credit or (y) be issued if such
commercial Revolving Letter of Credit is otherwise unacceptable to the applicable Revolving Issuing
Bank in its reasonable discretion, and (vii) regarding Revolving Letters of Credit issued by JPMC,
the same shall be subject to the terms of letter of credit documentation executed by Company in
connection therewith (it being agreed and understood that in the event of any conflict or
inconsistency between the provisions of such documentation and the provisions of this Agreement,
the provisions of this Agreement shall govern and control in all respects). Subject to the
foregoing, a Revolving Issuing Bank may agree that a standby Revolving Letter of Credit will
automatically be extended for one or more successive periods each not to exceed one year each,
unless such Revolving Issuing Bank elects not to extend for any such additional period;
provided, a Revolving Issuing Bank shall not extend any such Revolving Letter of Credit if
it has received written notice from Administrative Agent not to do so and that an Event of Default
has occurred and is continuing at the time such Revolving Issuing Bank must elect to allow such
extension; provided, further, in the event a Funding Default exists, a Revolving
Issuing Bank shall not be required to issue any Revolving Letter of Credit unless Revolving Issuing
Bank has entered into arrangements reasonably satisfactory to it and Company to eliminate such
Revolving Issuing Bank’s risk with respect to the participation in Revolving Letters of Credit of
the Defaulting Lender, including by cash collateralizing such Defaulting Lender’s Pro Rata Share of
the Revolving Letter of Credit Usage.

          (b) Funded Letters of Credit. Subject to and upon the terms and conditions herein set
forth, at any time and from time to time on and after the Closing Date and during the Funded Letter
of Credit Commitment Period, Company may request that a Funded LC Issuing Bank issue or extend for
the account of Company a commercial or standby letter of credit or letters of credit under the
Funded Letter of Credit Commitment (each, a “Funded Letter of Credit”), provided that each
Funded Letter of Credit shall be used by Company solely to support the obligations of Company and
its Subsidiaries under Projects and other Contractual Obligations of Company and its Subsidiaries
and for other general corporate uses of Company and its Subsidiaries. Notwithstanding the
foregoing, (i) each Funded Letter of Credit shall be denominated in Dollars; (ii) the Stated Amount
of each Funded Letter of Credit shall not be less
than $5,000 or such lesser amount as is acceptable to such Funded LC Issuing Bank issuing the
same; (iii) no Funded Letter of Credit shall be issued the Stated Amount of which, (x) when added
to all other Funded Letters of Credit Outstanding at such time, would exceed the Total Funded
Letter of Credit Commitment or the Total Credit Linked Deposit then in effect (with such Funded LC
Issuing Bank being entitled to rely on a certificate from Company as to this item) or (y) when
added to all other Funded Letters of Credit Outstanding at such time issued by

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such Funded LC
Issuing Bank, would exceed the amount corresponding to such Funded LC Issuing Bank that is set
forth in Schedule 1.1(c) (as each amount may be adjusted pursuant to the terms of such Funded
Letter of Credit or Section 2.4(m)) or the amount of the Credit Linked Deposits held by such Funded
LC Issuing Bank at such time; (iv) in no event shall any standby Funded Letter of Credit have an
expiration date later than the earlier of (1) the date that is five (5) Business Days prior to the
Funded Letter of Credit Termination Date and (2) (other than in respect of Detroit Letters Of
Credit, which shall initially and upon each renewal thereof, each be available for a term of up to
three years and thirty-five days but in no event later than July 1, 2009) the date which is one
year from the date of issuance of such standby Funded Letter of Credit; (v) in no event shall any
commercial Funded Letter of Credit (x) have an expiration date later than the earlier of (1) the
Funded Letter of Credit Termination Date and (2) the date which is 180 days from the date of
issuance of such commercial Funded Letter of Credit or (y) be issued if such commercial Funded
Letter of Credit is otherwise unacceptable to such Funded LC Issuing Bank in its reasonable
discretion; (vi) the Letters of Credit specified on Schedule 1.1(c)(1) shall in accordance with
Section 2.4(l) be deemed Funded Letters of Credit issued by JPMC and the Letters of Credit
specified on Schedule 1.1(c)(2) shall be deemed Funded Letters of Credit issued by UBS, each, in
its capacity as Funded LC Issuing Bank hereunder; and (vii) regarding Funded Letters of Credit
issued by JPMC, the same shall be subject to the terms of letter of credit documentation executed
by Company in connection therewith (it being agreed and understood that in the event of any
conflict or inconsistency between the provisions of such documentation and the provisions of this
Agreement, the provisions of this Agreement shall govern and control in all respects). Subject to
the foregoing, a Funded LC Issuing Bank may (but shall not be obligated to) agree that a standby
Funded Letter of Credit will automatically be extended for one or more successive periods not to
exceed one year each (other than in respect of Detroit Letters Of Credit), unless such Funded LC
Issuing Bank elects not to extend for any such additional period; provided, a Funded LC
Issuing Bank shall not extend any such Funded Letter of Credit if it has received written notice
that an Event of Default has occurred and is continuing at the time such Funded LC Issuing Bank
must elect to allow such extension. The Total Funded Letter of Credit Commitment shall terminate
on the Funded Letter of Credit Termination Date.

          (c) Notice of Issuance. Whenever Company desires the issuance of a Letter of Credit,
it shall deliver to Administrative Agent and to the relevant Issuing Bank, an Issuance Notice no
later than 12:00 p.m. (New York City time) at least three Business Days (in the case of standby
letters of credit) or five Business Days (in the case of commercial letters of credit), or in each
case such shorter period as may be agreed to by an Issuing Bank in any particular instance, in
advance of the proposed date of issuance. Upon satisfaction or waiver of the conditions set forth
in Section 3.2, an Issuing Bank shall issue the requested Letter of Credit only in accordance with
such Issuing Bank’s standard operating procedures. Upon the issuance of any Revolving Letter of
Credit or amendment or modification to a Revolving Letter of Credit, the applicable Issuing Bank
shall promptly notify each Revolving Lender of such issuance, which notice shall be accompanied by
a copy of such Revolving Letter of Credit or amendment or modification to a
Revolving Letter of Credit and the amount of such Revolving Lender’s respective participation
in such Revolving Letter of Credit pursuant to Section 2.4(g). Upon the issuance of any Funded
Letter of Credit or amendment or modification to a Funded Letter of Credit, the applicable Funded
LC Issuing Bank shall promptly notify the Administrative Agent of such issuance and the
Administrative Agent shall notify each Funded Letter of Credit Participant of such issuance, which
notice shall be accompanied by a copy of such Funded Letter of Credit or amendment or

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modification
to a Funded Letter of Credit and the amount of such Funded Letter of Credit Participant’s
respective participation in such Funded Letter of Credit pursuant to Section 2.4(h).

          (d) Responsibility of Issuing Banks With Respect to Requests for Drawings and
Payments. In determining whether to honor any drawing under any Letter of Credit by the
beneficiary thereof, such Issuing Bank shall be responsible only to examine the documents delivered
under such Letter of Credit with reasonable care so as to ascertain whether they appear on their
face to be in accordance with the terms and conditions of such Letter of Credit. As between
Company and such Issuing Bank, Company assumes all risks of the acts and omissions of, or misuse of
the Letters of Credit issued by such Issuing Bank or by the respective beneficiaries of such
Letters of Credit. In furtherance and not in limitation of the foregoing, but subject to the first
sentence of this subsection (d), such Issuing Bank shall not be responsible for: (i) the form,
validity, sufficiency, accuracy, genuineness or legal effect of any document submitted by any party
in connection with the application for and issuance of any such Letter of Credit, even if it should
in fact prove to be in any or all respects invalid, insufficient, inaccurate, fraudulent or forged;
(ii) the validity or sufficiency of any instrument transferring or assigning or purporting to
transfer or assign any such Letter of Credit or the rights or benefits thereunder or proceeds
thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii)
failure of the beneficiary of any such Letter of Credit to comply fully with any conditions
required in order to draw upon such Letter of Credit; (iv) errors, omissions, interruptions or
delays in transmission or delivery of any messages, by mail, cable, telegraph, telex or otherwise,
whether or not they be in cipher; (v) errors in interpretation of technical terms; (vi) any loss or
delay in the transmission or otherwise of any document required in order to make a drawing under
any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary
of any such Letter of Credit of the proceeds of any drawing under such Letter of Credit; or (viii)
any consequences arising from causes beyond the control of such Issuing Bank, including any
Governmental Acts; none of the above shall affect or impair, or prevent the vesting of, any of such
Issuing Bank’s rights or powers hereunder. Without limiting the foregoing and in furtherance
thereof, any action taken or omitted by such Issuing Bank under or in connection with the Letters
of Credit or any documents and certificates delivered thereunder, if taken or omitted in good
faith, shall not give rise to any liability on the part of such Issuing Bank to Company.
Notwithstanding anything to the contrary contained in this Section 2.4(d), Company shall retain any
and all rights it may have against an Issuing Bank for any liability arising solely out of the
gross negligence or willful misconduct of such Issuing Bank.

          (e) Reimbursement by Company of Amounts Drawn or Paid Under Letters of Credit. (i)
In the event an Issuing Bank has determined to honor a drawing under a Letter of Credit (each such
amount so paid until reimbursed, an “Unpaid Drawing”), it shall promptly notify Company and
Administrative Agent, and Company may reimburse such Issuing Bank on or before the Business Day
immediately following the date on which such notice of such drawing is provided (the “Reimbursement
Date”) in an amount in Dollars and in same day
funds equal to the amount of such honored drawing; provided, anything contained herein
to the contrary notwithstanding, (i) unless Company shall have notified Administrative Agent and
such Issuing Bank prior to 10:00 a.m. (New York City time) on or before the Business Day
immediately following the date such drawing is honored that Company intends to reimburse such
Issuing Bank for the amount of such honored drawing with funds other than the proceeds of Revolving
Loans with respect to any Revolving Letter of Credit, Company shall be deemed, in

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the case of any
Revolving Letters of Credit, to have given a timely Funding Notice to Administrative Agent
requesting Lenders to make Revolving Loans that are Base Rate Loans on the Reimbursement Date in an
amount in Dollars equal to the amount of such honored drawing, and (ii) provided no Event
of Default under Sections 8.1(a), (f) or (g) shall have occurred and be continuing, Lenders shall,
on the Reimbursement Date, make Revolving Loans that are Base Rate Loans in the amount of such
honored drawing, the proceeds of which shall be applied directly by Administrative Agent to
reimburse such Revolving Issuing Bank for the amount of such honored drawing; and provided
further, if for any reason proceeds of Revolving Loans are not received by such Revolving
Issuing Bank on the Reimbursement Date in an amount equal to the amount of such honored drawing,
Company shall reimburse such Revolving Issuing Bank, on demand, in an amount in same day funds
equal to the excess of the amount of such honored drawing over the aggregate amount of such
Revolving Loans, if any, which are so received. Nothing in this Section 2.4(e) shall be deemed to
relieve any Lender from its obligation to make Revolving Loans on the terms and conditions set
forth herein, and Company shall retain any and all rights it may have against any Lender resulting
from the failure of such Lender to make such Revolving Loans under this Section 2.4(e).

          (f) Repayment by Funded Letter of Credit Participants of Amounts Drawn or Paid Under
Funded Letters of Credit. In the event that a Funded LC Issuing Bank makes any payment under
any Funded Letter of Credit and Company shall not have repaid such amount in full to such Funded LC
Issuing Bank pursuant to Section 2.4(e), such Funded LC Issuing Bank shall notify Administrative
Agent and Administrative Agent shall notify each affected Funded Letter of Credit Participant of
such failure, and such Funded LC Issuing Bank shall apply from the applicable Credit Linked
Deposits held by such Funded LC Issuing Bank toward the reimbursement of such payment each affected
Funded Letter of Credit Participant’s Pro Rata Share of such unreimbursed payment from the
applicable Credit Linked Deposit Account held by such Funded LC Issuing Bank. In the event a
Funded LC Issuing Bank applies the applicable Credit Linked Deposits held by such Funded LC Issuing
Bank to an unreimbursed disbursement under a Funded Letter of Credit pursuant to the preceding
sentence, Company shall have the right, one time only following the Closing Date (provided
no Default or Event of Default shall have occurred and be continuing), within 5 Business Days of
the Reimbursement Date, to pay over to Administrative Agent in reimbursement thereof an amount
equal to the full amount of such unreimbursed disbursement, and such payment shall be applied by
Administrative Agent in accordance with clause (ii) of the immediately following sentence.
Promptly following receipt by Administrative Agent of any payment by Company in respect of any
disbursement under a Funded Letter of Credit, Administrative Agent shall distribute such payment
(i) to the Funded LC Issuing Bank that issued such Funded Letters of Credit or (ii) subject to the
immediately preceding sentence, to the extent payments have been made from the applicable Credit
Linked Deposits, to the applicable Credit Linked Deposit Account with respect to such Funded Letter
of Credit to be added to the applicable Credit Linked Deposits held by such Funded LC Issuing Bank.
Company acknowledges that each payment made pursuant to this paragraph in respect of
any unreimbursed payment is required to be made for the benefit of the Funded LC Issuing Bank
indicated in the immediately preceding sentence. Provided no Event of Default under Section 8.1(f)
or (g) shall have occurred and be continuing, any payment made from any Credit Linked Deposit
Account (except to the extent of a one-time repayment by Company within 5 Business Days of the
Reimbursement Date as expressly permitted above) pursuant to this paragraph to reimburse a Funded
LC Issuing Bank for any unreimbursed payment shall be deemed an

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extension of Term Loans made on
such date by the relevant Funded Letter of Credit Participants ratably in accordance with their Pro
Rata Share of the relevant Total Credit Linked Deposit, and the amount so funded shall permanently
reduce such Total Credit Linked Deposit; any amount so funded pursuant to this paragraph shall, on
and after the funding date thereof, be deemed to be Term Loans for all purposes hereunder and have
the same terms as other Terms Loans hereunder (such deemed Term Loan, a “New Term Loan”). Any New
Term Loans deemed made on the same day shall be designated a separate series of New Term Loans for
all purposes of this Agreement. In the event that Company is required to reimburse a Funded LC
Issuing Bank for any disbursement under a Funded Letter of Credit issued by such Funded LC Issuing
Bank, for a period of 91 days following such reimbursement payment by Company, the Funded Letter of
Credit Exposures or Additional Funded Letter of Credit Exposures, as applicable, shall be deemed to
include (as if such Funded Letter of Credit were still outstanding) for purposes of determining
availability for the issuance of any new Funded Letter of Credit during such period, the amount of
such reimbursement payment until the end of such 91-day period.

          (g) Lenders’ Purchase of Participations in Revolving Letters of Credit. Immediately
upon the issuance of each Revolving Letter of Credit, each Lender having a Revolving Commitment
(each, a “Revolving Letter of Credit Participant”) shall be deemed to have purchased, and hereby
agrees to irrevocably purchase, from the applicable Revolving Issuing Bank a participation in such
Revolving Letter of Credit and any drawings honored thereunder in an amount equal to such Lender’s
Pro Rata Share (with respect to the Revolving Commitments) of the maximum amount which is or at any
time may become available to be drawn thereunder. In the event that Company shall fail for any
reason to reimburse a Revolving Issuing Bank as provided in Section 2.4(e), such Revolving Issuing
Bank shall promptly notify each Revolving Letter of Credit Participant of the unreimbursed amount
of such honored drawing and of such Revolving Letter of Credit Participant’s respective
participation therein based on such Revolving Letter of Credit Participant’s Pro Rata Share of the
Revolving Commitments. Each Revolving Letter of Credit Participant shall make available to such
Revolving Issuing Bank an amount equal to its respective participation, in Dollars and in same day
funds, at the office of such Revolving Issuing Bank specified in such notice, not later than 12:00
p.m. (New York City time) on the first business day (under the laws of the jurisdiction in which
such office of such Revolving Issuing Bank is located) after the date notified by such Revolving
Issuing Bank. In the event that any Revolving Letter of Credit Participant fails to make available
to such Revolving Issuing Bank on such business day the amount of such Revolving Letter of Credit
Participant’s participation in such Revolving Letter of Credit as provided in this Section 2.4(g),
the applicable Revolving Issuing Bank shall be entitled to recover such amount on demand from such
Lender together with interest thereon for three Business Days at the rate customarily used by such
Revolving Issuing Bank for the correction of errors among banks and thereafter at the Base Rate.
Nothing in this Section 2.4(g) shall be deemed to prejudice the right of any Revolving Letter of
Credit Participant to recover from a Revolving Issuing Bank any amounts made available by such
Revolving Letter of Credit
Participant to a Revolving Issuing Bank pursuant to this Section in the event that it is
determined that the payment with respect to a Revolving Letter of Credit in respect of which
payment was made by such Revolving Letter of Credit Participant constituted gross negligence or
willful misconduct on the part of such Revolving Issuing Bank. In the event a Revolving Issuing
Bank shall have been reimbursed by other Revolving Letter of Credit Participants pursuant to this
Section 2.4(g) for all or any portion of any drawing honored by such Revolving Issuing Bank

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under a
Revolving Letter of Credit, such Revolving Issuing Bank shall distribute to each Revolving Letter
of Credit Participant which has paid all amounts payable by it under this Section 2.4(g) with
respect to such honored drawing such Revolving Letter of Credit Participant’s Pro Rata Share of all
payments subsequently received by such Revolving Issuing Bank from Company in reimbursement of such
honored drawing when such payments are received. Any such distribution shall be made to a
Revolving Letter of Credit Participant at its primary address set forth below its name on Appendix
B or at such other address as such Revolving Letter of Credit Participant may request.

          (h) Funded Letter of Credit Participant’s Purchase of Participations in Funded Letters of
Credit. On the Closing Date, without any further action on the part of the Funded LC Issuing
Banks or the Lenders, the Funded LC Issuing Banks hereby grant to each Funded Letter of Credit
Participant, and each such Funded Letter of Credit Participant shall be deemed irrevocably and
unconditionally to have purchased and received from each Funded LC Issuing Bank that has issued any
Funded Letter of Credit, without recourse or warranty, an undivided interest and participation
(each, a “Funded Letter of Credit Participation”), in each Funded Letter of Credit that may be
issued pursuant to Section 2.4(b) or deemed issued pursuant to Section 2.4(l) equal to such Funded
Letter of Credit Participant’s Pro Rata Share of the aggregate amount available to be drawn under
each such Funded Letter of Credit and the Funded LC Participation Interests in respect thereof
together with rights to receive payments under Section 2.4(i)(iv). The aggregate purchase price
for the Funded Letter of Credit Participations of each Funded Letter of Credit Participant shall
equal the amount of the Funded Letter of Credit Commitment of such Funded Letter of Credit
Participant paid to the Administrative Agent on the Closing Date pursuant to the next sentence,
and, unless and until the Funded Letter of Credit Termination Date has occurred and all Funded
Letters of Credit issued by a Funded LC Issuing Bank have expired without draw, or to the extent of
any draws, have been reimbursed in full, or are cash collateralized by Company pursuant to Section
2.4(i)(iv), each such Credit Linked Deposit held by a Funded LC Issuing Bank shall be the property
of such Funded LC Issuing Bank as the consideration paid by each such Funded Letter of Credit
Participant for such purchase price as it relates to any Funded Letters of Credit issued or deemed
issued by such Funded LC Issuing Bank. Each Funded Letter of Credit Participant shall pay to
Administrative Agent in full on the Closing Date an amount equal to such Funded Letter of Credit
Participant’s Funded Letter of Credit Commitment, and Administrative Agent shall immediately
transfer and allocate such Credit Linked Deposits to each Funded LC Issuing Bank in the amounts set
forth on Schedule 2.4(f). Each Funded Letter of Credit Participant hereby absolutely and
unconditionally agrees that if a Funded LC Issuing Bank makes a disbursement in respect of any
Funded Letter of Credit issued by such Funded LC Issuing Bank which is not reimbursed by Company on
the date due pursuant to Section 2.4(e), or is required to refund any reimbursement payment in
respect of any Funded Letter of Credit issued or deemed issued by such Funded LC Issuing Bank to
Company for any reason, the amount of such disbursement shall be satisfied, ratably as among the
Funded Letter of Credit Participants in accordance with their Pro Rata
Share (with the Administrative Agent having the responsibility to determine and keep record of
the Pro Rata Shares of the Funded Letter of Credit Participants for this purpose and all other
purposes hereunder) of the Total Credit Linked Deposit from the Credit Linked Deposit on deposit
with the Funded LC Issuing Bank. Without limiting the foregoing, each Funded Letter of Credit
Participant irrevocably authorizes the Administrative Agent and each Funded LC

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Issuing Bank, as
applicable, to apply amounts of the Credit Linked Deposits as provided in this paragraph.

     (i) Credit Linked Deposit Accounts.

          (i) Subject to the terms and conditions hereof, each Funded Letter of Credit
Participant severally agrees to make, on the Closing Date, a payment to Administrative Agent
in an amount equal to such Funded Letter of Credit Participant’s Funded Letter of Credit
Commitment and Administrative Agent shall use such payments to establish a Credit Linked
Deposit Account at each Funded LC Issuing Bank and deposit with each such Funded LC Issuing
Bank an amount as set forth on Schedule 2.4(f). The Credit Linked Deposits paid to a Funded
LC Issuing Bank shall be held by such Funded LC Issuing Bank in its Credit Linked Deposit
Account, and no party other than the Funded LC Issuing Bank shall have a right of withdrawal
from the Credit Linked Deposit Account, or any other right, power or interest in or with
respect to the Credit Linked Deposits, except as expressly set forth in Sections 2.4(f),
(h), (j) and Section 2.13(b)(iii). Notwithstanding any provision in this Agreement to the
contrary, the sole funding obligation of each Funded Letter of Credit Participant in respect
of its Funded Letter of Credit Commitment and Funded Letter of Credit Participation shall be
satisfied in full upon the payment of its purchase price on the Closing Date.

          (ii) Each of Company, Administrative Agent, each Funded LC Issuing Bank and each Funded
Letter of Credit Participant hereby acknowledges and agrees that each Funded Letter of
Credit Participant is making its payment on the Closing Date pursuant to Section 2.4(i)(i)
to be paid into the Credit Linked Deposit Account for application in the manner contemplated
by Sections 2.4(f) and (h). Each Funded LC Issuing Bank hereby agrees (except during
periods when the Credit Linked Deposits held by such Funded LC Issuing Bank, or funds
applied by or on behalf of such Funded LC Issuing Bank against such Credit Linked Deposits,
are used to cover Unpaid Drawings under Funded Letters of Credit) to invest, or cause to be
invested, the Credit Linked Deposit of each Funded Letter of Credit Participant so as to
earn for the account of such Funded Letter of Credit Participant a return thereon (the
“Relevant Return”) at a rate per annum equal to (1) the three-month Adjusted Eurodollar Rate
as determined by such Funded LC Issuing Bank on the first Business Day of such three-month
period (the “Benchmark Rate”) minus (2) 0.10% per annum (based on a 365/366 day
year). The Benchmark Rate will be reset on the first Business Day of each successive
three-month Interest Period. The Relevant Return accrued through each successive
three-month Interest Period as determined by such Funded LC Issuing Bank in its reasonable
discretion shall be paid by such Funded LC Issuing Bank to the Administrative Agent on the
Business Day immediately following the end of such period and the Administrative Agent shall
in turn pay the Relevant Return on a pro rata basis to each Funded Letter of Credit
Participant on the third Business Day following receipt thereof from such Funded
LC Issuing Bank, commencing on the first such date to occur after the Closing Date, and
on the Funded Letter of Credit Termination Date or Additional Funded Letter of Credit
Termination Date, as the case may be.

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          (iii) Company shall have no right, title or interest in or to the Credit Linked
Deposits and no obligations with respect thereto (except for the reimbursement obligations
in respect of Funded Letters of Credit provided in Sections 2.4(f) and (h)), it being
acknowledged and agreed by the parties hereto that the making of the Credit Linked Deposits
by the Funded Letter of Credit Participants, the provisions of this Section 2.4(i)(iii) and
the application of the Credit Linked Deposits in the manner contemplated by Sections 2.4(f)
and (h) constitute agreements among Administrative Agent, the Funded LC Issuing Banks and
the Funded Letter of Credit Participants with respect to payments of each Funded Letter of
Credit Participant in respect of its Funded Letter of Credit Participation and do not
constitute any loan or extension of credit to Company.

          (iv) Following the occurrence of any of the events identified in clauses (i), (ii) or
(iii) of the definition of Funded Letter of Credit Termination Date (but solely in the case
of clause (i), only to the extent at such time Company shall have paid all outstanding
obligations then due and payable under this Agreement), and subject to Company’s cash
collateralization to the extent of a Funded LC Issuing Bank’s outstanding Funded Letters of
Credit, in an amount (but in no event greater than 105% of the aggregate undrawn face
amount) and manner reasonably satisfactory to the Collateral Agent and the Funded LC Issuing
Bank that issued such Funded Letters of Credit (which cash collateralization is hereby
expressly required of Company on any Funded Letter of Credit Termination Date), each Funded
LC Issuing Bank shall repurchase the Funded Letter of Credit Participation Interests from
the Funded Letter Credit Participants with the remaining Credit Linked Deposits held by it
at such time according to each Funded Letter of Credit Participant’s Pro Rata Share
(whereupon such remaining amount that has been so paid shall no longer be considered the
property of the Funded LC Issuing Banks).

          (j) Obligations Absolute. The obligation of Company to reimburse each Issuing Bank
for drawings honored under the Letters of Credit issued by it and to repay any Revolving Loans made
by Lenders pursuant to Section 2.4(e) and the obligations of Lenders under Sections 2.4(f) and (h)
shall be unconditional and irrevocable and shall be paid strictly in accordance with the terms
hereof under all circumstances including any of the following circumstances: (i) any lack of
validity or enforceability of any Letter of Credit; (ii) the existence of any claim, set-off,
defense or other right which Company or any Lender may have at any time against a beneficiary or
any transferee of any Letter of Credit (or any Persons for whom any such transferee may be acting),
such Issuing Bank, Lender or any other Person or, in the case of a Lender, against Company, whether
in connection herewith, the transactions contemplated herein or any unrelated transaction
(including any underlying transaction between Company or one of its Subsidiaries and the
beneficiary for which any Letter of Credit was procured); (iii) any draft or other document
presented under any Letter of Credit proving to be forged, fraudulent, invalid or insufficient in
any respect or any statement therein being untrue or inaccurate in any respect; (iv) payment by
such Issuing Bank under any Letter of Credit against presentation of a draft or other document
which substantially complies with the terms of such Letter of Credit; (v) any
adverse change in the business, operations, properties, assets, condition (financial or
otherwise) or prospects of Company or any of its Subsidiaries; (v) any breach hereof or any other
Credit Document by any party thereto; (vi) any other circumstance or happening whatsoever, whether
or not similar to any of the foregoing; or (vii) the fact that an Event of Default or a Default
shall

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have occurred and be continuing; provided, in each case, that payment by an Issuing
Bank under the applicable Letter of Credit shall not have constituted gross negligence or willful
misconduct of such Issuing Bank under the circumstances in question.

          (k) Indemnification. Without duplication of any obligation of Company under Section
10.2 or 10.3, in addition to amounts payable as provided herein, Company hereby agrees to protect,
indemnify, pay and save harmless each Issuing Bank from and against any and all claims, demands,
liabilities, damages, losses, reasonable costs, charges and expenses (including reasonable fees,
expenses and disbursements of counsel) which such Issuing Bank may incur or be subject to as a
consequence, direct or indirect, of (i) the issuance of any Letter of Credit by such Issuing Bank,
other than as a result of (1) the gross negligence or willful misconduct of, such Issuing Bank
under the circumstances in question or (2) the wrongful dishonor by such Issuing Bank of a proper
demand for payment made under any Letter of Credit issued by it, or (ii) the failure of such
Issuing Bank to honor a drawing under any such Letter of Credit as a result of any Governmental
Act.

          (l) Existing Letters of Credit. On the Closing Date, (i) each Existing Letter of
Credit, to the extent outstanding, shall automatically and without further action by the parties
thereto be deemed converted to Funded Letters of Credit issued pursuant to this Section 2.4 for the
account of Company and subject to the provisions hereof, and for this purpose the fees payable with
respect to such Funded Letters of Credit issued hereunder pursuant to Section 2.11(b)(i) and
2.11(c) shall be payable (in substitution for any fees set forth in the applicable letter of credit
reimbursement agreements or applications relating to such letters of credit, except to the extent
that such fees are of the type payable hereunder pursuant to Section 2.11(c)(iii), in which event
such fees shall be payable without duplication) as if such Funded Letters of Credit had been issued
on the Closing Date and (ii) each of the Issuing Banks listed on Schedule 1.1(c) with respect to
its respective Existing Letter of Credit shall be deemed to be a Funded LC Issuing Bank hereunder
with respect to its Funded Letters of Credit, but UBS shall not be an Issuing Bank except as to the
Detroit Letters of Credit. UBS and Company agree for the sake of clarity that the references to
the “Credit Agreement” in the Detroit Letters of Credit are intended to mean the Credit Agreement
under which the Detroit Letters of Credit are deemed issued (as such Credit Agreement may be
amended or replaced from time to time).

          (m) Upon the prior written consent of JPMC and at least 3 Business Days’ prior written notice
to Administrative Agent and UBS, Company may request the transfer of all or a portion of the Credit
Linked Deposits held by UBS at such time from UBS to JPMC (each such institution in its capacity as
a Funded LC Issuing Bank) on the last day of any Interest Period relating to Credit Linked Deposits
(the date of such transfer being a “Transfer Date”) in an amount not to exceed, at such time, the
difference between (i) the Credit Linked Deposits held by UBS at such time minus (ii) the Funded
Letters of Credit Outstanding at such time in respect of Funded Letters of Credit issued by UBS
(or, if greater, the amount to which such Funded Letters of Credit by their terms permit the Stated
Amount thereof to be increased to) (such difference being the “UBS Excess Transfer Amount”). No
later than 12:00 p.m. (New York
City time) on such Transfer Date, UBS shall transfer to such Credit Linked Deposit Account as
JPMC may designate, an amount equal to the UBS Excess Transfer Amount in immediately available
funds. Upon such transfer (i) the Credit Linked Deposit held by JPMC, and (without further action)
the amount corresponding to JPMC on Schedule 1.1(c), shall each be increased in

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an amount equal to
the UBS Excess Transfer Amount and (ii) the Credit Linked Deposit held by UBS, and (without further
action) the amount corresponding to UBS on Schedule 1.1(c), shall be reduced by an amount equal to
the UBS Excess Transfer Amount.

     2.5 Pro Rata Shares; Availability of Funds.

          (a) Pro Rata Shares. All Loans and Credit Linked Deposits shall be made, and all
participations purchased, by Lenders simultaneously and proportionately to their respective Pro
Rata Shares, it being understood that no Lender shall be responsible for any default by any other
Lender in such other Lender’s obligation to make a Loan requested hereunder or purchase a
participation required hereby nor shall any Term Loan Commitment, Funded Letter of Credit
Commitment or any Revolving Commitment of any Lender be increased or decreased as a result of a
default by any other Lender in such other Lender’s obligation to make a Loan or Credit Linked
Deposit requested hereunder or purchase a participation required hereby.

          (b) Availability of Funds. Unless Administrative Agent shall have been notified by
any Lender prior to the applicable Credit Date that such Lender does not intend to make available
to Administrative Agent the amount of such Lender’s Loan requested on such Credit Date,
Administrative Agent may assume that such Lender has made such amount available to Administrative
Agent on such Credit Date and Administrative Agent may, in its sole discretion, but shall not be
obligated to, make available to Company a corresponding amount on such Credit Date. If such
corresponding amount is not in fact made available to Administrative Agent by such Lender,
Administrative Agent shall be entitled to recover such corresponding amount on demand from such
Lender together with interest thereon, for each day from such Credit Date until the date such
amount is paid to Administrative Agent, at the customary rate set by Administrative Agent for the
correction of errors among banks for three Business Days and thereafter at the Base Rate. If such
Lender does not pay such corresponding amount forthwith upon Administrative Agent’s demand
therefor, Administrative Agent shall promptly notify Company and Company shall immediately pay such
corresponding amount to Administrative Agent together with interest thereon, for each day from such
Credit Date until the date such amount is paid to Administrative Agent, at the rate payable
hereunder for Base Rate Loans for such Class of Loans. Nothing in this Section 2.5(b) shall be
deemed to relieve any Lender from its obligation to fulfill its Term Loan Commitments and Revolving
Commitments hereunder or to prejudice any rights that Company may have against any Lender as a
result of any default by such Lender hereunder.

     2.6 Use of Proceeds. The proceeds of the Term Loans shall be applied by Company to (or
distributed to Holding for Holding to) fund the Refinancing, to finance the Tender Offer and
Consent Solicitation and to pay the related fees, commissions, premiums and expenses. The proceeds
of the Additional Term Loans, Revolving Loans and Swing Line Loans made after the Closing Date
shall be applied by Company for working capital and general corporate purposes of Company and
its Subsidiaries, including permitted Consolidated Capital Expenditures, Permitted Acquisitions and
Investments, Restricted Junior Payments or other purposes expressly permitted under this Agreement.
The proceeds of the Funded Letters of Credit and Revolving Letters of Credit shall be used by
Company to support Company’s and its Subsidiaries’ obligations under the Projects and other
Contractual Obligations of Company and its Subsidiaries and other general

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corporate purposes, but
shall in no event be used to make or facilitate any Investment or Restricted Junior Payment not
otherwise permitted hereunder. No portion of the proceeds of any Credit Extension shall be used in
any manner that causes or might cause such Credit Extension or the application of such proceeds to
violate Regulation U or Regulation X of the Board of Governors of the Federal Reserve System or any
other regulation thereof or to violate the Exchange Act.

     2.7 Evidence of Debt; Register; Lenders’ Books and Records; Notes.

          (a) Lenders’ Evidence of Debt. Each Lender shall maintain on its internal records an
account or accounts evidencing the Obligations of Company to such Lender, including the amounts of
the Loans and the Credit Linked Deposits made by it and each repayment and prepayment in respect
thereof. Any such recordation shall be conclusive and binding on Company, absent manifest error;
provided, that the failure to make any such recordation, or any error in such recordation,
shall not affect any Lender’s Revolving Commitments or Company’s Obligations in respect of any
applicable Loans or Credit Linked Deposits; and provided further, in the event of
any inconsistency between the Register and any Lender’s records, the recordations in the Register
shall govern.

          (b) Register. Administrative Agent (or its agent or sub-agent appointed by it) shall
maintain at the Principal Office a register for the recordation of the names and addresses of
Lenders and the Revolving Commitments, Loans and the Credit Linked Deposits of each Lender from
time to time (the “Register”). The Register, as in effect at the close of business on the
preceding Business Day, shall be available for inspection by Company or any Lender at any
reasonable time and from time to time upon reasonable prior notice. Administrative Agent shall
record, or shall cause to be recorded, in the Register the Revolving Commitments, Loans and the
Credit Linked Deposits in accordance with the provisions of Section 10.6, and each repayment or
prepayment in respect of the principal amount of the Loans or the Credit Linked Deposits, and any
such recordation shall be conclusive and binding on Company and each Lender, absent manifest error;
provided, that the failure to make any such recordation, or any error in such recordation,
shall not affect any Lender’s Revolving Commitments or Company’s Obligations in respect of any Loan
or the Credit Linked Deposits. The Administrative Agent shall correct any failures to record or
errors in recording in the Register reasonably promptly after discovery of such failure or error.
Company hereby designates JPMC to serve as Company’s agent solely for purposes of maintaining the
Register as provided in this Section 2.7, and Company hereby agrees that, to the extent JPMC serves
in such capacity, JPMC and its officers, directors, employees, agents, sub-agents and affiliates
shall constitute “Indemnitees.” The Obligations are registered obligations and the right, title
and interest of any Lender or Issuing Bank and/or its assignees in and to such Obligations shall be
transferable only upon notation of such transfer in the Register. This Section 2.7(b) shall be
construed so that the Obligations are at all times maintained in
“registered form” within the meaning of sections 163(f), 871(h)(2) and 881(c)(2) of the
Internal Revenue Code and any related Treasury Regulations.

          (c) Notes. If so requested by any Lender by written notice to Company (with a copy to
Administrative Agent) at least two Business Days prior to the Closing Date, or at any time
thereafter, Company shall execute and deliver to such Lender (and/or, if applicable and if so
specified in such notice, to any Person who is an assignee of such Lender pursuant to Section

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10.6)
on the Closing Date (or, if such notice is delivered after the Closing Date, promptly after
Company’s receipt of such notice) a Note or Notes to evidence such Lender’s Term Loan, Revolving
Loan or Swing Line Loan, as the case may be.

     2.8 Interest on Loans.

          (a) Except as otherwise set forth herein, each Class of Loan shall bear interest on the unpaid
principal amount thereof from the date made through repayment (whether by acceleration or
otherwise) thereof as follows:

          (1) if a Base Rate Loan, at the Base Rate plus the Applicable Margin; or

          (2) if a Eurodollar Rate Loan, at the Adjusted Eurodollar Rate plus the
Applicable Margin.

          (b) The basis for determining the rate of interest with respect to any Loan (except a Swing
Line Loan which can be made and maintained as Base Rate Loans only), and the Interest Period with
respect to any Eurodollar Rate Loan, shall be selected by Company and notified to Administrative
Agent pursuant to the applicable Funding Notice or Conversion/Continuation Notice, as the case may
be. If on any day a Loan is outstanding with respect to which a Funding Notice or
Conversion/Continuation Notice has not been delivered to Administrative Agent in accordance with
the terms hereof specifying the applicable basis for determining the rate of interest, then for
that day such Loan shall be a Base Rate Loan.

          (c) In connection with Eurodollar Rate Loans there shall be no more than eight (8) Interest
Periods outstanding at any time. In the event Company fails to specify between a Base Rate Loan or
a Eurodollar Rate Loan in the applicable Funding Notice or Conversion/Continuation Notice, such
Loan (if outstanding as a Eurodollar Rate Loan) will be automatically converted into a Base Rate
Loan on the last day of the then-current Interest Period for such Loan (or if outstanding as a Base
Rate Loan will remain as, or (if not then outstanding) will be made as, a Base Rate Loan). In the
event Company fails to specify an Interest Period for any Eurodollar Rate Loan in the applicable
Funding Notice or Conversion/Continuation Notice, Company shall be deemed to have selected an
Interest Period of one month. As soon as practicable after 10:00 a.m. (New York City time) on each
Interest Rate Determination Date, Administrative Agent shall determine (which determination shall,
absent manifest error, be final, conclusive and binding upon all parties) the interest rate that
shall apply to the Eurodollar Rate Loans for which an interest rate is then being determined for
the applicable Interest Period and shall promptly give notice thereof (in writing or by telephone
confirmed in writing) to Company and each Lender.

          (d) Interest payable pursuant to Section 2.8(a) shall be computed (i) in the case of Base Rate
Loans on the basis of a 365-day or 366-day year, as the case may be, and (ii) in the case of
Eurodollar Rate Loans, on the basis of a 360-day year, in each case for the actual number of days
elapsed in the period during which it accrues. In computing interest on any Loan, the date of the
making of such Loan or the first day of an Interest Period applicable to such Loan or, with respect
to a Term Loan, the last Interest Payment Date with respect to such Term

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Loan or, with respect to a
Base Rate Loan being converted from a Eurodollar Rate Loan, the date of conversion of such
Eurodollar Rate Loan to such Base Rate Loan, as the case may be, shall be included, and the date of
payment of such Loan or the expiration date of an Interest Period applicable to such Loan or, with
respect to a Base Rate Loan being converted to a Eurodollar Rate Loan, the date of conversion of
such Base Rate Loan to such Eurodollar Rate Loan, as the case may be, shall be excluded;
provided, if a Loan is repaid on the same day on which it is made, one day’s interest shall
be paid on that Loan.

          (e) Except as otherwise set forth herein, interest on each Loan (i) shall accrue on a daily
basis and shall be payable in arrears on each Interest Payment Date with respect to interest
accrued on and to each such payment date; (ii) shall accrue on a daily basis and shall be payable
in arrears upon any prepayment of that Loan, whether voluntary or mandatory, to the extent accrued
on the amount being prepaid; and (iii) shall accrue on a daily basis and shall be payable in
arrears at maturity of the Loans, including final maturity of the Loans; provided,
however, with respect to any voluntary prepayment of a Base Rate Loan, accrued interest
shall instead be payable on the applicable Interest Payment Date.

          (f) Company agrees to pay to each Revolving Issuing Bank, with respect to drawings honored
under any Revolving Letter of Credit issued by such Revolving Issuing Bank, interest on the amount
paid by such Revolving Issuing Bank in respect of each such honored drawing from the date such
drawing is honored to but excluding the date such amount is reimbursed by or on behalf of Company
(including any such reimbursement out of the proceeds of any Revolving Loans), at a rate equal to
(i) for the period from the date such drawing is honored to but excluding the applicable
Reimbursement Date, the rate of interest otherwise payable hereunder with respect to Revolving
Loans that are Base Rate Loans, and (ii) thereafter, a rate which is 2.00% per annum in excess of
the rate of interest otherwise payable hereunder with respect to Revolving Loans that are Base Rate
Loans.

          (g) Company agrees to pay to each Funded LC Issuing Bank, with respect to drawings honored
under any Funded Letter of Credit issued by such Funded LC Issuing Bank, interest on the amount
paid by such Funded LC Issuing Bank in respect of each such honored drawing from the date such
drawing is honored to but excluding the date such amount is reimbursed by or on behalf of Company
or from Credit Linked Deposits at a rate equal to the rate of interest otherwise payable hereunder
with respect to Term Loans that are Base Rate Loans.

          (h) Interest payable pursuant to Sections 2.8(f) or (g) shall be computed on the basis of a
365/366-day year for the actual number of days elapsed in the period during which it accrues, and
shall be payable on demand or, if no demand is made, on the date on which the related drawing under
a Letter of Credit is reimbursed in full. Promptly upon receipt by an Issuing Bank of any payment
of interest pursuant to Section 2.8(f) or (g), such Issuing Bank shall distribute to each Letter of
Credit Participant, out of the interest received by such Issuing Bank in
respect of the period from the date such drawing is honored to but excluding the date on which
such Issuing Bank is reimbursed for the amount of such drawing (including any such reimbursement
out of the proceeds of any Revolving Loans), the amount that such Letter of Credit Participant
would have been entitled to receive in respect of the letter of credit fee that would have been
payable in respect of such Letter of Credit for such period if no drawing had been honored under
such Letter of Credit. In the event an Issuing Bank shall have been

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reimbursed by Letter of Credit Participants for all or any portion of such honored drawing,
such Issuing Bank shall distribute to each Letter of Credit Participant which has paid all amounts
payable by it under Section 2.4(h) with respect to such honored drawing such Letter of Credit
Participant’s Pro Rata Share of any interest received by such Issuing Bank in respect of that
portion of such honored drawing so reimbursed by Letter of Credit Participants for the period from
the date on which such Issuing Bank was so reimbursed by Letter of Credit Participants to but
excluding the date on which such portion of such honored drawing is reimbursed by Company.

     2.9 Conversion/Continuation.

        (a) Subject to Section 2.18 and (with respect to continuations of, or conversions into,
Eurodollar Rate Loans) so long as no Default or Event of Default shall have occurred and then be
continuing, Company shall have the option:

     (i) to convert at any time all or any part of any Term Loan or Revolving Loan equal to
$500,000 and integral multiples of $250,000 in excess of that amount from one Type of Loan
to another Type of Loan; provided, a Eurodollar Rate Loan may only be converted on
the expiration of the Interest Period applicable to such Eurodollar Rate Loan unless
Company shall pay all amounts due under Section 2.18 in connection with any such
conversion; or

     (ii) upon the expiration of any Interest Period applicable to any Eurodollar Rate
Loan, to continue all or any portion of such Loan equal to $500,000 and integral multiples
of $250,000 in excess of that amount as a Eurodollar Rate Loan.

        (b) Company shall deliver a Conversion/Continuation Notice to Administrative Agent no later
than 10:00 a.m. (New York City time) at least one Business Day in advance of the proposed
conversion date (in the case of a conversion to a Base Rate Loan) and at least three Business Days
in advance of the proposed conversion/continuation date (in the case of a conversion to, or a
continuation of, a Eurodollar Rate Loan). Except as otherwise provided herein, a
Conversion/Continuation Notice for conversion to, or continuation of, any Eurodollar Rate Loans (or
telephonic notice in lieu thereof) shall be irrevocable on and after the related Interest Rate
Determination Date, and Company shall be bound to effect a conversion or continuation in accordance
therewith.

   2.10 Default Interest. The principal amount of all Loans not paid when due and, to the extent permitted by
applicable law, any interest payments on the Loans or any fees or other amounts owed
hereunder but not paid when due, shall thereafter bear interest (including post-petition
interest in any proceeding under the Bankruptcy Code or other applicable bankruptcy laws)
payable on demand at a rate that is 2.00% per annum in excess of the highest interest rate otherwise payable hereunder with respect to
the applicable Loans (or, in the case of any such fees and other amounts, at a rate which
is 2.00% per annum in excess of the highest interest rate otherwise then payable hereunder
for Base Rate Loans); provided, in the case of Eurodollar Rate Loans, upon the
expiration of the Interest Period in effect at the time any such increase in interest rate
is effective such Eurodollar Rate Loans shall thereupon become Base Rate Loans and shall
thereafter bear interest payable upon demand at a rate which is 2.00% per

64

 

annum in excess
of the highest interest rate otherwise then payable hereunder for Base Rate Loans. Payment
or acceptance of the increased rates of interest provided for in this Section 2.10 is not a
permitted alternative to timely payment and shall not constitute a waiver of any Event of
Default or otherwise prejudice or limit any rights or remedies of Administrative Agent or
any Lender.

     2.11 Fees.

          (a) Company agrees to pay to Administrative Agent for the ratable benefit of each Lender
having Revolving Exposure:

     (i) commitment fees equal to (1) the average of the daily difference between (a) the
Revolving Commitments, and (b) the Total Utilization of Revolving Commitments (disregarding
item (ii) of the definition thereof), times (2) the applicable Commitment Fee Rate; and

     (ii) letter of credit fees equal to (1) the Applicable Margin for Revolving Loans that
are Eurodollar Rate Loans, times (2) the average aggregate daily maximum amount available
to be drawn under all such Revolving Letters of Credit (regardless of whether any
conditions for drawing could then be met and determined as of the close of business on any
date of determination).

          (b) (i) Company agrees to pay to Administrative Agent for the ratable benefit of each Lender
having Funded Letter of Credit Exposure, a fee in respect of such Lender’s Pro Rata Share of the
Credit Linked Deposits (the “Funded Letter of Credit Fee”), for the period from and including the
Closing Date to but excluding the date on which final payment is made to such Lender pursuant to
Section 2.4(i)(iv), computed at the per annum rate for each date equal to (x) the Applicable Margin
for Credit Linked Deposits then in effect for Funded Letters of Credit times (y) the average daily
amount of such Credit Linked Deposit.

          (ii) In addition, Company agrees to pay to Administrative Agent for the ratable benefit of
each Lender having Funded Letter of Credit Exposure, a fee in respect of such Lender’s Pro Rata Share of the Credit Linked Deposits,
for the period from and including the Closing Date to but excluding the date on which final payment
is made to such Lender pursuant to Section 2.4(i)(iv), computed at the per annum rate (based on a
365/366 day year) for each date equal to (x) 0.10% times (y) the average daily amount of such
Credit Linked Deposit.

          (c) Company agrees to pay directly to each Issuing Bank, for its own account, the following
fees:

     (i) a fronting fee equal to 0.125%, per annum, times the average aggregate daily
maximum amount available to be drawn under all Revolving Letters of Credit issued by such
Issuing Bank (determined as of the close of business on any date of determination);

     (ii) a fronting fee equal to 0.125%, per annum, times the average aggregate daily
maximum amount available to be drawn under all Funded Letters of

65

 

Credit issued by such Issuing Bank (determined as of the close of business on any date of determination); and

     (iii) such documentary and processing charges for any issuance, amendment, transfer or
payment of a Letter of Credit as are in accordance with such Issuing Bank’s standard
schedule for such charges and as in effect (and delivered to Company) at the time of such
issuance, amendment, transfer or payment, as the case may be.

          (d) All fees referred to in Sections 2.11(a), (b) and (c) shall be paid to Administrative
Agent at its Principal Office and upon receipt, Administrative Agent shall promptly distribute to
each Lender its Pro Rata Share thereof.

          (e) All fees referred to in Sections 2.11(a), (b)(i) and (c) shall be calculated on the basis
of a 360-day year and the actual number of days elapsed. All fees referred to in Sections 2.11(a),
(b) and (c) shall be payable by Company quarterly in arrears on March 31, June 30, September 30 and
December 31 of each year during the Revolving Commitment Period or the Funded Letter of Credit
Commitment Period, as applicable, commencing on the first such date to occur after the Closing
Date, and on the Revolving Commitment Termination Date or the Funded Letter of Credit Termination
Date, as applicable, and with respect to Section 2.11(b) on the date of return to any Funded Letter
of Credit Participant of any of such Funded Letter of Credit Participant’s Credit Linked Deposits
in respect of the amount so returned, as applicable.

          (f) In addition to any of the foregoing fees, Company agrees to pay to Agents such other fees
in the amounts and at the times separately agreed upon.

     2.12 Scheduled Payments. The principal amounts of the Term Loans (other than New Term Loans, the
repayment of which shall be governed by the proviso below) shall be repaid in consecutive quarterly
installments (each, an “Installment”) in the aggregate amounts set forth below on the last day of each Fiscal Quarter (each, an “Installment Date”), commencing
June 30, 2007:

	 	 	 	 	 
	Installment Dates 	 	Installments of Term Loans
	June 30, 2007

	 	$	1,625,000	 
	September 30, 2007

	 	$	1,625,000	 
	December 31, 2007

	 	$	1,625,000	 
	March 31, 2008

	 	$	1,625,000	 
	June 30, 2008

	 	$	1,625,000	 
	September 30, 2008

	 	$	1,625,000	 
	December 31, 2008

	 	$	1,625,000	 
	March 31, 2009

	 	$	1,625,000	 
	June 30, 2009

	 	$	1,625,000	 
	September 30, 2009

	 	$	1,625,000	 
	December 31, 2009

	 	$	1,625,000	 
	March 31, 2010

	 	$	1,625,000	 

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	Installment Dates 	 	Installments of Term Loans
	June 30, 2010

	 	$	1,625,000	 
	September 30, 2010

	 	$	1,625,000	 
	December 31, 2010

	 	$	1,625,000	 
	March 31, 2011

	 	$	1,625,000	 
	June 30, 2011

	 	$	1,625,000	 
	September 30, 2011

	 	$	1,625,000	 
	December 31, 2011

	 	$	1,625,000	 
	March 31, 2012

	 	$	1,625,000	 
	June 30, 2012

	 	$	1,625,000	 
	September 30, 2012

	 	$	1,625,000	 
	December 31, 2012

	 	$	1,625,000	 
	March 31, 2013

	 	$	1,625,000	 
	June 30, 2013

	 	$	1,625,000	 
	September 30, 2013

	 	$	1,625,000	 
	December 31, 2013

	 	$	1,625,000	 
	February 9, 2014

	 	$	606,125,000	 

provided, that in the event any Additional Term Loans or New Term Loans are made, such
Additional Term Loans or New Term Loans, as applicable, shall be repaid on each Installment Date
occurring on or after the applicable Increased Amount Date, in the case of Additional Term Loans,
or the date on which any such New Term Loans are deemed made pursuant to Section 2.4(f), in an
amount equal to (i) the aggregate principal amount of such Additional Term Loans or New Term Loans,
as applicable, times (ii) the ratio (expressed as a percentage) of (y) the amount of all other Term
Loans being repaid on such date and (z) the total aggregate principal amount of all other Term
Loans outstanding on such Increased Amount Date or the date on which New Term Loans are deemed
made, as applicable.

Notwithstanding the foregoing, (x) such Installments shall be reduced in connection with any
voluntary or mandatory prepayments of the Term Loans in accordance with Sections 2.13, 2.14 and
2.15, as applicable; and (y) and the Term Loans, together with all other amounts owed hereunder
with respect thereto, shall, in any event, be paid in full no later than the Term Loan Maturity
Date.

     2.13 Voluntary Prepayments/Commitment Reductions.

          (a) Voluntary Prepayments.

     (i) Any time and from time to time:

     (1) with respect to Base Rate Loans, Company may prepay any such Loans on any
Business Day in whole or in part, in an aggregate minimum amount of $500,000 and
integral multiples of $250,000 in excess of that amount;

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     (2) with respect to Eurodollar Rate Loans, Company may prepay any such Loans
on any Business Day in whole or in part in an aggregate minimum amount of $500,000
and integral multiples of $250,000 in excess of that amount; and

     (3) with respect to Swing Line Loans, Company may prepay any such Loans on any
Business Day in whole or in part in an aggregate minimum amount of $250,000, and in
integral multiples of $250,000 in excess of that amount.

     (ii) All such prepayments shall be made:

     (1) upon not less than one Business Day’s prior written or telephonic notice
in the case of Base Rate Loans;

     (2) upon not less than three Business Days’ prior written or telephonic notice
in the case of Eurodollar Rate Loans; and

     (3) upon written or telephonic notice on the date of prepayment, in the case
of Swing Line Loans;

in each case given to Administrative Agent or Swing Line Lender, as the case may be, by 12:00 p.m.
(New York City time) on the date required and, if given by telephone, promptly confirmed in writing
to Administrative Agent (and Administrative Agent will promptly transmit such telephonic or
original notice for Term Loans or Revolving Loans, as the case may be, by telefacsimile or
telephone to each Lender) or Swing Line Lender, as the case may be. Upon the giving of any such
notice, the principal amount of the Loans specified in such notice shall become due and payable on
the prepayment date specified therein. Any such voluntary prepayment shall be applied as specified
in Section 2.15(a).

          (b) Voluntary Commitment Reductions.

     (i) Company may, upon not less than one Business Day’s prior written or telephonic
notice promptly confirmed in writing to Administrative Agent (which original written or
telephonic notice Administrative Agent will promptly transmit by telefacsimile or telephone
to each applicable Lender), at any time and from time to time terminate in whole or
permanently reduce in part, without premium or penalty, the Revolving Commitments in an
amount up to the amount by which the Revolving Commitments exceed the Total Utilization of
Revolving Commitments at the time of such proposed termination or reduction;
provided, any such partial reduction of the Revolving Commitments shall be in an
aggregate minimum amount of $1,000,000 and integral multiples of $1,000,000 in excess of
that amount.

     (ii) Company’s notice to Administrative Agent shall designate the date (which shall be
a Business Day) of such termination or reduction and the amount of any partial reduction,
and such termination or reduction of the Revolving Commitments shall be effective on the
date specified in Company’s notice and shall reduce the Revolving Commitment of each Lender
proportionately to its Pro Rata Share thereof.

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     (iii) Upon at least one Business Day’s prior written notice (or telephonic notice
promptly confirmed in writing) to Administrative Agent at Administrative Agent’s Principal
Office (which notice Administrative Agent shall promptly transmit to each of the Funded LC
Issuing Banks and each of the Lenders), Company shall have the right, without premium or
penalty, on any day, permanently to reduce the Credit Linked Deposits in whole or in part,
provided that (i) any partial reduction pursuant to this Section 2.13(b)(iii) shall
be in an aggregate minimum amount of $1,000,000 and integral multiples of $1,000,000 in
excess of that amount, and shall be allocated among the Credit Linked Deposits held by the
Funded LC Issuing Banks on a pro rata basis and (ii) after giving effect to such reduction
and to any cancellation or cash collateralization of Funded Letters of Credit made on the
date thereof in accordance with this Agreement, the aggregate amount of the Lenders’ Funded
Letter of Credit Exposures and Additional Funded Letter of Credit Exposures (after giving
effect to any required increase in the Stated Amount of any Funded Letters of Credit) shall
not exceed the Total Credit Linked Deposit. In the event the Credit Linked Deposits shall
be reduced as provided in the immediately preceding sentence, each Funded LC Issuing Bank
shall repurchase the Funded LC Participation Interests in respect of such reduced Credit
Linked Deposits held by the Funded Letter of Credit Participants with the Credit Linked
Deposits held by such Funded LC Issuing Bank in an amount that corresponds to the portion
of such reduction allocable to such Funded LC Issuing Bank (such repurchase price to be
deposited by such Funded LC Issuing Bank with Administrative Agent) and Administrative
Agent shall repay such amount to the Funded Letter of Credit Participants ratably in
accordance with their Pro Rata Shares of the Total Credit Linked Deposit (as determined
immediately prior to such reduction).

     2.14 Mandatory Prepayments.

          (a) Asset Sales. No later than the tenth Business Day following the date of receipt
by Company or any of its Restricted Subsidiaries of any Net Asset Sale Proceeds (or, in the event
such Net Asset Sale Proceeds are subject to distribution limitations contained in any Project
document or any instrument or agreement governing the terms of any permitted refinancing thereof,
no later than the fifth Business Day after the last of such distribution limitations (as the same
relates to such Net Asset Sale Proceeds) expires), Company shall prepay the Loans as set forth in
Section 2.15(b) in an aggregate amount equal to 100% of such Net Asset Sale Proceeds;
provided, so long as no Default or Event of Default shall have occurred and be continuing
on the date of the related Asset Sale, and Company shall have the option, directly or through one
or more of its Subsidiaries, to invest or commit to invest such Net Asset Sale Proceeds within
three hundred sixty days of receipt thereof in long-term productive assets of the general type used
in the business of Company and its Subsidiaries.

          (b) Insurance/Condemnation Proceeds. No later than the tenth Business Day following
the date of receipt by Company or any of its Restricted Subsidiaries, or Collateral Agent or Administrative Agent as loss payee, of any Net
Insurance/Condemnation Proceeds (or, in the event such Net Insurance/Condemnation Proceeds are
subject to distribution limitations contained in any Project document or any instrument or
agreement governing the terms of any permitted refinancing thereof, no later than the fifth
Business Day after the last of such distribution limitations (as the same relates to such Net
Insurance/Condemnation Proceeds)

69

 

expires), Company shall prepay the Loans as set forth in Section 2.15(b) in an aggregate amount
equal to such Net Insurance/Condemnation Proceeds; provided, so long as no Default or Event
of Default shall have occurred and be continuing on the date of such receipt, Company shall have
the option, directly or through one or more of its Subsidiaries to invest or commit to reinvest
such Net Insurance/Condemnation Proceeds within three hundred sixty days of receipt thereof in long
term productive assets of the general type used in the business of Company and its Subsidiaries,
which investment may include the repair, restoration or replacement of the applicable assets
thereof (or to reimburse Company and its Subsidiaries for costs incurred in respect of such loss).

          (c) Issuance of Debt. No later than the tenth Business Day following the date of
receipt by Company or any of its Restricted Subsidiaries of any Cash proceeds from the incurrence
of any Indebtedness for borrowed money of Company or any of its Restricted Subsidiaries (other than
with respect to any Indebtedness permitted to be incurred pursuant to Section 6.1), Company shall
prepay the Loans as set forth in Section 2.15(b) in an aggregate amount equal to 100% of such
proceeds, net of underwriting discounts and commissions and other reasonable costs and expenses
associated therewith, including reasonable legal fees and expenses; provided, that if any
such commissions, costs or expenses have not been incurred or invoiced at such time, Company may
deduct its good faith estimate thereof to the extent subsequently paid.

          (d) Excess Cash Flow. In the event that there shall be Excess Cash Flow for any
Fiscal Year (commencing with Fiscal Year 2007), Company shall, no later than 120 days after the end
of such Fiscal Year, prepay the Loans as set forth in Section 2.15(b) in an aggregate amount equal
to 50% of such Excess Cash Flow; provided, that (i) during any period in which the Leverage
Ratio (determined for any such period by reference to the most recent Compliance Certificate
delivered pursuant to Section 5.1(c)(i) calculating the Leverage Ratio) shall be 3.50:1.00 or less
but not equal to or less than 2.50:1:00, Company shall only be required to make the prepayments
and/or reductions otherwise required hereby in an amount equal to 25% of such Excess Cash Flow and
(ii) during any period in which the Leverage Ratio (determined for any such period by reference to
the most recent Compliance Certificate delivered pursuant to Section 5.1(c)(i) calculating the
Leverage Ratio) shall be 2.50:1:00 or less, Company shall be required to make the prepayments
and/or reductions otherwise required hereby in an amount equal to 0% of such Excess Cash Flow. In
calculating amounts owing under this clause (d), credit shall be given for any voluntary
prepayments of the Loans (excluding repayments of Revolving Loans or Swing Line Loans except to the
extent the Revolving Commitments are permanently reduced in connection with such repayments).

          (e) Revolving Loans and Swing Loans. Company shall from time to time prepay first,
the Swing Line Loans, and second, the Revolving Loans to the extent necessary so that the Total
Utilization of Revolving Commitments shall not at any time exceed the Revolving Commitments then
in effect.

          (f) Prepayment Certificate. Concurrently with any prepayment of the Loans pursuant to
Sections 2.14(a) through 2.14(e), Company shall deliver to Administrative Agent a certificate of an
Authorized Officer demonstrating the calculation of the amount of the applicable net proceeds or Excess Cash Flow, as the case may be. In the
event that Company shall

70

 

subsequently determine that the actual amount received exceeded the amount set forth in such
certificate, Company shall promptly make an additional prepayment of the Loans in an amount equal
to such excess, and Company shall concurrently therewith deliver to Administrative Agent a
certificate of an Authorized Officer demonstrating the derivation of such excess.

     2.15 Application of Prepayments.

          (a) Application of Voluntary Prepayments by Type of Loans. Any prepayment of any Loan
pursuant to Section 2.13(a) shall be applied as specified by Company in the applicable notice of
prepayment; provided, in the event Company fails to specify the Loans to which any such
prepayment shall be applied, such prepayment shall be applied as follows:

     first, to repay outstanding Swing Line Loans to the full extent thereof, without any
permanent reduction of the Revolving Commitments;

     second, to repay outstanding Revolving Loans to the full extent thereof, without any
permanent reduction of the Revolving Commitments; and

     third, to reduce the Term Loans, New Term Loans and Additional Term Loans on a pro
rata basis.

          Any prepayment of any Term Loan pursuant to Section 2.13(a) shall be further applied to reduce
the next four scheduled Installments of principal on such Term Loan and thereafter on a pro rata
basis to the remaining scheduled Installments of principal on the Term Loans.

          (b) Application of Mandatory Prepayments by Type of Loans. Any amount required to be
paid pursuant to Sections 2.14(a) through 2.14(d) shall be applied as follows:

     first, prepay Term Loans on a pro rata basis (in accordance with the respective
outstanding principal amounts thereof) and shall be further applied to prepay Term Loans on
a pro rata basis to the remaining scheduled Installments of principal of Term Loans;

     second, to prepay the Swing Line Loans to the full extent thereof;

     third, to prepay the Revolving Loans to the full extent thereof;

     fourth, to prepay outstanding reimbursement obligations with respect to Revolving
Letters of Credit; and

     fifth, to cash collateralize Revolving Letters of Credit.

          (c) Application of Prepayments of Loans to Base Rate Loans and Eurodollar Rate Loans.
Considering each Class of Loans being prepaid separately, any prepayment thereof shall be applied first to Base Rate Loans to the full extent thereof before
application to Eurodollar Rate Loans, in each case in a manner which minimizes the amount of any
payments required to be made by Company pursuant to Section 2.18(c).

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     2.16 General Provisions Regarding Payments.

          (a) All payments by Company of principal, interest, fees and other Obligations shall be made
in Dollars in same day funds, without defense, setoff or counterclaim, free of any restriction or
condition, and delivered to Administrative Agent not later than 12:00 p.m. (New York City time) on
the date due at the Principal Office designated by Administrative Agent for the account of Lenders;
for purposes of computing interest and fees, funds received by Administrative Agent after that time
on such due date shall be deemed to have been paid by Company on the next succeeding Business Day.

          (b) All payments in respect of the principal amount of any Loan (other than voluntary
prepayments of Revolving Loans) shall be accompanied by payment of accrued interest on the
principal amount being repaid or prepaid.

          (c) Administrative Agent (or its agent or sub-agent appointed by it) shall promptly distribute
to each Lender at such address as such Lender shall indicate in writing, such Lender’s applicable
Pro Rata Share of all payments and prepayments of principal and interest due hereunder, together
with all other amounts due thereto, including, without limitation, all fees payable with respect
thereto, to the extent received by Administrative Agent.

          (d) Notwithstanding the foregoing provisions hereof, if any Conversion/Continuation Notice is
withdrawn as to any Affected Lender or if any Affected Lender makes Base Rate Loans in lieu of its
Pro Rata Share of any Eurodollar Rate Loans, Administrative Agent shall give effect thereto in
apportioning payments received thereafter.

          (e) Subject to the provisos set forth in the definition of “Interest Period” as they may apply
to Revolving Loans, whenever any payment to be made hereunder with respect to any Loan shall be
stated to be due on a day that is not a Business Day, such payment shall be made on the next
succeeding Business Day and, with respect to Revolving Loans only, such extension of time shall be
included in the computation of the payment of interest hereunder or of the Revolving Commitment
fees hereunder.

          (f) Company hereby authorizes Administrative Agent to charge Company’s accounts with
Administrative Agent in order to cause timely payment to be made to Administrative Agent of all
principal, interest, fees and expenses due hereunder (subject to sufficient funds being available
in its accounts for that purpose).

          (g) Administrative Agent shall deem any payment by or on behalf of Company hereunder that is
not made in same day funds prior to 12:00 p.m. (New York City time) to be a non-conforming payment.
Any such payment shall not be deemed to have been received by Administrative Agent until the later
of (i) the time such funds become available funds, and (ii) the applicable next Business Day.
Administrative Agent shall give prompt telephonic notice to Company and each applicable Lender
(confirmed in writing) if any payment is non-conforming. Any non-conforming payment may constitute or
become a Default or Event of Default in accordance with the terms of Section 8.1(a). Interest
shall continue to accrue on any principal as to which a non-conforming payment is made until such
funds become available funds (but in no event less than the period from the date of such payment to
the next succeeding

72

 

applicable Business Day) at the rate determined pursuant to Section 2.10 from the date such
amount was due and payable until the date such amount is paid in full.

          (h) If an Event of Default shall have occurred and not otherwise been cured or waived, and the
maturity of the Obligations shall have been accelerated pursuant to Section 8.1, all payments or
proceeds received by Agents hereunder in respect of any of the Obligations, shall be applied in
accordance with the application arrangements described in Section 7.2 of the Pledge and Security
Agreement.

     2.17 Ratable Sharing. Lenders hereby agree among themselves that, except as otherwise provided in
the Collateral Documents with respect to amounts realized from the exercise of rights with respect
to Liens on the Collateral, if any of them shall, whether by voluntary payment (other than a
voluntary prepayment of Loans made and applied in accordance with the terms hereof), through the
exercise of any right of set-off or banker’s lien, by counterclaim or cross action or by the
enforcement of any right under the Credit Documents or otherwise, or as adequate protection of a
deposit treated as cash collateral under the Bankruptcy Code, receive payment or reduction of a
proportion of the aggregate amount of principal, interest, amounts payable in respect of Letters of
Credit, fees and other amounts then due and owing to such Lender hereunder or under the other
Credit Documents (collectively, the “Aggregate Amounts Due” to such Lender) which is greater than
the proportion received by any other Lender in respect of the Aggregate Amounts Due to such other
Lender, then the Lender receiving such proportionately greater payment shall (a) notify
Administrative Agent and each other Lender of the receipt of such payment and (b) apply a portion
of such payment to purchase participations (which it shall be deemed to have purchased from each
seller of a participation simultaneously upon the receipt by such seller of its portion of such
payment) in the Aggregate Amounts Due to the other Lenders so that all such recoveries of Aggregate
Amounts Due shall be shared by all Lenders in proportion to the Aggregate Amounts Due to them;
provided, if all or part of such proportionately greater payment received by such
purchasing Lender is thereafter recovered from such Lender upon the bankruptcy or reorganization of
Company or otherwise, those purchases shall be rescinded and the purchase prices paid for such
participations shall be returned to such purchasing Lender ratably to the extent of such recovery,
but without interest. Company expressly consents to the foregoing arrangement and agrees that any
holder of a participation so purchased may exercise any and all rights of banker’s lien, set-off or
counterclaim with respect to any and all monies owing by Company to that holder with respect
thereto as fully as if that holder were owed the amount of the participation held by that holder.

     2.18 Making or Maintaining Eurodollar Rate Loans.

          (a) Inability to Determine Applicable Interest Rate. In the event that Administrative
Agent shall have determined in good faith (which determination shall be final and conclusive and
binding upon all parties hereto), on any Interest Rate Determination Date with respect to any
Eurodollar Rate Loans, that by reason of circumstances affecting the London interbank market adequate and fair means do not exist for
ascertaining the interest rate applicable to such Loans on the basis provided for in the definition
of Adjusted Eurodollar Rate, Administrative Agent shall on such date give notice (by telefacsimile
or by telephone confirmed in writing) to Company and each Lender of such determination, whereupon
(i) no Loans may be

73

 

made as, or converted to, Eurodollar Rate Loans until such time as Administrative Agent notifies
Company and Lenders that the circumstances giving rise to such notice no longer exist, and (ii) any
Funding Notice or Conversion/Continuation Notice given by Company with respect to the Loans in
respect of which such determination was made shall be deemed to be rescinded by Company.

          (b) Illegality or Impracticability of Eurodollar Rate Loans. In the event that on any
date any Lender shall have determined in good faith (which determination shall be final and
conclusive and binding upon all parties hereto but shall be made only after consultation with
Company and Administrative Agent) that the making, maintaining or continuation of its Eurodollar
Rate Loans (i) has become unlawful as a result of compliance by such Lender in good faith with any
law, treaty, governmental rule, regulation, guideline or order (or would conflict with any such
treaty, governmental rule, regulation, guideline or order not having the force of law even though
the failure to comply therewith would not be unlawful), or (ii) has become impracticable, as a
result of contingencies occurring after the Closing Date which materially and adversely affect the
London interbank market or the position of such Lender in that market, then, and in any such event,
such Lender shall be an “Affected Lender” and it shall on that day give notice (by telefacsimile or
by telephone confirmed in writing) to Company and Administrative Agent of such determination (which
notice Administrative Agent shall promptly transmit to each other Lender). Thereafter (1) the
obligation of the Affected Lender to make Loans as, or to convert Loans to, Eurodollar Rate Loans
shall be suspended until such notice shall be withdrawn by the Affected Lender, (2) to the extent
such determination by the Affected Lender relates to a Eurodollar Rate Loan then being requested by
Company pursuant to a Funding Notice or a Conversion/Continuation Notice, the Affected Lender shall
make such Loan as (or continue such Loan as or convert such Loan to, as the case may be) a Base
Rate Loan, (3) the Affected Lender’s obligation to maintain its outstanding Eurodollar Rate Loans
(the “Affected Loans”) shall be terminated at the earlier to occur of the expiration of the
relevant Interest Periods, then in effect with respect to the Affected Loans or when required by
law, and (4) the Affected Loans shall automatically convert into Base Rate Loans on the date of
such termination. Notwithstanding the foregoing, to the extent a determination by an Affected
Lender as described above relates to a Eurodollar Rate Loan then being requested by Company
pursuant to a Funding Notice or a Conversion/Continuation Notice, Company shall have the option,
subject to the provisions of Section 2.18(c), to rescind such Funding Notice or
Conversion/Continuation Notice as to all Lenders by giving notice (by telefacsimile or by telephone
confirmed in writing) to Administrative Agent of such rescission on the date on which the Affected
Lender gives notice of its determination as described above (which notice of rescission
Administrative Agent shall promptly transmit to each other Lender). If Company does not rescind
such Funding Notice or Conversion/Continuation Notice, the Affected Lender’s Pro-Rata Share of such
Loan shall constitute a Base Rate Loan. Except as provided in the immediately preceding sentence,
nothing in this Section 2.18(b) shall affect the obligation of any Lender other than an Affected
Lender to make or maintain Loans as, or to convert Loans to, Eurodollar Rate Loans in accordance
with the terms hereof.

          (c) Compensation for Breakage or Non-Commencement of Interest Periods. Company shall
compensate each Lender and each Funded LC Issuing Bank, upon written request by such Lender or such
Funded LC Issuing Bank, as the case may be (which request shall set forth the basis for requesting
such amounts), for all reasonable losses, expenses and liabilities

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(including (x) the difference between any interest paid by such Lender to lenders of funds borrowed
by it to make or carry its Eurodollar Rate Loans or make its Credit Linked Deposits and the
Adjusted Eurodollar Rate such Lender would receive in connection with the liquidation or
re-employment of such funds and (y) amounts received by such Lender in connection with the
liquidation or re-employment of such funds and any expense or liability incurred in connection
therewith) which such Lender or such Funded LC Issuing Bank may actually sustain: (i) if for any
reason (other than a default by any such Lender or Funded LC Issuing Bank) a borrowing of any
Eurodollar Rate Loan does not occur on a date specified therefor in a Funding Notice or a
telephonic request for borrowing, or a conversion to or continuation of any Eurodollar Rate Loan
does not occur on a date specified therefor in a Conversion/Continuation Notice or a telephonic
request for conversion or continuation; (ii) if any prepayment or other principal payment (other
than a mandatory prepayment under Section 2.14) of, or any conversion of, any of its Eurodollar
Rate Loans occurs on a date prior to the last day of an Interest Period applicable to that Loan;
(iii) if any prepayment of any of its Eurodollar Rate Loans is not made on any date specified in a
notice of prepayment given by Company; (iv) if any Credit Linked Deposit is reduced prior to the
last day of the Interest Period applicable thereto (including as a result of an Event of Default)
or any Credit Linked Deposit is not reduced on the date specified in any notice delivered pursuant
hereto or (v) if any Credit Linked Deposit held by such Funded LC Issuing Bank is reduced in order
to reimburse such Funded LC Issuing Bank pursuant to Sections 2.4(f) or 2.4(h); provided,
Company shall not be obligated to compensate any Lender or Funded LC Issuing Bank for any such
losses, expenses or liabilities attributable to any such circumstance occurring prior to the date
that is 30 days prior to the date on which such Lender or Funded LC Issuing Bank requested such
compensation from Company.

          (d) Booking of Eurodollar Rate Loans. Any Lender may make, carry or transfer
Eurodollar Rate Loans at, to, or for the account of any of its branch offices or the office of an
Affiliate of such Lender.

          (e) Assumptions Concerning Funding of Eurodollar Rate Loans. Calculation of all
amounts payable to a Lender under Section 2.18(c) shall be made as though such Lender had actually
funded each of its relevant Eurodollar Rate Loans through the purchase of a Eurodollar deposit
bearing interest at the rate obtained pursuant to clause (i) of the definition of Adjusted
Eurodollar Rate in an amount equal to the amount of such Eurodollar Rate Loan and having a maturity
comparable to the relevant Interest Period and through the transfer of such Eurodollar deposit from
an offshore office of such Lender to a domestic office of such Lender in the United States of
America; provided, however, each Lender may fund each of its Eurodollar Rate Loans
in any manner it sees fit and the foregoing assumptions shall be utilized only for the purposes of
calculating amounts payable under Section 2.18(c).

     2.19 Increased Costs; Capital Adequacy.

          (a) Compensation For Increased Costs and Taxes. Subject to the provisions of Section
2.20 (which shall be controlling with respect to the matters covered thereby), in the event that
any Lender (which term shall include each Issuing Bank for purposes of this Section 2.19(a)) shall determine (which determination shall, absent manifest
error, be final and conclusive and binding upon all parties hereto) that any law, treaty or
governmental rule, regulation or order, or any change therein or in the interpretation,
administration or application

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thereof (including the introduction of any new law, treaty or governmental rule, regulation or
order), or any determination of a court or governmental authority, in each case that becomes
effective after the Closing Date, or compliance by such Lender with any guideline, request or
directive issued or made after the Closing Date by any central bank or other governmental or
quasi-governmental authority (whether or not having the force of law): (i) subjects such Lender
(or its applicable lending office) to any additional Tax (other than any Tax on the overall net
income of such Lender) with respect to this Agreement or any of the other Credit Documents or any
of its obligations hereunder or thereunder or any payments to such Lender (or its applicable
lending office) of principal, interest, fees or any other amount payable hereunder; (ii) imposes,
modifies or holds applicable any reserve (including any marginal, emergency, supplemental, special
or other reserve), special deposit, compulsory loan, FDIC insurance or similar requirement against
assets held by, or deposits or other liabilities in or for the account of, or advances or loans by,
or other credit extended by, or any other acquisition of funds by, any office of such Lender (other
than any such reserve or other requirements with respect to Eurodollar Rate Loans or Credit Linked
Deposits that are reflected in the definition of Adjusted Eurodollar Rate, or (iii) imposes any
other condition (other than with respect to a Tax matter) on or affecting such Lender (or its
applicable lending office) or its obligations hereunder or the London interbank market; and the
result of any of the foregoing is to increase the cost to such Lender of agreeing to make, making
or maintaining Loans or Credit Linked Deposits hereunder or to reduce any amount received or
receivable by such Lender (or its applicable lending office) with respect thereto; then (A) as
necessary, the Credit Linked Deposits shall be invested so as to earn a return equal to the greater
of the Federal Funds Effective Rate and a rate determined by Administrative Agent in accordance
with banking industry rules in interbank compensation and (B) in any such case, Company shall
promptly pay to such Lender, upon receipt of the statement referred to in the next sentence, such
additional amount or amounts (in the form of an increased rate of, or a different method of
calculating, interest or otherwise as such Lender in its sole discretion shall determine) as may be
necessary to compensate such Lender for any such increased cost or reduction in amounts received or
receivable hereunder; provided, Company shall not be obligated to pay such Lender any
compensation attributable to any period prior to the date that is 180 days prior to the date on
which such Lender gave notice to Company of the circumstances entitling such Lender to
compensation. Such Lender shall deliver to Company (with a copy to Administrative Agent) a written
statement, setting forth in reasonable detail the basis for calculating the additional amounts owed
to such Lender under this Section 2.19(a) and in the calculation thereof, which statement shall be
conclusive and binding upon all parties hereto absent manifest error.

          (b) Capital Adequacy Adjustment. In the event that any
Lender (which term shall include each Issuing Bank for purposes of this
Section 2.19(b)) shall have determined that the adoption, effectiveness,
phase-in or change in applicability after the Closing Date of any law, rule or
regulation (or any provision thereof) regarding capital adequacy, or any
change therein or in the interpretation or administration thereof by any Governmental Authority, central bank or
comparable agency charged with the interpretation or
administration thereof, or compliance by any Lender (or
its applicable lending office) with any guideline, request
or directive 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, or with reference to, such
Lender’s Loans, Revolving Commitments, Letters of Credit
or Credit

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Linked Deposits, or participations therein or other obligations hereunder with respect to the Loans
or the Letters of Credit to a level below that which such Lender or such controlling corporation
could have achieved but for such adoption, effectiveness, phase-in, change in applicability, change
or compliance (taking into consideration the policies of such Lender or such controlling
corporation with regard to capital adequacy), then from time to time, within five Business Days
after receipt by Company from such Lender of the statement referred to in the next sentence,
Company shall pay to such Lender such additional amount or amounts as will compensate such Lender
or such controlling corporation on an after-tax basis for such reduction; provided, Company
shall not be obligated to pay such Lender any compensation attributable to any period prior to the
date that is 180 days prior to the date on which such Lender gave notice to Company of the
circumstances entitling such Lender to compensation. Such Lender shall deliver to Company (with a
copy to Administrative Agent) a written statement, setting forth in reasonable detail the basis for
calculating the additional amounts owed to Lender under this Section 2.19(b) and in the calculation
thereof, which statement shall be conclusive and binding upon all parties hereto absent manifest
error.

     2.20 Taxes; Withholding, etc.

          (a) Payments to Be Free and Clear. All sums payable by any Credit Party hereunder and
under the other Credit Documents shall (except to the extent required by law) be paid free and
clear of, and without any deduction or withholding on account of, any Tax (other than a Tax on the
overall net income of any Agent or any Lender (which term shall include each Issuing Bank for
purposes of this Section 2.20(a)) imposed, levied, collected, withheld or assessed by or within the
United States of America or any political subdivision in or of the United States of America or any
other jurisdiction from or to which a payment is made by or on behalf of any Credit Party.

          (b) Withholding of Taxes. If any Credit Party or any other Person is required by law
to make any deduction or withholding on account of any such Tax from any sum paid or payable by any
Credit Party to Administrative Agent or any Lender (which term shall include each Issuing Bank for
purposes of this Section 2.20(b)) under any of the Credit Documents: (i) Company shall notify
Administrative Agent of any such requirement or any change in any such requirement reasonably
promptly after Company becomes aware of it; (ii) Company shall pay or cause to be paid any such Tax
before the date on which penalties attach thereto; (iii) the sum payable by such Credit Party in
respect of which the relevant deduction, withholding or payment is required shall be increased to
the extent necessary to ensure that, after the making of that deduction, withholding or payment,
Administrative Agent or such Lender, as the case may be, receives on the due date a net sum equal
to what it would have received had no such deduction, withholding or payment been required or made;
and (iv) within thirty days after paying any sum from which it is required by law to make any
deduction or withholding, and within thirty days after the due date of payment of any Tax which it
is required by clause (ii) above to pay, Company shall deliver to Administrative Agent evidence
reasonably satisfactory to the other affected parties of such deduction, withholding or payment and
of the remittance thereof to the relevant taxing or other authority; provided, no such
additional amount shall be required to be paid to any Agent or any Lender under clause (iii) above except to the extent that any change in any applicable
law, treaty or governmental rule, regulation, or order or, or any change in the interpretation,
administration or application thereof, after the Closing Date (in the

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case of any Agent or each Lender listed on the signature pages hereof on the Closing Date) or after
a successor Agent becomes a party under any of the Credit Documents (in the case of a successor
Agent) or after the effective date of the Assignment Agreement pursuant to which such Lender became
a Lender (in the case of each other Lender) in any such requirement for a deduction, withholding or
payment as is mentioned therein shall result in an increase in the rate of such deduction,
withholding or payment from that in effect at the Closing Date or at the date such successor Agent
becomes a party under any of the Credit Documents or at the date of such Assignment Agreement, as
the case may be, in respect of payments to such Agent or such Lender.

          (c) Evidence of Exemption From U.S. Withholding Tax. Each Non-US Agent and each
Non-US Lender shall deliver to Administrative Agent and Company, on or prior to the Closing Date
(in the case of each Agent and Lender (which term shall include each Issuing Bank for purposes of
this Section 2.20(c)) party hereto on the Closing Date) or on or prior to the date a successor
Agent becomes a party under any of the Credit Documents (in the case of a successor Agent) or on or
prior to the date of the Assignment Agreement pursuant to which it becomes a Lender (in the case of
each other Lender), and at such other times as may be necessary in the determination of Company or
Administrative Agent (each in the reasonable exercise of its discretion), (i) two original copies
of Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY (including therewith any withholding
certificates and withholding statements required under applicable Treasury Regulations) (or any
successor forms), properly completed and duly executed by such Agent or Lender, and such other
documentation required under the Internal Revenue Code and the applicable Treasury Regulations and
reasonably requested by Company to establish that such Agent or Lender is not subject to deduction
or withholding or is subject to a reduced rate of deduction or withholding of United States federal
income tax with respect to any payments to such Agent or Lender of principal, interest, fees or
other amounts payable under any of the Credit Documents, or (ii) in the case of a Lender, if such
Lender is not a “bank” or other Person described in Section 881(c)(3) of the Internal Revenue Code
and cannot deliver Internal Revenue Service Form W-8ECI pursuant to clause (i) above, a Certificate
re Non-Bank Status together with two original copies of Internal Revenue Service Form W-8BEN (or
any successor form), properly completed and duly executed by such Lender, and such other
documentation required under the Internal Revenue Code and the applicable Treasury Regulations and
reasonably requested by

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Company to establish that such Lender is not subject to deduction or withholding of United States
federal income tax with respect to any payments to such Lender of interest payable under any of the
Credit Documents. Each Agent and Lender required to deliver any forms, certificates or other
evidence with respect to United States federal income tax withholding matters pursuant to this
Section 2.20(c) hereby agrees, from time to time after the initial delivery by such Agent or Lender
of such forms, certificates or other evidence, whenever a lapse in time or change in circumstances
renders such forms, certificates or other evidence obsolete or inaccurate in any material respect,
that such Agent or Lender shall promptly deliver to Administrative Agent and Company two new
original copies of Internal Revenue Service Form W-8BEN, W-8ECI or W-8IMY (including therewith any
withholding certificates and withholding statements required under applicable Treasury
Regulations), or a Certificate re Non-Bank Status and two original copies of Internal Revenue
Service Form W-8BEN (or any successor form), as the case may be, properly completed and duly
executed by such Agent or Lender, and such other documentation required under the Internal Revenue
Code and the applicable Treasury Regulations and reasonably requested by Company to confirm or
establish that such Agent or Lender is not subject to deduction or withholding of United States
federal income tax with respect to payments to such Agent or Lender under the Credit Documents, or
notify Administrative Agent and Company of its inability to deliver any such forms, certificates or
other evidence. Each Agent and Lender that is organized under the laws of the United States or any
State or political subdivision thereof and that is not an “exempt recipient” (as defined in
Treasury Regulations section 1.6049-4(c)) with respect to which no backup withholding is required
shall, on or prior to the Closing Date (in the case of each Agent and Lender listed on the
signature pages hereof on the Closing Date), or on or prior to the date a successor Agent becomes a
party under any of the Credit Documents (in the case of a successor Agent) or on or prior to the
date of the Assignment Agreement pursuant to which it becomes a Lender (in the case of each other
Lender) provide Administrative Agent and Company with two original copies of Internal Revenue
Service Form W-9 (certifying that such Person is entitled to an exemption from United States backup
withholding tax) or any successor form, and each such Agent or Lender shall thereafter provide
Administrative Agent and Company with such supplements and amendments thereto and such additional
forms, certificates, statements or documents as may from time to time be required by applicable
law. Company shall not be required to pay any additional amount to any Agent or Lender under
Section 2.20(b)(iii) if such Agent or Lender shall have failed (1) to deliver the forms,
certificates or other evidence referred to in this Section 2.20(c), or (2) to notify Administrative
Agent and Company of its inability to deliver any such forms, certificates or other evidence, as
the case may be; provided, if such Agent or Lender shall have satisfied the requirements of
the first sentence or third sentence, as applicable, of this Section 2.20(c) on the Closing Date or
on or prior to the date a successor Agent becomes a party under any of the Credit Documents (in the
case of a successor Agent) or on the date of the Assignment Agreement pursuant to which it became a
Lender, as applicable, nothing in this last sentence of this Section 2.20(c) shall relieve Company
of its obligation to pay any additional amounts pursuant to Section 2.20(b)(iii) in the event that,
as a result of any change in any applicable
law, treaty or governmental rule, regulation or order,
or any change in the interpretation, administration or application thereof, such Agent or Lender
is no longer legally entitled to deliver forms, certificates or other evidence at a subsequent date
establishing the fact that such Agent or Lender is not subject to withholding as described herein.

          (d) If any Lender (which term shall include each Issuing Bank for purposes of this Section
2.20(d)) or Agent shall become aware that it is entitled to receive a refund in respect of Taxes
paid by Company or as to which it has received additional amounts under Section 2.20(b)(iii), it
shall promptly notify Company of the availability of such refund and shall, within ninety days
after receipt of a request by Company, apply for such refund at Company’s expense. If any Lender
or Agent actually receives a refund in respect of any Taxes paid by Company or as to which it has
received additional amounts under Section 2.20(b)(iii), it shall promptly notify Company of such
refund and shall, within ninety days after receipt of a request by Company (or promptly upon
receipt, if Company has requested application for such refund pursuant hereto), repay such refund
to Company (to the extent of amounts that have been paid by Company under Section 2.20(b)(iii) with
respect to such refund plus interest that is received by such Lender or Agent as part of the
refund), net of all reasonable out-of-pocket expenses of such Lender or Agent and without
additional interest thereon; provided, that Company, upon the request of such Lender or
Agent, agrees to return such refund to such Lender or Agent in the event such Lender or Agent is
required to repay such refund. Nothing contained in this Section 2.20(d) shall require

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any Lender or Agent to make available any of its tax returns (or any other information relating to
its taxes that it deems to be confidential).

     2.21 Obligation to Mitigate. Each Lender (which term shall include each Issuing Bank for purposes
of this Section 2.21) agrees that, as promptly as practicable after the officer of such Lender
responsible for administering its Loans or Letters of Credit, as the case may be, becomes aware of
the occurrence of an event or the existence of a condition that would cause such Lender to become
an Affected Lender or that would entitle such Lender to receive payments under Section 2.18, 2.19
or 2.20, it will, to the extent not inconsistent with the internal policies of such Lender and any
applicable legal or regulatory restrictions, use reasonable efforts to (a) make, issue, fund or
maintain its Credit Extensions, including any Affected Loans, through another office of such
Lender, or (b) take such other measures as such Lender may in good faith deem reasonable, if as a
result thereof the circumstances which would cause such Lender to be an Affected Lender would cease
to exist or the additional amounts which would otherwise be required to be paid to such Lender
pursuant to Section 2.18, 2.19 or 2.20 would be materially reduced and if, as determined by such
Lender in its sole discretion, the making, issuing, funding or maintaining of such Revolving
Commitments or Letters of Credit through such other office or in accordance with such other
measures, as the case may be, would not otherwise adversely affect such Revolving Commitments,
Loans or Letters of Credit or the interests of such Lender; provided, such Lender will not
be obligated to utilize such other office pursuant to this Section 2.21 unless Company agrees to
pay all incremental expenses incurred by such Lender as a result of utilizing such other office as
described in clause (i) above. A certificate as to the amount of any such expenses payable by
Company pursuant to this Section 2.21 (setting forth in reasonable detail the basis for requesting
such amount) submitted by such Lender to Company (with a copy to Administrative Agent) shall be
conclusive absent manifest error.

     2.22 Defaulting Lenders. Anything contained herein to the contrary notwithstanding, in the event
that any Lender, other than at the direction or request of any regulatory agency or authority,
defaults (a “Defaulting Lender”) in its obligation to fund (a “Funding Default”) any Revolving Loan
or its portion of any unreimbursed payment under Section 2.3(b)(iv) or 2.4(e) or to fund its Credit
Linked Deposit (in each case, a “Defaulted Loan”), then (a) during any Default Period with respect
to such Defaulting Lender, such Defaulting Lender shall be deemed not to be a “Lender” for purposes
of voting on any matters (including the granting of any consents or waivers) with respect to any of
the Credit Documents; (b) to the extent permitted by applicable law, until such time as the Default
Excess with respect to such Defaulting Lender shall have been reduced to zero, (i) any voluntary
prepayment of the Revolving Loans shall, if Company so directs at the time of making such voluntary
prepayment, be applied to the Revolving Loans of other Lenders as if such Defaulting Lender had no
Revolving Loans outstanding and the Revolving Exposure of such Defaulting Lender were zero, and
(ii) any mandatory prepayment of the Revolving Loans shall, if Company so directs at the time of
making such mandatory prepayment, be applied to the Revolving Loans of other Lenders (but not to the Revolving Loans
of such Defaulting Lender) as if such Defaulting Lender had funded all Defaulted Loans of such
Defaulting Lender, it being understood and agreed that Company shall be entitled to retain any
portion of any mandatory prepayment of the Revolving Loans that is not paid to such Defaulting
Lender solely as a result of the operation of the provisions of this clause (b); (c)(i) such
Defaulting Lender’s Revolving Commitment and outstanding Revolving Loans and such Defaulting
Lender’s Pro Rata Share of the Revolving Letter of Credit Usage

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shall be excluded for purposes of calculating the Revolving Commitment fee payable to Lenders in
respect of any day during any Default Period with respect to such Defaulting Lender, and such
Defaulting Lender shall not be entitled to receive any Revolving Commitment fee pursuant to Section
2.11 with respect to such Defaulting Lender’s Revolving Commitment in respect of any Default Period
with respect to such Defaulting Lender and (ii) such Defaulting Lender shall not be entitled to
receive any Funded Letter of Credit Fees pursuant to Section 2.11 with respect to such Lenders’
Credit Linked Deposit in respect of any Default Period with respect to such Default under; and (d)
the Total Utilization of Revolving Commitments as at any date of determination shall be calculated
as if such Defaulting Lender had funded all Defaulted Loans of such Defaulting Lender. No
Revolving Commitment or Credit Linked Deposit of any Lender shall be increased or otherwise
affected, and, except as otherwise expressly provided in this Section 2.22, performance by Company
of its obligations hereunder and the other Credit Documents shall not be excused or otherwise
modified as a result of any Funding Default or the operation of this Section 2.22. The rights and
remedies against a Defaulting Lender under this Section 2.22 are in addition to other rights and
remedies which Company may have against such Defaulting Lender with respect to any Funding Default
and which Administrative Agent or any Lender may have against such Defaulting Lender with respect
to any Funding Default.

     2.23 Removal or Replacement of a Lender. Anything contained herein to the contrary
notwithstanding, in the event that: (a) (i) any Lender (an “Increased-Cost Lender”) shall give
notice to Company that such Lender is an Affected Lender or that such Lender is entitled to receive
payments under Section 2.18, 2.19 or 2.20, (ii) the circumstances which have caused such Lender to
be an Affected Lender or which entitle such Lender to receive such payments shall remain in effect,
and (iii) such Lender shall fail to withdraw such notice within five Business Days after Company’s
request for such withdrawal; or (b) (i) any Lender shall become a Defaulting Lender (or any Lender
at the direction or request or any regulatory agency or authority shall default in its obligation
to fund, for the purposes of this Section 2.23 only, such Lender also a “Defaulting Lender”), (ii)
the Default Period for such Defaulting Lender shall remain in effect, and (iii) such Defaulting
Lender shall fail to cure the default as a result of which it has become a Defaulting Lender within
five Business Days after Company’s request that it cure such default; or (c) in connection with any
proposed amendment, modification, termination, waiver or consent with respect to any of the
provisions hereof as contemplated by Section 10.5(b), the consent of Requisite Lenders shall have
been obtained, but the consent of one or more of such other Lenders (each a “Non-Consenting
Lender”) whose consent is required shall not have been obtained; then, with respect to each such
Increased-Cost Lender, Defaulting Lender or Non-Consenting Lender (the “Terminated Lender”),
Company may, by giving written notice to Administrative Agent and any Terminated Lender of its
election to do so, elect to cause such Terminated Lender (and such Terminated Lender hereby
irrevocably agrees) to assign all or any part of its outstanding Loans, its Revolving Commitments
and Credit Linked Deposits, if any, in full to one or more Eligible Assignees (each a “Replacement
Lender”) in accordance with the provisions of Section 10.6 and Terminated Lender shall pay any fees
payable thereunder in connection with such assignment; provided, (1) on the date of such assignment, the Replacement Lender shall
pay to Terminated Lender an amount equal to the sum of (A) an amount equal to the principal of, and
all accrued interest on, all outstanding Loans and Credit Linked Deposits of the Terminated Lender,
(B) an amount equal to all unreimbursed drawings that have been funded by such Terminated Lender,
together with all then unpaid interest with respect thereto at such time and (C) an amount equal to
all accrued, but theretofore

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unpaid fees owing to such Terminated Lender pursuant to Section 2.11; (2) on the date of such
assignment, Company shall pay any amounts payable to such Terminated Lender pursuant to Section
2.18(c), 2.19 or 2.20; and (3) in the event such Terminated Lender is a Non-Consenting Lender, each
Replacement Lender shall consent, at the time of such assignment, to each matter in respect of
which such Terminated Lender was a Non-Consenting Lender; provided, Company may not make
such election with respect to any Terminated Lender that is also an Issuing Bank unless, prior to
the effectiveness of such election, Company shall have caused each outstanding Letter of Credit
issued thereby to be cancelled, fully cash collateralized or supported by a “back-to-back” Letter
of Credit reasonably satisfactory to such Terminated Lender. In connection with any such
replacement, if the replaced Lender does not execute and deliver to the Administrative Agent a duly
completed Assignment and Acceptance reflecting such replacement within a period of time deemed
reasonable by the Administrative Agent, then such replaced Lender shall be deemed to have executed
and delivered such Assignment and Acceptance. Upon the prepayment of all amounts owing to any
Terminated Lender and the termination of such Terminated Lender’s Revolving Commitments and Credit
Linked Deposits, if any, such Terminated Lender shall no longer constitute a “Lender” for purposes
hereof; provided, any rights of such Terminated Lender to indemnification hereunder shall
survive as to such Terminated Lender.

     2.24 Incremental Facilities. (a) Company may by written notice to Administrative Agent elect to
request (A) prior to the Revolving Commitment Termination Date, an increase to the existing
Revolving Commitments (such increase, the “Additional Revolving Commitments”) and/or (B) prior to
the Term Loan Maturity Date the establishment of one or more new term loan commitments (the
“Additional Term Loan Commitments”), in an amount, with respect to clauses (A) and (B)
collectively, not in excess of $400,000,000 in the aggregate and not less than $10,000,000
individually (or such lesser amount which shall be approved by Administrative Agent or such lesser
amount that shall constitute the difference between $400,000,000 and all such Additional Term Loan
Commitments and Additional Revolving Commitments obtained prior to such date), and integral
multiples of $10,000,000 in excess of that amount and/or (C) prior to the Funded Letter of Credit
Termination Date, the establishment of one or more new funded letter of credit commitments (the
“Additional Funded Letter of Credit Commitments” and the Letters of Credit issued thereunder, the
“Additional Funded Letters of Credit”) in an amount in the aggregate not in excess of $400,000,000
less the then aggregate amount of Funded Letter of Credit Commitments and not less than
$10,000,000 individually (or such lesser amount which shall be approved by Administrative Agent),
and integral multiples of $10,000,000 in excess of that amount. Each such notice shall specify (A)
the date (each, an “Increased Amount Date”) on which Company proposes that the Additional Term Loan
Commitments, Additional Revolving Commitments or Additional Funded Letter of Credit Commitments, as
applicable, shall be effective, which shall be a date not less than 10 Business Days after the date
on which such notice is delivered to Administrative Agent and (B) the identity of each Lender or
other Person that is an Eligible Assignee (each, an “Additional Term Loan Lender”, “Additional
Revolving Lender” or “Additional Funded Letter of Credit Participant”, as applicable) to whom
Company proposes any portion of such Additional Term Loan Commitments, Additional Revolving
Commitments or Additional Funded Letter of Credit Commitments, as applicable, be allocated and the
amounts of such allocations and, with respect to any Additional Funded Letter of Credit
Commitments, the identity of the Funded LC Issuing Bank; provided that any Lender
approached to provide all or a portion of the Additional Term Loan Commitments, Additional
Revolving Commitments or Additional Funded Letter of

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Credit Commitments, as applicable, or the
Funded LC Issuing Bank may elect or decline, in its sole discretion, to provide such commitment.
Such Additional Term Loan Commitments, Additional Revolving Commitments or Additional Funded Letter
of Credit Commitments shall become effective, as of such Increased Amount Date; provided
that (1) no Default or Event of Default shall exist on such Increased Amount Date before or after
giving effect to such Additional Term Loan Commitments, Additional Revolving Commitments Additional
Funded Letter of Credit Commitments, as applicable; (2) both before and after giving effect to the making of
any Additional Revolving Loan, Series of Additional Term Loans or Series of Additional Credit
Linked Deposits, each of the conditions set forth in Section 3.2 shall be satisfied; (3) with
respect to any request for Additional Funded Letter of Credit Commitments, Company and its
Restricted Subsidiaries shall be in compliance with each of the covenants set forth in Section 6.7
as of the last day of the most recently ended Fiscal Quarter (after giving effect to all Additional
Term Loan Commitments, Additional Revolving Commitments and Additional Funded Letters of Credit
Commitments requested at such time); (4) with respect to any request for Additional Term Loan
Commitments or Additional Revolving Commitments, as applicable, (A) the Leverage Ratio as of the
last day of the most recently ended Fiscal Quarter (after giving effect to all Additional Term Loan
Commitments, Additional Revolving Commitments and Additional Funded Letters of Credit Commitments
requested at such time) shall not exceed the Reduced Leverage Ratio Amount applicable as of such
day, and (B) Company and its Restricted Subsidiaries shall be in compliance with the covenants set
forth in Section 6.7 as of the last day of the most recently ended Fiscal Quarter (after giving
effect to all Additional Term Loan Commitments, Additional Revolving Commitments and Additional
Funded Letters of Credit Commitments requested at such time); (5) the Additional Term Loan
Commitments, Additional Revolving Commitments or Additional Funded Letter of Credit Commitments, as
applicable, shall be effected pursuant to one or more Joinder Agreements executed and delivered by
the relevant Additional Term Loan Lender, Additional Revolving Lender and/or Additional Funded
Letter of Credit Participant, each Credit Party and Administrative Agent, and each of which shall
be recorded in the Register and shall be subject to the requirements set forth in Section 2.20(c);
(6) Company shall make any payments required pursuant to Section 2.18(c) in connection with the
Additional Term Loan Commitments, Additional Revolving Commitments or Additional Funded Letter of
Credit Commitments, as applicable; and (7) Company shall deliver or cause to be delivered any legal
opinions or other documents reasonably requested by Administrative Agent in connection with any
such transaction. Any Additional Term Loans or Additional Credit Linked Deposits made on an
Increased Amount Date shall be designated a separate series (a “Series”) of Additional Term Loans
or Additional Credit Linked Deposits, as the case may be, for all purposes of this Agreement.

          (b) On any Increased Amount Date on which any Additional Term Loan Commitments of any Series
are effective, subject to the satisfaction of the foregoing terms and conditions, (i) each
Additional Term Loan Lender of any Series shall make a Loan to Company (an “Additional Term Loan”)
in an amount equal to its Additional Term Loan Commitment of such Series, and (ii) each Additional
Term Loan Lender of any Series shall become a Lender hereunder with respect to the Additional Term
Loan Commitment of such Series and the Additional Term Loans of such Series made pursuant thereto.

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          (c) On any Increased Amount Date on which Additional Revolving Commitments are effected,
subject to the satisfaction of the foregoing terms and conditions, each of the Revolving Lenders
shall assign to each of the Additional Revolving Lenders, and each of the Additional Revolving
Lenders shall purchase from each of the Revolving Lenders, at the principal amount thereof
(together with accrued interest), such interests in the Revolving Loans outstanding on such
Increased Amount Date as shall be necessary in order that, after giving effect to all such
assignments and purchases, such Revolving Loans will be held by the existing Revolving Lenders and
Additional Revolving Lenders ratably in accordance with their Revolving Commitments after giving
effect to the addition of such Additional Revolving Commitments to the Revolving Commitments, (ii)
each Additional Revolving Commitment shall be deemed for all purposes a Revolving Commitment and
each Loan made thereunder (an “Additional Revolving Loan”) shall be deemed, for all purposes, a
Revolving Loan and (iii) each Additional Revolving Lender shall become a Lender with respect to the
Additional Revolving Commitment and all matters relating thereto.

          (d) On any Increased Amount Date on which any Additional Funded Letter of Credit Commitments
of any Series are effective, subject to the satisfaction of the foregoing terms and conditions, (i)
each Additional Funded Letter of Credit Participant of any Series shall make a Credit Linked
Deposit to the Administrative Agent (an “Additional Credit Linked Deposit”) in an amount equal to
its Additional Funded Letter of Credit Commitment of such Series, and (ii) each Additional Funded
Letter of Credit Participant of any Series shall become a Lender and a Funded Letter of Credit
Participant hereunder with respect to the Additional Funded Letter of Credit Commitment of such
Series and the Additional Credit Linked Deposits of such Series made pursuant thereto.

          (e) Administrative Agent shall notify Lenders promptly upon receipt of Company’s notice of
each Increased Amount Date and in respect thereof (i) the Additional Revolving Commitments and
Additional Revolving Lenders, the Series of Additional Term Loan Commitments and the Additional
Term Loan Lenders of such Series or the Series of Additional Funded Letter of Credit Commitments
and the Additional Funded Letter of Credit Participants of such Series, as applicable, and (ii) in
the case of each notice to any Revolving Lender, the respective interests in such Revolving
Lender’s Revolving Loans, in each case subject to the assignments contemplated by this Section
2.24.

          (f) The terms and provisions of the Additional Term Loans and Additional Term Loan
Commitments of any Series shall be, except as otherwise set forth herein or in the Joinder
Agreement, identical to the Term Loans and Term Loan Commitments. The terms and provisions of the
Additional Revolving Loans shall be identical to the Revolving Loans. The terms and provisions of
the Additional Credit Linked Deposits, Additional Funded Letters of Credit and Additional Funded
Letter of Credit Commitments of any Series shall be, except as otherwise set forth herein or in the
Joinder Agreement, identical to the then existing Credit Linked Deposits, Funded Letters of Credit
and Funded Letter of Credit Commitments. In any event (i) the Weighted Average Life to Maturity of
all Additional Term Loans of any Series shall be no shorter than the Weighted Average Life to Maturity of Term Loans, (ii) the applicable Additional Term
Loan Maturity Date of each Series shall be no shorter than the final maturity date of the Term
Loans, (iii) the rate of interest applicable to the Additional Term Loans of each Series shall be
determined by Company and the applicable new Lenders and shall be set forth in

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each applicable Joinder Agreement and (iv) the final maturity date of any Additional Credit
Linked Deposits and Additional Funded Letter of Credit Commitments of any Series shall be no
earlier than the final maturity of the existing Credit Linked Deposits outstanding on the Increased
Amount Date with respect to such Additional Credit Linked Deposits. Each Joinder Agreement may,
without consent of any other Lenders, effect such amendments to this Agreement and the other Credit
Documents as may be necessary or appropriate, in the opinion of the Administrative Agent, to effect
the provision of this Section 2.24.

SECTION 3. CONDITIONS PRECEDENT

     3.1 Closing Date. The obligation of any Lender to make a Credit Extension on the Closing Date is
subject to the satisfaction, or waiver in accordance with Section 10.5, of the following conditions
on or before the Closing Date:

          (a) Credit Documents. Administrative Agent shall have received sufficient copies of
each Credit Document originally executed and delivered by Holding, Company and each of its
Subsidiaries, as applicable, for each Lender.

          (b) Organizational Documents; Incumbency. Administrative Agent shall have received
(i) sufficient copies of each Organizational Document of Holding, Company and each Guarantor
Subsidiary, as applicable, and, to the extent applicable, certified as of a recent date by the
appropriate governmental official, for each Lender, each dated the Closing Date or a recent date
prior thereto; (ii) signature and incumbency certificates of the officers of such Person executing
the Credit Documents to which it is a party; (iii) resolutions of the board of directors or similar
governing body of Holding, Company and each Guarantor Subsidiary approving and authorizing the
execution, delivery and performance of this Agreement and the other Credit Documents to which it is
a party or by which it or its assets may be bound as of the Closing Date, certified as of the
Closing Date by its secretary or an assistant secretary as being in full force and effect without
modification or amendment; and (iv) a good standing certificate from the applicable Governmental
Authority (A) of the jurisdiction of incorporation, organization or formation of Holding, Company
and each Guarantor Subsidiary, (B), with respect to Company, of each jurisdiction in which it is
qualified as a foreign corporation or other entity to do business and (C), with respect to Holding
and each Guarantor Subsidiary, of each jurisdiction in which each such entity has its principal
assets, each dated a recent date prior to the Closing Date.

          (c) Organizational and Capital Structure. The organizational structure and capital
structure of Holding, Company and its Restricted Subsidiaries, both before and after giving effect
to the Transactions, shall be as set forth on Schedule 4.2.

          (d) Consummation of Transactions.

     (i) Holding shall have received at least $450,000,000 in gross proceeds from the
Related Transactions.

     (ii) Company shall have delivered to the
Administrative Agent a complete and correct copy of the Tender Offer
and Consent Solicitation Statement. The Administrative Agent shall
have received evidence, in form and substance reasonably satisfactory
to it, that the following matters have been satisfied as of the
Closing Date:

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(A) Holding shall have initiated a tender offer and consent
solicitation with respect to the ARC Notes and MSW Notes (the “Tender
Offer and Consent Solicitation”), pursuant to which (1) Holding shall
have offered, subject to the terms and conditions contained in the Tender
Offer and Consent Solicitation Statement, to purchase all of the
Outstanding ARC Notes and Outstanding MSW Notes and (2) consents shall
have been solicited to the proposed amendments to the ARC Indenture and
MSW Indentures (the “Existing Indentures Amendments”) on terms and
conditions set forth in the Tender Offer and Consent Solicitation
Statement, (B) Holding shall have received sufficient consents to
authorize the execution and delivery of the Existing Indentures
Amendments, and (C) the relevant Restricted Subsidiaries and the relevant
trustees under the ARC Indenture and the MSW Indentures shall have duly
executed and delivered the Existing Indentures Amendments and the same
shall have become effective in accordance with its terms and the terms of
the ARC Indenture and the MSW Indentures.

     (iii) There shall not exist, after giving effect to the Transactions, any default or
potential event of default under (A) any Credit Document or (B) (except to the extent
expressly described as Schedule 3.1(d)) any material Indebtedness of Holding and its
Subsidiaries.

          (e) Existing Indebtedness. On the Closing Date, Company and its Restricted
Subsidiaries shall have (i) repaid in full all Existing Indebtedness other than any Outstanding ARC
Notes and Outstanding MSW Notes, (ii) terminated any commitments to lend or make other extensions
of credit under Existing Indebtedness, (iii) delivered to Administrative Agent all documents or
instruments necessary to release all Liens securing Existing Indebtedness referred to in items (i)
and (ii) of such definition or other obligations of Company and its Restricted Subsidiaries
thereunder being repaid on the Closing Date or otherwise made arrangements reasonably satisfactory
to Administrative Agent with respect thereto, and (iv) made arrangements reasonably satisfactory to
Administrative Agent with respect to the cancellation of any letters of credit outstanding
thereunder or the deemed issuance of such letters of credit as Funded Letters of Credit under
Section 2.4(l) or the issuance of Letters of Credit to support the obligations of Company and its
Subsidiaries with respect thereto.

          (f) Transaction Costs. On or prior to the Closing Date, Company shall have delivered
to Administrative Agent Company’s estimate of the Transactions Costs.

          (g) [Intentionally omitted.]

          (h) Personal Property Collateral. In order to create in favor of Collateral Agent,
for the benefit of Secured Parties, a valid, perfected First Priority security interest in the
personal property Collateral, Collateral Agent shall, except to the extent required to be delivered
after the Closing Date pursuant to Section 5.13, have received:

     (i) evidence satisfactory to Collateral Agent of the compliance by Holding with the
Holding Pledge Agreement and by Company or each Guarantor Subsidiary of their obligations
under the Pledge and Security Agreement and the other Collateral Documents (including,
without limitation, their obligations to execute and/or deliver UCC financing statements,
originals of securities, instruments and chattel paper);

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     (ii) (A) the results of a recent search, by a Person reasonably satisfactory to
Collateral Agent, of the UCC filing offices in the jurisdictions specified by Company,
together with copies of all such filings disclosed by such search, and (B) UCC termination
statements (or similar documents) duly authorized by all applicable Persons for filing in
all applicable jurisdictions as may be necessary to terminate any effective UCC financing
statements (or equivalent filings) disclosed in such search (other than any such financing
statements in respect of Permitted Liens);

     (iii) opinions of counsel (which counsel shall be reasonably satisfactory to
Collateral Agent) with respect to the creation and perfection of the security interests in
favor of Collateral Agent in such Collateral and such other matters governed by the laws of
each jurisdiction in which Company or any Guarantor Subsidiary is located as Collateral
Agent may reasonably request, in each case in form and substance reasonably satisfactory to
Collateral Agent; and

     (iv) evidence that Company or each Guarantor Subsidiary shall have taken or caused to
be taken any other action, executed and delivered or caused to be executed and delivered
any other agreement, document and instrument (including without limitation, any
intercompany notes evidencing Indebtedness permitted to be incurred pursuant to Section
6.1(b) including, without limitation, the Intercompany Master Note) and made or caused to
be made any other filing and recording (other than as set forth herein) reasonably required
by Collateral Agent to create or perfect a First Priority Lien on the personal property
Collateral, in each case except for matters contemplated in Section 5.13.

          (i) Environmental Reports. Upon request, Administrative Agent shall have received
reports and other information, in form and substance satisfactory to Administrative Agent,
regarding environmental matters relating to the Facilities.

          (j) Financial Statements; Projections. Administrative Agent shall have received from
Holding and Company (i) the Historical Financial Statements, (ii) pro forma consolidated balance
sheets of Holding and Company as at September 30, 2006, and reflecting the consummation of the
Transactions which pro forma financial statements shall be in form and substance reasonably
satisfactory to Administrative Agent, and (iii) the Projections.

          (k) Evidence of Insurance. Collateral Agent shall have received a certificate from
Company’s insurance broker or other evidence reasonably satisfactory to it that all insurance
required to be maintained pursuant to Section 5.5 is in full force and effect, together with
endorsements naming the Collateral Agent, for the benefit of Lenders, as additional insured and
loss payee thereunder to the extent required under Section 5.5.

          (l) Opinions of Counsel to Credit Parties. Lenders and their respective counsel shall
have received originally executed copies of the favorable written opinions of (i) Latham & Watkins LLP, counsel for Credit Parties, (ii) Timothy Simpson as
general counsel to Company, and (iii) LeBoeuf, Lamb, Greene & MacRae LLP, special regulatory
counsel for Credit Parties, in the form of Exhibits D-1, D-2 and D-3, respectively, dated as of the
Closing

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Date and otherwise in form and substance reasonably satisfactory to Administrative Agent (and each
Credit Party hereby instructs such counsel to deliver such opinions to Agents and Lenders).

          (m) Fees. Company shall have paid to the Lead Arrangers, Administrative Agent and
Syndication Agents, the fees payable on the Closing Date referred to in Section 2.11(f).

          (n) Solvency Certificate. On the Closing Date, Administrative Agent shall have
received a Solvency Certificate from Holding dated the Closing Date and addressed to Administrative
Agent and Lenders, and in the form of Exhibit G-2 hereto demonstrating that after giving effect to
the Refinancing, and the borrowings under this Agreement, Holding and its Subsidiaries on a
consolidated basis are Solvent.

          (o) Closing Date Certificate. Holding and Company shall have delivered to
Administrative Agent an originally executed Closing Date Certificate, together with all attachments
thereto.

          (p) Credit Rating. The credit facilities provided for under this Agreement shall have
been assigned a credit rating by each of S&P and Moody’s.

          (q) Closing Date. Lenders shall have made the Term Loans to Company.

          (r) No Litigation. There shall not exist any action, suit, investigation, litigation
or proceeding or other legal or regulatory developments, pending or threatened in any court or
before any arbitrator or Governmental Authority, singly or in the aggregate, that seeks to prohibit
the Transactions, the financing thereof or any of the other transactions contemplated by the Credit
Documents or that has had or could reasonably be expected to have a Material Adverse Effect.

          (s) Completion of Proceedings. All partnership, corporate and other similar
proceedings taken or to be taken in connection with the transactions contemplated hereby and all
documents incidental thereto shall be reasonably satisfactory in form and substance to
Administrative Agent, and Administrative Agent shall have received all such counterpart originals
or certified copies of such documents as Administrative Agent may reasonably request.

          (t) Pledged Stock; Stock Powers; Acknowledgment and Consent; Pledged Notes. Except
with respect to matters contemplated in Section 5.13, the Collateral Agent shall have received (i)
the certificates representing the shares of Capital Stock pledged pursuant to the Pledge and
Security Agreement and Holding Pledge Agreement, together with an undated stock power for each such
certificate executed in blank by a duly authorized officer of the pledgor thereof, and (ii) each
promissory note pledged pursuant to the Pledge and Security Agreement endorsed (without recourse)
in blank (or accompanied by an executed transfer form in blank satisfactory to the Collateral
Agent) by the pledgor thereof.

Each Lender, by delivering its signature page to this Agreement and funding a Loan or funding a
Credit Linked Deposit on the Closing Date, shall be deemed to have acknowledged receipt of, and
consented to and approved, each Credit Document and each other document required to be approved by
any Agent, Requisite Lenders or Lenders, as applicable on the Closing Date.

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     3.2 Conditions to Each Credit Extension.

          (a) Conditions Precedent. The obligation of each Lender to make any Loan on any
Credit Date or fund its Credit Linked Deposit on the Closing Date, or any Issuing Bank to issue any
Letter of Credit, on any Credit Date, including the Closing Date, are subject to the satisfaction,
or waiver in accordance with Section 10.5, of the following conditions precedent:

     (i) Administrative Agent shall have received a fully executed and delivered Funding
Notice or Issuance Notice, as the case may be;

     (ii) after making the Credit Extensions requested on such Credit Date, the Total
Utilization of Revolving Commitments shall not exceed the Revolving Commitments then in
effect;

     (iii) as of such Credit Date, the representations and warranties contained herein and
in the other Credit Documents shall be true and correct in all material respects on and as
of that Credit Date to the same extent as though made on and as of that date, except to the
extent such representations and warranties specifically relate to an earlier date, in which
case such representations and warranties shall have been true and correct in all material
respects on and as of such earlier date;

     (iv) as of such Credit Date, no event shall have occurred and be continuing or would
result from the consummation of the applicable Credit Extension that would constitute an
Event of Default or a Default; and

     (v) on or before the date of issuance of any Letter of Credit, Administrative Agent
shall have received all other information required by the applicable Issuance Notice, and
such other documents or information as the Issuing Bank may reasonably require in
connection with the issuance of such Letter of Credit.

          (b) Notices. Any Notice shall be executed by an Authorized Officer in a writing
delivered to Administrative Agent. In lieu of delivering a Notice, Company may give Administrative
Agent telephonic notice by the required time of any proposed borrowing, conversion/continuation or
issuance of a Letter of Credit, as the case may be; provided each such notice shall be
promptly confirmed in writing by delivery of the applicable Notice to Administrative Agent on or
before the applicable date of borrowing, continuation/conversion or issuance. Neither
Administrative Agent nor any Lender shall incur any liability to Company in acting upon any
telephonic notice referred to above that Administrative Agent believes in good faith to have been
given by a duly authorized officer or other person authorized on behalf of Company or for otherwise
acting in good faith.

SECTION 4. REPRESENTATIONS AND WARRANTIES

     In order to induce Lenders and Issuing Banks to enter into this Agreement and to make each
Credit Extension to be made thereby, Company represents and warrants to each Lender and each
Issuing Bank, on the Closing Date and on each Credit Date, that the following statements are true
and correct (it being understood and agreed that the representations and warranties made

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on the Closing Date are deemed to be made concurrently with the consummation of the
Transactions contemplated hereby):

     4.1 Organization; Requisite Power and Authority; Qualification. Each of Holding, Company and its
Restricted Subsidiaries (a) is duly organized, validly existing and in good standing under the laws
of its jurisdiction of organization as identified in Schedule 4.1, (b) has all requisite power and
authority to own and operate its properties, to carry on its business as now conducted and as
proposed to be conducted, to enter into the Credit Documents, if any, to which it is a party and to
carry out the transactions contemplated thereby, and (c) is qualified to do business and in good
standing in every jurisdiction where its assets are located and wherever necessary to carry out its
business and operations, except in jurisdictions where the failure to be so qualified or in good
standing has not had, and could not be reasonably expected to have, a Material Adverse Effect.

     4.2 Subsidiaries; Capital Stock and Ownership. The Subsidiaries listed on Schedule 4.2 constitute
all the Subsidiaries of Company at the date hereof. Schedule 4.2 sets forth as of the Closing Date
the name and jurisdiction of incorporation of each Subsidiary and, as to each Subsidiary, the
percentage of each class of Capital Stock owned by each Credit Party. The Capital Stock of each of
Company and its Subsidiaries the shares of which are pledged under the Pledge and Security
Agreement has been duly authorized and validly issued and is fully paid and non-assessable. Except
as set forth on Schedule 4.2, as of the date hereof, there is no existing option, warrant, call,
right, commitment or other agreement to which, Company or any of its Restricted Subsidiaries is a
party requiring, and there is no membership interest or other Capital Stock of Company or any of
its Restricted Subsidiaries outstanding which upon conversion or exchange would require, the
issuance by Company or any of its Restricted Subsidiaries of any additional membership interests or
other Capital Stock of Company or any of its Restricted Subsidiaries or other Securities
convertible into, exchangeable for or evidencing the right to subscribe for or purchase, a
membership interest or other Capital Stock of Company or any of its Restricted Subsidiaries.
Schedule 4.2 correctly sets forth the ownership interest of Holding, Company and each of its
Restricted Subsidiaries in their respective Subsidiaries as of the Closing Date. Each Domestic
Subsidiary of Company which is not identified on Schedule 1.1(b)-1, Schedule 1.1(b)-2 or Schedule
4.26 is a Guarantor as of the Closing Date.

     4.3 Due Authorization. The execution, delivery and performance of the Credit Documents have been
duly authorized by all necessary action on the part of each Credit Party that is a party thereto.

     4.4 No Conflict. The execution, delivery and performance by Credit Parties of the Credit Documents to which
they are parties and the consummation of the transactions contemplated by the Credit Documents do
not and will not (a) violate any provision of any law or any governmental rule or regulation
applicable to Holding, Company or any of its Restricted Subsidiaries, any of the Organizational
Documents of Holding, Company or any of its Restricted Subsidiaries, or any order, judgment (other
than de minimis judgments) or decree of any court or other agency of government binding on Holding,
Company or any of its Restricted Subsidiaries; (b) conflict with, result in a breach of or
constitute (with due notice or lapse of time or both) a default under any Contractual Obligation of
Holding, Company or any of its Restricted Subsidiaries; (c) result in or require the creation or
imposition of any Lien upon any of the

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properties or assets of Holding, Company or any of its Restricted Subsidiaries (other than any
Liens created under any of the Credit Documents in favor of Collateral Agent, on behalf of Secured
Parties); or (d) require any material approval of stockholders, members or partners or any approval
or material consent of any Person under any material Contractual Obligation of Holding, Company or
any of its Restricted Subsidiaries, except for such approvals or consents which will be obtained on
or before the Closing Date and disclosed to Administrative Agent.

     4.5 Governmental Consents. Each of Holding, Company and its Restricted Subsidiaries is in
compliance with (a) and has obtained each Governmental Authorization applicable to it in respect of
this Agreement and the other Credit Documents, the conduct of its business and the ownership of its
property, each of which (i) is in full force and effect, (ii) is sufficient for its purpose without
any material restraint or adverse condition and (iii) is not subject to any waiting period, further
action on the part of any Governmental Authority or other Person, or stay or injunction, (b) all
applicable laws relating to its business and (c) each indenture, agreement or other instrument to
which it is a party or by which it or any of its property is or may be bound that is material to
the conduct of its business, except in each such case for noncompliances which, and Governmental
Authorizations the failure to possess which, individually or in the aggregate, could not reasonably
be expected to have a Material Adverse Effect.

     4.6 Binding Obligation. Each Credit Document has been duly executed and delivered by each Credit
Party that is a party thereto and is the legally valid and binding obligation of such Credit Party,
enforceable against such Credit Party in accordance with its respective terms, except as may be
limited by bankruptcy, insolvency, reorganization, moratorium or similar laws relating to or
limiting creditors’ rights generally or by equitable principles (whether enforcement is sought in
equity or at law).

     4.7 Historical Financial Statements. The Historical Financial Statements were prepared in
conformity with GAAP and fairly present, in all material respects, the financial position, on a
consolidated basis, of the Persons described in such financial statements as at the respective
dates thereof and the results of operations and cash flows, on a consolidated basis, of the
entities described therein for each of the periods then ended, subject, in the case of any such
unaudited financial statements, to changes resulting from audit and normal year-end adjustments and
the absence of foot notes. As of the Closing Date, none of Holding, Company or any of Company’s
Subsidiaries has any contingent liability or liability for taxes, long-term lease or unusual
forward or long-term commitment that is not reflected in the Historical Financial Statements or the
notes thereto and which in any such case is material in relation to the business, operations,
assets, liabilities or financial condition of Holding, Company and its Subsidiaries taken as a
whole.

     4.8 Projections. On and as of the Closing Date, the projections of Company and its Restricted
Subsidiaries for the period Fiscal Year 2007 through and including Fiscal Year 2014 (the
“Projections”) are based on good faith estimates and assumptions made by the management of Company
believed by management to have been reasonable at the time made; provided, the Projections
are not to be viewed as facts and that actual results during the period or periods covered by the
Projections may differ from such Projections and that the differences may be material.

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     4.9 No Material Adverse Change. Since December 31, 2005, no event, circumstance or change has
occurred that has caused a Material Adverse Effect.

     4.10 Adverse Proceedings, etc. There are no Adverse Proceedings, individually or in the aggregate,
that could reasonably be expected to have a Material Adverse Effect. Neither Company nor any of
its Restricted Subsidiaries (a) is in violation of any applicable laws (including Environmental
Laws) that, individually or in the aggregate, could reasonably be expected to have a Material
Adverse Effect, or (b) is subject to or in default with respect to any final judgments, writs,
injunctions, decrees, rules or regulations of any court or any federal, state, municipal or other
governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign,
that, individually or in the aggregate, could reasonably be expected to have a Material Adverse
Effect.

     4.11 Payment of Taxes. Except as otherwise permitted under Section 5.3, all income and other
material tax returns and reports of Holding and its Restricted Subsidiaries required to be filed by
any of them have been timely filed, and all taxes shown on such tax returns to be due and payable
and all material assessments, fees and other governmental charges upon Holding and its Restricted
Subsidiaries and upon their respective properties, assets, income, businesses and franchises which
are due and payable have been paid when due and payable. Holding knows of no material tax
assessment that has been proposed in writing against Holding or any of its Restricted Subsidiaries
as of the Closing Date which is not being actively contested by Holding or such Subsidiary in good
faith and by appropriate proceedings; provided, such reserves or other appropriate
provisions, if any, as shall be required in conformity with GAAP shall have been made or provided
therefor.

     4.12 Properties

          (a) Title. Each of Company and its Restricted Subsidiaries has (i) good, sufficient
and legal title to (in the case of fee interests in real property), (ii) valid leasehold interests
in (in the case of leased personal property), and (iii) good title to or rights in (in the case of
all other personal property), all of their respective properties and assets reflected in their
respective Historical Financial Statements referred to in Section 4.7 and in the most recent
financial statements delivered pursuant to Section 5.1, in each case except for assets disposed of
since the date of such financial statements in the ordinary course of business or as otherwise
permitted under Section 6.8. Except as permitted by this Agreement, all such properties and assets
are free and clear of Liens.

          (b) Real Estate. As of the Closing Date, Schedule 4.12 contains a true, accurate and
complete list of (i) all Real Estate Assets, and (ii) all leases, subleases or assignments of
leases (together with all amendments, modifications, supplements, renewals or extensions of any
thereof) affecting each Real Estate Asset of Company or any of its Guarantor Subsidiaries,
regardless of whether Company or such Guarantor Subsidiary is the landlord or tenant (whether directly or as an assignee or successor in
interest) under such lease, sublease or assignment.

     4.13 Environmental Matters. Neither Company nor any of its Restricted Subsidiaries nor any of
their respective Facilities or operations are subject to any outstanding written order,

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consent decree or settlement agreement with any Person relating to any Environmental Law, any
Environmental Claim, or any Release or threatened Release of Hazardous Materials that, individually
or in the aggregate, could reasonably be expected to have a Material Adverse Effect. Neither
Company nor any of its Restricted Subsidiaries has received any letter or request for information
under Section 104 of the Comprehensive Environmental Response, Compensation, and Liability Act (42
U.S.C. § 9604) or any comparable state law, except, with respect to matters that either have been
fully resolved or matters that individually or in the aggregate could not reasonably be expected to
have a Material Adverse Effect. To Company’s and its Restricted Subsidiaries’ knowledge, there are
and have been, no conditions or occurrences, including any Release, threatened Release, use,
generation, storage, treatment, transportation, processing, disposal, removal or remediation of
Hazardous Materials, which could reasonably be expected to form the basis of an Environmental Claim
against Company or any of its Restricted Subsidiaries that, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect. Neither Holding nor any Restricted
Subsidiary has been issued or required to obtain a permit for the treatment, storage or disposal of
hazardous waste for any of its currently owned or operated Facilities, pursuant to the federal
Resource Conservation and Recovery Act, 42 U.S.C. § 6901, et. seq. and its implementing regulations
(“RCRA”), or any equivalent State law, nor are any such Facilities regulated as “interim status”
facilities required to undergo corrective action pursuant to RCRA, except in either case to the
extent that such Facilities’ obligations pursuant to RCRA, individually or in the aggregate, could
not reasonably be expected to have a Material Adverse Effect. Compliance with all current
requirements of Environmental Law or, to Company’s and its Restricted Subsidiaries’ knowledge
reasonably likely future requirements arising from (i) existing environmental regulations or (ii)
environmental regulations that have been formally proposed but have not been finalized could not
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

     4.14 No Defaults. Neither Company nor any of its Restricted Subsidiaries is in default in the
performance, observance or fulfillment of any of the obligations, covenants or conditions contained
in any of its Contractual Obligations, and no condition exists which, with the giving of notice or
the lapse of time or both, could constitute such a default, except where the consequences, direct
or indirect, of such default or defaults, if any, could not reasonably be expected to have a
Material Adverse Effect.

     4.15 Material Contracts. Schedule 4.15 contains a true, correct and complete list of all the
Material Contracts in effect on the Closing Date, and except as described thereon, and to the
knowledge of Company as of the Closing Date all such Material Contracts are in full force and
effect and no defaults currently exist thereunder by Company and/or its Restricted Subsidiaries
party thereto, except where the consequences, direct or indirect, of such default or defaults, if
any, could not reasonably be expected to have a Material Adverse Effect.

     4.16 Governmental Regulation. Neither Company nor any of its Restricted Subsidiaries is subject to
regulation under the Federal Power Act or the Investment Company Act of 1940 or under any other
federal or state statute or regulation which may limit its ability to incur Indebtedness or which
may otherwise render all or any portion of the Obligations unenforceable. Neither Company nor any
of its Subsidiaries is a “registered investment company” or a company “controlled” by a “registered
investment company” as such terms are defined in the Investment Company Act of 1940.

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     4.17 Margin Stock. Neither Company nor any of its Restricted Subsidiaries is engaged
principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying any Margin Stock. No part of the proceeds of the Loans or the
Credit Linked Deposits made to such Credit Party will be used to purchase or carry any such Margin
Stock or to extend credit to others for the purpose of purchasing or carrying any such Margin Stock
or for any purpose that violates, or is inconsistent with, the provisions of Regulation U or X of
said Board of Governors.

     4.18 Employee Matters. Neither Company nor any of its Subsidiaries is engaged in any unfair
labor practice that could reasonably be expected to have a Material Adverse Effect. Except as
could not reasonably be expected, either individually or in the aggregate, to have a Material
Adverse Effect, there is (a) no unfair labor practice complaint pending against Company or any of
its Subsidiaries, or to the best knowledge of Company, threatened against any of them before the
National Labor Relations Board and no grievance or arbitration proceeding arising out of or under
any collective bargaining agreement that is so pending against Company or any of its Subsidiaries
or to the best knowledge of Company, threatened against any of them, (b) no strike or work stoppage
in existence or threatened involving Company or any of its Subsidiaries, and (c) to the best
knowledge of Company, no union representation question existing with respect to the employees of
Company or any of its Subsidiaries and, to the best knowledge of Company, no union organization
activity that is taking place.

     4.19 Employee Benefit Plans. Except as could not reasonably be expected, individually or in
the aggregate, to have a Material Adverse Effect, (i) Company and each of its Subsidiaries (and in
the case of a Pension Plan or a Multiemployer Plan, each of their respective ERISA Affiliates) are
in compliance with all applicable provisions and requirements of ERISA and the Internal Revenue
Code and the regulations and published interpretations thereunder with respect to each Employee
Benefit Plan, Pension Plan and Multiemployer Plan, and have performed all their obligations under
each Employee Benefit Plan, Pension Plan and Multiemployer Plan, (ii) each Employee Benefit Plan,
Pension Plan or Multiemployer Plan which is intended to qualify under Section 401(a) of the
Internal Revenue Code has received a favorable determination letter from the Internal Revenue
Service indicating that such Employee Benefit Plan, Pension Plan or Multiemployer Plan is so
qualified and, to the knowledge of Company, nothing has occurred subsequent to the issuance of such
determination letter which would cause such Employee Benefit Plan, Pension Plan or Multiemployer
Plan to lose its qualified status, (iii) no liability to the PBGC (other than required premium
payments), the Internal Revenue Service, any Employee Benefit Plan, Pension Plan and Multiemployer
Plan or any trust established under Title IV of ERISA has been or is expected to be incurred by
Company, any of its Subsidiaries or any of their ERISA Affiliates, (iv) no ERISA Event has occurred
or is reasonably expected to occur, and (v) Company, each of its Subsidiaries and each of their
ERISA Affiliates have complied with the requirements of Section 515 of ERISA with respect to each
Multiemployer Plan and are not in “default” (as defined in Section 4219(c)(5) of ERISA) with
respect to payments to a Multiemployer Plan, (vi) the present value of the aggregate benefit
liabilities under each Pension Plan sponsored, maintained or
contributed to by Holding, any of its Subsidiaries or any of their ERISA Affiliates,
(determined as of the end of the most recent plan year on the basis of the actuarial assumptions
specified for funding purposes in the most recent actuarial valuation for such Pension Plan), did
not exceed the aggregate current value of the assets of such Pension Plan, and (vii) as of the most
recent valuation date for each

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Multiemployer Plan for which the actuarial report is available, none
of Holding, its Subsidiaries or their respective ERISA Affiliates has any potential liability for a
complete withdrawal from such Multiemployer Plan (within the meaning of Section 4203 of ERISA),
when aggregated with such potential liability for a complete withdrawal from all Multiemployer
Plans, based on information available pursuant to Section 4221(e) of ERISA.

     4.20 Certain Fees. Except as disclosed to Administrative Agent, no broker’s or finder’s fee or
commission will be payable with respect hereto or any of the transactions contemplated hereby.

     4.21 Solvency. Each Credit Party and its Subsidiaries on a consolidated basis, are Solvent on
the Closing Date.

     4.22 Disclosure. No representation or warranty of any Credit Party contained in any Credit
Document or in any other documents, certificates or written statements furnished to Lenders by or
on behalf of any Credit Party for use in connection with the transactions contemplated hereby
contains, when taken as a whole with other representations, warranties, documents, certificates and
statements, any untrue statement of a material fact or omits to state a material fact (known to the
Credit Parties, in the case of any document not furnished by either of them) necessary in order to
make the statements contained herein or therein not misleading in light of the circumstances in
which the same were made. Any projections and pro forma financial information contained in such
materials are based upon good faith estimates and assumptions believed by the Credit Parties to be
reasonable at the time made, it being recognized by 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 and that such differences may be
material. There are no facts known to the Credit Parties (other than matters of a general economic
nature) as of the Closing Date that, individually or in the aggregate, could reasonably be expected
to result in a Material Adverse Effect and that have not been disclosed herein or in such other
documents, certificates and statements furnished to Lenders for use in connection with the
transactions contemplated hereby.

     4.23 Patriot Act. To the extent applicable, each Credit Party is in compliance, in all material
respects, with the (i) Trading with the Enemy Act, as amended, and each of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) and any other enabling legislation or executive order relating thereto, and (ii) Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism (USA Patriot Act of 2001) (the “Act”). No part of the proceeds of the Loans or Credit
Linked Deposits will be used, directly or indirectly, for any payments to any governmental official
or employee, political party, official of a political party, candidate for political office, or
anyone else acting in an official
capacity, in order to obtain, retain or direct business or obtain any improper advantage, in
violation of the United States Foreign Corrupt Practices Act of 1977, as amended.

     4.24 Financing Statements. Other than the financing statements filed in favor of the Collateral
Agent, no effective UCC financing statement, fixture filing or other instrument similar in effect
under any applicable law which is effective to perfect a security interest under the UCC as in
effect on the Closing Date in all or any part of the Collateral is on file in any filing or

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recording office on the Closing Date or has been authorized by any Credit Party at any time
thereafter except for (x) financing statements or other instruments similar in effect for which
proper termination statements or releases have been delivered to the Collateral Agent for filing
and (y) financing statements or other instruments similar in effect filed in connection with
Permitted Liens.

     4.25 Regulation H. No Mortgage encumbers improved real property which is located in an area that
has been identified by the Secretary of Housing and Urban Development as an area having special
flood hazards and in which flood insurance has been made available under the National Flood
Insurance Act of 1968 (except any Flood Hazard Property as to which such flood insurance as
required by Regulation H has been obtained and is in full force and effect as required by this
Agreement).

     4.26 Unrestricted Subsidiaries. All Unrestricted Subsidiaries designated as such on the Closing
Date are identified on Schedule 4.26.

SECTION 5. AFFIRMATIVE COVENANTS

     Each of Company and each Guarantor Subsidiary covenants and agrees that until the Termination
Date each of Company and each Guarantor Subsidiary shall perform, and shall cause each of its
Restricted Subsidiaries (and, to the extent expressly required pursuant to this Section 5, its
Unrestricted Subsidiaries) to perform, all covenants in this Section.

     5.1 Financial Statements and Other Reports. Company will deliver to Administrative Agent and
Lenders (which delivery to Lenders may be satisfied by the posting of relevant documents to
Intralinks or other similar service reasonably satisfactory to Administrative Agent):

          (a) Quarterly Financial Statements. As soon as available, and in any event within
forty-five (45) days after the end of each of the first three Fiscal Quarters of each Fiscal Year
(commencing in respect of the second Fiscal Quarter of 2007), the unaudited consolidated balance
sheets of Company and its Restricted Subsidiaries as at the end of such Fiscal Quarter and the
related unaudited consolidated statements of income and cash flows of Company and its Restricted
Subsidiaries for such Fiscal Quarter and for the period from the beginning of the then current
Fiscal Year to the end of such Fiscal Quarter, (in each case, without footnotes) setting forth in
each case, in comparative form the corresponding figures for the corresponding periods of the
previous Fiscal Year all in reasonable detail, together with a copy of Holding’s Form 10-Q for such
period;

          (b) Annual Financial Statements. As soon as available, and in any event within one
hundred twenty (120) days after the end of each Fiscal Year, (i) the consolidated balance sheets of
Company and its Restricted Subsidiaries as at the end of such Fiscal Year and the related
consolidated statements of income and cash flows of Company and its Restricted Subsidiaries for
such Fiscal Year, setting forth in each case, in comparative form the corresponding figures for the
previous Fiscal Year in reasonable detail; and (ii) a copy of Holding’s Form 10-K for such Fiscal
Year, which shall include the audited consolidated balance sheets of Holding as at the end of such
Fiscal Year and the related consolidated statements of

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income and cash flows of Holding for such Fiscal Year, setting forth in each case, the
corresponding figures for the previous Fiscal Year in reasonable detail, and a report thereon of
Ernst & Young LLP or other independent certified public accountants of recognized national standing
selected by Company or Holding, and reasonably satisfactory to Administrative Agent (which report
shall be unqualified as to going concern and scope of audit) with a written statement by the
independent certified public accountants stating that in connection with their audit of Holding,
nothing came to their attention that caused them to believe that Company failed to comply with the
terms and provisions of Section 6.7, insofar as they relate to accounting matters, or, if such a
failure to comply has come to their attention, specifying the nature and, if readily discernable
from the information gathered during the audit, period of existence thereof (it being understood
that their audit is not directed primarily toward obtaining knowledge of non-compliance and that
such accountants shall not be liable by reason of any failure to obtain knowledge of any such
non-compliance that would not be disclosed in the course of their audit);

          (c) Compliance Certificate and Other Information. (i) Together with each delivery of
financial statements of Holding or Company pursuant to Sections 5.1(a) and 5.1(b), a duly executed
and completed Compliance Certificate;

          (ii) Together with the delivery of each Compliance Certificate pursuant to clause (i) above,
(A) a description of each event, condition or circumstance during the last Fiscal Quarter covered
by such Compliance Certificate requiring a mandatory prepayment under Section 2.14(a), 2.14(b) or
2.14(c), and (B) a list of each Subsidiary that identifies each Subsidiary as a Restricted or an
Unrestricted Subsidiary as of the date of delivery of such Compliance Certificate;

          (d) Statements of Reconciliation after Change in Accounting Principles. If, as a
result of any change in accounting principles and policies from those used in the preparation of
the Historical Financial Statements, the consolidated financial statements of Holding delivered
pursuant to Section 5.1(a) or 5.1(b) will differ in any material respect from the consolidated
financial statements that would have been delivered pursuant to such subdivisions had no such
change in accounting principles and policies been made, then, together with the first delivery of
such financial statement after such change, one or more statements of reconciliation for all such
prior financial statements in form and substance satisfactory to Administrative Agent;

          (e) Notice of Default. Promptly upon any Authorized Officer of Company obtaining
knowledge (i) of any condition or event that constitutes a Default or an Event of Default or that
notice has been given to Company with respect thereto; (ii) that any Person has given any notice to
Company or any of its Restricted Subsidiaries or taken any other action with respect to any event
or condition set forth in Section 8.1(b); or (iii) of the occurrence of any event or change that
has caused or evidences, either in any case or in the aggregate, a Material Adverse Effect, a
certificate of its Authorized Officers specifying the nature and period of existence of such
condition, event or change, or specifying the notice given and action taken by any such Person and
the nature of such claimed Event of Default, Default, default, event or condition, and what action
Company has taken, is taking and proposes to take with respect thereto;

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          (f) Notice of Litigation. Promptly upon any Authorized Officer of Company obtaining
knowledge of (i) the institution of, or non-frivolous threat of, any Adverse Proceeding not
previously disclosed in writing by Company to Lenders, or (ii) any material development in any
Adverse Proceeding that, in the case of either (i) or (ii) could be reasonably expected to have a
Material Adverse Effect, or seeks to enjoin or otherwise prevent the consummation of, or to recover
any damages or obtain relief as a result of, the transactions contemplated hereby, written notice
thereof together with such other non-privileged information as may be reasonably available to
Company to enable Lenders and their counsel to evaluate such matters;

          (g) ERISA. (i) Promptly upon becoming aware of the occurrence of or forthcoming
occurrence of any ERISA Event, a written notice specifying the nature thereof, what action Company,
any of its Subsidiaries or any of their respective ERISA Affiliates has taken, is taking or
proposes to take with respect thereto and, when known, any action taken or threatened by the
Internal Revenue Service, the Department of Labor or the PBGC with respect thereto; and (ii) with
reasonable promptness, upon the Administrative Agent’s request, copies of (1) each Schedule B
(Actuarial Information) to the annual report (Form 5500 Series) filed by Company, any of its
Subsidiaries or any of their respective ERISA Affiliates with the Internal Revenue Service with
respect to each Pension Plan; (2) all notices received by Company, any of its Subsidiaries or any
of their respective ERISA Affiliates from a Multiemployer Plan sponsor concerning an ERISA Event;
and (3) copies of such other documents or governmental reports or filings relating to any Employee
Benefit Plan as Administrative Agent shall reasonably request;

          (h) Financial Plan. As soon as practicable and in any event no later than 30 days
after the beginning of each Fiscal Year, the following projections (the “Financial Plan”) a
consolidated plan and financial forecast consisting of (i) a forecasted consolidated balance sheet
and forecasted consolidated statements of income and cash flows of Company and its Restricted
Subsidiaries for the then current Fiscal Year, together with an explanation of the assumptions on
which such forecasts are based, (ii) a forecasted consolidated statement of income of Company and
its Restricted Subsidiaries for each quarter of such Fiscal Year, and (iii) forecasted consolidated
annual statements of income and cash flows of Company and its Restricted Subsidiaries for each
Fiscal Year (or portion thereof) after the current Fiscal Year through the final maturity date of
the Loans, which information shall be accompanied by a certificate from the chief financial officer
of Company certifying that the projections contained therein are based upon good faith estimates
and assumptions believed by Company to be reasonable at the time made;

          (i) Insurance Report. As soon as practicable and in any event by the thirtieth day of
each Fiscal Year, a report in form and substance reasonably satisfactory to Administrative Agent
outlining all material insurance coverage maintained for such Fiscal Year by Company and its
Restricted Subsidiaries; and

          (j) Other Information. (A) Promptly upon their becoming available, copies of (i) all
financial statements, reports, notices and proxy statements sent or made available generally by
Holding to its security holders acting in such capacity or by any Restricted Subsidiary of Holding
to its security holders other than Holding or another Subsidiary of Holding (other than Project
specific information delivered to holders of Limited Recourse Debt or other Project participants),
(ii) all regular and periodic reports and all registration statements (other than on

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Form S-8 or similar forms) and prospectuses, if any, filed by Holding or any of its
Subsidiaries (other than Project specific information) with any securities exchange or with the
Securities and Exchange Commission or any governmental or private regulatory authority, (iii) all
press releases and other statements made available generally by Holding or any of its Subsidiaries
to the public concerning material developments in the business of Holding or any of its
Subsidiaries, and (B) such other information and data promptly upon request with respect to Holding
or any of its Restricted Subsidiaries (including, without limitation, with respect to compliance
with Sections 5.13 and 6.1) as from time to time may be reasonably requested by Administrative
Agent or any Lender.

          (k) Certification of Public Information. Concurrently with the delivery of any
document or notice required to be delivered pursuant to this Section 5.1 or otherwise delivered to
any Agent, Company or Holding shall indicate in writing whether such document or notice contains
Nonpublic Information. Any document or notice required to be delivered pursuant to this Section
5.1 or is otherwise delivered to any Agent shall be deemed to contain Nonpublic Information unless
Holding specifies otherwise. Company, Holding and each Lender acknowledge that certain of the
Lenders may be “public-side” Lenders (Lenders that do not wish to receive material non-public
information with respect to Holding, its Subsidiaries or their securities) and, if documents or
notices required to be delivered pursuant to this Section 5.1 or otherwise are being distributed
through IntraLinks/IntraAgency or another relevant website (the “Platform”), any document or notice
which contains Nonpublic Information (or is deemed to contain Nonpublic Information) shall not be
posted on that portion of the Platform designated for such public side Lenders.

     5.2 Existence. Except as otherwise permitted under Section 6.8, each of Holding, Company and its
Restricted Subsidiaries will at all times preserve and keep in full force and effect its existence
and all rights and franchises, licenses and permits material to its business; provided,
neither Company nor any Subsidiary of Company shall be required to preserve (a) any such existence
of any Subsidiary of Company if such Persons board of directors (or similar governing body) shall
determine that the preservation thereof is no longer desirable in the conduct of the business of
such Person, and that the loss thereof is not disadvantageous in any material respect to such
Person or to Lenders or (b) any such rights franchises, licenses or permits except to the extent
that failure to do so could reasonably be expected to have a Material Adverse Effect, individually
or in the aggregate.

     5.3 Payment of Taxes and Claims . Each Credit Party will, and will cause each of its Restricted
Subsidiaries to pay all income and other material Taxes imposed upon it or any of its properties or
assets or in respect of any of its income, businesses or franchises before any penalty or fine
accrues thereon, and all claims (including claims for labor, services, materials and supplies) for
material sums that have become due and payable and that by law have or may become a Lien (other
than a Permitted Lien) upon any of its properties or assets, prior to the time when any penalty or
fine shall be incurred with respect thereto; provided, no such Tax or claim need be paid if
it is being contested in good faith by appropriate proceedings promptly instituted and diligently
conducted, so long as (a) adequate reserve or other appropriate provision, as shall be required in
conformity with GAAP, shall have been made therefor, and (b) in the case of a Tax or claim which
has or may become a Lien against any of the Collateral, such contest proceedings conclusively
operate to stay the sale of any portion of the Collateral (other than a de

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minimis portion of the Collateral) to satisfy such Tax or claim. No Credit Party will, nor will it permit any of its
Restricted Subsidiaries to, file or consent to the filing of any consolidated income tax return
with any Person (other than Holding or any of its Restricted Subsidiaries).

     5.4 Maintenance of Properties. Each of Company and its Restricted Subsidiaries will, and will
cause each of their Restricted Subsidiaries to maintain or cause to be maintained in good repair,
working order and condition, ordinary wear and tear excepted, all material properties used or
useful in the business of Company and its Restricted Subsidiaries and from time to time will make
or cause to be made all appropriate repairs, renewals and replacements thereof except that Company
and its Subsidiaries shall not be required to perform the foregoing obligations (i) with respect to
Subsidiaries or assets to which Persons other than Company and its Restricted Subsidiaries have
recourse under Limited Recourse Debt owed to such Persons where the amount of such Limited Recourse
Debt exceeds the fair market value of such property (ii) to the extent that failure to perform such
obligations, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

     5.5 Insurance. Company will maintain or cause to be maintained, with financially sound and
reputable insurers, such public liability insurance, third party property damage insurance,
business interruption insurance and casualty insurance with respect to liabilities, losses or
damage in respect of the assets, properties and businesses of Company and its Restricted
Subsidiaries as may customarily be carried or maintained under similar circumstances by Persons of
established reputation engaged in similar businesses, in each case in such amounts (giving effect
to self-insurance), with such deductibles, covering such risks and otherwise on such terms and
conditions as shall be customary for such Persons except, in the case of Projects owned by Foreign
Subsidiaries, to the extent not commercially available at a reasonable cost. Without limiting the
generality of the foregoing, Company will maintain or cause to be maintained (a) flood insurance
with respect to each Flood Hazard Property that is located in a community that participates in the
National Flood Insurance Program, in each case in compliance with any applicable regulations of the
Board of Governors of the Federal Reserve System, and (b) replacement value casualty insurance on
the Collateral under such policies of insurance, with such insurance companies, in such amounts,
with such deductibles, and covering such risks as are at all times carried or maintained under
similar circumstances by Persons of established reputation engaged in similar businesses. Each
such policy of insurance (other than business interruption insurance) shall with respect to Company
and each Guarantor Subsidiary (i) in the case of liability insurance name Collateral Agent, on
behalf of Lenders as an additional insured thereunder as its interests may appear, (ii) in the case
of each casualty insurance policy, contain a loss payable clause or endorsement, reasonably
satisfactory in form and substance to Collateral Agent, that names Collateral Agent, on behalf of
Lenders as the loss payee thereunder, and (iii) provides for at least thirty days’ prior written
notice to Collateral Agent of any cancellation or non-renewal of such policy except as the result
of non-payment of premiums, in which case ten days’ prior written notice will be provided.

     5.6 Inspections. Each of Company and its Restricted Subsidiaries will, and will cause each of
their Restricted Subsidiaries to permit any authorized representatives designated by (i)
Administrative Agent (prior to an Event of Default at Administrative Agent’s expense to the extent
Administrative Agent visits more than once per year) or (ii) any Lender (at such Lender’s expense)
to visit and inspect any of the properties of any of Company and its Restricted

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Subsidiaries and any of its respective Restricted Subsidiaries, to inspect, copy and take extracts from its and
their financial and accounting records, and to discuss its and their affairs, finances and accounts
with its and their officers and independent public accountants (provided, that Company may,
if it so chooses, be present and participate in any such discussion), in each case all upon
reasonable notice and at such reasonable times during normal business hours and as often as may
reasonably be requested and, with respect to any Lender, provided that it coordinates its
efforts with the Administrative Agent and so long as no Event of Default has occurred and is
continuing, such visit by such Lender shall be limited to once per year.

     5.7 Lenders Meetings. Company will, upon the request of Administrative Agent or Requisite
Lenders, participate in a meeting of Administrative Agent and Lenders once during each Fiscal Year
to be held at Company’s corporate offices (or at such other location as may be agreed to by Company
and Administrative Agent) at such time as may be agreed to by Company and Administrative Agent.

     5.8 Compliance with Laws. Each Credit Party will comply, and shall use all reasonable efforts to
cause each of its Subsidiaries and all other Persons, if any, on or occupying any Facilities to
comply, with the requirements of all applicable laws, rules, regulations and orders of any
Governmental Authority (including all Environmental Laws), noncompliance with which could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

     5.9 Environmental

          (a) Hazardous Materials Activities, Etc. Each of Company and its Restricted
Subsidiaries shall promptly take, and shall cause each of its Restricted Subsidiaries promptly to
take, any and all actions necessary to (i) cure any violation of applicable Environmental Laws by
Company or its Restricted Subsidiaries that could reasonably be expected to have, individually or
in the aggregate, a Material Adverse Effect, and (ii) make an appropriate response to any
Environmental Claim against Company or any of its Restricted Subsidiaries and discharge any
obligations it may have to any Person thereunder where failure to do so could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

          (b) Environmental Disclosure. Company will deliver to Administrative Agent:

               (i) Promptly upon the occurrence thereof, written notice describing in reasonable
detail (1) any Release that individually could reasonably be expected to require a Remedial
Action or give rise to Environmental Claims resulting in Company or its Restricted
Subsidiaries incurring liability or expenses in excess of $5,000,000 or that Company has
determined could, in aggregate with all other Releases, reasonably be
expected to result in a Material Adverse Effect, (2) any Remedial Action taken by
Company, its Restricted Subsidiaries or any other Person in response to any Release or
threatened Release of Hazardous Materials that individually could reasonably be expected to
result in liability of Company or its Restricted Subsidiaries in excess of $5,000,000 or
that Company has determined could, in aggregate with all other Remedial Actions, reasonably
be expected to result in a Material Adverse Effect, (3) any

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Environmental Claim (including
any request for information by a Governmental Authority) that individually could reasonably
be expected to result in liability of Company or its Restricted Subsidiaries in excess of
$5,000,000 or that Company has determined could, in aggregate with all other Environmental
Claims, reasonably be expected to result in a Material Adverse Effect, (4) Company’s or its
Restricted Subsidiaries’ discovery of any occurrence or condition at any Facility, or on any
real property adjoining or in the vicinity of any Facility, that could reasonably be
expected to cause such Facility or any part thereof to be subject to any material
restrictions on the ownership, occupancy, transferability or use thereof under any
Environmental Laws, (5) any proposed acquisition of stock, assets, or property by Company or
any of its Restricted Subsidiaries that could reasonably be expected to expose Company or
any of its Restricted Subsidiaries to, or result in, Environmental Claims that could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect,
and (6) any proposed action to be taken by Company or any of its Restricted Subsidiaries to
modify current operations in a manner that could reasonably be expected to subject Company
or any of its Restricted Subsidiaries to any additional obligations or requirements under
Environmental Laws that could reasonably be expected to have, individually or in the
aggregate, a Material Adverse Effect;

               (ii) Company shall submit to the Administrative Agent an annual written report on the
status of (A) any matter for which written notice was provided pursuant to Subsection (b)(i)
and (B) if reasonably requested by the Administrative Agent, other matters related to
non-compliance with Environmental Law, pending or threatened Environmental Claims or
Remedial Actions that could reasonably be expected to give rise to liability of or
expenditures by Company or its Restricted Subsidiaries in excess of $5,000,000. Such report
shall specify in reasonable detail (1) the status of the matter including any significant
developments since the date of the prior report, (2) any technical reports or material
correspondence prepared or received relating to the matter, (3) the proposed plan for
resolution or completion of the matter, and (4) the anticipated cost to achieve such
resolution or completion of the matter. Reports shall be submitted annually (commencing on
February 1, 2008) for any year in which notifications were submitted to the Administrative
Agent pursuant to Subsection (b)(i) (or for which the Administrative Agent has specifically
requested information pursuant to (B) above) and for succeeding years until such matters
have been resolved or determined not to be reasonably expected to give rise to liability of
or expenditures by Company or its Restricted Subsidiaries in excess of $5,000,000 or, in
aggregate, result in a Material Adverse Effect; and

               (iii) Subject to 5.9(d) below, Company shall also deliver to Administrative Agent with
reasonable promptness, such other documents and information
as from time to time may be reasonably requested by Administrative Agent in relation to
any matters addressed by this Section 5.9.

          (c) Right of Access and Inspection. With respect to any event described in Section
5.9(b), or if an Event of Default has occurred and is continuing, or if Administrative Agent
reasonably believes that Company or any Restricted Subsidiary has breached any

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representation, warranty or covenant related to environmental matters (including those contained in Sections 4.10,
4.13, 5.8 or 5.9):

               (i) Administrative Agent and its representatives shall have the right, but not the
obligation or duty, to enter the Facilities at reasonable times and after reasonable notice
for the purposes of observing the condition and operation of Facilities. Such access shall
include, at the reasonable request of Administrative Agent, access to relevant documents and
employees of Company and its Restricted Subsidiaries and to their outside representatives,
to the extent necessary to obtain necessary information related to the event at issue. If
an Event of Default has occurred and is continuing, the Credit Parties shall conduct such
tests and investigations on the Facilities or relevant portion thereof, as reasonably
requested by Administrative Agent, including the preparation of a Phase I Environmental
Assessment or such other sampling or analysis as determined by a qualified environmental
engineer or consultant to be commercially reasonable and necessary to evaluate the condition
of the property. If an Event of Default has occurred and is continuing, and if a Credit
Party does not undertake such tests and investigations in a reasonably timely manner
following the request of Administrative Agent, Administrative Agent may, after reasonable
advance notice, hire an independent engineer, at the Credit Parties’ expense, to conduct
such tests and investigations. Administrative Agent will make all reasonable efforts to
conduct any such tests and investigations so as to avoid interfering with the operation of
the Facility. Prior to entry onto any Facility, any such independent engineer shall provide
Company with evidence of reasonable and customary insurance coverage, including general
liability and professional liability policies; and

               (ii) Any observations, tests or investigations of the Facilities by or on behalf of
Administrative Agent shall be solely for the purpose of protecting the Lenders’ security
interests and rights under the Credit Documents. The exercise of Administrative Agent’s
rights under this subsection (c) shall not constitute a waiver of any default of any Credit
Party or impose any liability on Administrative Agent or any of the Lenders. In no event
will any observation, test or investigation by or on behalf of Administrative Agent be a
representation that Hazardous Materials are or are not present in, on or under any of the
Facilities, or that there has been or will be compliance with any Environmental Law and
Administrative Agent shall not be deemed to have made any representation or warranty to any
party regarding the truth, accuracy or completeness of any report or findings with regard
thereto. Neither any Credit Party nor any other party is entitled to rely on any
observation, test or investigation by or on behalf of Administrative Agent. Administrative
Agent and the Lenders owe no duty of care to protect any Credit Party or any other party
against, or to inform any Credit Party or any other party of, any Hazardous Materials or any
other adverse condition affecting any of the Facilities. Administrative Agent may, in its
sole discretion, disclose to the applicable Credit Party,
or to any other party if so required by law, any report or findings made as a result
of, or in connection with, its observations, tests or investigations. If a request is made
of Administrative Agent to disclose any such report or finding to any third party, then
Administrative Agent shall endeavor to give the applicable Credit Party prior notice of such
disclosure and afford such Credit Party the opportunity to object or defend against such
disclosure at its own and sole cost; provided, that the failure of Administrative

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Agent to give any such notice or afford such Credit Party the opportunity to object or
defend against such disclosure shall not result in any liability to Administrative Agent.
Each Credit Party acknowledges that it may be obligated to notify relevant Governmental
Authorities regarding the results of any observation, test or investigation disclosed to
such Credit Party, and that such reporting requirements are site and fact-specific and are
to be evaluated by such Credit Party without advice or assistance from Administrative Agent.

          (d) If counsel to Company or any of its Subsidiaries reasonably determines that provision to
Administrative Agent of a document otherwise required to be provided pursuant to this Section 5.9
(or any other provision of this Agreement or any other Credit Document relating to environmental
matters) would jeopardize an applicable attorney-client or work-product privilege pertaining to
such document, then Company or its Restricted Subsidiary shall not be obligated to deliver such
document to Administrative Agent but shall provide Administrative Agent with a notice identifying
the author and recipient of such document and generally describing the contents of the document.
Upon request of Administrative Agent, Company and its Restricted Subsidiaries shall take all
reasonable steps necessary to provide Administrative Agent with the factual information contained
in any such privileged document.

     5.10 Subsidiaries. In the event that any Person becomes a Domestic Subsidiary of Company (other
than an Unrestricted Subsidiary, Excluded Subsidiary or a Development Subsidiary) or any Domestic
Subsidiary of Company ceases to be an Unrestricted Subsidiary, Excluded Subsidiary or a Development
Subsidiary, then in each case, Company shall, within twenty days of such event (a) cause such
Domestic Subsidiary to become a Guarantor hereunder and a Grantor under the Pledge and Security
Agreement by executing and delivering to Administrative Agent and Collateral Agent a Counterpart
Agreement, and (b) take all such actions and execute and deliver, or cause to be executed and
delivered, all such documents, instruments, agreements, and certificates as are similar to those
described in Sections 3.1(b), 3.1(h), 3.1(l) and 3.1(t). In the event that any Person becomes a
Foreign Subsidiary of Company (other than an Unrestricted Subsidiary), and the ownership interests
of such Foreign Subsidiary are directly owned by Company or by any Domestic Subsidiary thereof
(other than an Excluded Subsidiary or an Unrestricted Subsidiary), Company shall or shall cause
such Domestic Subsidiary to, deliver all such documents, instruments, agreements, and certificates
as are similar to those described in Sections 3.1(b), and Company shall take, or shall cause such
Domestic Subsidiary to take, all of the actions referred to in Section 3.1(h)(i) and 3.1(t)
necessary to grant and to perfect a First Priority Lien in favor of Collateral Agent, for the
benefit of Secured Parties, under the Pledge and Security Agreement in 65% of such ownership
interests. With respect to each such Subsidiary, Company shall promptly send to Administrative
Agent written notice setting forth with respect to such Person (i) the date on which such Person
became a Subsidiary of Company, and (ii) all of the data required to be set forth in Schedule 4.1
and
Schedule 4.2 with respect to all Subsidiaries of Company; provided, such written
notice shall be deemed to supplement Schedule 4.1 and Schedule 4.2 for all purposes hereof. Any
Person that becomes a Subsidiary of Company or any Subsidiary thereof and becomes a party to the
Intercompany Master Note shall execute and deliver its counterpart signature page to the
Intercompany Subordination Agreement.

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     5.11 Additional Material Real Estate Assets. . In the event that Company or any Guarantor
Subsidiary acquires a Material Real Estate Asset and such interest has not otherwise been made
subject to the Lien of the Collateral Documents in favor of Collateral Agent, for the benefit of
Secured Parties, then Company or such Guarantor Subsidiary, as soon as practicable after acquiring
such Material Real Estate Asset, shall take all such actions and execute and deliver, or cause to
be executed and delivered, all such mortgages, documents, instruments, agreements, opinions and
certificates similar to those described in Sections 3.1(h) and 3.1(i) and a Phase I Environmental
Assessment with respect to each such Material Real Estate Asset that Collateral Agent shall
reasonably request to create in favor of Collateral Agent, for the benefit of Secured Parties, a
valid and, subject to any filing and/or recording referred to herein, First Priority Lien in such
Material Real Estate Assets (subject to any Permitted Liens). In addition to the foregoing,
Company shall, at the request of Requisite Lenders, deliver, from time to time, to Administrative
Agent such appraisals as are required by law or regulation of Real Estate Assets with respect to
which Collateral Agent has been granted a lien.

     5.12 Further Assurances. At any time or from time to time at the request of Administrative Agent,
each Credit Party will, at its expense, promptly execute, acknowledge and deliver such further
documents and do such other acts and things, as Administrative Agent or Collateral Agent may
reasonably request in order to effect fully the purposes of the Credit Documents that do not
involve material expansion of any Credit Party’s obligations or duties under the Credit Documents
from those originally mutually intended or contemplated. In furtherance and not in limitation of
the foregoing, each Credit Party shall take such actions as Administrative Agent or Collateral
Agent may reasonably request from time to time to ensure that the Obligations are guarantied by the
Guarantors and are secured by the Collateral (subject to limitations contained in the Credit
Documents).

     5.13 Post-Closing Matters. (a) Holding and Company shall, and shall cause each of its Restricted
Subsidiaries to, satisfy the requirements set forth on Schedule 5.13 on or before the date
specified for such requirement or such later date to be determined by Administrative Agent.

          (b) Company shall provide the Administrative Agent evidence, in form and substance reasonably
satisfactory to it, that the following matters have been satisfied: (i) Holding shall have
consummated the Tender Offer and Consent Solicitation with respect to the MSW Notes, pursuant to
which (A) the period of time for tendering the MSW Notes pursuant to the Tender Offer and Consent
Solicitation shall have terminated on or prior to February 28, 2007, (B) the relevant Restricted
Subsidiaries shall have purchased all of the Outstanding MSW Notes validly tendered, and not
theretofore withdrawn, pursuant to the Tender Offer and Consent Solicitation on or prior to
February 28, 2007, and (C) the relevant Restricted Subsidiaries shall
have issued irrevocable redemption notices in accordance with the MSW Indentures to redeem all
of the Outstanding MSW Notes not purchased as contemplated in clause (B) on or prior to September
15, 2007, which redemption shall occur on a date not later than 60 days after the issuance of such
notices, and (ii) the Indebtedness owing in respect of the Outstanding MSW Notes shall have been
satisfied or discharged in full on or prior to November 14, 2007.

          (c) Company shall provide the Administrative Agent evidence, in form and substance reasonably
satisfactory to it, that the following matters have been satisfied: (i) Holding shall have
consummated the Tender Offer and Consent Solicitation with respect to the ARC

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Notes, pursuant to
which (A) the period of time for tendering the ARC Notes pursuant to the Tender Offer and Consent
Solicitation shall have terminated on or prior to February 28, 2007, (B) the relevant Restricted
Subsidiary shall have purchased all of the Outstanding ARC Notes validly tendered, and not
theretofore withdrawn, pursuant to the Tender Offer and Consent Solicitation on or prior to
February 28, 2007, and (C) the relevant Restricted Subsidiary shall have issued irrevocable
redemption notices in accordance with the ARC Indenture to redeem all of the Outstanding ARC Notes
not purchased as contemplated in clause (B) on or prior to March 15, 2007, which redemption shall
occur on a date not later than 60 days after the issuance of such notices, and (ii) the
Indebtedness owing in respect of the Outstanding ARC Notes shall have been satisfied or discharged
in full on or prior to May 14, 2007.

          (d) On or prior to the payment date set forth in the Tender Offer and Consent Solicitation
with respect to the Outstanding ARC Notes and Outstanding MSW Notes validly tendered pursuant
thereto, Holding shall provide, as a cash capital contribution or a loan permitted under Section
6.1(d)(ii), to Company an amount sufficient to consummate the Tender Offer and Consent Solicitation
and such amount shall be provided as an intercompany loan permitted under Section 6.1(w)(iii) to
the relevant Restricted Subsidiaries to consummate the Tender Offer and Consent Solicitation.

     5.14 Designation of Subsidiaries. Company may at any time designate any Restricted Subsidiary as
an Unrestricted Subsidiary or any Unrestricted Subsidiary as a Restricted Subsidiary;
provided that (i) immediately before and after such designation, no Default or Event of
Default shall have occurred and be continuing or shall be caused thereby, (ii) immediately after
giving effect to such designation, Company and the Restricted Subsidiaries shall be in compliance
with the financial covenants set forth in Section 6.7 on a Pro Forma Basis, (iii) with respect to
any Subsidiary to be designated as an Unrestricted Subsidiary, such Subsidiary or any of its
Subsidiaries does not own any Capital Stock or Indebtedness of or have any Investment in, or own or
hold any Lien on any property of, any other Subsidiary of Company which is not a Subsidiary of the
Subsidiary to be so designated or otherwise an Unrestricted Subsidiary, and (iv) no Restricted
Subsidiary may be designated as an Unrestricted Subsidiary if it was previously designated as an
Unrestricted Subsidiary except any acquisition vehicle formed for the purpose of making
acquisitions and initially designated as an Unrestricted Subsidiary.

SECTION 6. NEGATIVE COVENANTS

     Each of Company and Guarantor Subsidiaries covenants and agrees that, until the Termination
Date, Company and its Guarantor Subsidiaries shall perform, and shall cause each of its Restricted
Subsidiaries to perform, all covenants in this Section 6.

     6.1 Indebtedness. Neither Company nor any Guarantor Subsidiary shall, nor shall it permit any of
its Restricted Subsidiaries to, directly or indirectly, create, incur, assume or guaranty, or
otherwise become or remain directly or indirectly liable with respect to any Indebtedness, except:

          (a) the Obligations;

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          (b) Indebtedness of any Guarantor Subsidiary to Company or to any other Guarantor Subsidiary,
or of Company to any Guarantor Subsidiary; provided, (x) all such Indebtedness shall be
evidenced by the Intercompany Master Note and (y) any payment by any such Guarantor Subsidiary
under any guaranty of the Obligations shall result in a pro tanto reduction of the amount of any
Indebtedness owed by such Guarantor Subsidiary to Company or to any of its Guarantor Subsidiaries
for whose benefit such payment is made;

          (c) Indebtedness of any Restricted Subsidiary of Company (other than any Guarantor Subsidiary)
to Company or any Guarantor Subsidiary so long as the proceeds of such Indebtedness are applied (i)
to current requirements in respect of working capital, maintenance capital expenditures, operation
or payroll in the ordinary course of business of such Subsidiary incurring such Indebtedness or
(ii) to make payments of debt service in connection with the Alexandria, Virginia and Fairfax,
Virginia facilities to the extent that such obligor with respect to such debt service does not
otherwise have funds available to make such payments or (iii) to make lease payments in connection
with the Delaware County, Pennsylvania facility, in each case to the extent that the obligor with
respect to such debt service or lease payments is required to make such payments; provided,
that following the occurrence of and continuance of an Event of Default (without prejudicing or
impairing any of the Secured Parties’ rights, privileges, powers and remedies with respect thereto,
which rights, privileges, powers and remedies are reserved in full) no such Indebtedness may be
incurred to make maintenance capital expenditures other than those that, if not made, would
materially compromise the ability of a Subsidiary to operate and maintain one or more of the
Projects in compliance with law or good industry practice, all such Indebtedness permitted under
this clause (c) shall be evidenced by the Intercompany Master Note;

          (d) (i) Indebtedness of any Restricted Subsidiary of Company (other than any Guarantor
Subsidiary) to Company or any other Restricted Subsidiary of Company, so long as the proceeds are
used to fund capital expenditures relating to the modifications to Projects, to the extent required
by applicable legal requirements; provided that (x) if and to the extent that such
additional capital expenditures are estimated by Company to exceed $500,000,000 in the aggregate
during the term of this Agreement, and are not otherwise reimbursable by third parties, Company
shall provide such estimate to Administrative Agent for its review, and shall not incur such
capital expenditures in an individual amount of more than $50,000,000 or in the aggregate in excess
of $250,000,000 until Administrative Agent has had an opportunity to review and provide its
comments, except to the extent failure to incur such capital expenditures would in Company’s
reasonable judgment either (i) materially compromise its present ability to continue
to operate and maintain one or more of its Projects in compliance with law or (ii) expose it
or its Affiliates to material liability and (y) all Indebtedness under this clause (d) shall be
evidenced by the Intercompany Master Note;

               (ii) Permitted Subordinated Indebtedness owed to Holding or any Unrestricted Subsidiary;
provided that (i) the maturity date of such Permitted Subordinated Indebtedness shall be
later by at least six months than the final maturity date of the Term Loans and (ii) all such
Indebtedness shall be evidenced by the Intercompany Master Note;

          (e) Indebtedness of any Restricted Subsidiary of Company (other than any Guarantor Subsidiary)
to Company or any Guarantor Subsidiary, the proceeds of which are used

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solely to fund Investments
by such Restricted Subsidiary but only to the extent the proceeds of each such Investment are used
by the Restricted Subsidiary ultimately receiving the proceeds of such Investments to make further
Investments which are expressly permitted under Section 6.6(e), (f), (j), (l), (m) or (o);
provided, that such Indebtedness shall be evidenced by the Intercompany Master Note;

          (f) Indebtedness of Foreign Subsidiaries of Company to Company or any Guarantor Subsidiary in
an amount not to exceed (A) $50,000,000 in the aggregate incurred in any Fiscal Year (with any
unused amounts accumulating on a cumulative basis to each subsequent Fiscal Year) or (B)
$150,000,000 in the aggregate at any one time outstanding which is incurred after the Closing Date
(plus the principal amount of any Indebtedness repaid by a Foreign Subsidiary to Company or any
Guarantor Subsidiary after the Closing Date), provided, that all such Indebtedness
permitted under this clause (f) shall be evidenced by the Intercompany Master Note;

          (g) Indebtedness of Foreign Subsidiaries or Domestic Subsidiaries that are not Guarantor
Subsidiaries (i) assumed in connection with any Permitted Acquisition or (ii) incurred to finance
any Permitted Acquisitions, in each case under clauses (i) and (ii), that is secured only by the
assets or business acquired in the applicable Permitted Acquisition (including any acquired Capital
Stock)and so long as both immediately prior to and after giving effect thereto, (A) no Event of
Default shall have occurred and be continuing or would result therefrom, and (B) the Company will
be in compliance with the financial maintenance covenants set forth in Section 6.7 on a Pro Forma
Basis after giving effect to such Indebtedness as of the last day of the Fiscal Quarter most
recently ended, (iii) for current requirements in respect of working capital, maintenance capital
expenditures, operation or payroll in the ordinary course of business of such Subsidiary incurring
such Indebtedness in an aggregate amount not to exceed $25,000,000 at any time outstanding or (iv)
any Permitted Refinancing of Indebtedness referred to in clause (i) or (ii) of this Section 6.1(g);

          (h) (i) Indebtedness of Company and the Guarantor Subsidiaries (A) assumed in connection with
any Permitted Acquisition; provided that such Indebtedness is not incurred in contemplation
of such Permitted Acquisition or (B) incurred to finance a Permitted Acquisition and (ii) any
Permitted Refinancing of the foregoing; provided, that in each case of clause (i) and (ii),
both immediately before and after giving effect to incurrence of such Indebtedness and, with
respect to clause (i), both immediately before and after the consummation of the relevant Permitted
Acquisition (x) no Event of Default shall have occurred and be continuing or would
result therefrom and (y) the Company will be in compliance with the financial maintenance
covenants set forth in Section 6.7 on a Pro Forma Basis as of the last day of the Fiscal Quarter
most recently ended;

          (i) (i) Limited Recourse Debt of any Restricted Subsidiary of the Company so long as the
proceeds of which are applied to (1) make Expansions after the Closing Date or (2) to develop or
construct any new Project and (ii) any Permitted Refinancing of the foregoing; provided
that, in each case, both immediately prior to and after giving effect thereto, (x) no Default or
Event of Default shall have occurred and be continuing or would result therefrom, and (y) the
Company will be in compliance with the covenants set forth in Section 6.7 on a Pro

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Forma Basis after giving effect to such Indebtedness as of the last day of the Fiscal Quarter most recently
ended;

          (j) Indebtedness of any Excluded Subsidiary to another Excluded Subsidiary and Indebtedness of
any Foreign Subsidiary to another Foreign Subsidiary; provided, that all such Indebtedness
shall be evidenced by the Intercompany Master Note;

          (k) Indebtedness incurred by Company or any of its Restricted Subsidiaries arising from
agreements providing for indemnification, adjustment of purchase price or similar obligations
incurred in connection with Permitted Acquisitions;

          (l) Indebtedness which may be deemed to exist pursuant to any guaranties, performance, surety,
statutory, appeal, bid, payment (other than payment of Indebtedness) or similar obligations
(including any bonds or Letters of Credit issued with respect thereto and all reimbursement and
indemnity agreements entered into in connection therewith) incurred in the ordinary course of
business;

          (m) Indebtedness in respect of netting services, overdraft protections and otherwise in
connection with deposit accounts;

          (n) (i) Indebtedness outstanding on the date hereof and listed on Schedule 6.1 and any
Permitted Refinancing thereof and (ii) Indebtedness of any Restricted Subsidiary which was
previously an Unrestricted Subsidiary, to the extent outstanding on its date of redesignation as a
Restricted Subsidiary in compliance with Section 5.14; provided that the recourse of the
holder or obligee of such Indebtedness is limited to the assets and Capital Stock of such
Restricted Subsidiary and its Subsidiaries;

          (o) (i) Indebtedness of Company or its Restricted Subsidiaries with respect to Capital Leases
entered into after the Closing Date and (ii) purchase money Indebtedness of Restricted Subsidiaries
of Company (excluding any Indebtedness acquired in connection with a Permitted Acquisition) in an
aggregate amount in the case of (i) and (ii) together not to exceed $75,000,000 at any time
outstanding; provided, in each case, that any purchase money Indebtedness (A) shall be
secured only by the asset acquired in connection with the incurrence of such Indebtedness, and (B)
shall constitute not less than 75% of the aggregate consideration paid with respect to such asset;

          (p) Company and its Restricted Subsidiaries may become and remain liable with respect to their
obligations to pay for services rendered by Holding to them under and in accordance with the
Corporate Services Reimbursement Agreement;

          (q) Company and its Restricted Subsidiaries may become and remain liable with respect to usual
and customary contingent obligations incurred in connection with insurance deductibles or
self-insurance retentions required by third party insurers in connection with insurance
arrangements entered into by Company and its Restricted Subsidiaries with such insurers in
compliance with Section 5.5;

          (r) Company and its Restricted Subsidiaries may become and remain liable with respect to
Performance Guaranties supporting Projects, provided, that (a) the terms of any

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such Performance Guaranty shall be generally consistent with past practice of Company and its Restricted
Subsidiaries, and (b) in no event shall any such Performance Guaranty be secured by collateral;

          (s) Company may become and remain liable with respect to Indebtedness consisting solely of its
obligations under Insurance Premium Financing Arrangements, which obligations shall not exceed at
any time $50,000,000 in the aggregate;

          (t) Company and its Restricted Subsidiaries may become and remain liable with respect to
Permitted Hedge Agreements and with respect to long-term or forward purchase contracts and option
contracts to buy, sell or exchange commodities and similar agreements or arrangements;

          (u) Company and its Restricted Subsidiaries may become and remain liable with respect to
contingent obligations incurred in exchange (or in consideration) for (i) the release of cash
collateral pledged by Company or its Restricted Subsidiaries or (ii) the return and cancellation of
undrawn letters of credit for which Company or its Restricted Subsidiaries are liable for
reimbursement;

          (v) Indebtedness of any Restricted Subsidiary of Company to Company reflecting non-cash
intercompany allocations of overhead and other parent-level costs in accordance with its customary
allocation practices;

          (w) (i) Indebtedness under the Outstanding ARC Notes and Outstanding MSW Notes, (ii)
Indebtedness with respect to any unpaid consent fee payable in connection with the Tender Offer and
Consent Solicitation and (iii) intercompany Indebtedness owed by any of the issuers of the
Outstanding ARC Notes and Outstanding MSW Notes or their respective parent Restricted Subsidiaries
to its parent Restricted Subsidiary or Company arising in connection with the downstreaming of
proceeds to enable the issuers to repay the Outstanding ARC Notes and Outstanding MSW Notes and pay
Transaction Costs; provided that all such Indebtedness under this clause (iii) shall be
evidenced by the Intercompany Master Note;

          (x) Permitted Subordinated Indebtedness (other than to Holding or any Unrestricted
Subsidiary), provided that (x) both immediately prior to and after giving effect thereto,
(1) no Default or Event of Default shall have occurred and be continuing or would result therefrom,
and (2) the Company will be in compliance with the covenants set forth in Section 6.7
on a Pro Forma Basis after giving effect to such Indebtedness as of the last day of the Fiscal
Quarter most recently ended, (y) the Weighted Average Life to Maturity of such Permitted
Subordinated Indebtedness shall be no shorter than the Weighted Average Life to Maturity of the
Term Loans, and (z) the maturity date of such Permitted Subordinated Indebtedness shall be later by
at least six months than the final maturity date of the Term Loans;

          (y) Additional unsecured Indebtedness of Company or any Guarantor Subsidiary, provided
that (w) the Leverage Ratio as of the last day of the Fiscal Quarter immediately preceding the date
of incurrence of such Indebtedness (determined on a Pro Forma Basis after giving effect to such
additional Indebtedness) shall not exceed the Reduced Leverage Ratio Amount applicable as of such
day, (x) both immediately prior to and after giving effect

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thereto, (1) no Default or Event of
Default shall have occurred and be continuing or would result therefrom, and (2) the Company will
be in compliance with the covenants set forth in Section 6.7 on a Pro Forma Basis after giving
effect to such Indebtedness as of the last day of the Fiscal Quarter most recently ended, (y) the
Weighted Average Life to Maturity of such additional Indebtedness shall be no shorter than the
Weighted Average Life to Maturity of the Term Loans, and (z) the maturity date of such additional
Indebtedness shall be later by at least six months than the final maturity date of the Term Loans;
and

          (z) Additional Indebtedness of Company and its Restricted Subsidiaries in an amount not to
exceed $100,000,000 in the aggregate at any time outstanding.

     To the extent that the creation, incurrence or assumption of any Indebtedness could be
attributable to more than one subsection of this Section 6.1, Company may allocate such
Indebtedness to any one or more of such subsections and in no event shall the same portion of
Indebtedness be deemed to utilize or be attributable to more than one item.

     6.2 Liens. Neither Company nor any Guarantor Subsidiary shall, and shall not permit any of its
Restricted Subsidiaries to, directly or indirectly, create, incur, assume or permit to exist any
Lien on or with respect to any property or asset of any kind (including any document or instrument
in respect of goods or accounts receivable) of Company or any of its Restricted Subsidiaries,
whether now owned or hereafter acquired, or any income or profits therefrom, except:

          (a) Liens in favor of Collateral Agent for the benefit of Secured Parties granted pursuant to
any Credit Document;

          (b) Liens for Taxes not yet due and payable or Taxes if obligations with respect to such Taxes
are being contested in good faith by appropriate proceedings promptly instituted and diligently
conducted;

          (c) statutory Liens of landlords, banks (and rights of set-off), of carriers, warehousemen,
mechanics, repairmen, workmen and materialmen, and other Liens imposed by law (other than any such
Lien imposed pursuant to Section 401 (a)(29) or 412(n) of the Internal Revenue Code or by ERISA),
in each case incurred in the ordinary course of business (i) for amounts not yet overdue or (ii)
for amounts that are overdue and that (in the case of any such amounts overdue for a period in
excess of ten days) are being diligently contested in good faith
by appropriate proceedings, so long as such reserves or other appropriate provisions, if any,
as shall be required by GAAP shall have been made for any such contested amounts;

          (d) Liens incurred and deposits made in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security, or to secure the
performance of tenders, statutory obligations, surety, performance, bid, payment and appeal bonds,
bids, leases, government contracts, trade contracts, performance and return-of-money bonds and
other similar obligations (exclusive of obligations for the payment of borrowed money) so long as
no foreclosure, sale or similar proceedings have been commenced with respect to any portion of the
Collateral on account thereof and Liens securing, or arising in connection with the establishment
of, required debt service reserve funds, provided that in the

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case of Liens securing debt
service reserve funds, completion obligations and similar accounts and obligations (other than
Indebtedness) of Restricted Subsidiaries of Company to Persons other than Company and its
Restricted Subsidiaries and their respective Affiliates, so long as (a) each such obligation is
associated with a Project, (b) such Lien is limited to (1) assets associated with such Project
(which in any event shall not include assets held by Company or any of its Restricted Subsidiaries
other than a Subsidiary whose sole business is the ownership and/or operation of such Project and
substantially all of whose assets are associated with such Project) and/or (2) the equity interests
in such Subsidiary, but in the case of clause (2) only if such Subsidiary’s sole business is the
ownership and/or operation of such Project and substantially all of such Subsidiary’s assets are
associated with such Project, and (c) such obligation is otherwise permitted under this Agreement;

          (e) easements, rights-of-way, restrictions, encroachments, and other minor defects or
irregularities in title, in each case which do not and will not interfere with the ordinary conduct
of the business of Company or any of its Restricted Subsidiaries;

          (f) any interest or title of a lessor or sublessor under any lease of real estate permitted
hereunder;

          (g) Liens solely on any cash earnest money deposits made by Company or any of its Restricted
Subsidiaries in connection with any letter of intent or purchase agreement permitted hereunder;

          (h) purported Liens evidenced by the filing of precautionary UCC financing statements relating
solely to operating leases of personal property entered into in the ordinary course of business;

          (i) Lien on Cash or Cash Equivalents to the extent used to secure principal and interest
payments to the extent required pursuant to indentures otherwise permitted hereunder and funded
with the proceeds of the issuance of notes thereunder;

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

          (k) any zoning or similar law or right reserved to or vested in any governmental office or
agency to control or regulate the use of any real property, in each case which do not and will not
interfere with or affect in any material respect the use, value or
operations of any Material Real Estate Asset or the ordinary conduct of the business of
Company or any of its Restricted Subsidiaries;

          (l) licenses of patents, trademarks and other intellectual property rights granted by Company
or any of its Restricted Subsidiaries in the ordinary course of business;

          (m) Liens described in Schedule 6.2;

          (n) Liens (i) arising under Capital Leases entered into after the Closing Date and (ii)
securing purchase money Indebtedness in an aggregate amount in the case of (i) and (ii) together
not to exceed at any time $75,000,000 at any time outstanding; provided, in each case,

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any such Lien shall encumber only the asset acquired in connection with the incurrence of such
Indebtedness;

          (o) Liens on assets of any Restricted Subsidiary of Company and/or on the stock or other
equity interests of such Subsidiary, in each case to the extent such Liens secure Limited Recourse
Debt of such Subsidiary permitted by Section 6.1(i) and Liens on assets of any Foreign Subsidiary
of Company constituting equity interests in a Joint Venture to the extent such Liens secure
Indebtedness of such Joint Venture in respect of a Project;

          (p) Liens created pursuant to Insurance Premium Financing Arrangements otherwise permitted
under this Agreement, so long as such Liens attach only to gross unearned premiums for the
insurance policies and related rights;

          (q) Liens securing Indebtedness permitted by Section 6.1(n), provided that in each
case the Liens securing any refinancing Indebtedness shall attach only to the assets that were
subject to Liens securing the Indebtedness so refinanced;

          (r) Liens securing Indebtedness permitted by Section 6.1(g) but only to the extent such Liens
are contemplated by Section 6.1(g);

          (s) rights and claims of creditors of Company and its Restricted Subsidiaries to the
bankruptcy reserve funds established in connection with the plan of reorganization in the
bankruptcy cases of Company and its Restricted Subsidiaries that became effective on March 10, 2004
and held in a designated account and paid into such account prior to the Closing Date pursuant to
such plan of reorganizations);

          (t) Liens on cash collateral of Company and its Restricted Subsidiaries securing insurance
deductibles or self-insurance retentions required by third party insurers in connection with (i)
workers’ compensation insurance arrangements entered into by Company and its Restricted
Subsidiaries with such insurers and (ii) other insurance arrangements entered into by Company and
its Restricted Subsidiaries with such insurers in an amount not to exceed $20,000,000 in the
aggregate;

          (u) Liens securing Indebtedness permitted by Section 6.1(h) on assets acquired (or on the
assets of Persons acquired) in the Permitted Acquisition financed with such Indebtedness but only
if such Liens existed at the time of such acquisition and were not created in contemplation of such
acquisition;

          (v) Liens securing Indebtedness permitted by Section 6.1(w)(i); and

          (w) other Liens on assets other than the Collateral securing Indebtedness in an aggregate
amount not to exceed $75,000,000 at any time outstanding and other Liens securing Indebtedness in
an aggregate amount not to exceed $5,000,000 at any time outstanding.

     6.3 No Further Negative Pledges. Except with respect to (a) property encumbered to secure
payment of particular Indebtedness or to be sold pursuant to an executed agreement with respect to
an asset sale permitted hereunder, (b) restrictions contained in leases and licenses that relate
only to the property or rights leased or licensed thereunder, (c) restrictions contained

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in any instrument, document or agreement to which any Person acquired by Company or a Restricted
Subsidiary in a Permitted Acquisition is a party, provided that such restrictions (A) were
not created in contemplation of such acquisition and (B) are not applicable to any Person, property
or assets other than the Persons so acquired (and its Subsidiaries), (d) restrictions by reason of
customary provisions restricting assignments, subletting or other transfers contained in leases,
licenses and similar agreements entered into in the ordinary course of business (provided
that such restrictions are limited to the property or assets secured by such Liens or the property
or assets subject to such leases, licenses or similar agreements, as the case may be), (e)
restrictions that are binding on a Restricted Subsidiary at the time such Restricted Subsidiary
first becomes a Restricted Subsidiary, so long as such restrictions were not entered into solely in
contemplation of such Person becoming a Restricted Subsidiary, (f) restrictions in agreements
evidencing Indebtedness permitted by Section 6.1(x), 6.1(y) or 6.1(z) to the extent such
restrictions are usual or customary in agreements evidencing Indebtedness of such types and do not
impair the Lien granted pursuant to the Credit Documents and the provisions of Sections 5.10, 5.11
and 5.12 of this Agreement and Section 5 of the Pledge and Security Agreement and the Holding
Pledge Agreement, and (g) provisions in the principal lease, service and operating agreements
pertaining to Projects or the partnership and financing agreements relating to Projects, or any
extension, renewal or replacement thereof so long as in each case such lease, service, operating,
partnership or financing agreement is in effect as of the Closing Date, is otherwise permitted to
be entered into hereunder and, in the case of any extension, renewal or replacement, such agreement
contains no more restrictive provisions relating to prohibiting the creation or assumption of any
Lien upon the properties or assets of the relevant Subsidiary than the lease, service, operating,
partnership or financing agreement so extended, renewed or replaced, Company and its Restricted
Subsidiaries shall not, and shall not permit any of their Restricted Subsidiaries to, enter into
any agreement prohibiting the creation or assumption of any Lien upon any of its properties or
assets, whether now owned or hereafter acquired.

     6.4 Restricted Junior Payments. Neither Company nor any Guarantor Subsidiary shall, nor shall it
permit any of its Restricted Subsidiaries to, directly or indirectly, declare or make any
Restricted Junior Payment except that:

          (a) so long as no Event of Default pursuant to Section 8.1(a) shall have occurred and be
continuing, Company may make payments to Holding to the extent required under the Corporate
Services Reimbursement Agreement and Company may reimburse Holding for the fees and reasonable
costs and expenses paid or payable by Holding within 180 days of the
Closing Date in connection with the Transactions and Company may reimburse Holding for the
fees and reasonable costs and expenses paid or payable by Holding related to any unsuccessful
equity or debt offering of Holding or unsuccessful proposed Permitted Acquisition or Investment;

          (b) Company and its Restricted Subsidiaries may make payments required under the Holding Tax
Sharing Agreement; provided, that in no event shall the amount paid by Company and its
Subsidiaries exceed the consolidated tax liabilities that would be payable if Company and its
Subsidiaries filed a consolidated tax return with Company as the parent company;

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          (c) Company may make Restricted Junior Payments to Holding in order to allow Holding to (i)
make regularly scheduled payments of interest in respect of (A) the Convertible Debentures and (B)
Indebtedness of Holding incurred after the Closing Date the proceeds of which are used to make a
Holding Capital Contribution, and (ii) make mandatory prepayments or redemptions (including payment
of premium) of, make payments in connection with the exercise by holders of conversion rights with
respect to, or repay at maturity the Convertible Debentures or any Indebtedness referred to in
clause (i)(B) above; provided that the amounts used to make such payments referred to in
this Section 6.4(c)(ii) are paid solely from the proceeds of Indebtedness incurred pursuant to
Section 6.1(x) or Section 6.1(y) or Additional Term Loans;

          (d) Company may make Restricted Junior Payments to Holding in order to allow Holding to fund
regulatory capital or other requirements relating to the Insurance Subsidiaries of Holding in an
aggregate amount not to exceed $10,000,000 in any Fiscal Year; provided that (i) no Default
or Event of Default shall have occurred and be continuing or shall be caused thereby and (ii)
Company and its Restricted Subsidiaries shall be in compliance with the financial covenants set
forth in Section 6.7 on a Pro Forma Basis after giving effect to such payment as of the last day of
the Fiscal Quarter most recently ended; and

          (e) so long as no Default or Event of Default shall have occurred and be continuing or would
be caused thereby, Company may make additional Restricted Junior Payments to Holding, the proceeds
of which may be utilized by Holding to make additional Restricted Junior Payments or otherwise, in
an aggregate amount not to exceed the sum of (i) $100,000,000 in any Fiscal Year (with any unused
amounts accumulating on a cumulative basis to each subsequent Fiscal Year), (ii) the aggregate
amount of Holding Capital Contributions that are Not Otherwise Applied, and (iii) if the Leverage
Ratio as of the last day of the immediately preceding Fiscal Quarter (determined on a Pro Forma
Basis after giving effect to such additional Restricted Junior Payments) does not exceed Reduced
Leverage Ratio Amount applicable as of such day, the amount of Cumulative Excess Cash Flow that is
Not Otherwise Applied, provided that for the purposes of this Agreement, “Cumulative Excess
Cash Flow” means the sum of Excess Cash Flow (but not less than zero in any period) for the Fiscal
Year ending on December 31, 2007, and Excess Cash Flow for each succeeding and completed Fiscal
Year.

     6.5 Restrictions on Subsidiary Distributions. Except as provided herein or any document,
instrument or agreement entered into in connection with a replacement or refinancing of any of the
foregoing permitted hereunder, neither Company nor any
Guarantor Subsidiary shall, nor shall it permit any of its Restricted Subsidiaries to, create
or otherwise cause or suffer to exist or become effective any consensual encumbrance or restriction
of any kind on the ability of any Restricted Subsidiary of Company to (a) pay dividends or make any
other distributions on any of such Subsidiary’s Capital Stock owned by Company or any other
Restricted Subsidiary of Company, (b) repay or prepay any Indebtedness owed by such Subsidiary to
Company or any other Restricted Subsidiary of Company, (c) make loans or advances to Company or any
other Restricted Subsidiary of Company, or (d) transfer any of its property or assets to Company or
any other Restricted Subsidiary of Company other than restrictions that are of the type set forth
in clauses (a) through (d) above (i) in agreements evidencing Indebtedness (A) solely with respect
to Indebtedness incurred by Company, permitted by Section 6.1(x), 6.1(y) or 6.1(z) to the

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extent such restrictions are usual or customary in agreements evidencing Indebtedness of such type or (B)
permitted by Section 6.1(i), 6.1(n) or 6.1(o) that impose restrictions on the property so acquired,
(ii) by reason of customary provisions restricting assignments, subletting or other transfers
contained in leases, licenses, joint venture agreements and similar agreements, (iii) by reason of
provisions in the principal lease, service or operating agreements, partnership agreements and
financing agreements pertaining to Projects, so long as such lease, service or operating
agreements, partnership agreements and financing agreements are extensions, renewals or
replacements of such agreements are in effect as of the Closing Date, are otherwise permitted to be
entered into hereunder and, in each case of any extensions, renewals or replacements, contain no
more restrictive provisions relating to the ability of the relevant Subsidiary to take the actions
described in clauses (a) through (d) than the agreement so extended, renewed or replaced, (iv) that
are or were created by virtue of any transfer of, agreement to transfer or option or right with
respect to any property, assets or Capital Stock not otherwise prohibited under this Agreement, (v)
contained in agreements relating to an asset sale permitted hereunder (or to which Requisite
Lenders have consented) (provided that such restrictions only apply to the assets that are
the subject of such a sale), (vi) contained in agreements relating the sale or disposition of all
of the equity interests of a Subsidiary permitted hereunder (or to which the Requisite Lenders have
consented) (provided that such restrictions only apply to the Subsidiary being sold or
disposed of and its Subsidiaries), (vii) until such time as all the ARC Notes have been
successfully redeemed or covenant defeased, under the ARC Indenture, (viii) until such time as all
the MSW Notes have been successfully redeemed or covenant defeased, under the MSW Indentures, (ix)
that are binding on a Restricted Subsidiary at the time such Restricted Subsidiary first becomes a
Restricted Subsidiary, so long as such restrictions were not entered into solely in contemplation
of such Person becoming a Restricted Subsidiary, or (x) by reason of provisions in any instrument,
document or agreement to which any Person acquired by Company or a Restricted Subsidiary in a
Permitted Acquisition is a party, provided that such restrictions (A) were not created in
contemplation of such acquisition and (B) are not applicable to any Person, property or assets
other than the Person (and such Person’s Subsidiaries) so acquired and their respective properties
and assets. No Credit Party shall, nor shall it permit any of its Restricted Subsidiaries, to
enter into any immaterial Contractual Obligation on or after the Closing Date which would prohibit
a Subsidiary of Company becoming a Credit Party.

     6.6 Investments. Neither Company nor any Guarantor Subsidiary shall, nor shall it permit any of
its Restricted Subsidiaries to, directly or indirectly, make or own any Investment in any Person,
including without limitation any Joint Venture, except:

          (a) Investments in Cash and Cash Equivalents (determined when such Investment was made) and,
to the extent made in connection therewith, Investments permitted or imposed under the terms of any
cash collateral or debt service reserve agreement (including pursuant to the terms of any Project
bond indenture) permitted hereunder;

          (b) equity Investments owned as of the Closing Date in any Restricted Subsidiary (and any
modification, renewal, reinvestment or extension thereof; provided that the amount of the
original Investment is not increased except pursuant to the terms of such original Investment) and
Investments made after the Closing Date in any Guarantor Subsidiaries of Company;

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          (c) Investments (i) in any Securities or instruments received in satisfaction or partial
satisfaction thereof from financially troubled account debtors, (ii) received in settlement of
disputes or as consideration in any asset sale or other disposition permitted hereunder and (iii)
constituting deposits, prepayments and other credits to suppliers made in the ordinary course of
business consistent with the past practices of Company and its Restricted Subsidiaries;

          (d) intercompany loans and advances to the extent permitted under Section 6.1(b), 6.1(c),
6.1(d)(i), 6.1(f), 6.1(j) or 6.1(w)(iii);

          (e) (i) Investments by a Restricted Subsidiary of Company constituting Consolidated Capital
Expenditures by such Subsidiary permitted by Section 6.7(b) and (ii) Investments by Company or any
Guarantor Subsidiary in any Restricted Subsidiary (other than any Guarantor Subsidiary), which are
used solely to fund Investments by such Restricted Subsidiary, but only to the extent the proceeds
of each such Investment are used by the Restricted Subsidiary ultimately receiving the proceeds of
such Investments to make further Investments which are expressly permitted under clause (e), (f),
(j), (l), (m) or (o) of this Section 6.6;

          (f) Investments made in connection with Permitted Acquisitions permitted pursuant to Section
6.8;

          (g) (i) Investments described in Schedule 6.6(g) (and any modification, renewal, reinvestment
or extension thereof; provided that the amount of the original Investment is not increased
except pursuant to the terms of such original Investment) and (ii) Investments by a Restricted
Subsidiary which was formerly an Unrestricted Subsidiary to the extent owned by it as of its date
of redesignation in compliance with Section 5.14;

          (h) Company and its Restricted Subsidiaries may become and remain liable with respect to
contingent obligations consisting of long-term or forward purchase contracts and option contracts
to buy, sell or exchange commodities and similar agreements or arrangements, so long as such
contracts, agreements or arrangements do not constitute Commodities Agreements;

          (i) Foreign Subsidiaries may make equity Investments in other Foreign Subsidiaries and
Excluded Subsidiaries may make equity Investments in other Excluded Subsidiaries which are their
direct or indirect Subsidiaries;

          (j) to the extent no Default or Event of Default shall have occurred and be continuing at the
time the same are made or shall be caused thereby, (i) equity Investments in Foreign Subsidiaries
and Excluded Subsidiaries by Company or any Guarantor Subsidiary to provide such Subsidiary with
equity capitalization necessary or advisable in connection with a Project (or any Expansion
thereof) of such Subsidiary in an amount not to exceed 30% of the amount of Limited Recourse Debt
that such Subsidiary is permitted to incur under (or has already incurred in reliance on) Section
6.1(i), (ii) equity Investments in Restricted Subsidiaries by Company or any Subsidiary to provide
such Subsidiary with equity capitalization necessary or advisable in connection with the making of
Permitted Acquisitions and (iii) equity Investments in Unrestricted Subsidiaries by Company or any
Restricted Subsidiary in an

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aggregate amount not to exceed $50,000,000 in any Fiscal Year (with any
unused amounts accumulating on a cumulative basis to each subsequent Fiscal Year);

          (k) Investments of Persons acquired in a Permitted Acquisition that existed at the time of
such acquisition;

          (l) Investments in any Joint Venture (in its Capital Stock or otherwise) not to exceed
$200,000,000 at any time outstanding; provided that if any Investment pursuant to this
clause (l) is made in any Person that is not a Subsidiary of Company at the date of the making of
such Investment and such Person becomes a Subsidiary of Company after such date, such Investment
shall, only to the extent such Investment may be made pursuant to clause (f) of this Section 6.6 at
the time such Person becomes a Subsidiary, thereafter be deemed to have been made pursuant to
clause (f) of this Section 6.6 and shall cease to have been made pursuant to this clause (l) for so
long as such Person continues to be a Subsidiary of Company;

          (m) Investments described on Schedule 6.6(m) (and any modification, renewal, reinvestment or
extension thereof; provided that the amount of the original Investment is not increased
except pursuant to the terms of such original Investment or in accordance with the other provisions
of this Section 6.6);

          (n) redemptions, repurchases, acquisitions or other retirement for value of the Outstanding
ARC Notes and Outstanding MSW Notes; and

          (o) other Investments in an aggregate amount not to exceed (net of any cash return of capital
received by Company or Restricted Subsidiary in respect of any such Investments) in any Fiscal Year
$75,000,000 plus the aggregate amount of (i) Holding Capital Contribution that are Not Otherwise
Applied and (ii) Cumulative Excess Cash Flow that is Not Otherwise Applied; provided, that
such amount for any Fiscal Year shall be increased by an amount equal to the excess, if any, of
such amount for the previous Fiscal Year (after giving effect to any adjustment in accordance with
this proviso for such Fiscal Year) over the actual amount of Investments made during such previous
Fiscal Year pursuant to this clause (o).

     Notwithstanding the foregoing, in no event shall any of Company or any of its Restricted
Subsidiaries make any Investment which results in or facilitates in any manner any Restricted
Junior Payment not otherwise permitted under the terms of Section 6.4.

     To the extent that the making of any Investment could be deemed a use of more than one
subsection of this Section 6.6, Company may select the subsection to which such Investment will be
deemed a use and in no event shall the same portion of an Investment be deemed a use of more than
one subsection.

     6.7 Financial Covenants.

          (a) Leverage Ratio. Company shall not permit the Leverage Ratio as of the last day of
any Fiscal Quarter, beginning with the Fiscal Quarter ending June 30, 2007, to exceed the
correlative ratio indicated:

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	Fiscal Quarter	 	Leverage Ratio
	June 30, 2007
	 	4.50:1.00
	 	 	 
	September 30, 2007
	 	4.50:1.00
	 	 	 
	December 31, 2007
	 	4.25:1.00
	 	 	 
	March 31, 2008
	 	4.25:1.00
	 	 	 
	June 30, 2008
	 	4.25:1.00
	 	 	 
	September 30, 2008
	 	4.25:1.00
	 	 	 
	December 31, 2008
	 	4.00:1.00
	 	 	 
	March 31, 2009
	 	4.00:1.00
	 	 	 
	June 30, 2009
	 	4.00:1.00
	 	 	 
	September 30, 2009
	 	4.00:1.00
	 	 	 
	December 31, 2009
	 	3.75:1.00
	 	 	 
	March 31, 2010
	 	3.75:1.00
	 	 	 
	June 30, 2010
	 	3.75:1.00
	 	 	 
	September 30, 2010
	 	3.75:1.00
	 	 	 
	Thereafter
	 	3.50:1.00

          (b) Maximum Consolidated Capital Expenditures. Company shall not make or incur, and
shall not permit its Restricted Subsidiaries to make or incur, any Consolidated Capital
Expenditures in an aggregate amount in excess of $100,000,000 in any Fiscal Year; provided,
(i) such amount for any Fiscal Year shall be increased by an amount equal to the excess, if any, of
such amount for the previous Fiscal Year (after giving effect to any adjustment in accordance with
this proviso) over the actual amount of Consolidated Capital Expenditures for such previous Fiscal
Year; (ii) the Company may increase such amount by an amount equal to the aggregate amount of (1)
Holding Capital Contribution that are Not Otherwise Applied and (2) Cumulative Excess Cash Flow
that is Not Otherwise Applied; and (iii) the Company may increase such amount for any Fiscal Year
by an amount equal to 50% of the total amount of Consolidated Capital Expenditures permitted to be
made during the succeeding Fiscal Year to the extent that the amount of such excess is deducted
from the amount available in the succeeding Fiscal Year (without giving effect to prior
adjustments); provided that the amount of Consolidated Capital Expenditures permitted to be
made in respect of any Fiscal Year shall be

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increased after the consummation of any Permitted
Acquisition in an amount equal to 10% of the pro forma aggregate consolidated revenues of the
acquired Person so acquired during the fiscal year of such Person beginning after such Permitted
Acquisition.

          (c) Interest Coverage Ratio. Company shall not permit the Interest Coverage Ratio as
of the last day of any Fiscal Quarter, beginning with the Fiscal Quarter ending June 30, 2007, to
be less than 3.00:1.00.

     6.8 Fundamental Changes; Disposition of Assets; Acquisitions. Neither Company nor any Guarantor
Subsidiary shall, nor shall it permit any of its Restricted Subsidiaries to, enter into any
transaction of merger or consolidation, or liquidate, wind-up or dissolve itself (or suffer any
liquidation or dissolution), or convey, sell, lease or sub-lease (as lessor or sublessor),
exchange, transfer or otherwise dispose of, in one transaction or a series of transactions, all or
any part of its business, assets or property of any kind whatsoever, whether real, personal or
mixed and whether tangible or intangible, whether now owned or hereafter acquired, or acquire by
purchase or otherwise (other than purchases or other acquisitions of inventory, materials and
equipment and Consolidated Capital Expenditures in the ordinary course of business) the business,
or stock or other evidence of beneficial ownership of, any Person or business unit of any Person,
except:

          (a) any Restricted Subsidiary of Company may be merged with or into Company or any Guarantor
Subsidiary, or be liquidated, wound up or dissolved, or all or any part of its business, property
or assets may be conveyed, sold, leased, transferred or otherwise disposed of, in one transaction
or a series of transactions, to Company or any Guarantor Subsidiary; provided, in the case
of such a merger, Company or such Guarantor Subsidiary, as applicable shall be the continuing or
surviving Person. In addition, any Restricted Subsidiary of Company that is not a Guarantor may be
merged with or into any other Restricted Subsidiary of Company that is not a Guarantor which is its
direct parent or Subsidiary, or all or any part of its business, property or assets may be
conveyed, sold, leased, transferred or otherwise disposed of, in one transaction or a series of
transactions, to any other Restricted Subsidiary of Company that is not a Guarantor and which is
its direct parent or Subsidiary;

          (b) sales or other dispositions of assets that do not constitute Asset Sales; and

          (c) Asset Sales, the Net Asset Sale Proceeds of which when aggregated with the proceeds of all
other Asset Sales made within the same Fiscal Year, do not exceed $50,000,000 and the sale or other
dispositions of those assets identified on Schedule 6.8; provided (1) the consideration
received for such assets shall be in an amount at least equal to the fair market value thereof, (2)
no less than 80% thereof shall be paid in Cash (which limitation shall not apply to the sale or
offer disposition of assets identified on Schedule 6.8-A), and (3) the Net Asset Sale Proceeds
thereof shall be applied as required by Section 2.14(a) to the extent required thereby;

          (d) Excluded Asset Sales;

          (e) (i) Permitted Acquisitions by Company or by any Guarantor Subsidiary of a Person which
becomes a Guarantor Subsidiary; (ii) Permitted Acquisition by Company or by

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any Restricted Subsidiary of a Person which does not become a Guarantor Subsidiary to the extent the consideration
does not exceed $500,000,000 in the aggregate plus the aggregate amount of (A) Holding Capital
Contribution that are Not Otherwise Applied and (B) Cumulative Excess Cash Flow that is Not
Otherwise Applied and (iii) acquisitions by Company of assets contributed to it by Holding as
equity capital contributions;

          (f) acquisitions of real property that is contiguous to real property owned by Company or its
Restricted Subsidiaries at such time; so long as such acquisition is either (i) by Company or any
Guarantor Subsidiary, or (ii) if not within clause (i) of this provision, is either (A) financed
with the proceeds of Limited Recourse Debt and/or the proceeds of an Investment pursuant to Section
6.6(j) or (B) consummated for consideration in an aggregate amount (together with any other
acquisitions made in reliance on this Section 6.8(f)(ii)(B) following the Closing Date) not to
exceed $90,000,000;

          (g) the Foreign Subsidiary restructuring described on Schedule 6.8-B; and

          (h) Investments permitted under Section 6.6.

     6.9 Disposal of Subsidiary Interests. Except for any sale of all of its interests in the Capital
Stock of any of its Restricted Subsidiaries in compliance with the provisions of Section 6.8,
neither Company nor any Guarantor Subsidiary shall, nor shall it permit any of its Restricted
Subsidiaries to, (a) directly or indirectly sell, assign, pledge or otherwise encumber or dispose
of any Capital Stock of any of its Guarantor Subsidiaries, except to qualify directors if required
by applicable law; or (b) directly or indirectly to sell or otherwise dispose of any Capital Stock
of any of its Restricted Subsidiaries, except to Company or Guarantor Subsidiary (subject to the
restrictions on such disposition otherwise imposed hereunder), or to qualify directors if required
by applicable law. Notwithstanding the foregoing, (a) Excluded Subsidiaries may transfer Capital
Stock in any of its Subsidiaries to other wholly-owned Excluded Subsidiaries and (b) Foreign
Subsidiaries may transfer Capital Stock in any of its Subsidiaries to other wholly-owned Foreign
Subsidiaries.

     6.10 Transactions with Shareholders and Affiliates. Neither Company nor any Guarantor Subsidiary
shall, nor shall it permit any of its Restricted Subsidiaries to,
directly or indirectly, enter into or permit to exist any transaction (including the purchase,
sale, lease or exchange of any property or the rendering of any service) with any Affiliate, on
terms that are less favorable to Company or such Restricted Subsidiary, as the case may be, than
those that might be obtained at the time from a Person who is not an Affiliate; provided,
the foregoing restriction shall not apply to (a) any transaction among Credit Parties or any
Restricted Subsidiary or any entity that becomes a Restricted Subsidiary as a result of such
transaction; (b) reasonable and customary fees paid to members of the board of directors (or
similar governing body) of Company and its Restricted Subsidiaries; (c) compensation arrangements
for officers and other employees of Company and its Subsidiaries entered into in the ordinary
course of business; (d) payments (and other transactions) (i) made in accordance with the terms of
the Holding Tax Sharing Agreement, and the Corporate Services Reimbursement Agreement or (ii)
otherwise expressly permitted under Section 6; (e) transactions described in Schedule 6.10 and (f)
reasonable and customary indemnifications and insurance arrangements for the benefit of Persons
that are officers or members of the boards of directors (or similar governing bodies) of

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Company and its Restricted Subsidiaries, whether such Persons are current or former officers or members at
the time such indemnifications or arrangements are entered into, provided that such
indemnifications and arrangements are entered into at arms’ length and on terms that are no less
favorable to Company or such Subsidiary, as the case may be, than those that would have been
obtained at the relevant time from Persons who are not Affiliates.

     6.11 Conduct of Business. From and after the Closing Date, neither Holding nor Company nor any
Guarantor Subsidiary shall, nor shall it permit any of its Restricted Subsidiaries to, engage in
any business other than (i) the businesses engaged in by Holding, Company or any Restricted
Subsidiary on the Closing Date and similar or related businesses (including the establishment,
construction, acquisition and operation of Projects and ash recycling, scrap metal processing,
waste haulings, transportation, collection and landfills) and (ii) such other lines of business as
may be consented to by Requisite Lenders.

     6.12 Amendments or Waivers of Certain Agreements. (a) Neither Company nor any Guarantor
Subsidiary shall, nor shall it permit any of its Restricted Subsidiaries to, agree to any material
amendment, restatement, supplement or other modification to, or waiver of, any of its material
rights under any of the principal documents relating to Limited Recourse Debt with respect to a
Project after the Closing Date if such amendment, restatement, modification or waiver, together
with all other amendments, restatements, modifications and waivers made, would reasonably be
expected to have a Material Adverse Effect; without obtaining the prior written consent of
Requisite Lenders to such amendment, restatement, supplement or other modification or waiver.

          (b) Holding shall not amend or otherwise change the terms of the Convertible Debentures if the
effect of such amendment or change is to increase the interest rate on such Convertible Debentures,
change (to earlier dates) any dates upon which payments in respect of principal or interest are due
thereon, change the redemption, prepayment or defeasance provisions thereof (including changing the
cash settled portion, but expressly not any net share settled portion), change any event of default
or condition to an event of default with respect thereto (other than to eliminate any such event of
default, increase any grace period related
thereto or otherwise make such event of default or condition less restrictive or burdensome on
Holding) or if the effect of such amendment or change, together with all other amendments or
changes made, is to increase materially the obligations of Holding thereunder or to confer any
additional rights on the holders of such Convertible Debentures (or a trustee or other
representative on their behalf) which would be materially adverse to Lenders; provided
however, that for the avoidance of doubt this Section 6.12 shall not prohibit any payment
of the Convertible Debentures permitted by Section 6.4(c).

          (c) Neither Company nor any Guarantor Subsidiary shall amend, modify or change in any manner
materially adverse to the interests of the Lenders any term or condition of the Holding Tax Sharing
Agreement and the Corporate Services Reimbursement Agreement without obtaining the prior written
consent of Requisite Lenders.

     6.13 Fiscal Year. No Credit Party shall, nor shall it permit any of its Restricted Subsidiaries
to change its Fiscal Year-end from December 31.

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     6.14 Hedge Agreements. Neither Company nor any Guarantor Subsidiary shall, nor shall it permit
any of its Restricted Subsidiaries to, enter into any Hedge Agreement other than Permitted Hedge
Agreements entered into in the ordinary course of business, and not for speculative purposes, to
protect against changes in interest rates, commodity prices or foreign exchange rates.

SECTION 7. GUARANTY

     7.1 Guaranty of the Obligations. Subject to the provisions of Section 7.2, Guarantors jointly
and severally hereby irrevocably and unconditionally guaranty to Administrative Agent for the
ratable benefit of the Beneficiaries the due and punctual payment in full of all Obligations when
the same shall become due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including amounts that would become due but for the operation of
the automatic stay under Section 362(a) of the Bankruptcy Code, 11 U.S.C. § 362(a)) (collectively,
the “Guaranteed Obligations”).

     7.2 Contribution by Guarantors. All Guarantors desire to allocate among themselves
(collectively, the “Contributing Guarantors”), in a fair and equitable manner, their obligations
arising under this Guaranty. Accordingly, in the event any payment or distribution is made on any
date by a Guarantor (a “Funding Guarantor”) under this Guaranty such that its Aggregate Payments
exceeds its Fair Share as of such date, such Funding Guarantor shall be entitled to a contribution
from each of the other Contributing Guarantors in an amount sufficient to cause each Contributing
Guarantor’s Aggregate Payments to equal its Fair Share as of
such date. “Fair Share” means, with
respect to a Contributing Guarantor as of any date of determination, an amount equal to (a) the
ratio of (i) the Fair Share Contribution Amount with respect to such Contributing Guarantor to (ii)
the aggregate of the Fair Share Contribution Amounts with respect to all Contributing Guarantors
multiplied by (b) the aggregate amount paid or distributed on or before such date by all Funding
Guarantors under this Guaranty in respect of the obligations
Guaranteed. “Fair Share Contribution
Amount” means, with respect to a Contributing
Guarantor as of any date of determination, the maximum aggregate amount of the obligations of
such Contributing Guarantor under this Guaranty that would not render its obligations hereunder or
thereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title
11 of the United States Code or any comparable applicable provisions of state law;
provided, solely for purposes of calculating the “Fair
Share Contribution Amount” with
respect to any Contributing Guarantor for purposes of this Section 7.2, any assets or liabilities
of such Contributing Guarantor arising by virtue of any rights to subrogation, reimbursement or
indemnification or any rights to or obligations of contribution hereunder shall not be considered
as assets or liabilities of such Contributing Guarantor.
“Aggregate Payments” means, with respect
to a Contributing Guarantor as of any date of determination, an amount equal to (1) the aggregate
amount of all payments and distributions made on or before such date by such Contributing Guarantor
in respect of this Guaranty (including, without limitation, in respect of this Section 7.2), minus
(2) the aggregate amount of all payments received on or before such date by such Contributing
Guarantor from the other Contributing Guarantors as contributions under this Section 7.2. The
amounts payable as contributions hereunder shall be determined as of the date on which the related
payment or distribution is made by the applicable Funding Guarantor. The allocation among
Contributing Guarantors of their obligations as set forth in this Section 7.2 shall not be
construed in any way to limit the liability

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of any Contributing Guarantor hereunder. Each
Guarantor is a third party beneficiary to the contribution agreement set forth in this Section 7.2.

     7.3 Payment by Guarantors. Subject to Section 7.2, Guarantors hereby jointly and severally agree,
in furtherance of the foregoing and not in limitation of any other right which any Beneficiary may
have at law or in equity against any Guarantor by virtue hereof, that upon the failure of Company
to pay any of the Guaranteed Obligations when and as the same shall become due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or otherwise (including amounts
that would become due but for the operation of the automatic stay under Section 362(a) of the
Bankruptcy Code, 11 U.S.C. § 362(a)), Guarantors will upon demand pay, or cause to be paid, in
Cash, to Administrative Agent for the ratable benefit of Beneficiaries, an amount equal to the sum
of the unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and
unpaid interest on such Guaranteed Obligations (including interest which, but for Company’s
becoming the subject of a case under the Bankruptcy Code, would have accrued on such Guaranteed
Obligations, whether or not a claim is allowed against Company for such interest in the related
bankruptcy case) and all other Guaranteed Obligations then owed to Beneficiaries as aforesaid.

     7.4 Liability of Guarantors Absolute. Each Guarantor agrees that its obligations hereunder are
irrevocable, absolute, independent and unconditional and shall not be affected by any circumstance
which constitutes a legal or equitable discharge of a guarantor or surety other than payment in
full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting the
generality thereof, each Guarantor agrees as follows:

          (a) this Guaranty is a guaranty of payment when due and not of collectibility. This Guaranty
is a primary obligation of each Guarantor and not merely a contract of surety;

          (b) Administrative Agent may enforce this Guaranty upon the occurrence and during the
continuance of an Event of Default notwithstanding the existence of any dispute between Company and
any Beneficiary with respect to the existence of such Event of Default;

          (c) the obligations of each Guarantor hereunder are independent of the obligations of Company
and the obligations of any other guarantor (including any other Guarantor) of the obligations of
Company, and a separate action or actions may be brought and prosecuted against such Guarantor
whether or not any action is brought against Company or any of such other guarantors and whether or
not Company is joined in any such action or actions;

          (d) payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in
no way limit, affect, modify or abridge any Guarantor’s liability for any portion of the Guaranteed
Obligations which has not been paid. Without limiting the generality of the foregoing, if
Administrative Agent is awarded a judgment in any suit brought to enforce any Guarantor’s covenant
to pay a portion of the Guaranteed Obligations, such judgment shall not be deemed to release such
Guarantor from its covenant to pay the portion of the Guaranteed Obligations that is not the
subject of such suit, and such judgment shall not, except to the extent satisfied by such
Guarantor, limit, affect, modify or abridge any other Guarantor’s liability hereunder in respect of
the Guaranteed Obligations;

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          (e) any Beneficiary, upon such terms as it deems appropriate, without notice or demand and
without affecting the validity or enforceability hereof or giving rise to any reduction,
limitation, impairment, discharge or termination of any Guarantor’s liability hereunder, from time
to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change
the time, place, manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise,
release or discharge, or accept or refuse any offer of performance with respect to, or
substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate
the payment of the same to the payment of any other obligations; (iii) request and accept other
guaranties of the Guaranteed Obligations and take and hold security for the payment hereof or the
Guaranteed Obligations; (iv) release, surrender, exchange, substitute, compromise, settle, rescind,
waive, alter, subordinate or modify, with or without consideration, any security for payment of the
Guaranteed Obligations, any other guaranties of the Guaranteed Obligations, or any other obligation
of any Person (including any other Guarantor) with respect to the Guaranteed Obligations; (v)
enforce and apply any security now or hereafter held by or for the benefit of such Beneficiary in
respect hereof or the Guaranteed Obligations and direct the order or manner of sale thereof, or
exercise any other right or remedy that such Beneficiary may have against any such security, in
each case as such Beneficiary in its discretion may determine consistent herewith or the applicable
Permitted Hedge Agreement and any applicable security agreement, including foreclosure on any such
security pursuant to one or more judicial or nonjudicial sales, whether or not every aspect of any
such sale is commercially reasonable, and even though such action operates to impair or extinguish
any right of reimbursement or subrogation or other right or remedy of any Guarantor against Company
or any security for the Guaranteed Obligations; and (vi) exercise any other rights available to it
under the Credit Documents or the Permitted Hedge Agreements; and

          (f) this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable
and shall not be subject to any reduction, limitation, impairment, discharge or
termination for any reason (other than payment in full of the Guaranteed Obligations),
including the occurrence of any of the following, whether or not any Guarantor shall have had
notice or knowledge of any of them: (i) any failure or omission to assert or enforce or agreement
or election not to assert or enforce, or the stay or enjoining, by order of court, by operation of
law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or
remedy (whether arising under the Credit Documents or the Permitted Hedge Agreements, at law, in
equity or otherwise) with respect to the Guaranteed Obligations or any agreement relating thereto,
or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations;
(ii) any rescission, waiver, amendment or modification of, or any consent to departure from, any of
the terms or provisions (including provisions relating to events of default) hereof, any of the
other Credit Documents, any of the Permitted Hedge Agreements or any agreement or instrument
executed pursuant thereto, or of any other guaranty or security for the Guaranteed Obligations, in
each case whether or not in accordance with the terms hereof or such Credit Document, such
Permitted Hedge Agreement or any agreement relating to such other guaranty or security; (iii) the
Guaranteed Obligations, or any agreement relating thereto, at any time being found to be illegal,
invalid or unenforceable in any respect; (iv) the application of payments received from any source
(other than payments received pursuant to the Credit Documents or any of the Permitted Hedge
Agreements or from the proceeds of any security for the Guaranteed Obligations, except to the
extent such security also serves as collateral for Indebtedness other
than the Guaranteed Obligations) to the payment of Indebtedness other than

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the Guaranteed Obligations, even though any
Beneficiary might have elected to apply such payment to any part or all of the Guaranteed
Obligations; (v) any Beneficiary’s consent to the change, reorganization or termination of the
corporate structure or existence of Holding or any of its Subsidiaries and to any corresponding
restructuring of the Guaranteed Obligations; (vi) any failure to perfect or continue perfection of
a security interest in any collateral which secures any of the Guaranteed Obligations; (vii) any
defenses, set-offs or counterclaims which Company may allege or assert against any Beneficiary in
respect of the Guaranteed Obligations, including failure of consideration, breach of warranty,
payment, statute of frauds, statute of limitations, accord and satisfaction and usury; and (viii)
any other act or thing or omission, or delay to do any other act or thing, which may or might in
any manner or to any extent vary the risk of any Guarantor as an obligor in respect of the
Guaranteed Obligations.

     7.5 Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of Beneficiaries: (a)
any right to require any Beneficiary, as a condition of payment or performance by such Guarantor,
to (i) proceed against Company, any other guarantor (including any other Guarantor) of the
Guaranteed Obligations or any other Person, (ii) proceed against or exhaust any security held from
Company, any such other guarantor or any other Person, (iii) proceed against or have resort to any
balance of any Deposit Account or credit on the books of any Beneficiary in favor of Company or any
other Person, or (iv) pursue any other remedy in the power of any Beneficiary whatsoever; (b) any
defense arising by reason of the incapacity, lack of authority or any disability or other defense
of Company or any other Guarantor including any defense based on or arising out of the lack of
validity or the unenforceability of the Guaranteed Obligations or any agreement or instrument
relating thereto or by reason of the cessation of the liability of Company or any other Guarantor
from any cause other than payment in full of the Guaranteed Obligations; (c) any defense based upon
any statute or rule of law which provides that the obligation of a surety must be neither larger in
amount nor in other
respects more burdensome than that of the principal; (d) any defense based upon any
Beneficiary’s errors or omissions in the administration of the Guaranteed Obligations, except
behavior which amounts to bad faith; (e) (i) any principles or provisions of law, statutory or
otherwise, which are or might be in conflict with the terms hereof and any legal or equitable
discharge of such Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations
affecting such Guarantor’s liability hereunder or the enforcement hereof, (iii) any rights to
set-offs, recoupments and counterclaims, and (iv) promptness, diligence and any requirement that
any Beneficiary protect, secure, perfect or insure any security interest or lien or any property
subject thereto; (f) notices, demands, presentments, protests, notices of protest, notices of
dishonor and notices of any action or inaction, including acceptance hereof, notices of default
hereunder, the Permitted Hedge Agreements or any agreement or instrument related thereto, notices
of any renewal, extension or modification of the Guaranteed Obligations or any agreement related
thereto, notices of any extension of credit to Company and notices of any of the matters referred
to in Section 7.4 and any right to consent to any thereof; and (g) any defenses or benefits that
may be derived from or afforded by law which limit the liability of or exonerate guarantors or
sureties, or which may conflict with the terms hereof.

     7.6 Guarantors’ Rights of Subrogation, Contribution, etc. Until the Guaranteed Obligations shall
have been indefeasibly paid in full and the Revolving Commitments shall have terminated and all
Letters of Credit shall have expired or been cancelled, each Guarantor hereby waives any claim,
right or remedy, direct or indirect, that such Guarantor now has or may

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hereafter have against Company or any other Guarantor or any of its assets in connection with this Guaranty or the
performance by such Guarantor of its obligations hereunder, in each case whether such claim, right
or remedy arises in equity, under contract, by statute, under common law or otherwise and including
without limitation (a) any right of subrogation, reimbursement or indemnification that such
Guarantor now has or may hereafter have against Company with respect to the Guaranteed Obligations,
(b) any right to enforce, or to participate in, any claim, right or remedy that any Beneficiary now
has or may hereafter have against Company, and (c) any benefit of, and any right to participate in,
any collateral or security now or hereafter held by any Beneficiary. In addition, until the
Guaranteed Obligations shall have been indefeasibly paid in full and the Revolving Commitments
shall have terminated and all Letters of Credit shall have expired or been cancelled, each
Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any
other guarantor (including any other Guarantor) of the Guaranteed Obligations, including, without
limitation, any such right of contribution as contemplated by Section 7.2. Each Guarantor further
agrees that, to the extent the waiver or agreement to withhold the exercise of its rights of
subrogation, reimbursement, indemnification and contribution as set forth herein is found by a
court of competent jurisdiction to be void or voidable for any reason, any rights of subrogation,
reimbursement or indemnification such Guarantor may have against Company or against any collateral
or security, and any rights of contribution such Guarantor may have against any such other
guarantor, shall be junior and subordinate to any rights any Beneficiary may have against Company,
to all right, title and interest any Beneficiary may have in any such collateral or security, and
to any right any Beneficiary may have against such other guarantor. If any amount shall be paid to
any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution
rights at
any time when all Guaranteed Obligations shall not have been finally and indefeasibly paid in
full, such amount shall be held in trust for Administrative Agent on behalf of Beneficiaries and
shall forthwith be paid over to Administrative Agent for the benefit of Beneficiaries to be
credited and applied against the Guaranteed Obligations, whether matured or unmatured, in
accordance with the terms hereof.

     7.7 Subordination of Other Obligations. Any Indebtedness of Company or any Guarantor now or
hereafter held by any Guarantor (the “Obligee
Guarantor”) is hereby subordinated in right of
payment to the Guaranteed Obligations, and any such Indebtedness collected or received by the
Obligee Guarantor after receipt of notice of an Event of Default (which has occurred and is
continuing) by Administrative Agent shall be held in trust for Administrative Agent on behalf of
Beneficiaries and shall forthwith be paid over to Administrative Agent for the benefit of
Beneficiaries to be credited and applied against the Guaranteed Obligations but without affecting,
impairing or limiting in any manner the liability of the Obligee Guarantor under any other
provision hereof.

     7.8 Continuing Guaranty. This Guaranty is a continuing guaranty and shall remain in effect until
all of the Guaranteed Obligations shall have been paid in full and the Revolving Commitments shall
have terminated and all Letters of Credit shall have expired or been cancelled. Each Guarantor
hereby irrevocably waives any right to revoke this Guaranty as to future transactions giving rise
to any Guaranteed Obligations.

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     7.9 Authority of Guarantors or Company. It is not necessary for any Beneficiary to inquire into
the capacity or powers of any Guarantor or Company or the officers, directors or any agents acting
or purporting to act on behalf of any of them.

     7.10 Financial Condition of Company. Any Credit Extension may be made to Company or continued
from time to time, and any Permitted Hedge Agreements may be entered into from time to time, in
each case without notice to or authorization from any Guarantor regardless of the financial or
other condition of Company at the time of any such grant or continuation or at the time such
Permitted Hedge Agreement is entered into, as the case may be. No Beneficiary shall have any
obligation to disclose or discuss with any Guarantor its assessment, or any Guarantor’s assessment,
of the financial condition of Company. Each Guarantor has adequate means to obtain information
from Company on a continuing basis concerning the financial condition of Company and its ability to
perform its obligations under the Credit Documents and the Permitted Hedge Agreements, and each
Guarantor assumes the responsibility for being and keeping informed of the financial condition of
Company and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations.
Each Guarantor hereby waives and relinquishes any duty on the part of any Beneficiary to disclose
any matter, fact or thing relating to the business, operations or conditions of Company now known
or hereafter known by any Beneficiary.

     7.11 Bankruptcy, etc. (a) So long as any Guaranteed Obligations remain outstanding, no Guarantor
shall, without the prior written consent of Administrative Agent acting pursuant to the
instructions of Requisite Lenders, commence or join with any other Person in commencing any
involuntary bankruptcy, reorganization or insolvency case or proceeding of or against Company or
any other Guarantor. The obligations of Guarantors
hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or
terminated by any case or proceeding, voluntary or involuntary, involving the bankruptcy,
insolvency, receivership, reorganization, liquidation or arrangement of Company or any other
Guarantor or by any defense which Company or any other Guarantor may have by reason of the order,
decree or decision of any court or administrative body resulting from any such proceeding.

          (b) Each Guarantor acknowledges and agrees that any interest on any portion of the Guaranteed
Obligations which accrues after the commencement of any case or proceeding referred to in clause
(a) above against Company (or, if interest on any portion of the Guaranteed Obligations ceases to
accrue by operation of law by reason of the commencement of such case or proceeding, such interest
as would have accrued on such portion of the Guaranteed Obligations if such case or proceeding had
not been commenced) shall be included in the Guaranteed Obligations because it is the intention of
Guarantors and Beneficiaries that the Guaranteed Obligations which are guaranteed by Guarantors
pursuant hereto should be determined without regard to any rule of law or order which may relieve
Company of any portion of such Guaranteed Obligations. Guarantors will permit any trustee in
bankruptcy, receiver, debtor in possession, assignee for the benefit of creditors or similar person
to pay Administrative Agent, or allow the claim of Administrative Agent in respect of, any such
interest accruing after the date on which such case or proceeding is commenced.

          (c) In the event that all or any portion of the Guaranteed Obligations are paid by Company,
the obligations of Guarantors hereunder shall continue and remain in full force and

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effect or be reinstated, as the case may be, in the event that all or any part of such
payment(s) are rescinded or recovered directly or indirectly from any Beneficiary as a preference,
fraudulent transfer or otherwise, and any such payments which are so rescinded or recovered shall
constitute Guaranteed Obligations for all purposes hereunder.

     7.12 Discharge of Guaranty Upon Sale of Guarantor. If all of the Capital Stock of any Guarantor or
any of its successors in interest hereunder shall be sold or otherwise disposed of (including by
merger or consolidation) in accordance with the terms and conditions hereof, the Guaranty of such
Guarantor or such successor in interest, as the case may be, hereunder shall automatically be
discharged and released without any further action by any Beneficiary or any other Person effective
as of the time of such sale or disposition.

SECTION 8. EVENTS OF DEFAULT

     8.1 Events of Default. If any one or more of the following conditions or events shall occur:

          (a) Failure to Make Payments When Due. Failure by Company to pay (i) when due any
installment of principal of any Loan, whether at stated maturity, by acceleration, by notice of
voluntary prepayment, by mandatory prepayment or otherwise; (ii) when due any amount payable to an
Issuing Bank in reimbursement of any drawing under a Letter of Credit; or (iii) any interest on any
Loan or any fee or any other amount due hereunder within five days after the date due; or

          (b) Default in Other Agreements. (i) Failure of any of Company or its Restricted
Subsidiaries or Holding to pay when due any principal of or interest on or any other amount payable
in respect of one or more items of Indebtedness (other than Indebtedness referred to in Section
8.1(a) and other than Limited Recourse Debt permitted to be incurred hereunder and incurred in
connection with one or more Projects to which less than $30,000,000 in the aggregate of the
operating income of Company and its Restricted Subsidiaries (on a consolidated basis) is
attributable for the 12-month period immediately preceding the failure to pay such interest,
principal or other amounts) in an individual principal amount or with an aggregate principal amount
of $30,000,000 or more, in each case beyond the grace period, if any, provided therefor; or (ii)
breach or default by any of Company or its Restricted Subsidiaries with respect to any other
material term of (1) one or more items of Indebtedness in the individual or aggregate principal
amounts referred to in clause (i) above, or (2) any loan agreement, mortgage, indenture or other
agreement relating to such item(s) of Indebtedness, in each case beyond the grace period, if any,
provided therefor, if the effect of such breach or default is to cause, or to permit the holder or
holders of that Indebtedness (or a trustee on behalf of such holder or holders), to cause, that
Indebtedness to become or be declared due and payable (or redeemable), or to require the
prepayment, redemption, repurchase or defeasance of, or to cause Company or any of its Restricted
Subsidiaries to make any offer to prepay, redeem, repurchase or defease that Indebtedness prior to
its stated maturity or the stated maturity of any underlying obligation, as the case may be; or

          (c) Breach of Certain Covenants. Failure of any Credit Party to perform or comply
with any term or condition contained in Section 2.6, Section 5.2 or Section 6; or

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          (d) Breach of Representations, etc. Any representation, warranty, certification or
other statement made or deemed made by any Credit Party in any Credit Document or in any statement
or certificate at any time given by any Credit Party or any of its Restricted Subsidiaries in
writing pursuant hereto or thereto or in connection herewith or therewith shall be false in any
material respect as of the date made or deemed made; or

          (e) Other Defaults Under Credit Documents. Any Credit Party shall default in the
performance of or compliance with any term contained herein or any of the other Credit Documents,
other than any such term referred to in any other provision of this Section 8.1, and such default
shall not have been remedied or waived within thirty days after the earlier of (i) an Authorized
Officer becoming aware of such default or (ii) receipt by Company of notice from Administrative
Agent or any Lender of such default; or

          (f) Involuntary Bankruptcy; Appointment of Receiver, etc. (i) A court of competent
jurisdiction shall enter a decree or order for relief in respect of Holding, Company, any
Aggregatable Restricted Subsidiaries or any Material Restricted Subsidiary in an involuntary case
under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or similar law now
or hereafter in effect, which decree or order is not stayed; or any other similar relief shall be
granted under any applicable federal or state law; or (ii) an involuntary case shall be commenced
against Holding, Company, any Aggregatable Restricted Subsidiaries or any Material Restricted
Subsidiary under the Bankruptcy Code or under any other applicable bankruptcy, insolvency or
similar law now or hereafter in effect; or a decree or order of a court having jurisdiction in the
premises for the appointment of a receiver, liquidator, sequestrator, trustee, custodian or other
officer having similar powers over Holding, Company, any Aggregatable Restricted Subsidiaries or
any Material Restricted Subsidiary, or over all or a substantial part of its property, shall have
been entered; or there shall have occurred the involuntary appointment of an interim receiver,
trustee or other custodian of Holding, Company, any Aggregatable Restricted Subsidiaries or any
Material Restricted Subsidiary for all or a substantial part of its property; or a warrant of
attachment, execution or similar process shall have been issued against any substantial part of the
property of Holding, Company, any Aggregatable Restricted Subsidiaries or any Material Restricted
Subsidiary, and any such event described in this clause (ii) shall continue for sixty days without
having been dismissed, bonded or discharged; or

          (g) Voluntary Bankruptcy; Appointment of Receiver, etc.. (i) Holding, any Company,
any Aggregatable Restricted Subsidiaries or any Material Restricted Subsidiary shall have an order
for relief entered with respect to it or shall commence a voluntary case under the Bankruptcy Code
or under any other applicable bankruptcy, insolvency or similar law now or hereafter in effect, or
shall consent to the entry of an order for relief in an involuntary case, or to the conversion of
an involuntary case to a voluntary case, under any such law, or shall consent to the appointment of
or taking possession by a receiver, trustee or other custodian for all or a substantial part of its
property; or Holding, Company, any Aggregatable Restricted Subsidiaries or any Material Restricted
Subsidiary shall make any assignment for the benefit of creditors; or (ii) Holding, Company, any
Aggregatable Restricted Subsidiaries or any Material Restricted
Subsidiary shall be unable, or shall fail generally, or shall admit in writing its inability,
to pay its debts as such debts become due; or the board of directors (or similar governing body of
Holding, Company, any Aggregatable Restricted Subsidiaries or any Material Restricted Subsidiary
(or

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any committee thereof) shall adopt any resolution or otherwise authorize any action to approve
any of the actions referred to herein or in Section 8.1(f); or

          (h) Judgments and Attachments. Any money judgment, writ or warrant of attachment or
similar process involving in any individual case or in the aggregate at any time an amount in
excess of $30,000,000 (in either case to the extent not adequately covered by insurance as to which
a solvent and unaffiliated insurance company has not denied coverage) shall be entered or filed
against Company or any of its Restricted Subsidiaries or any of their respective assets and shall
remain undischarged, unvacated, unbonded or unstayed for a period of sixty days (or in any event
later than five days prior to the date of any proposed sale thereunder); or

          (i) Dissolution. Any order, judgment or decree shall be entered against any
Aggregatable Restricted Subsidiaries or any Material Restricted Subsidiary of Company decreeing the
dissolution or split up of such Aggregatable Restricted Subsidiaries or Material Restricted
Subsidiary, as the case may be, and such order shall remain undischarged or unstayed for a period
in excess of thirty days; or

          (j) Employee Benefit Plans. (i) There shall occur one or more ERISA Events which
individually or in the aggregate results in or could reasonably be expected to result in a Material
Adverse Effect during the term hereof; or

          (k) Change of Control. A Change of Control shall occur; or

          (l) Failure of Subordination. (i) Any of the Obligations of the Credit Parties under
the Credit Documents for any reason shall cease to be “Senior Indebtedness” (or any comparable
term) or “Senior Secured Financing” (or any comparable term) under, and as defined in any Permitted
Subordinated Indebtedness Documentation or (ii) the subordination provisions set forth in any
Permitted Subordinated Indebtedness Documentation shall, in whole or in part, cease to be effective
or cease to be legally valid, binding and enforceable against the holders of any Permitted
Subordinated Indebtedness, if applicable; or

          (m) Guaranties, Collateral Documents and other Credit Documents. At any time after
the execution and delivery thereof, (i) the Guaranty for any reason, other than the satisfaction in
full of all Obligations, shall cease to be in full force and effect (other than in accordance with
its terms) or shall be declared to be null and void or any Guarantor shall repudiate its
obligations thereunder, (ii) this Agreement or any Collateral Document ceases to be in full force
and effect (other than by reason of a release of Collateral in accordance with the terms hereof or
thereof or the satisfaction in full of the Obligations in accordance with the terms hereof) or
shall be declared null and void, or Collateral Agent shall not have or shall cease to have a valid
and perfected Lien in any portion of the Collateral purported to be covered and to the extent
required by the Collateral Documents with the priority required by the relevant Collateral
Document, in each case for any reason other than the failure of Collateral Agent or any Secured
Party to take any action within its control, or (iii) any Credit Party shall contest the
validity or enforceability of any Credit Document in writing or deny in writing that it has
any further liability, including with respect to future advances by Lenders, under any Credit
Document to which it is a party;

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THEN, (1) upon the occurrence of any Event of Default described in Section 8.1(f) or 8.1(g),
automatically, and (2) upon the occurrence and continuance of any other Event of Default, at the
request of (or with the consent of) Requisite Lenders, upon notice to Company by Administrative
Agent, (A) the Revolving Commitments, if any, of each Lender having such Revolving Commitments, the
obligation of an Issuing Bank to issue any Revolving Letter of Credit or Funded Letter of Credit
shall immediately terminate; (B) each of the following shall immediately become due and payable, in
each case without presentment, demand, protest or other requirements of any kind, all of which are
hereby expressly waived by each Credit Party: (I) the unpaid principal amount of and accrued
interest on the Loans, (II) an amount equal to the maximum amount that may at any time be drawn
under all Letters of Credit then outstanding (regardless of whether any beneficiary under any such
Letter of Credit shall have presented, or shall be entitled at such time to present, the drafts or
other documents or certificates required to draw under such Letters of Credit), and (III) all other
Obligations; provided, the foregoing shall not affect in any way the obligations of Lenders
under Section 2.3(b)(iv) or Section 2.4(e); (C) Administrative Agent may cause Collateral Agent to
enforce any and all Liens and security interests created pursuant to Collateral Documents; and (D)
Administrative Agent shall direct Company to pay (and Company hereby agrees upon receipt of such
notice, or upon the occurrence and continuance of any Event of Default specified in Section 8.1(f)
and (g) to pay) to Administrative Agent such additional amounts of cash, to be held as security for
Company’s reimbursement Obligations in respect of Revolving Letters of Credit then outstanding,
equal to the Revolving Letter of Credit Usage at such time.

SECTION 9. AGENTS

     9.1 Appointment of Agents. LCPI and MLPFS are hereby appointed Syndication Agents, and each
Lender hereby authorizes Syndication Agents to act as its agents in accordance with the terms
hereof and the other Credit Documents. JPMC is hereby appointed Administrative Agent hereunder and
under the other Credit Documents and each Lender hereby authorizes Administrative Agent to act as
its agent in accordance with the terms hereof and the other Credit Documents. JPMC is hereby
appointed Collateral Agent hereunder and under the other Credit Documents and each Lender hereby
authorizes Collateral Agent to act as its agent in accordance with the terms hereof and the other
Credit Documents. BA and Barclays are hereby appointed Documentation Agents hereunder, and each
Lender hereby authorizes Documentation Agents to act as its agents in accordance with the terms
hereof and the other Credit Documents. Each Agent hereby agrees to act upon the express conditions
contained herein and the other Credit Documents, as applicable. The provisions of this Section 9
are solely for the benefit of Agents and Lenders and no Credit Party shall have any rights as a
third party beneficiary of any of the provisions thereof. In performing its functions and duties
hereunder, each Agent shall act solely as an agent of Lenders and does not assume and shall not be
deemed to have assumed any obligation towards or relationship of agency or trust with or for the
Credit Parties. The Syndication Agents and the Documentation Agents, without consent of or notice
to any party hereto, may assign any and all
of its rights or obligations hereunder to any of its Affiliates. As of the Closing Date, each
of LCPI and MLPFS in their capacity as Syndication Agents and each of BA and Barclays in their
capacity as Documentation Agents, shall not have any obligations but shall be entitled to all
benefits of this Section 9.

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     9.2 Powers and Duties. Each Lender irrevocably authorizes each Agent to take such action on such
Lender’s behalf and to exercise such powers, rights and remedies hereunder and under the other
Credit Documents as are specifically delegated or granted to such Agent by the terms hereof and
thereof, together with such powers, rights and remedies as are reasonably incidental thereto. Each
Agent shall have only those duties and responsibilities that are expressly specified herein and the
other Credit Documents. Each Agent may exercise such powers, rights and remedies and perform such
duties by or through its agents or employees. No Agent shall have, by reason hereof or any of the
other Credit Documents, a fiduciary relationship in respect of any Lender; and nothing herein or
any of the other Credit Documents, expressed or implied, is intended to or shall be so construed as
to impose upon any Agent any obligations in respect hereof or any of the other Credit Documents
except as expressly set forth herein or therein.

     9.3 General Immunity.

          (a) No Responsibility for Certain Matters. No Agent shall be responsible to any
Lender for the execution, effectiveness, genuineness, validity, enforceability, collectibility or
sufficiency hereof or any other Credit Document or for any representations, warranties, recitals or
statements made herein or therein or made in any written or oral statements or in any financial or
other statements, instruments, reports or certificates or any other documents furnished or made by
any Agent to Lenders or by or on behalf of any Credit Party, to any Agent or any Lender in
connection with the Credit Documents and the transactions contemplated thereby or for the financial
condition or business affairs of any Credit Party or any other Person liable for the payment of any
Obligations, nor shall any Agent be required to ascertain or inquire as to the performance or
observance of any of the terms, conditions, provisions, covenants or agreements contained in any of
the Credit Documents or as to the use of the proceeds of the Loans or as to the existence or
possible existence of any Event of Default or Default or to make any disclosures with respect to
the foregoing. Anything contained herein to the contrary notwithstanding, Administrative Agent
shall not have any liability arising from confirmations of the amount of outstanding Loans or
Letters of Credit or the component amounts thereof.

          (b) Exculpatory Provisions. No Agent nor any of its officers, partners, directors,
employees or agents shall be liable to Lenders for any action taken or omitted by any Agent under
or in connection with any of the Credit Documents except to the extent caused by such Agent’s gross
negligence or willful misconduct. Each Agent shall be entitled to refrain from any act or the
taking of any action (including the failure to take an action) in connection herewith or any of the
other Credit Documents or from the exercise of any power, discretion or authority vested in it
hereunder or thereunder unless and until such Agent, in the case of any Agent other than Collateral
Agent, shall have received instructions in respect thereof from Requisite Lenders (or such other
Lenders as may be required to give such instructions under Section 10.5) or, in the case of
Collateral Agent, in accordance with the Pledge and Security
Agreement or other applicable Collateral Document, and, upon receipt of such instructions from
Requisite Lenders (or such other Lenders, as the case may be), or in accordance with the Pledge and
Security Agreement or other applicable Collateral Document, as the case may be, such Agent shall be
entitled to act or (where so instructed) refrain from acting, or to exercise such power, discretion
or authority, in accordance with such instructions. Without prejudice to the generality of the
foregoing, (i) each Agent shall be entitled to rely, and shall be fully protected in relying, upon
any communication, instrument or document believed by it to be genuine and

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correct and to have been
signed or sent by the proper Person or Persons, and shall be entitled to rely and shall be
protected in relying on opinions and judgments of attorneys (who may be attorneys for the Credit
Parties), accountants, experts and other professional advisors selected by it; and (ii) no Lender
shall have any right of action whatsoever against any Agent as a result of such Agent acting or
(where so instructed) refraining from acting hereunder or any of the other Credit Documents, in the
case of any Agent other than Collateral Agent, in accordance with the instructions of Requisite
Lenders (or such other Lenders as may be required to give such instructions under Section 10.5) or,
in the case of the Collateral Agent, in accordance with the Pledge and Security Agreement or other
applicable Collateral Document.

          (c) Delegation of Duties. Each of Administrative Agent and Collateral Agent may
perform any and all of its duties and exercise its rights and powers under this Agreement or under
any other Credit Document by or through any one or more sub-agents appointed by it. Each of
Administrative Agent, Collateral Agent and any such sub-agent may perform any and all of its duties
and exercise its rights and powers by or through their respective Affiliates. The exculpatory,
indemnification and other provisions of this Section 9.3 and of Section 9.6 shall apply to any the
Affiliates of Administrative Agent or Collateral Agent and shall apply to their respective
activities in connection with the syndication of the credit facilities provided for herein as well
as activities as Administrative Agent or Collateral Agent. All of the rights, benefits, and
privileges (including the exculpatory and indemnification provisions) of this Section 9.3 and of
Section 9.6 shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and
shall apply to their respective activities as sub-agent as if such sub-agent and Affiliates were
named herein. Notwithstanding anything herein to the contrary, with respect to each sub-agent
appointed by Administrative Agent or Collateral Agent, (i) such sub-agent shall be a third party
beneficiary under this Agreement with respect to all such rights, benefits and privileges
(including exculpatory rights and rights to indemnification) and shall have all of the rights and
benefits of a third party beneficiary, including an independent right of action to enforce such
rights, benefits and privileges (including exculpatory rights and rights to indemnification)
directly, without the consent or joinder of any other Person, against any or all of the Credit
Parties and the Lenders, (ii) such rights, benefits and privileges (including exculpatory rights
and rights to indemnification) shall not be modified or amended without the consent of such
sub-agent, and (iii) such sub-agent shall only have obligations to Administrative Agent or
Collateral Agent, as the case maybe, and not to any Credit Party, Lender or any other Person and no
Credit Party, Lender or any other Person shall have any rights, directly or indirectly, as a third
party beneficiary or otherwise, against such sub-agent.

     9.4 Agents Entitled to Act as Lender. The agency hereby created shall in no way impair or affect
any of the rights and powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender
hereunder. With respect to its participation in the Loans and the Letters of Credit, each
Agent shall have the same rights and powers hereunder as any other Lender and may exercise the same
as if it were not performing the duties and functions delegated to it hereunder, and the term
“Lender” shall, unless the context clearly otherwise indicates, include each Agent in its
individual capacity. Any Agent and its Affiliates may accept deposits from, lend money to, own
securities of, and generally engage in any kind of banking, trust, financial advisory or other
business with the Credit Parties or any of their Affiliates as if it were not performing the duties
specified herein, and may accept fees and other consideration

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from Company for services in
connection herewith and otherwise without having to account for the same to Lenders.

     9.5 Lenders’ Representations, Warranties and Acknowledgment

          (a) Each Lender represents and warrants that it has made its own independent investigation of
the financial condition and affairs of the Credit Parties in connection with Credit Extensions
hereunder and that it has made and shall continue to make its own appraisal of the creditworthiness
of the Credit Parties. No Agent shall have any duty or responsibility, either initially or on a
continuing basis, to make any such investigation or any such appraisal on behalf of Lenders or to
provide any Lender with any credit or other information with respect thereto, whether coming into
its possession before the making of the Loans or at any time or times thereafter, and no Agent
shall have any responsibility with respect to the accuracy of or the completeness of any
information provided to Lenders.

          (b) Each Lender, by delivering its signature page to this Agreement (and funding its Term Loan
or Credit Linked Deposit on the Closing Date) shall be deemed to have acknowledged receipt of, and
consented to and approved, each Credit Document and each other document required to be approved by
any Agent, Requisite Lenders or Lenders, as applicable on the Closing Date.

     9.6 Right to Indemnity. Each Lender, in proportion to its Pro Rata Share, severally agrees to
indemnify each Agent, to the extent that such Agent shall not have been reimbursed by any Credit
Party, for and against any and all liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses (including counsel fees and disbursements) or disbursements of
any kind or nature whatsoever which may be imposed on, incurred by or asserted against such Agent
in exercising its powers, rights and remedies or performing its duties hereunder or under the other
Credit Documents or otherwise in its capacity as such Agent in any way relating to or arising out
of this Agreement or the other Credit Documents; provided, no Lender shall be liable for
any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements resulting from such Agent’s gross negligence or willful
misconduct. If any indemnity furnished to any Agent for any purpose shall, in the opinion of such
Agent, be insufficient or become impaired, such Agent may call for additional indemnity and cease,
or not commence, to do the acts indemnified against until such additional indemnity is furnished;
provided, in no event shall this sentence require any Lender to indemnify any Agent against
any liability, obligation, loss, damage, penalty, action, judgment, suit, cost, expense or
disbursement
in excess of such Lender’s Pro Rata Share thereof; and provided further, this
sentence shall not be deemed to require any Lender to indemnify any Agent against any liability,
obligation, loss, damage, penalty, action, judgment, suit, cost, expense or disbursement described
in the proviso in the immediately preceding sentence.

     9.7 Successor Agent and Swing Line Lender. Administrative Agent or Collateral Agent may resign at
any time by giving thirty days’ prior written notice thereof to Lenders and Company, and
Administrative Agent or Collateral Agent may be removed at any time with or without cause by an
instrument or concurrent instruments in writing delivered to Company and Administrative Agent or
Collateral Agent, as the case may be, and signed by Requisite Lenders. Upon any such notice of
resignation or any such removal, Requisite Lenders shall have the right,

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upon five Business Days’
notice to Company; provided that Company shall have the right to approve (such approval not
to be unreasonably withheld) any such successor Agent or Collateral Agent, to appoint a successor
Agent. Upon the acceptance of any appointment as Administrative Agent or Collateral Agent, as the
case may be, hereunder by a successor Administrative Agent or Collateral Agent, as the case may be,
that successor Agent shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring or removed Agent and the retiring or removed Agent shall
promptly (i) transfer to such successor Agent all sums, Securities and other items of Collateral
held under the Collateral Documents, together with all records and other documents necessary or
appropriate in connection with the performance of the duties of the successor Agent under the
Credit Documents, and (ii) execute and deliver to such successor Agent such amendments to financing
statements, and take such other actions, as may be necessary or appropriate in connection with the
assignment to such successor Agent of the security interests created under the Collateral
Documents, whereupon such retiring or removed Agent shall be discharged from its duties and
obligations hereunder. After any retiring or removed Agent’s resignation or removal hereunder as
Administrative Agent or Collateral Agent, as the case may be, the provisions of this Section 9
shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent
hereunder. Any resignation or removal of JPMC or its successor as Administrative Agent pursuant to
this Section shall also constitute the resignation or removal of JPMC or its successor as
Collateral Agent and Swing Line Lender, and any successor Administrative Agent appointed pursuant
to this Section shall, upon its acceptance of such appointment, become the successor Collateral
Agent and Swing Line Lender for all purposes hereunder. In such event (a) Company shall prepay any
outstanding Swing Line Loans made by the retiring or removed Administrative Agent in its capacity
as Swing Line Lender, (b) upon such prepayment, the retiring or removed Administrative Agent and
Swing Line Lender shall surrender any Swing Line Note held by it to Company for cancellation, and
(c) Company shall issue, if so requested by successor Administrative Agent and Swing Line Loan
Lender, a new Swing Line Note to the successor Administrative Agent and Swing Line Lender, in the
principal amount of the Swing Line Sublimit then in effect and with other appropriate insertions.

     9.8 Collateral Documents and Guaranty.

          (a) Agents under Collateral Documents and Guaranty. Each Lender hereby further
authorizes Administrative Agent or Collateral Agent, as applicable, on behalf of and for the
benefit of Lenders, to be the agent for and representative of Lenders with respect to the
Guaranty, the Collateral and the Collateral Documents. Subject to Section 10.5, without
further written consent or authorization from Lenders, Administrative Agent or Collateral Agent, as
applicable may execute any documents or instruments necessary to (i) release any Lien encumbering
any item of Collateral that is the subject of a sale or other disposition of assets permitted
hereby or to which Requisite Lenders (or such other Lenders as may be required to give such consent
under Section 10.5) have otherwise consented or (ii) release any Guarantor from the Guaranty
pursuant to Section 7.12 or with respect to which Requisite Lenders (or such other Lenders as may
be required to give such consent under Section 10.5) have otherwise consented.

          (b) Right to Realize on Collateral and Enforce Guaranty. Anything contained in any of
the Credit Documents to the contrary notwithstanding, Company, Administrative Agent, Collateral
Agent and each Lender hereby agree that (i) no Lender shall have any right

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individually to realize
upon any of the Collateral or to enforce the Guaranty, it being understood and agreed that all
powers, rights and remedies hereunder may be exercised solely by Administrative Agent, on behalf of
Lenders in accordance with the terms hereof and all powers, rights and remedies under the
Collateral Documents may be exercised solely by Collateral Agent, and (ii) in the event of a
foreclosure by Collateral Agent on any of the Collateral pursuant to a public or private sale,
Collateral Agent or any Lender may be the purchaser of any or all of such Collateral at any such
sale and Collateral Agent, as agent for and representative of Secured Parties (but not any Lender
or Lenders in its or their respective individual capacities unless Requisite Lenders shall
otherwise agree in writing) shall be entitled, for the purpose of bidding and making settlement or
payment of the purchase price for all or any portion of the Collateral sold at any such public
sale, to use and apply any of the Obligations as a credit on account of the purchase price for any
collateral payable by Collateral Agent at such sale.

SECTION 10. MISCELLANEOUS

     10.1 Notices.

          (a) Generally. Unless otherwise specifically provided herein, any notice or other
communication herein required or permitted to be given to a Credit Party, the Syndication Agents,
Collateral Agent, Administrative Agent, Swing Line Lender, or an Issuing Bank, shall be sent to
such Person’s address as set forth on Appendix B or in the other relevant Credit Document, and in
the case of any Lender, the address as indicated on Appendix B or otherwise indicated to
Administrative Agent in writing. Each notice hereunder shall be in writing (which, in the case of
any Notice, shall include notice by electronic mail or other electronic means agreed to between
Company and Administrative Agent) and may be personally served, telexed or sent by telefacsimile or
United States mail or courier service and shall be deemed to have been given when delivered in
person or by courier service and signed for against receipt thereof, upon receipt of telefacsimile
or telex, or three Business Days after depositing it in the United States mail with postage prepaid
and properly addressed; provided, no notice to any Agent shall be effective until received
by such Agent; provided further, any such notice or other communication shall at
the request of Administrative Agent be provided to any sub-agent appointed pursuant to Section
9.3(c) hereto as designated by Administrative Agent from time to time.

          (b) Electronic Communications. Notices and other communications to the Lenders and
the Issuing Banks hereunder may be delivered or furnished by electronic communication (including e
mail and Internet or intranet websites) pursuant to procedures approved by Administrative Agent and
the Issuing Banks, provided that the foregoing shall not apply to notices to any Lender or
the Issuing Banks pursuant to Section 2 if such Lender or the Issuing Banks, as applicable, has
notified Administrative Agent that it is incapable of receiving notices under such Section by
electronic communication. Administrative Agent or Company may, in its discretion, agree to accept
notices and other communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be limited to
particular notices or communications. Unless Administrative Agent otherwise prescribes, (i)
notices and other communications sent to an e-mail address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other written acknowledgement),
provided that if such notice or other communication is not sent

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during the normal business
hours of the recipient, such notice or communication shall be deemed to have been sent at the
opening of business on the next Business Day for the recipient, and (ii) notices or communications
posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the
intended recipient at its e-mail address as described in the foregoing clause (i) of notification
that such notice or communication is available and identifying the website address therefor.

     10.2 Expenses. Whether or not the transactions contemplated hereby shall be consummated, Company
agrees to pay promptly (a) all the actual and reasonable costs and expenses incurred by each Agent
of preparation of the Credit Documents and any consents, amendments, waivers or other modifications
thereto; (b) all the costs of furnishing all opinions by counsel for Company and the other Credit
Parties; (c) the reasonable fees, expenses and disbursements of one counsel to Administrative Agent
and Collateral Agent, and JPMC in its capacity as a Funded LC Issuing Bank and a Lender, in
connection with the negotiation, preparation, execution and administration of the Credit Documents
and any consents, amendments, waivers or other modifications thereto and any other documents or
matters requested by Company; (d) all the actual costs and reasonable expenses of creating and
perfecting Liens in favor of Collateral Agent, for the benefit of Secured Parties, including filing
and recording fees, expenses and taxes, stamp or documentary taxes, search fees, title insurance
premiums and reasonable fees, expenses and disbursements of one counsel to Administrative Agent and
Collateral Agent and of counsel providing any opinions required hereunder; (e) all the actual costs
and reasonable fees, expenses and disbursements of any auditors, accountants, consultants or
appraisers (prior to any Default or Event of Default subject to the consent of Company); (f) all
the actual costs and reasonable expenses (including the reasonable fees, expenses and disbursements
of any agents employed or retained by Collateral Agent and its counsel) in connection with the
custody or preservation of any of the Collateral; (g) all other actual and reasonable costs and
expenses (other than counsel’s fees) incurred by each Agent in connection with the syndication of
the Loans and Commitments; and (h) after the occurrence of an Event of Default and during its
continuance, all costs and expenses, including reasonable attorneys’ fees of a single counsel to
the Agents and the Lenders taken as a whole (and in the case of a conflict of interest, one
additional counsel for the affected Agents or Lenders), provided that the Agents
and the Lenders taken as a whole may engage one
local counsel in each jurisdiction where any action to realize upon any part of the Collateral
is necessary, and costs of settlement, incurred by Administrative Agent and Collateral Agent and
any Lender in enforcing any Obligations of or in collecting any payments due from any Credit Party
hereunder or under the other Credit Documents by reason of such Event of Default (including in
connection with the sale of, collection from, or other realization upon any of the Collateral or
the enforcement of the Guaranty) or in connection with any refinancing or restructuring of the
credit arrangements provided hereunder in the nature of a “work-out” or pursuant to any insolvency
or bankruptcy cases or proceedings. The agreements in this Section 10.2 shall survive repayment of
the Loans and all other amounts payable hereunder and the return of the Credit Linked Deposits to
the applicable Lenders.

     10.3 Indemnity.

          (a) In addition to the payment of expenses pursuant to Section 10.2, whether or not the
transactions contemplated hereby shall be consummated, each Credit Party agrees to defend (subject
to Indemnitees’ selection of a single counsel to the Indemnitees taken as a whole

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(and, in the case
of a conflict of interest, one additional counsel for the affected Indemnitees, taken as a whole)),
indemnify, pay and hold harmless, each Agent, Lender and Issuing Bank and the officers, partners,
directors, trustees, employees, agents, sub-agents and Affiliates of each Agent, each Lender and
each Issuing Bank (each, an “Indemnitee”), from and against any and all Indemnified Liabilities;
provided, no Credit Party shall have any obligation to any Indemnitee hereunder with
respect to any Indemnified Liabilities to the extent (i) such Indemnified Liabilities are found by
a final, non-appealable judgment of a court to arise from the gross negligence, bad faith or
willful misconduct of that Indemnitee or (ii) such Indemnified Liabilities arise out of any dispute
solely among Indemnitees that are Lenders (but solely in their capacities as such) and not
involving Holding or any of its Subsidiaries, including any dispute between a Lender and the
assignee or purchaser of its Loan. To the extent that the undertakings to defend, indemnify, pay
and hold harmless set forth in this Section 10.3 may be unenforceable in whole or in part because
they are violative of any law or public policy, the applicable Credit Party shall contribute the
maximum portion that it is permitted to pay and satisfy under applicable law to the payment and
satisfaction of all Indemnified Liabilities incurred by Indemnitees or any of them.

          (b) To the extent permitted by applicable law, no Credit Party shall assert, and each Credit
Party hereby waives, any claim against Lenders, Agents, Issuing Banks and their respective
Affiliates, directors, employees, attorneys, agents or sub-agents, on any theory of liability, for
special, indirect, consequential or punitive damages (as opposed to direct or actual damages)
(whether or not the claim therefor is based on contract, tort or duty imposed by any applicable
legal requirement) arising out of, in connection with, arising out of, as a result of, or in any
way related to, this Agreement or any Credit Document or any agreement or instrument contemplated
hereby or thereby or referred to herein or therein, the transactions contemplated hereby or
thereby, any Loan or the use of the proceeds thereof or any act or omission or event occurring in
connection therewith, and each Credit Party hereby waives, releases and agrees not to sue upon any
such claim or any such damages, whether or not accrued and whether or not known or suspected to
exist in its favor.

     The agreements in this Section 10.3 shall survive repayment of the Loans and all other amounts
payable hereunder and the return of the Credit Linked Deposits to the applicable Lenders.

     10.4 Set-Off. In addition to any rights now or hereafter granted under applicable law and not by
way of limitation of any such rights, upon the occurrence and during the continuance of any Event
of Default each Lender and each Funded LC Issuing Bank is hereby authorized by each Credit Party at
any time or from time to time subject to the consent of Administrative Agent (such consent not to
be unreasonably withheld or delayed), without notice to any Credit Party or to any other Person
(other than Administrative Agent), any such notice being hereby expressly waived, to set off and to
appropriate and to apply any and all deposits (general or special, including Indebtedness evidenced
by certificates of deposit, whether matured or unmatured, but not including trust accounts) and any
other Indebtedness at any time held or owing by such Lender or Funded LC Issuing Bank to or for the
credit or the account of any Credit Party (other than Holding) against and on account of the
obligations and liabilities of any Credit Party to such Lender or Funded LC Issuing Bank hereunder,
the Letters of Credit and participations therein and under the other Credit Documents, including
all claims of any nature or description arising out of or connected hereto, the Letters of Credit
and participations therein or with any other

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Credit Document, irrespective of whether or not (a)
such Lender or Funded LC Issuing Bank shall have made any demand hereunder or (b) the principal of
or the interest on the Loans or any amounts in respect of the Letters of Credit or any other
amounts due hereunder shall have become due and payable pursuant to Section 2 and although such
obligations and liabilities, or any of them, may be contingent or unmatured. The Funded LC Issuing
Banks agree that payments from the Credit Linked Deposits shall be made only to the extent
expressly provided for under this Agreement.

     10.5 Amendments and Waivers.

          (a) Requisite Lenders’ Consent. Subject to Section 10.5(b) and 10.5(c), no amendment,
modification, termination or waiver of any provision of the Credit Documents, or consent to any
departure by any Credit Party therefrom, shall in any event be effective without the written
concurrence of the Requisite Lenders.

          (b) Affected Lenders’ Consent. Without the written consent of each Lender (other
than a Defaulting Lender) that would be directly affected thereby, no amendment, modification,
termination, or consent shall be effective if the effect thereof would:

               (i) extend the scheduled final maturity of any Loan or Note of such Lender;

               (ii) extend the date on which the Funded LC Participation Interests must be repurchased
in full from such Lender or any Lender’s Pro Rate Share of the Credit Linked Deposits is
required to be paid to such Lender in full (it being acknowledged that any such repurchase
or payment is subject to the express provisions of Section 2.4);

               (iii) waive, reduce or postpone any scheduled repayment of principal on the Term Loans
under Section 2.12 due such Lender (but not prepayment);

               (iv) extend the stated expiration date of any Revolving Letter of Credit beyond the
Revolving Commitment Termination Date;

               (v) extend the stated expiration date of any Funded Letter of Credit beyond the Funded
Letter of Credit Termination Date;

               (vi) reduce the rate of interest on any Loan of such Lender (other than any waiver of
any increase in the interest rate applicable to any Loan pursuant to Section 2.10) or any
fee or other payment obligations (including without limitation with respect to Funded LC
Participation Interests) payable hereunder to such Lender; provided that any amendment or
other modification of any financial covenant definition in this Agreement shall not
constitute a reduction in the rate of interest for the purpose of this clause (vi);

               (vii) extend the time for payment of any such interest or fees to such Lender;

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               (viii) reduce the principal amount of any Loan or any reimbursement obligation in
respect of any Letter of Credit due to such Lender or (except as expressly provided for
herein) any Credit Linked Deposit funded by such Lender;

               (ix) amend, modify, terminate or waive any provision of this Section 10.5(b) or Section
10.5(c);

               (x) amend the definition of “Requisite Lenders” or “Pro Rata Share”; provided,
with the consent of Requisite Lenders additional extensions of credit pursuant hereto may be
included in the determination of “Requisite Lenders” or “Pro Rata Share” on substantially
the same basis as the Term Loan Commitments, the Term Loan, the Revolving Commitments, the
Revolving Loans, the Funded Letter of Credit Commitments, the Funded Letters of Credit are
included on the Closing Date;

               (xi) release all or substantially all of the Collateral or all or substantially all of
the Guarantors from the Guaranty except as expressly provided in the Credit Documents;

               (xii) consent to the assignment or transfer by any Credit Party of any of its rights
and obligations under any Credit Document; or

               (xiii) amend or modify the provisions regarding Company’s ability to select Interest
Periods longer than six months.

          (c) Other Consents. No amendment, modification, termination or waiver of any
provision of the Credit Documents, or consent to any departure by any Credit Party therefrom,
shall:

               (i) increase any Commitment of any Lender over the amount thereof then in effect
without the consent of such Lender; provided, no amendment, modification or waiver
of any condition precedent, covenant, Default or Event of Default shall constitute an
increase in any Commitment of any Lender;

               (ii) amend, modify, terminate or waive any provision hereof relating to the Swing Line
Sublimit or the Swing Line Loans without the consent of Swing Line Lender;

               (iii) amend the definition of “Requisite Class Lenders” without the consent of
Requisite Class Lenders of each Class; provided, with the consent of the Requisite
Lenders, additional extensions of credit pursuant hereto may be included in the
determination of such “Requisite Class Lenders” on substantially the same basis as the Term
Loan Commitments, the Term Loans, the Revolving Commitments, the Revolving Loans, the Funded
Letter of Credit Commitments, the Funded Letters of Credit are included on the Closing Date;

               (iv) alter the required application of any repayments or prepayments as between Classes
pursuant to Section 2.15 without the consent of Requisite Class Lenders of each Class which
is being allocated a lesser repayment or prepayment as a result

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thereof; provided,
Requisite Lenders may waive, in whole or in part, any prepayment so long as the application,
as between Classes, of any portion of such prepayment which is still required to be made is
not altered;

               (v) amend, modify, terminate or waive any obligation of Lenders or Company (as the same
applies to its obligation to any Funded LC Issuing Bank) or any Funded LC Issuing Bank as
provided in Section 2.4 directly relating to Funded Letters of Credit and the Credit Linked
Deposits (and definitions used in Section 2.4 that relate specifically to Funded Letters of
Credit and Credit Linked Deposits) without the written consent of Company, Administrative
Agent and each Funded LC Issuing Bank; or

               (vi) amend, modify, terminate or waive any provision of Section 9 as the same applies
to any Agent, or any other provision hereof as the same applies to the rights or obligations
of any Agent, in each case without the consent of such Agent.

          (d) Execution of Amendments, etc. Administrative Agent may, but shall have no
obligation to, with the concurrence of any Lender, execute amendments, modifications, waivers or
consents on behalf of such Lender. Any waiver or consent shall be effective only in the specific
instance and for the specific purpose for which it was given. No notice to or demand on any Credit
Party in any case shall entitle any Credit Party to any other or further notice or demand in
similar or other circumstances. Any amendment, modification, termination, waiver or consent
effected in accordance with this Section 10.5 shall be binding upon each Lender at the time
outstanding, each future Lender and, if signed by a Credit Party, on such Credit Party.

          Notwithstanding the foregoing, this Agreement may be amended (or amended and restated) in
accordance with Section 2.24.

     10.6 Successors and Assigns; Participations.

          (a) Generally. This Agreement shall be binding upon the parties hereto and their
respective successors and assigns and shall inure to the benefit of the parties hereto and the
successors and assigns of Lenders. No Credit Party’s rights or obligations hereunder nor any
interest therein may be assigned or delegated by any Credit Party without the prior written consent
of all Lenders. No Lender may assign, sell, participate or otherwise transfer any of its rights
under the Credit Documents except as set forth in this Section 10.6 and the penultimate sentence of
Section 2.23. 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
and, to the extent expressly contemplated hereby, Affiliates of each of the Agents and Lenders) any
legal or equitable right, remedy or claim under or by reason of this Agreement.

          (b) Register. Company, Administrative Agent and Lenders shall deem and treat the
Persons listed as Lenders in the Register as the holders and owners of the corresponding
Commitments, Loans and Funded Letter of Credit Participations listed therein for all purposes
hereof, and no assignment or transfer of any such Commitment or Loan shall be effective, in each
case, unless and until recorded in the Register following receipt of an Assignment Agreement
effecting the assignment or transfer thereof, in each case, as provided in Section

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10.6(d). Each
assignment shall be recorded in the Register on the Business Day the Assignment Agreement is
received by Administrative Agent, if received by 12:00 p.m. (New York City time), and on the
following Business Day if received after such time, prompt notice thereof shall be provided to
Company and a copy of such Assignment Agreement shall be maintained, as applicable. The date of
such recordation of a transfer shall be referred to herein as the “Assignment Effective Date.” Any
request, authority or consent of any Person who, at the time of making such request or giving such
authority or consent, is listed in the Register as a Lender shall be conclusive and binding on any
subsequent holder, assignee or transferee of the corresponding Commitments or Loans.

          (c) Right to Assign. Each Lender shall have the right at any time to sell, assign or
transfer all or a portion of its rights and obligations under this Agreement, including, without
limitation, all or a portion of its Commitment, Funded Letter of Credit Participations or Loans
owing to it or other Obligation (provided, however, that each such assignment shall
be of a uniform, and not varying, percentage of all rights and obligations under and in respect of
any Funded Letter of Credit Participations, Loan and any related Commitments):

               (i) to any Person meeting the criteria of clause (i) of the definition of the term of
“Eligible Assignee” upon the giving of notice to Company and Administrative Agent; and

               (ii) to any Person meeting the criteria of clause (ii) of the definition of the term of
“Eligible Assignee”, consented to by each of Company and Administrative Agent (such consent
not to be (x) unreasonably withheld or delayed or, (y) in the case of Company, required at
any time an Event of Default shall have occurred and then be continuing); provided,
further each such assignment pursuant to this Section 10.6(c)(ii) shall be in an aggregate
amount of not less than (A) $5,000,000 (or such lesser amount as may be agreed to by Company
and Administrative Agent or as shall constitute the aggregate amount of the Revolving
Commitments and Revolving Loans of the assigning
Lender) with respect to the assignment of the Revolving Commitments and Revolving
Loans, (B) $1,000,000 (or such lesser amount as may be agreed to by Company and
Administrative Agent or as shall constitute the aggregate amount of the Funded Letter of
Credit Commitments and Funded Letter of Credit Participations of the assigning Lender) with
respect to the assignment of the Funded Letter of Credit Commitments and Funded Letter of
Credit Participations, and (C) $1,000,000 (or such lesser amount as may be agreed to by
Company and Administrative Agent or as shall constitute the aggregate amount of the Term
Loan of the assigning Lender) with respect to the assignment of Term Loans.

               (iii) Anything in the foregoing to the contrary notwithstanding, no assignment of any
Revolving Commitment (except in the case of an assignment to a Revolving Lender or an
Affiliate thereof) shall be effective unless and until consented to in writing by the
Revolving Issuing Bank (such consent not to be unreasonably withheld)

          (d) Mechanics. Assignments and assumptions of Loans, Commitments and Credit Linked
Deposits shall only be effected by execution and delivery to Administrative Agent of an Assignment
Agreement. Assignments made pursuant to the foregoing provision shall be

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effective as of the
Assignment Effective Date. Any assignee of any Lender under Section 10.6(c) (an “Assignee”) shall,
if not already a Lender, deliver to the Administrative Agent an administrative questionnaire in
which the Assignee designates one or more credit contacts to whom all syndicate-level information
(which may contain material non-public information about Company and its Affiliates and their
related parties or their respective securities) will be made available and who may receive such
information in accordance with the Assignee’s compliance procedures and applicable laws, including
Federal and state securities laws. In connection with all assignments there shall also be
delivered to Administrative Agent and Company such forms, certificates or other evidence, if any,
with respect to United States federal income tax withholding matters as the assignee under such
Assignment Agreement may be required to deliver pursuant to Section 2.20(c). Without the consent
of Company (which consent shall not be unreasonably withheld), each Funded LC Issuing Bank and
Administrative Agent, no Credit Linked Deposit shall be released in connection with any assignment
by a Funded Letter of Credit Participant, but the Funded LC Participation Interests shall instead
be purchased by the relevant assignee and the Credit Linked Deposits continue to be held by the
Funded LC Issuing Banks for application (to the extent not already applied) in accordance with
Sections 2.4(f) and (h).

          (e) Representations and Warranties of Assignee. Each Lender, upon execution and
delivery hereof or upon succeeding to an interest in the Commitments and Loans, as the case may be,
represents and warrants as of the Closing Date or as of the Assignment Effective Date that (i) it
is an Eligible Assignee; (ii) it has experience and expertise in the making of or investing in
commitments or loans such as the applicable Commitments, Credit Linked Deposits or Loans, as the
case may be; and (iii) it will make or invest in, as the case may be, its Commitments, Funded
Letter of Credit Participations or Loans for its own account in the ordinary course and without a
view to distribution of such Commitments, Funded Letter of Credit Participations or Loans within
the meaning of the Securities Act or the Exchange Act or other federal securities laws (it being
understood that, subject to the provisions of this Section 10.6, the disposition of such Revolving
Commitments, Funded Letter of Credit Participations or Loans or any interests therein shall at all
times remain within its exclusive control).

          (f) Effect of Assignment. Subject to the terms and conditions of this Section 10.6,
as of the “Assignment Effective Date” (i) the assignee thereunder shall have the rights and
obligations of a “Lender” hereunder to the extent of its interest in the Loans and Commitments as
reflected in the Register and shall thereafter be a party hereto and a “Lender” for all purposes
hereof; (ii) the assigning Lender thereunder shall, to the extent that rights and obligations
hereunder have been assigned to the assignee, relinquish its rights (other than any rights which
survive the termination hereof under Section 10.8) and be released from its obligations hereunder
(and, in the case of an assignment covering all or the remaining portion of an assigning Lender’s
rights and obligations hereunder, such Lender shall cease to be a party hereto on the Assignment
Effective Date; provided, anything contained in any of the Credit Documents to the contrary
notwithstanding, (y) an assigning Issuing Bank shall continue to have all rights and obligations
thereof with respect to such Letters of Credit until the cancellation or expiration of such Letters
of Credit and the reimbursement of any amounts drawn thereunder and (z) such assigning Lender shall
continue to be entitled to the benefit of all indemnities hereunder as specified herein with
respect to matters arising out of the prior involvement of such assigning Lender as a Lender
hereunder to the extent provided hereunder); (iii) the Commitments shall be modified to reflect the
Commitment of such assignee and any Revolving Commitment of such assigning Lender, if

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any; and (iv)
if any such assignment occurs after the issuance of any Note hereunder, the assigning Lender shall,
upon the effectiveness of such assignment or as promptly thereafter as practicable, surrender its
applicable Notes to Administrative Agent for cancellation, and thereupon Company, at its expense,
shall issue and deliver new Notes, if so requested by the assignee and/or assigning Lender, to such
assignee and/or to such assigning Lender, with appropriate insertions, to reflect the new Revolving
Commitments and/or outstanding Loans of the assignee and/or the assigning Lender.

          (g) Participations. Each Lender shall have the right at any time to sell one or more
participations to any Person (other than Holding, any of its Subsidiaries or any of its Affiliates)
in all or any part of its Commitments, Funded Letter of Credit Participations, Loans or in any
other Obligation. The holder of any such participation, other than an Affiliate of the Lender
granting such participation, shall not be entitled to require such Lender to take or omit to take
any action hereunder except with respect to any amendment, modification or waiver that would (i)
extend the final scheduled maturity of any Loan, Note or Letter of Credit (unless such Letter of
Credit is not extended beyond the Revolving Commitment Termination Date or the Funded Letter of
Credit Termination Date, as applicable) in which such participant is participating, or reduce the
rate or extend the time of payment of interest or fees thereon (except in connection with a waiver
of applicability of any post-default increase in interest rates) or reduce the principal amount
thereof, or increase the amount of the participant’s participation over the amount thereof then in
effect (it being understood that a waiver of any Default or Event of Default or of a mandatory
reduction in the Commitment shall not constitute a change in the terms of such participation, and
that an increase in any Commitment, Funded Letter of Credit Participations or Loan shall be
permitted without the consent of any participant if the participant’s participation is not
increased as a result thereof), (ii) consent to the assignment or transfer by any Credit Party of
any of its rights and obligations under this Agreement or (iii) release all or substantially all of
the Collateral under the Collateral Documents (except as expressly provided in the Credit
Documents) supporting the Loans and Funded Letter of Credit Participations hereunder in which such
participant is participating. Company agrees that each participant shall be entitled to the
benefits of Sections 2.18(c), 2.19 and 2.20 to the same extent
as if it were a Lender and had acquired its interest by assignment pursuant to paragraph (c)
of this Section; provided, (i) a participant shall not be entitled to receive any greater
payment under Sections 2.18(c), 2.19 or 2.20 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 Company’s prior written consent and (ii) a
participant that would be a Non-US Lender (or that would otherwise be required to deliver a form
referred to in Section 2.20(c) to avoid deduction or withholding of United States federal income
tax with respect to payments made by a Credit Party under any of the Credit Documents) if it were a
Lender shall not be entitled to the benefits of Section 2.20 unless Company is notified of the
participation sold to such participant and such participant agrees, for the benefit of Company, to
be subject to Section 2.20 as though it were a Lender. To the extent permitted by law, each
participant also shall be entitled to the benefits of Section 10.4 as though it were a Lender,
provided such Participant agrees to be subject to Section 2.17 as though it were a Lender.

          (h) Certain Other Assignments. In addition to any other assignment permitted pursuant
to this Section 10.6, any Lender may assign and/or pledge all or any portion of its Loans, Funded
Letter of Credit Participations, the other Obligations owed by or to such Lender,

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and its Notes
(excluding in all instances the Credit Linked Deposits, which shall be held as the property of the
Funded LC Issuing Banks as provided for in Section 2.4), if any, to secure obligations of such
Lender including, without limitation, any Federal Reserve Bank or any pledge or assignment to any
holders of obligations owed, or securities issued, by such Lender as collateral security for such
obligations or securities, or to any trustee for, or any other representative of, such holders as
collateral security pursuant to Regulation A of the Board of Governors of the Federal Reserve
System and any operating circular issued by such Federal Reserve Bank; provided, no Lender,
as between Company and such Lender, shall be relieved of any of its obligations hereunder as a
result of any such assignment and pledge, and provided further, in no event shall
the applicable Federal Reserve Bank, pledgee or trustee be considered to be a “Lender” or be
entitled to require the assigning Lender to take or omit to take any action hereunder.

     10.7 Independence of Covenants. All covenants hereunder shall be given independent effect so that
if a particular action or condition is not permitted by any of such covenants, the fact that it
would be permitted by an exception to, or would otherwise be within the limitations of, another
covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken
or condition exists.

     10.8 Survival of Representations, Warranties and Agreements. All representations, warranties and
agreements made herein shall survive the execution and delivery hereof and the making of any Credit
Extension. Notwithstanding anything herein or implied by law to the contrary, the agreements of
each Credit Party set forth in Sections 2.18(c), 2.19, 2.20, 10.2, 10.3 and 10.4 and the agreements
of Lenders set forth in Sections 2.17, 9.3(b) and 9.6 shall survive the payment of the Loans, the
cancellation or expiration of the Letters of Credit, the reimbursement of any amounts drawn
thereunder, the final payment made to Lenders pursuant to Section 2.4(i)(iv), and the termination
hereof.

     10.9 No Waiver; Remedies Cumulative. No failure or delay on the part of any Agent or any Lender in
the exercise of any power, right or privilege hereunder or under any other Credit Document shall
impair such power, right or privilege or be construed to be a waiver of any default or acquiescence
therein, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other power, right or privilege. The rights, powers
and remedies given to each Agent and each Lender hereby are cumulative and shall be in addition to
and independent of all rights, powers and remedies existing by virtue of any statute or rule of law
or in any of the other Credit Documents. Any forbearance or failure to exercise, and any delay in
exercising, any right, power or remedy hereunder shall not impair any such right, power or remedy
or be construed to be a waiver thereof, nor shall it preclude the further exercise of any such
right, power or remedy.

     10.10 Marshalling; Payments Set Aside. Neither any Agent nor any Lender shall be under any
obligation to marshal any assets in favor of any Credit Party or any other Person or against or in
payment of any or all of the Obligations. To the extent that any Credit Party makes a payment or
payments to Administrative Agent or Lenders (or to Administrative Agent, on behalf of Lenders), or
Administrative Agent or Lenders enforce any security interests or exercise their rights of setoff,
and such payment or payments or the proceeds of such enforcement or setoff or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential,

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set aside and/or required to
be repaid to a trustee, receiver or any other party under any bankruptcy law, any other state or
federal law, common law or any equitable cause, then, to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied, and all Liens, rights and remedies
therefor or related thereto, shall be revived and continued in full force and effect as if such
payment or payments had not been made or such enforcement or setoff had not occurred.

     10.11 Severability. In case any provision in or obligation hereunder or any Note shall be invalid,
illegal or unenforceable in any jurisdiction, the validity, legality and enforceability of the
remaining provisions or obligations, or of such provision or obligation in any other jurisdiction,
shall not in any way be affected or impaired thereby.

     10.12 Obligations Several; Independent Nature of Lenders’ Rights. The obligations of Lenders
hereunder are several and no Lender shall be responsible for the obligations or Commitment of any
other Lender hereunder. Nothing contained herein or in any other Credit Document, and no action
taken by Lenders pursuant hereto or thereto, shall be deemed to constitute Lenders as a
partnership, an association, a joint venture or any other kind of entity. The amounts payable at
any time hereunder to each Lender shall be a separate and independent debt, and, subject to Section
9.8(b), each Lender shall be entitled to protect and enforce its rights arising out hereof and it
shall not be necessary for any other Lender to be joined as an additional party in any proceeding
for such purpose.

     10.13 Headings . Section headings herein are included herein for convenience of reference only and shall not
constitute a part hereof for any other purpose or be given any substantive effect.

     10.14 APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL
BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF
NEW YORK.

     10.15 CONSENT TO JURISDICTION. ALL JUDICIAL PROCEEDINGS BROUGHT AGAINST ANY CREDIT PARTY ARISING
OUT OF OR RELATING HERETO OR ANY OTHER CREDIT DOCUMENT, OR ANY OF THE OBLIGATIONS, MAY BE BROUGHT
IN ANY STATE OR FEDERAL COURT OF COMPETENT JURISDICTION IN THE STATE, COUNTY AND CITY OF NEW YORK.
BY EXECUTING AND DELIVERING THIS AGREEMENT, EACH CREDIT PARTY, FOR ITSELF AND IN CONNECTION WITH
ITS PROPERTIES, IRREVOCABLY (a) ACCEPTS GENERALLY AND UNCONDITIONALLY THE NONEXCLUSIVE JURISDICTION
AND VENUE OF SUCH COURTS; (b) WAIVES ANY DEFENSE OF FORUM NON CONVENIENS; (c) AGREES THAT SERVICE
OF ALL PROCESS IN ANY SUCH PROCEEDING IN ANY SUCH COURT MAY BE MADE BY REGISTERED OR CERTIFIED
MAIL, RETURN RECEIPT REQUESTED, TO THE APPLICABLE CREDIT PARTY AT ITS ADDRESS PROVIDED IN
ACCORDANCE WITH SECTION 10.1; (d) AGREES THAT SERVICE AS PROVIDED IN CLAUSE (c) ABOVE IS SUFFICIENT
TO CONFER PERSONAL JURISDICTION OVER THE APPLICABLE CREDIT PARTY IN ANY SUCH PROCEEDING IN ANY SUCH
COURT, AND

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OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT; AND (e) AGREES
AGENTS AND LENDERS RETAIN THE RIGHT TO SERVE PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
BRING PROCEEDINGS AGAINST ANY CREDIT PARTY IN THE COURTS OF ANY OTHER JURISDICTION.

     10.16 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY AGREES TO WAIVE ITS RESPECTIVE RIGHTS
TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING HEREUNDER OR UNDER ANY OF THE
OTHER CREDIT DOCUMENTS OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS LOAN
TRANSACTION OR THE LENDER/COMPANY RELATIONSHIP THAT IS BEING ESTABLISHED. THE SCOPE OF THIS WAIVER
IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND THAT
RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF
DUTY CLAIMS AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH PARTY HERETO ACKNOWLEDGES THAT
THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT
EACH HAS ALREADY RELIED ON THIS WAIVER IN ENTERING INTO THIS AGREEMENT, AND THAT EACH WILL
CONTINUE TO RELY ON THIS WAIVER IN ITS RELATED FUTURE DEALINGS. EACH PARTY HERETO FURTHER WARRANTS
AND REPRESENTS THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS
IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY OR IN WRITING (OTHER THAN BY A
MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO THIS SECTION 10.16 AND EXECUTED BY THE PARTY
AGAINST WHICH ENFORCEMENT IS SOUGHT), AND THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS,
RENEWALS, SUPPLEMENTS OR MODIFICATIONS HERETO OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY OTHER
DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER. IN THE EVENT OF LITIGATION, THIS
AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

     10.17 Confidentiality. Each Lender shall hold all non-public information regarding Company and its
Subsidiaries and their businesses identified as such by Company and obtained by such Lender
pursuant to the requirements hereof in accordance with such Lender’s customary procedures for
handling confidential information of such nature and in accordance with sound industry practice,
it being understood and agreed by Company that, in any event, a Lender may make (i) disclosures of
such information to Affiliates of such Lender and to their agents, employees, officers, directors,
trustees, attorneys, accountants and advisors (and to other persons authorized by a Lender or Agent
to organize, present or disseminate such information in connection with disclosures otherwise made
in accordance with this Section 10.17), (ii) disclosures of such information reasonably required by
any bona fide or potential assignee, transferee or participant in connection with the contemplated
assignment, transfer or

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participation by such Lender of any Loans or any participations therein or
by any direct or indirect contractual counterparties (or the professional advisors thereto) in
Permitted Hedge Agreements (provided, such bona fide or potential assignee, transferee or
participant and counterparties and advisors are advised of and agree to be bound by the provisions
of this Section 10.17), (iii) disclosure to any rating agency when required by it, provided
that, prior to any disclosure, such rating agency shall undertake in writing to preserve the
confidentiality of any confidential information relating to the Credit Parties received by it from
any of the Agents or any Lender, and (iv) disclosures required or requested by any governmental
agency or representative thereof or by the NAIC or pursuant to legal or judicial process;
provided, unless specifically prohibited by applicable law or court order, each Lender
shall make reasonable efforts to notify Company of any request by any governmental agency or
representative thereof (other than any such request in connection with any examination of the
financial condition or other routine examination of such Lender by such governmental agency) for
disclosure of any such non-public information prior to disclosure of such information.
Notwithstanding anything to the contrary set forth herein, each party (and each of their respective
employees, representatives or other agents) may disclose to any and all persons, without
limitations of any kind, the tax treatment and tax structure of the transactions contemplated by
this Agreement and all materials of any kind (including opinions and other tax
analyses) that are provided to any such party relating to such tax treatment and tax
structure. However, any information relating to the tax treatment or tax structure shall remain
subject to the confidentiality provisions hereof (and the foregoing sentence shall not apply) to
the extent reasonably necessary to enable the parties hereto, their respective Affiliates, and
their and their respective Affiliates’ directors and employees to comply with applicable securities
laws. For this purpose, “tax structure” means any facts relevant to the federal income tax
treatment of the transactions contemplated by this Agreement but does not include information
relating to the identity of any of the parties hereto or any of their respective Affiliates. Each
Lender acknowledges that information furnished to it pursuant to this Agreement or the other Credit
Documents may include material non-public information concerning Company and its Affiliates and
their related parties or their respective securities, and confirms that it has developed compliance
procedures regarding the use of material non-public information and that it will handle such
material non-public information in accordance with those procedures and applicable law, including
Federal and state securities laws. All information, including requests for waivers and amendments,
furnished by Company or the Administrative Agent pursuant to, or in the course of administering,
this Agreement or the other Credit Documents will be syndicate-level information, which may contain
material non-public information about Company and its Affiliates and their related parties or their
respective securities. Accordingly, each Lender represents to Company and the Administrative Agent
that it has identified in its administrative questionnaire a credit contact who may receive
information that may contain material non-public information in accordance with its compliance
procedures and applicable law, including Federal and state securities laws.

     10.18 Usury Savings Clause. Notwithstanding any other provision herein, the aggregate interest rate
charged with respect to any of the Obligations, including all charges or fees in connection
therewith deemed in the nature of interest under applicable law shall not exceed the Highest Lawful
Rate. If the rate of interest (determined without regard to the preceding sentence) under this
Agreement at any time exceeds the Highest Lawful Rate, the outstanding amount of the Loans made
hereunder shall bear interest at the Highest Lawful Rate until the total amount of interest due
hereunder equals the amount of interest which would have been due hereunder if the stated rates of
interest set forth in this Agreement had at all times been in effect. In addition, if when the
Loans made hereunder are repaid in full the total interest due hereunder (taking into account the
increase provided for above) is less than the total amount of interest which would have

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been due
hereunder if the stated rates of interest set forth in this Agreement had at all times been in
effect, then to the extent permitted by law, Company shall pay to Administrative Agent an amount
equal to the difference between the amount of interest paid and the amount of interest which would
have been paid if the Highest Lawful Rate had at all times been in effect. Notwithstanding the
foregoing, it is the intention of Lenders and Company to conform strictly to any applicable usury
laws. Accordingly, if any Lender contracts for, charges, or receives any consideration which
constitutes interest in excess of the Highest Lawful Rate, then any such excess shall be cancelled
automatically and, if previously paid, shall at such Lender’s option be applied to the outstanding
amount of the Loans made hereunder or be refunded to Company.

     10.19 Counterparts . This Agreement may be executed in any number of counterparts, each of which when so
executed and delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

     10.20 Effectiveness. This Agreement shall become effective upon the execution of a counterpart
hereof by each of the parties hereto and receipt by Company and Administrative Agent of written,
electronic or telephonic notification of such execution and authorization of delivery thereof.

     10.21 Patriot Act. Each Lender and Administrative Agent (for itself and not on behalf of any
Lender) hereby notifies Company that pursuant to the requirements of the Act, it is required to
obtain, verify and record information that identifies Company, which information includes the name
and address of Company and other information that will allow such Lender or Administrative Agent,
as applicable, to identify Company in accordance with the Act.

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

[Remainder of page intentionally left blank]

150

 

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

	 	 	 	 	 
	 	COVANTA ENERGY CORPORATION, A DELAWARE CORPORATION, AND EACH OF ITS SUBSIDIARIES LISTED ON ANNEX A HERETO

 	 
	 	By:  	/s/
Anthony J. Orlando	 
	 	 	Name:  	Anthony J. Orlando 	 
	 	 	Title:  	Authorized Officer	 
	 

	 	 	 	 	 
	 	COVANTA HOLDING CORPORATION, A DELAWARE CORPORATION

 	 
	 	By:  	/s/
Anthony J. Orlando	 
	 	 	Name:  	Anthony J. Orlando 	 
	 	 	Title:  	Chief Executive Officer and
President 	 
	 

 

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,

as Administrative Agent, Collateral Agent, Revolving

Issuing Bank and a Funded LC Issuing Bank

 	 
	 	By:  	/s/ Robert Anastasio	 
	 	 	Name:  	Robert Anastasio	 
	 	 	Title:  	Vice President	 
	 

 

 

	 	 	 	 	 
	 	LEHMAN COMMERCIAL PAPER INC., as a Syndication Agent

 	 
	 	By:  	/s/
Laurie Perper	 
	 	 	Name:  	Laurie Perper	 
	 	 	Title:  	Senior Vice President	 
	 

 

 

	 	 	 	 	 
	 	MERRILL LYNCH, PIERCE, FENNER
& SMITH INCORPORATED, as a Syndication Agent

 	 
	 	By:  	/s/ John C. Rowland	 
	 	 	Name:  	John C. Rowland	 
	 	 	Title:  	Vice President	 
	 

 

 

	 	 	 	 	 
	 	UBS AG, STAMFORD BRANCH, as a Funded LC Issuing Bank

 	 
	 	By:  	/s/ Irja R. Otsa	 
	 	 	Name:  	Irja R. Otsa	 
	 	 	Title:  	Associate Director
Banking Products Services,
US	 
	 
	 	By:  	/s/ Mary E. Evans	 
	 	 	Name:  	Mary E. Evans	 
	 	 	Title:  	Associate Director
Banking Products Services,
US	 

 

 

	 	 	 	 	 
	 	BANK OF AMERICA, N.A.,
as
a Documentation Agent
	 
	 
	 	By:  	/s/ Richard D. Hill, Jr.	 
	 	 	Name:  	Richard D. Hill, Jr.	 
	 	 	Title:  	Managing Director	 
	 

 

 

	 	 	 	 	 
	 	BARCLAYS BANK PLC,
as a
Documentation Agent	 
	 
	 	By:  	/s/ Douglas Bernegger	 
	 	 	Name:  	Douglas Bernegger	 
	 	 	Title:  	Director	 
	 

 

 

    LEHMAN BROTHERS COMMERCIAL BANK,

    as a Lender
    

 

			
	 	    By: 
    
	

/s/  Brian
McNany

Name: Brian
McNany

    Title:   Authorized Signatory
    

 

    MERRILL LYNCH CAPITAL
CORPORATION,

    as a Lender
    

 

			
	 	    By: 
    
	

/s/  Don
Burkitt

Name: Don
Burkitt

    Title:   Vice President
    

 

    TD BANKNORTH, N.A.,

    as a Lender
    

 

			
	 	    By: 
    
	

/s/  James
R. Riley

Name: James
R. Riley

    Title:   Senior Vice President
    

 

    CATERPILLAR FINANCIAL SERVICES
    CORPORATION

    as a lender
    

 

			
	 	    By: 
    
	
    /s/  Christopher
    C. Patterson

    
Name: Christopher
    C. Patterson

    Title:   Global Operations Manager-Capital Markets
    

 

    BARCLAYS BANK PLC,

    as a Lender
    

 

			
	 	    By: 
    
	
    /s/  Douglas
    Bernegger

    
Name: Douglas
    Bernegger

    Title:   Director
    

 

	 	 	 	 	 
	 	UNION BANK OF CALIFORNIA,
N.A., as a Lender

 	 
	 	By:  	/s/
Kristin Isleib	 
	 	 	Name:  	Kristin Isleib	 
	 	 	Title:  	Assistant Vice President	 
	 

 

 

    CALYON NEW YORK BRANCH,

    as a Lender
    

 

			
	 	    By: 
    
	

/s/  Anne
Le Goulven

Name: Anne
Le Goulven

    Title:   Director
    

	 

 

 

	 	    By: 
    
	

/s/  Alex
Averbukh

Name: Alex
Averbukh

    Title:   Director
    

 

    BANK OF AMERICA, N.A.,

    as a Lender

 

			
	 	    By: 
	
    /s/  Richard
    D. Hill, Jr.

    Name: Richard D. Hill, Jr.

    Title:   Managing Director

 

	 	 	 	 	 
	 	JPMORGAN CHASE BANK, N.A.,
as a Lender

 	 
	 	By:  	/s/
Robert Anastasio	 
	 	 	Name:  	Robert Anastasio	 
	 	 	Title:  	Vice President	 
	 

 

 

ANNEX A

Subsidiaries

	 	 	 	 	 	 	 
	 	 	Name
	1.	 	8309 Tujunga Avenue Corp., a California corporation
	2.	 	Amor 14 Corporation, a Delaware corporation
	3.	 	Burney Mountain Power, a California corporation
	4.	 	Covanta Acquisition, Inc., a Delaware corporation
	5.	 	Covanta ARC Holdings, Inc., a Delaware corporation
	6.	 	Covanta Bessemer, Inc., a Delaware corporation
	7.	 	Covanta Cunningham Environmental Support, Inc., a New York corporation
	8.	 	Covanta Energy Americas, Inc., a Delaware corporation
	9.	 	Covanta Energy Construction, Inc., a Delaware corporation
	10.	 	Covanta Energy Group, Inc., a Delaware corporation
	11.	 	Covanta Energy International, Inc., a Delaware corporation
	12.	 	Covanta Energy Resource Corp., a Delaware corporation
	13.	 	Covanta Energy Services, Inc., a Delaware corporation
	14.	 	Covanta Energy West, Inc., a Delaware corporation
	15.	 	Covanta Engineering Services, Inc., a New Jersey corporation
	16.	 	Covanta Geothermal Operations Holdings, Inc., a Delaware corporation
	17.	 	Covanta Geothermal Operations, Inc., a Delaware corporation
	18.	 	Covanta Haverhill Properties, Inc., a Massachusetts corporation
	19.	 	Covanta Heber Field Energy, Inc., a Delaware corporation
	20.	 	Covanta Hennepin Energy
Resource Co., Limited Partnership, a Delaware limited partnership
	 

	 	By:
	 	Covanta Energy Resource Corp., its General
Partner	 	 
	21.	 	Covanta Hillsborough, Inc., a Florida corporation

	22.	 	Covanta Honolulu Resource Recovery Venture, a Hawaii General Partnership
	 

	 	By:
	 	Covanta Oahu Waste Energy Recovery, Inc.,
its General Partner	 	 
	 

	 	By:
	 	Covanta Projects of Hawaii, Inc., its General Partner	 	 
	23.	 	Covanta Huntsville, Inc., an Alabama corporation
	24.	 	Covanta Hydro Energy, Inc., a Delaware corporation
	25.	 	Covanta Hydro Operations West, Inc., Delaware corporation
	26.	 	Covanta Hydro Operations, Inc., a Tennessee corporation
	27.	 	Covanta Imperial Power Services, Inc., a California corporation
	28.	 	Covanta Kent, Inc., a Michigan corporation
	29.	 	Covanta Lancaster, Inc., a Pennsylvania corporation
	30.	 	Covanta Lee, Inc., a Florida corporation
	31.	 	Covanta Long Island, Inc., a Delaware corporation
	32.	 	Covanta Marion Land Corp., an Oregon corporation
	33.	 	Covanta Marion, Inc., an Oregon corporation
	34.	 	Covanta Mid-Conn., Inc., a Connecticut corporation

Annex A -1

 

	 	 	 
	35.

	 	Covanta Montgomery, Inc., Maryland corporation
	36.

	 	Covanta New Martinsville Hydroelectric Corporation, a Delaware corporation
	37.

	 	Covanta New Martinsville Hydro-Operations Corporation, a West Virginia corporation
	38.

	 	Covanta Oahu Waste Energy Recovery, Inc., a California corporation
	39.

	 	Covanta Onondaga Operations, Inc., a Delaware corporation
	40.

	 	Covanta Operations of Union LLC, a New Jersey limited liability company
	41.

	 	Covanta OPW Associates, Inc., a Connecticut corporation
	42.

	 	Covanta OPWH, Inc., a Delaware corporation
	43.

	 	Covanta Otay 3 Company, a California corporation
	44.

	 	Covanta Pasco, Inc., a Florida corporation
	45.

	 	Covanta Pinellas, Inc., a Florida corporation
	46.

	 	Covanta Plant Services of New Jersey, Inc., a New Jersey corporation
	47.

	 	Covanta Power Development of Mauritius, Inc., a Delaware corporation
	48.

	 	Covanta Power Development, Inc., a Delaware corporation
	49.

	 	Covanta Power Equity Corporation, a Delaware corporation
	50.

	 	Covanta Power International Holdings, Inc., a Delaware corporation
	51.

	 	Covanta Power Pacific, Inc., a California corporation
	52.

	 	Covanta Power Plant Operations, a California corporation
	53.

	 	Covanta Projects of Hawaii, Inc., a Hawaii corporation
	54.

	 	Covanta Projects, Inc., a Delaware corporation
	55.

	 	Covanta Ref-Fuel Finance LLC (f/k/a Ref-Fuel Corp.), a Delaware limited liability company
	56.

	 	Covanta Ref-Fuel LLC (f/k/a Ref-Fuel LLC), a Delaware limited liability company
	57.

	 	Covanta RRS Holdings, Inc., a Delaware corporation
	58.

	 	Covanta Secure Services, LLC, a Delaware limited liability company
	59.

	 	Covanta SIGC Energy II, Inc., a California corporation
	60.

	 	Covanta SIGC Energy, Inc., a Delaware corporation
	61.

	 	Covanta SIGC Geothermal Operations, Inc., a California corporation
	62.

	 	Covanta Systems, LLC, a Delaware limited liability company
	63.

	 	Covanta Tampa Bay, Inc., a Florida corporation
	64.

	 	Covanta Tampa Construction, Inc., a Delaware corporation
	65.

	 	Covanta Wallingford Associates, Inc., a Connecticut corporation
	66.

	 	Covanta Warren Energy Resources Co., Limited Partnership, a Delaware limited partnership
	67.

	 	Covanta Warren Holdings I, Inc., a Virginia corporation
	68.

	 	Covanta Warren Holdings II, Inc., a California corporation
	69.

	 	Covanta Waste to Energy, LLC, a Delaware limited liability company
	70.

	 	Covanta Water Holdings, Inc., a Delaware corporation
	71.

	 	Covanta Water Systems, Inc., a Delaware corporation
	72.

	 	Covanta Water Treatment Services, Inc., a Delaware corporation
	73.

	 	DSS Environmental, Inc., a New York corporation
	74.

	 	ERC Energy II, Inc., a Delaware corporation
	75.

	 	ERC Energy, Inc., a Delaware corporation
	76.

	 	Generating Resource Recovery Partners L.P., a California limited partnership
	77.

	 	Heber Field Energy II, Inc., a Delaware corporation

Annex A -2

 

	 	 	 
	78.

	 	Heber Loan Partners, a California general partnership
	 

	 	By:    ERC Energy, Inc., its General Partner

By:   ERC Energy II, Inc., its General Partner
	79.

	 	LMI, Inc., a Massachusetts corporation
	80.

	 	Mammoth Geothermal Company, a California corporation
	81.

	 	Mammoth Power Company, a California corporation
	82.

	 	Michigan Waste Energy, Inc., a Delaware corporation
	83.

	 	MSW I Sub, LLC, a Delaware limited liability company
	84.

	 	Mt. Lassen Power, a California corporation
	85.

	 	Pacific Energy Operating Group, L.P., a California limited partnership
	86.

	 	Pacific Geothermal Company, a California corporation
	87.

	 	Pacific Oroville Power, Inc., a California corporation
	88.

	 	Pacific Recovery Corporation, a California corporation
	89.

	 	Pacific Wood Fuels Company, a California corporation
	90.

	 	Three Mountain Operations, Inc., a Delaware corporation
	91.

	 	Three Mountain Power, LLC, a Delaware corporation
	92.

	 	UAH Management Corp., a New York corporation

Annex A -3

 

APPENDIX A-1

TO CREDIT AND GUARANTY AGREEMENT

Term Loan Commitments

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Pro	 
	Lender	 	Term Loan Commitment	 	 	Rata Share	 
	JPMorgan Chase Bank, N.A.
	 	$	650,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 
	Total
	 	$	650,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 

Appendix A-1-1

 

APPENDIX A-2

TO CREDIT AND GUARANTY AGREEMENT

Revolving Commitments

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Pro	 
	Lender	 	Revolving Commitment	 	 	Rata Share	 
	JPMorgan Chase Bank, N.A.
	 	$	48,333,333.34	 	 	 	16.1112	%
	Lehman Brothers Commercial Bank
	 	$	48,333,333.33	 	 	 	16.1111	%
	Merrill Lynch Capital Corporation
	 	$	48,333,333.33	 	 	 	16.1111	%
	Bank of America, N.A.
	 	$	40,000,000.00	 	 	 	13.3333	%
	Barclays Bank PLC
	 	$	40,000,000.00	 	 	 	13.3333	%
	Union Bank of California, N.A.
	 	$	30,000,000.00	 	 	 	10.0000	%
	TD Banknorth, N.A.
	 	$	30,000,000.00	 	 	 	10.0000	%
	Calyon New York Branch
	 	$	10,000,000.00	 	 	 	3.3333	%
	Caterpillar Financial Services Corporation
	 	$	5,000,000.00	 	 	 	1.6667	%
	 
	 	 	 	 	 	 
	Total
	 	$	300,000,000.00	 	 	 	100.0000	%
	 
	 	 	 	 	 	 

Appendix A-2-1

 

APPENDIX A-3

TO CREDIT AND GUARANTY AGREEMENT

Funded Letters of Credit

	 	 	 	 	 	 	 	 	 
	 	 	Funded Letter of Credit	 	 	Pro	 
	Participant	 	Commitment	 	 	Rata Share	 
	JPMorgan Chase Bank, N.A.
	 	$	320,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 
	Total
	 	$	320,000,000	 	 	 	100	%
	 
	 	 	 	 	 	 

Appendix A-3-1

 

APPENDIX B

TO CREDIT AND GUARANTY AGREEMENT

Notice Addresses

CREDIT PARTIES:

	 	 	 
	COVANTA ENERGY CORPORATION
	 

	 	40 Lane Road
	 

	 	Fairfield, NJ 07004
	 

	 	Attention: Chief Financial Officer
	 

	 	CC: General Counsel
	 

	 	Telecopier: (973) 882-7357
	 
	 	 
	COVANTA HOLDING CORPORATION
	 

	 	40 Lane Road
	 

	 	Fairfield, NJ 07004
	 

	 	Attention: Chief Financial Officer
	 

	 	CC: General Counsel
	 

	 	Telecopier: (973) 882-7357
	 
	 	 
	CERTAIN SUBSIDIARIES OF COVANTA ENERGY

	CORPORATION AS SET FORTH IN ANNEX A, AS GUARANTORS:
	 

	 	Care of: Covanta Energy Corporation
	 

	 	40 Lane Road
	 

	 	Fairfield, NJ 07004
	 

	 	Attention: Chief Financial Officer
	 

	 	CC: General Counsel
	 

	 	Telecopier: (973) 882-7357

AGENTS AND ISSUING BANKS:

	 	 	 
	JPMORGAN CHASE BANK, N.A.
	as Administrative Agent, Collateral Agent, Revolving Issuing Bank
	and a Funded LC Issuing Bank
	 

	 	JPMorgan Chase Bank
	 

	 	120 S. LaSalle
	 

	 	Chicago, IL 60603
	 

	 	Attention: Douglas P. Boersma
	 

	 	Telecopier: (312) 661-3566

Appendix B-1

 

 

with a copy to:

	 	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 

	 	120 S. LaSalle
	 

	 	Chicago, IL 60603
	 

	 	Attention: Curtis Reed
	 

	 	Telecopier: (312) 661-3566
	 
	 	 
	 

	 	JPMorgan Chase Bank, N.A.
	 

	 	10 South Dearborn, 7th Floor
	 

	 	Chicago, IL 60603
	 

	 	Attention: Ernest M. Misiora/Irma Yanez
	 

	 	Telecopier: (312) 385-7107
	 
	 	 
	LEHMAN COMMERCIAL PAPER INC.
	as Syndication Agent
	 

	 	c/o Lehman Brothers Commercial Bank
	 

	 	745 Seventh Avenue
	 

	 	New York, NY 10019
	 

	 	Attention: Ritam Bhalla/Wendy Lau
	 

	 	Telecopier: (646) 758-2774/(212) 220-9606
	 
	 	 
	MERRILL LYNCH, PIERCE, FENNER & SMITH INCORPORATED

	as Syndication Agent
	 

	 	c/o Merrill Lynch Capital Corporation
	 

	 	4 World Financial Center
	 

	 	New York, NY 10080
	 

	 	Attention: Don Burkitt/Gillian Prince
	 

	 	Telecopier: (212) 738-1186/(212) 449-9435
	 
	 	 
	BANK OF AMERICA, N.A.

	as Documentation Agent
	 

	 	Bank of America, N.A.
	 

	 	100 Federal Street
	 

	 	Boston, MA 02110
	 

	 	Attention: Richard D. Hill, Jr./Dori J. Aleksandrowicz/Wun Wong
	 

	 	Telecopier: (617) 434-2160/(617) 434-1955/(617) 310-2353

Appendix B-2

 

 

	 	 	 
	BARCLAYS BANK PLC
	as Documentation Agent
	 

	 	Barclays Bank PLC
	 

	 	200 Park Avenue
	 

	 	New York, NY 10166
	 

	 	Attention: Nicholas Bell
	 

	 	Telecopier: (212) 412-7600
	 
	 	 
	UBS AG, STAMFORD BRANCH
	as a Funded LC Issuing Branch
	 

	 	UBS AG, Stamford Branch
	 

	 	677 Washington Boulevard
	 

	 	Stamford, CT 06901
	 

	 	Attention: Marie Haddad
	 

	 	Telecopier (203) 719 3888

LENDERS:

	 	 	 
	BANK OF AMERICA, N.A.
	100 Federal Street
	Boston, MA 02110
	Attention: Richard D. Hill, Jr./Dori J. Aleksandrowicz/Wun Wong
	Telecopier: (617) 434-2160/(617) 434-1955/(617) 310-2353
	 
	 	 
	BARCLAYS BANK PLC
	200 Park Avenue
	New York, NY 10166
	Attention: Nicholas Bell
	Telecopier: (212) 412-7600
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	BARCLAYS CAPITAL SERVICES LLC
	 

	 	200 Cedar Knolls Road
	 

	 	Whippany, NJ 07981
	 

	 	Attention: Gemma Dizon
	 

	 	Telecopier: (973) 576-3014
	 
	 	 
	CALYON NEW YORK BRANCH
	1301 Avenue of the Americas
	New York, NY 10019
	Attention: Yuri Muzichenko/Marie-Lyrvold Bosse-Doleyres
	Telecopier: (212) 459-3179/(212) 261-7696

Appendix B-3

 

 

	 	 	 
	CATERPILLAR FINANCIAL SERVICES CORPORATION
	2120 West End Avenue
	Nashville, TN 37203
	Attention: Max Cavallini/Chris Patterson
	Telecopier: (615) 341-1629/(615) 341-1828
	 
	 	 
	JPMORGAN CHASE BANK, N.A.
	120 S. LaSalle
	Chicago, IL 60603
	Attention: Douglas P. Boersma/Curtis Reed
	Telecopier: (312) 661-3566
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	JPMORGAN CHASE BANK, N.A.
	 

	 	10 South Dearborn, 7th Floor
	 

	 	Chicago, IL 60603
	 

	 	Attention: Ernest M. Misiora/Irma Yanez
	 

	 	Telecopier: (312) 385-7107
	 
	 	 
	LEHMAN BROTHERS COMMERCIAL BANK
	745 Seventh Avenue
	New York, NY 10019
	Attention: Ritam Bhalla/Wendy Lau
	Telecopier: (646) 758-2774/(212) 220-9606
	 
	 	 
	MERRILL LYNCH CAPITAL CORPORATION
	4 World Financial Center
	New York, NY 10080
	Attention: Don Burkitt/Gillian Prince
	Telecopier: (212) 738-1186/(212) 449-9435
	 
	 	 
	TD BANKNORTH, N.A.
	31 West 52nd Street, 19th Floor
	New York, NY 10019
	Attention: James R. Riley
	Telecopier: (212) 827-7239
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	TD BANKNORTH, N.A.
	 

	 	5 Commerce Park North
	 

	 	Bedford, NH 03110
	 

	 	Attention: Vicky Trueworthy
	 

	 	Telecopier: (603) 623-6472

Appendix B-4

 

 

UNION BANK OF CALIFORNIA, N.A.

Energy Capital Services

445 S. Figueroa Street, 15th Floor

Los Angeles, CA 90071

Attention: Kevin Sitar/Silvia Cruz/Ruby Gonzales

Telecopier: (213) 236-4096/(323) 720-2252

Appendix B-5

 

 

SCHEDULE 1.1(a)

TO CREDIT AGREEMENT

CERTAIN ADJUSTMENTS TO FINANCIAL COVENANT DEFINITIONS

     In determining the Interest Coverage Ratio, Leverage Ratio and Consolidated Adjusted EBITDA
with respect to any calculation period ending prior to the first anniversary of the Closing Date,
Consolidated Adjusted EBITDA and Consolidated Interest Expense for each Fiscal Quarter ending on
the dates set forth below shall be the amounts identified under such period:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Fiscal Quarter	 	 	Fiscal Quarter	 	 	Fiscal Quarter	 
	 	 	ending on	 	 	ending on	 	 	ending on	 
	 	 	September 30, 2006	 	 	December 31, 2006	 	 	March 31, 2007	 
	Consolidated Adjusted EBITDA
	 	$	147,361,000	 	 	$	117,545,000	 	 	$	107,949,000	 
	Consolidated Interest Expense
	 	$	28,395,000	 	 	$	27,675,000	 	 	$	27,879,000	 

SCHEDULE 1.1(a)-1

 

SCHEDULE 1.1(b)

TO CREDIT AGREEMENT

CLOSING DATE EXCLUDED SUBSIDIARIES

     Schedule 1.1(b) — 1:

Pacific Energy Resources Incorporated

Pacific Hydropower Company

Penstock Power Company

     Schedule 1.1(b) — 2:

Covanta ARC LLC f/k/a American Ref-Fuel Company LLC

Covanta Ref-Fuel Management LLC f/k/a ARC Ref-Fuel Management LLC

Covanta Ref-Fuel Management II, LLC f/k/a Covanta Ref-Fuel Management II, Inc. f/k/a ARC Ref-Fuel Management II, Inc.

Covanta ARC Company f/k/a American Ref-Fuel Company (a general partnership)

Covanta Hempstead LLC f/k/a ARC Hempstead LLC

Covanta Hempstead II, LLC f/k/a Covanta Hempstead, Inc. f/k/a ARC Hempstead II, Inc.

Covanta Hempstead Company f/k/a American Ref-Fuel Company of Hempstead

Covanta Essex LLC f/k/a ARC Essex LLC

Covanta Essex II, LLC f/k/a Covanta Essex II, Inc. f/k/a ARC Essex II, Inc.

Covanta Essex Company f/k/a American Ref-Fuel Company of Essex County

Covanta SECONN LLC f/k/a ARC SECONN LLC

Covanta Connecticut (S.E.), LLC f/k/a Covanta Connecticut (S.E.), Inc. f/k/a ARC of Connecticut (S.E.), Inc.

Covanta Southeastern Connecticut, L.P. f/k/a ARC of Southeastern Connecticut, L.P.

Covanta Southeastern Connecticut Company f/k/a American Ref-Fuel Company of Southeastern Connecticut

Covanta Niagara LLC f/k/a ARC Niagara LLC

Covanta Niagara II, LLC f/k/a Covanta Niagara II, Inc. f/k/a ARC Niagara II, Inc.

Covanta Niagara, L.P. f/k/a American Ref-Fuel Company of Niagara, L.P.

Covanta Operations of SEMASS LLC f/k/a ARC Operations of SEMASS LLC

Covanta Operations of SEMASS II, LLC f/k/a ARC Operations of SEMASS II, Inc.

Covanta SEMASS, L.P. f/k/a American Ref-Fuel Operations of SEMASS, L.P.

Covanta Company of SEMASS, L.P. f/k/a American Ref-Fuel Company of SEMASS, L.P.

SCHEDULE 1.1(b)-1

 

Covanta SEMASS LLC f/k/a ARC SEMASS LLC

Covanta SEMASS II, LLC f/k/a ARC SEMASS II, Inc.

SEMASS Partnership

Covanta Delaware Valley LLC f/k/a ARC Delaware Valley LLC

Covanta Delaware Valley II, LLC f/k/a ARC Delaware Valley II, Inc.

Covanta Delaware Valley, L.P. f/k/a American Ref-Fuel Company of Delaware Valley, L.P.

TransRiver LLC f/k/a ARC TransRiver LLC

TransRiver II, LLC f/k/a TransRiver II, Inc. f/k/a ARC TransRiver II, Inc.

TransRiver Marketing Company, L.P.

TransRiver Portsmouth LLC

TransRiver Transfer Systems LLC f/k/a ARC Transfer Systems LLC

TransRiver Waste LLC f/k/a ARC Waste LLC

Covanta Capital District LLC f/k/a ARC Capital District LLC

Covanta Capital District II LLC f/k/a ARC Capital District II LLC

Covanta Capital District, L.P. f/k/a American Ref-Fuel Company of the Capital District, L.P.

Covanta Ref-Fuel II LLC (f/k/a Covanta Ref-Fuel II Corp.)

Covanta Ref-Fuel Holdings LLC f/k/a Ref-Fuel Holdings LLC

MSW Energy Holdings LLC

MSW Energy Holdings II LLC

MSW Energy Finance Co., Inc.

MSW Energy Finance Co. II, Inc.

MSW Energy Hudson LLC

MSW Energy Erie LLC

Covanta Development Company LLC f/k/a American Ref-Fuel Company of Camden LLC

Covanta Alexandria/Arlington, Inc.

Covanta Babylon, Inc.

Covanta Bristol, Inc.

Covanta Fairfax, Inc.

Covanta Haverhill, Inc.

Covanta Haverhill Associates

Covanta Huntington Limited Partnership

Covanta Huntington Resource Recovery One Corp.

Covanta Huntington Resource Recovery Seven Corp.

Covanta Indianapolis, Inc.

Covanta Lake II, Inc.

Covanta Omega Lease, Inc.

Covanta Onondaga Five Corp.

Covanta Onondaga Four Corp.

Covanta Onondaga Three Corp.

Covanta Onondaga Two Corp.

Covanta Onondaga, Inc.

Covanta Onondaga, LP

Covanta Projects of Wallingford, LP

Covanta SBR Associates

Covanta Stanislaus, Inc.

SCHEDULE 1.1(b)-2

 

Covanta Union, Inc.

Covanta Waste to Energy of Italy, Inc.

Haverhill Power, LLC

OPI Quezon, LLC

SCHEDULE 1.1(b)-3

 

SCHEDULE 1.1(c)

TO CREDIT AGREEMENT

EXISTING LETTERS OF CREDIT

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Req'd
	 	 	 	 	 	 	 	 	 	 	 	 	Extension
	Project	 	Type	 	LC Number	 	Amount	 	Maturity	 	Issuing Bank	 	Date
	Hennepin
	 	Standby	 	CTCS 634324	 	$17,000,000.00	 	03/31/07	 	JPMorgan Chase	 	01/30/07
	Quezon DSRF
	 	Standby	 	CTCS 634323	 	$11,439,000.00	 	04/01/07	 	JPMorgan Chase	 	03/02/07
	Fairfax
	 	Performance	 	CTCS 634325	 	$900,000.00	 	04/01/07	 	JPMorgan Chase	 	03/02/07
	Haripur
	 	Standby	 	CTCS 270436	 	$676,500.00	 	09/04/07	 	JPMorgan Chase	 	08/20/07
	Montgomery
	 	Standby	 	CTCS 634322	 	$25,000,000.00	 	04/01/07	 	JPMorgan Chase	 	03/02/07
	SEMASS
	 	Standby	 	CTCS 642330	 	$6,554,753.00	 	06/24/07	 	JPMorgan Chase	 	02/24/07
	ARC LLC
	 	Standby	 	CTCS-642334	 	$50,000,000	 	6/24/07	 	JPMorgan Chase	 	3/26/07
	ARC LLC
	 	Standby	 	CTCS-642329	 	$50,000,000	 	6/24/07	 	JPMorgan Chase	 	3/26/07
	Delaware Valley
	 	Standby	 	CTCS 642327	 	$1,457,017.00	 	06/24/07	 	JPMorgan Chase	 	03/26/07
	Delaware Valley
	 	Standby	 	CTCS 642328	 	$25,000,000.00	 	06/24/07	 	JPMorgan Chase	 	04/25/07
	TransRiver
	 	Performance	 	CTCS 212474	 	$3,000,000.00	 	11/05/07	 	JPMorgan Chase	 	10/02/07
	Detroit (PMCC)
	 	Standby	 	F034044	 	$62,919,416.00	 	03/10/07	 	UBS AG	 	02/23/07
	Detroit (GECC)
	 	Standby	 	F034045	 	$26,855,621.00	 	03/10/07	 	UBS AG	 	02/23/07
	Otay 3
	 	Performance	 	CTCS 239616	 	$240,000.00	 	03/31/07	 	JPMorgan Chase	 	12/31/06
	Hillsborough
Expansion
	 	Performance	 	CTCS 296414	 	$10,700,000.00	 	10/01/07	 	JPMorgan Chase	 	08/1/07
	Haverhill
	 	Standby	 	CTCS 302777	 	$14,658,716.00	 	10/01/07	 	JPMorgan Chase	 	09/16/07

SCHEDULE 1.1(c)-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Req'd
	 	 	 	 	 	 	 	 	 	 	 	 	Extension
	Project	 	Type	 	LC Number	 	Amount	 	Maturity	 	Issuing Bank	 	Date
	Haverhill
	 	Standby	 	CTCS 302775	 	$1,500,000.00	 	10/01/07	 	JPMorgan Chase	 	09/16/07
	Haverhill
	 	Standby	 	CTCS 302858	 	$1,000,000.00	 	10/01/07	 	JPMorgan Chase	 	09/16/07
	CEC (National Union
Fire)
	 	Standby	 	CTCS 642337	 	$100,000.00	 	06/24/07	 	JPMorgan Chase	 	05/25/07
	CEC — Workers
Compensation (ACE)
	 	Standby	 	CTCS 634327	 	$5,000,000.00	 	03/31/07	 	JPMorgan Chase	 	01/30/07
	CEC — Workers
Compensation (AIG)
	 	Standby	 	CTCS 634326	 	$2,100,000.00	 	03/31/07	 	JPMorgan Chase	 	03/01/07
	CEC — Workers
Compensation
(Zurich)
	 	Standby	 	CTCS 642332	 	$650,000.00	 	06/24/07	 	JPMorgan Chase	 	04/25/07
	CEC — Workers
Compensation
(Liberty)
	 	Standby	 	CTCS 642333	 	$700,000.00	 	06/24/07	 	JPMorgan Chase	 	04/25/07

SCHEDULE 1.1(c)-2

 

SCHEDULE 1.1(d)

TO CREDIT AGREEMENT

CLOSING DATE FOREIGN SUBSIDIARIES

1. Covanta Bangladesh Operating Ltd. (Bangladesh)

2. Olmec Insurance Ltd. (Bermuda)

3. Power Operations and Maintenance Ltd. (Bermuda)

4. Ogden Power Development-Cayman, Inc.(Cayman Islands)

5. Covanta Philippines Operating, Inc.(Cayman Islands)

6. Covanta Cayman (Sahacogen) Ltd. (Cayman Islands)

7. Covanta Cayman (Rojana) Ltd. (Cayman Islands)

8. Covanta Mauritius O&M Ltd. f/k/a OPDB, Ltd. (Cayman Islands)

9. Linan Ogden-Jinjiang Cogeneration Co. Ltd. (China)

10. Taixing Ogden-Yanjiang Cogeneration Co. Ltd. (China)

11. Hidro Operaciones Pedro S.A. (Costa Rica)

12. Covanta Energy Asia Pacific Ltd. (Hong Kong)

13. Madurai Power Corporation Pvt. Ltd. (India)

14. Covanta Samalpatti Operating Pvt. Ltd. (India)

15. Covanta Madurai Operating Pvt. Ltd. (India)

16. Covanta Energy India Pvt. Ltd. (India)

17. Covanta India Operating Pvt. Ltd. (India)

18. Covanta Italy Holding, S.r.l (Italy)

19. Covanta Italy I S.r.l. (Italy)

20. Covanta Italy II S.r.l. (Italy)

21. Covanta Energy India (Balaji) Limited (Mauritius)

22. Covanta Energy International Investments Limited (f/k/a Covanta Energy India Investments, Ltd.)
(Mauritius)

SCHEDULE 1.1(d)-1

 

23. Covanta Energy India (Samalpatti) Ltd.(Mauritius)

24. Covanta Energy Asia Holdings Ltd. (f/k/a Covanta Chinese Investments Ltd.) (Mauritius)

25. Covanta Energy China (Alpha) Ltd. (Mauritius)

26. Covanta Waste to Energy Asia Ltd. (f/k/a Covanta Energy China (Beta) Ltd.) (Mauritius)

27. Covanta Energy China (Delta) Ltd. (Mauritius)

28. Covanta Energy China (Gamma) Ltd. (Mauritius)

29. Covanta One Ltd. (Mauritius)

30. Covanta Five Ltd. (Mauritius)

31. Goa Holdings Ltd.(Mauritius)

32. Ogden Energy (Gulf) Limited (Mauritius)

33. Ogden Energy India (Bakreshwar) Ltd. (Mauritius)

34. Bal-Sam India Holdings, Ltd. (Mauritius)

35. Covanta Energy India (CBM) Ltd. (Mauritius)

36. Covanta Two Ltd. (Mauritius)

37. Covanta Waste to Energy Asia Investments (Mauritius)

38. Covanta Four Ltd. (Mauritius)

39. Ogden Taiwan Investments Ltd. (Mauritius)

40. Covanta Three Ltd. (Mauritius)

41. Enereurope Holdings III, B.V. (Netherlands)

42. Magellan Cogeneration, Inc. (Philippines)

43. Edison (Bataan) Cogeneration Corporation (Philippines)

44. Covanta Energy Philippine Holdings, Inc.(Philippines)

45. Covanta Energy (Thailand) Ltd. (Thailand)

46. Covanta Energy Limited (UK)

SCHEDULE 1.1(d)-2

 

SCHEDULE 1.1(e)

TO CREDIT AGREEMENT

DETROIT LETTERS OF CREDIT

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	Req'd
	 	 	 	 	 	 	 	 	 	 	 	 	Extension
	Project	 	Type	 	LC Number	 	Amount1	 	Maturity	 	Issuing Lender	 	Date
	Detroit (PMCC)
	 	Standby	 	F034044	 	$62,919,416.00	 	03/10/07	 	UBS AG	 	02/23/07
	Detroit (GECC)
	 	Standby	 	F034045	 	$26,855,621.00	 	03/10/07	 	UBS AG	 	02/23/07

 

			
	1	 	Amounts reduced semi-annually through July 2009.

SCHEDULE 1.1(e)-1

 

SCHEDULE 2.4(f)

TO CREDIT AGREEMENT

ALLOCATION OF CREDIT LINKED DEPOSITS

	 	 	 	 	 
	UBS AG
	 	$	90,917,580.48	 
	JPMorgan Chase Bank, N.A.
	 	$	229,082,419.52	 
	TOTAL
	 	$	320,000,000.00	 

SCHEDULE 2.14(f)-1

 

SCHEDULE 3.1(d)

TO CREDIT AGREEMENT

CERTAIN CLOSING DATE INDEBTEDNESS EVENTS

• Madurai Project (India): Madurai Power Corporation Pvt. Ltd., a Subsidiary, is currently
in technical default on its limited recourse project debt due to the failure of the project power
purchase agreement off-taker to fund a required escrow account and post a required letter of
credit.

SCHEDULE 3.1(d)-1

 

SCHEDULE 4.1

TO CREDIT AGREEMENT

JURISDICTIONS OF ORGANIZATION

COVANTA ENERGY GROUP, INC. AND ITS SUBSIDIARIES

	 	 	 
	 	 	Jurisdiction of
	Company Name	 	Incorporation
	8309 Tujunga Avenue Corp.

	 	California
	Amor 14 Corporation

	 	Delaware
	Burney Mountain Power

	 	California
	Covanta Acquisition, Inc.

	 	Delaware
	Covanta Alexandria /Arlington, Inc.

	 	Virginia
	Covanta Babylon, Inc.

	 	New York
	Covanta Bessemer, Inc.

	 	Delaware
	Covanta Bristol, Inc.

	 	Connecticut
	Covanta Cunningham Environmental Support, Inc.

	 	New York
	Covanta Energy Americas, Inc.

	 	Delaware
	Covanta Energy Construction, Inc.

	 	Delaware
	Covanta Energy Corporation

	 	Delaware
	Covanta Energy Group, Inc.

	 	Delaware
	Covanta Energy International, Inc.

	 	Delaware
	Covanta Energy Resource Corp.

	 	Delaware
	Covanta Energy Services, Inc.

	 	Delaware
	Covanta Energy West, Inc.

	 	Delaware
	Covanta Engineering Services, Inc.

	 	New Jersey
	Covanta Fairfax, Inc.

	 	Virginia
	Covanta Geothermal Operations Holdings, Inc.

	 	Delaware
	Covanta Geothermal Operations, Inc.

	 	Delaware
	Covanta Haverhill Associates

	 	Massachusetts
	Covanta Haverhill Properties, Inc.

	 	Massachusetts
	Covanta Haverhill, Inc.

	 	Massachusetts
	Covanta Heber Field Energy, Inc.

	 	Delaware
	Covanta Hennepin Energy Resource Co., Limited Partnership

	 	Delaware
	Covanta Hillsborough, Inc.

	 	Florida
	Covanta Holding Corporation

	 	Delaware
	Covanta Honolulu Resource Recovery Venture

	 	Hawaii
	Covanta Huntington Limited Partnership

	 	Delaware
	Covanta Huntington Resource Recovery One Corp.

	 	Delaware
	Covanta Huntington Resource Recovery Seven Corp.

	 	Delaware
	Covanta Huntsville, Inc.

	 	Alabama
	Covanta Hydro Energy, Inc.

	 	Delaware
	Covanta Hydro Operations West, Inc.

	 	Delaware
	Covanta Hydro Operations, Inc.

	 	Tennessee
	Covanta Imperial Power Services, Inc.

	 	California
	Covanta Indianapolis, Inc.

	 	Indiana

SCHEDULE 4.1-1

 

	 	 	 
	 	 	Jurisdiction of
	Company Name	 	Incorporation
	Covanta Kent, Inc.

	 	Michigan
	Covanta Lake II, Inc.

	 	Florida
	Covanta Lancaster, Inc.

	 	Pennsylvania
	Covanta Lee, Inc.

	 	Florida
	Covanta Long Island, Inc.

	 	Delaware
	Covanta Marion Land Corp.

	 	Oregon
	Covanta Marion, Inc.

	 	Oregon
	Covanta Mid-Conn., Inc.

	 	Connecticut
	Covanta Montgomery, Inc.

	 	Maryland
	Covanta New Martinsville Hydroelectric Corporation

	 	Delaware
	Covanta New Martinsville Hydro-Operations Corporation

	 	West Virginia
	Covanta Oahu Waste Energy Recovery, Inc.

	 	California
	Covanta Omega Lease, Inc.

	 	Delaware
	Covanta Onondaga Five Corp.

	 	Delaware
	Covanta Onondaga Four Corp.

	 	Delaware
	Covanta Onondaga Limited Partnership

	 	Delaware
	Covanta Onondaga Operations, Inc.

	 	Delaware
	Covanta Onondaga Three Corp.

	 	Delaware
	Covanta Onondaga Two Corp.

	 	Delaware
	Covanta Onondaga, Inc.

	 	New York
	Covanta Operations of Union, LLC

	 	New Jersey
	Covanta OPW Associates, Inc.

	 	Connecticut
	Covanta OPWH, Inc.

	 	Delaware
	Covanta Pasco, Inc.

	 	Florida
	Covanta Pinellas, Inc.

	 	Florida
	Covanta Plant Services of New Jersey, Inc.

	 	New Jersey
	Covanta Power Equity Corporation

	 	Delaware
	Covanta Power International Holdings, Inc.

	 	Delaware
	Covanta Power Pacific, Inc.

	 	California
	Covanta Power Plant Operations

	 	California
	Covanta Projects of Hawaii, Inc.

	 	Hawaii
	Covanta Projects of Wallingford, L.P.

	 	Delaware
	Covanta Projects, Inc.

	 	Delaware
	Covanta RRS Holdings, Inc.

	 	Delaware
	Covanta SBR Associates

	 	Massachusetts
	Covanta Secure Services, LLC

	 	Delaware
	Covanta SIGC Energy II, Inc.

	 	California
	Covanta SIGC Energy, Inc.

	 	Delaware
	Covanta SIGC Geothermal Operations, Inc.

	 	California
	Covanta Stanislaus, Inc.

	 	California
	Covanta Systems, LLC

	 	Delaware
	Covanta Tampa Bay, Inc.

	 	Florida
	Covanta Tampa Construction, Inc.

	 	Delaware

SCHEDULE 4.1-2

 

	 	 	 
	 	 	Jurisdiction of
	Company Name	 	Incorporation
	Covanta Union, Inc.

	 	New Jersey
	Covanta Wallingford Associates, Inc.

	 	Connecticut
	Covanta Warren Energy Resource Co., Limited Partnership

	 	Delaware
	Covanta Warren Holdings I, Inc.

	 	Virginia
	Covanta Warren Holdings II, Inc.

	 	California
	Covanta Waste to Energy Asia Investments

	 	Mauritius
	Covanta Waste to Energy, LLC

	 	Delaware
	Covanta Water Holdings, Inc.

	 	Delaware
	Covanta Water Systems, Inc.

	 	Delaware
	Covanta Water Treatment Services, Inc.

	 	Delaware
	DSS Environmental, Inc.

	 	New York
	ERC Energy II, Inc.

	 	Delaware
	ERC Energy, Inc.

	 	Delaware
	Generating Resource Recovery Partners L.P.

	 	California
	Haverhill Power, LLC

	 	Massachusetts
	Heber Field Energy II, Inc.

	 	Delaware
	Heber Loan Partners

	 	California
	LMI, Inc.

	 	Massachusetts
	Mammoth Geothermal Company

	 	California
	Mammoth Power Company

	 	California
	Michigan Waste Energy, Inc.

	 	Delaware
	Mt. Lassen Power

	 	California
	Olmec Insurance Ltd.

	 	Bermuda
	Pacific Energy Operating Group, L.P.

	 	California
	Pacific Energy Resources Incorporated

	 	California
	Pacific Geothermal Company

	 	California
	Pacific Hydropower Company

	 	California
	Pacific Oroville Power, Inc.

	 	California
	Pacific Recovery Corporation

	 	California
	Pacific Wood Fuels Company

	 	California
	Covanta Otay 3 Company

	 	California
	Penstock Power Company

	 	California
	Three Mountain Operations, Inc.

	 	Delaware
	Three Mountain Power, LLC

	 	Delaware

SCHEDULE 4.1-3

 

COVANTA ARC HOLDINGS, INC. AND ITS SUBSIDIARIES

	 	 	 
	Covanta ARC Holdings, Inc. (formerly known as American Ref-Fuel
Holdings Corp.)

	 	Delaware
	Covanta ARC LLC (formerly known as American Ref-Fuel Company LLC)

	 	Delaware
	Covanta Ref-Fuel Management LLC (formerly known as ARC Ref-Fuel Management LLC)

	 	Delaware
	Covanta Ref-Fuel Management II, LLC (formerly known as Covanta Ref-Fuel
Management II, Inc. formerly known as ARC Ref-Fuel Management II, Inc.)

	 	Delaware
	Covanta ARC Company (formerly known as American Ref-Fuel Company (a general partnership))

	 	Delaware
	Covanta Hempstead LLC (formerly known as ARC Hempstead LLC)

	 	Delaware
	Covanta Hempstead II, LLC (formerly known as Covanta Hempstead, Inc. formerly
known as ARC Hempstead II, Inc.)

	 	Delaware
	Covanta Hempstead Company (formerly known as American Ref-Fuel Company of
Hempstead)

	 	New York
	Covanta Essex LLC (formerly known as ARC Essex LLC)

	 	Delaware
	Covanta Essex II, LLC (formerly known as Covanta Essex II, Inc. formerly known
as ARC Essex II, Inc.)

	 	Delaware
	Covanta Essex Company (formerly known as American Ref-Fuel Company of
Essex County)

	 	New Jersey
	Covanta SECONN LLC (formerly knwn as ARC SECONN LLC)

	 	Delaware
	Covanta Connecticut (S.E.), LLC (formerly known as Covanta Connecticut (S.E.),
Inc. formerly known as ARC of Connecticut (S.E.), Inc.)

	 	Delaware
	Covanta Southeastern Connecticut, L.P. (formerly known as ARC of Southeastern
Connecticut, L.P.)

	 	Delaware
	Covanta Southeastern Connecticut Company (formerly known as American
Ref-Fuel Company of Southeastern Connecticut)

	 	Connecticut
	Covanta Niagara, LLC (formerly known as ARC Niagara LLC)

	 	Delaware
	Covanta Niagara II, LLC (formerly known as Covanta Niagara II, Inc. formerly
known as ARC Niagara II, Inc.)

	 	Delaware
	Covanta Niagara, L.P. (formerly known as American Ref-Fuel Company of Niagara,
L.P.)

	 	Delaware
	Covanta Operations of SEMASS LLC (formerly known as ARC Operations of SEMASS
LLC)

	 	Delaware

SCHEDULE 4.1-4

 

	 	 	 
	Covanta Operations of SEMASS II, LLC (formerly known as ARC Operations of
SEMASS II, Inc.)

	 	Delaware
	Covanta SEMASS, L.P. (formerly known as American Ref-Fuel Operations of
SEMASS, L.P.)

	 	Delaware
	Covanta Company of SEMASS, L.P. (formerly known as American Ref-Fuel Company
of SEMASS, L.P.)

	 	Delaware
	Covanta SEMASS LLC (formerly ARC SEMASS LLC)

	 	Delaware
	Covanta SEMASS II, LLC (formerly known as ARC SEMASS II, Inc.)

	 	Delaware

	SEMASS Partnership

	 	Massachusetts
	Covanta Delaware Valley LLC (formerly known as ARC Delaware Valley LLC)

	 	Delaware
	Covanta Delaware Valley II, LLC (formerly known as ARC Delaware Valley II,
Inc.)

	 	Delaware
	Covanta Delaware Valley, L.P. (formerly known as American Ref-Fuel
Company of Delaware Valley, L.P.)

	 	Delaware
	TransRiver LLC (formerly known as ARC TransRiver LLC)

	 	Delaware
	TransRiver II, LLC formerly known as TransRiver II, Inc. f/k/a ARC TransRiver
II, Inc.)

	 	Delaware
	TransRiver Marketing Company, L.P.

	 	Delaware
	TransRiver Portsmouth LLC

	 	Virginia
	TransRiver Transfer Systems, LLC (formerly known as ARC Transfer Systems LLC)

	 	Delaware
	TransRiver Waste LLC (formerly known as ARC Waste LLC)

	 	Delaware
	Covanta Capital District LLC (formerly known as ARC Capital District LLC)

	 	Delaware
	Covanta Capital District II LLC (formerly known as ARC Capital District II LLC)

	 	Delaware
	Covanta Capital District, L.P. (formerly known as American Ref-Fuel
Company of the Capital District, L.P.)

	 	Delaware
	Covanta Ref-Fuel Finance LLC (formerly known as Covanta Ref-Fuel Corp.)

	 	Delaware
	UAH-Groveville Hydro Associates

	 	New York
	UAH Management Corp.

	 	New York
	Covanta Ref-Fuel LLC (formerly known as Ref-Fuel LLC)

	 	Delaware
	Covanta Ref-Fuel II LLC (f/k/a Covanta Ref-Fuel II Corp.)

	 	Delaware
	Covanta Ref-Fuel Holdings LLC (formerly known as Ref-Fuel Holdings LLC)

	 	Delaware
	MSW Energy Erie LLC

	 	Delaware

SCHEDULE 4.1-5

 

	 	 	 
	MSW Energy Holdings LLC

	 	Delaware
	MSW Energy Holdings II LLC

	 	Delaware
	MSW Energy Finance Co., Inc.

	 	Delaware
	MSW Energy Finance Co. II, Inc.

	 	Delaware
	MSW Energy Hudson LLC

	 	Delaware
	MSW I Sub, LLC (formally known as MSW I Sub, Inc.)

	 	Delaware
	Covanta Development Company LLC (formerly known as American Ref-Fuel
Company of Camden LLC)

	 	Delaware

SCHEDULE 4.1-6

 

COVANTA POWER INTERNATIONAL HOLDINGS, INC. AND ITS SUBSIDIARIES

	 	 	 
	Edison (Bataan) Cogeneration Corporation

	 	Philippines
	Hidro Operaciones Don Pedro S.A.

	 	Costa Rica
	Covanta Energy India (Balaji) Limited

	 	Mauritius
	Covanta
Energy International Investments Limited (f/k/a Covanta Energy India Investments, Ltd.)
	 	Mauritius	 
	Covanta Energy India (Samalpatti) Ltd.

	 	Mauritius
	Covanta Energy Philippine Holdings, Inc.

	 	Philippines
	Ogden Power Development-Cayman, Inc.

	 	Cayman Islands
	Covanta Philippines Operating, Inc.

	 	Cayman Islands
	Madurai Power Corporation Pvt. Ltd.

	 	India
	Covanta Bangladesh Operating Ltd.

	 	Bangladesh
	Covanta Energy Asia Holdings Ltd. (f/k/a Covanta Chinese Investments Ltd.)

	 	Mauritius
	Covanta Energy China (Alpha) Ltd.

	 	Mauritius
	Linan Ogden-Jinjiang Cogeneration Co. Ltd.

	 	China
	Covanta Waste to Energy Asia Ltd. (f/k/a Covanta Energy China (Beta) Ltd.)

	 	Mauritius
	Covanta Energy China (Delta) Ltd.

	 	Mauritius
	Taixing Ogden-Yanjiang Cogeneration Co. Ltd.

	 	China
	Covanta Energy China (Gamma) Ltd.

	 	Mauritius
	Covanta One Ltd.

	 	Mauritius
	Covanta Five Ltd.

	 	Mauritius
	Covanta Samalpatti Operating Pvt. Ltd.

	 	India
	Covanta Madurai Operating Pvt. Ltd.

	 	India
	Covanta Power Development, Inc.

	 	Delaware
	Covanta Power Development of Mauritius, Inc.

	 	Delaware
	Covanta Waste to Energy of Italy, Inc.

	 	Delaware
	OPI Quezon, LLC

	 	Delaware
	Goa Holdings Ltd.

	 	Mauritius
	Magellan Cogeneration, Inc.

	 	Philippines
	Enereurope Holdings III, B.V.

	 	Netherlands
	Ogden Energy (Gulf) Limited

	 	Mauritius
	Ogden Energy India (Bakreshwar) Ltd.

	 	Mauritius
	Bal-Sam India Holdings, Ltd.

	 	Mauritius
	Covanta Energy India (CBM) Ltd.

	 	Mauritius
	Covanta Two Ltd.

	 	Mauritius
	Covanta Cayman (Sahacogen) Ltd.

	 	Cayman Islands
	Covanta Three Ltd.

	 	Mauritius
	Covanta Cayman (Rojana) Ltd.

	 	Cayman Islands
	Covanta Four Ltd.

	 	Mauritius
	Power Operations and Maintenance Ltd.

	 	Bermuda
	Covanta India Operating Pvt. Ltd.

	 	India
	Ogden Taiwan Investments Ltd.

	 	Mauritius

SCHEDULE 4.1
- 7

 

	 	 	 
	Covanta Mauritius O&M Ltd. (formally known as OPDB, Ltd.

	 	Cayman Islands
	Covanta Energy India Pvt. Ltd.

	 	India
	Covanta Energy (Thailand) Ltd.

	 	Thailand
	Covanta Energy Asia Pacific Ltd.

	 	Hong Kong
	Covanta Energy Limited

	 	United Kingdom
	Covanta Italy Holding, S.r.l.

	 	Italy
	Covanta Italy I S.r.l.

	 	Italy
	Covanta Italy II S.r.l.

	 	Italy

SCHEDULE 4.1
- 8

 

SCHEDULE 4.2

TO CREDIT AGREEMENT

CAPITAL STOCK AND OWNERSHIP

(A) Covanta and Certain of its Domestic Subsidiaries

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	1.

	 	8309 Tujunga Avenue Corp.
(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	2.

	 	AMOR 14 Corporation (Delaware)
	 	Issued: 5,000 shares
	 	100% owned by Covanta SIGC
Energy Inc.
	 
	 	 	 	 	 	 
	3.

	 	Burney Mountain Power (California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	4.

	 	Covanta Acquisition, Inc. (Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Water
Systems, Inc.
	 
	 	 	 	 	 	 
	5.

	 	Covanta Alexandria/Arlington, Inc.
(Virginia)
	 	Issued: 1,000 shares
	 	100% owned by Covanta
Systems, LLC.
	 
	 	 	 	 	 	 
	6.

	 	Covanta ARC Holdings, Inc. (f/k/a
American Ref-Fuel Holding Inc.)
(Delaware)
	 	Issued: 263,987 shares
	 	100% owned by Covanta Energy Corporation
	 
	 	 	 	 	 	 
	7.

	 	Covanta Babylon, Inc.
(New York)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	8.

	 	Covanta Bessemer, Inc. (Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Water
Systems, Inc.
	 
	 	 	 	 	 	 
	9.

	 	Covanta Bristol, Inc.
(Connecticut)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	10.

	 	Covanta Cunningham
Environmental Support
Services, Inc.
(New York)
	 	Issued: 10 shares issued; no par value
	 	100% owned by Covanta
Acquisition, Inc.

SCHEDULE 4.2
- 1

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	11.

	 	Covanta Energy Americas, Inc.
(Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Energy
West, Inc.
	 
	 	 	 	 	 	 
	12.

	 	Covanta Energy Construction, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	13.

	 	Covanta Energy Corporation

(Delaware)
	 	Issued: 200 shares
	 	100% owned by Danielson Holding Corporation
	 
	 	 	 	 	 	 
	14.

	 	Covanta Energy Group, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy Corporation
	 
	 	 	 	 	 	 
	15.

	 	Covanta Energy International, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta
Projects, Inc.
	 
	 	 	 	 	 	 
	16.

	 	Covanta Energy Resource Corp.
(Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	17.

	 	Covanta Energy Services, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	18.

	 	Covanta Energy West, Inc. (Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy
International, Inc.
	 
	 	 	 	 	 	 
	19.

	 	Covanta Engineering Services, Inc.
(New Jersey)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	20.

	 	Covanta Warren Holdings I, Inc.
(f/k/a Covanta Equity of
Arlington/Alexandria, Inc.)
(Virginia)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	21.

	 	Covanta Warren Holdings II, Inc.
(f/k/a Covanta Equity of
Stanislaus, Inc.)
(California)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC

SCHEDULE 4.2-2

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	22.

	 	Covanta Fairfax, Inc.
(Virginia)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	23.

	 	Covanta Geothermal Operations
Holdings, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	24.

	 	Covanta Geothermal Operations, Inc.
(Delaware)
	 	Issued: 1,500 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	25.

	 	Covanta Haverhill Properties, Inc.
(Massachusetts)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	26.

	 	Covanta Haverhill, Inc.
(Massachusetts)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	27.

	 	Covanta Heber Field Energy, Inc.
(Delaware)
	 	Issued: 1500 shares
	 	100% owned by Covanta Power Equity Corporation
	 
	 	 	 	 	 	 
	28.

	 	Covanta Hillsborough, Inc. (Florida)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	29.

	 	Covanta Huntington Resource
Recovery One Corp.
(Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	30.

	 	Covanta Huntington Resource
Recovery Seven Corp.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	31.

	 	Covanta Huntsville, Inc.
(Alabama)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	32.

	 	Covanta Hydro Energy, Inc.
(Delaware)
	 	Issued: 1,500 shares
	 	100% owned by Covanta Power Equity Corporation
	 
	 	 	 	 	 	 
	33.

	 	Covanta Hydro Operations
West, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by
Covanta Energy Americas, Inc.

SCHEDULE 4.2-3

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	34.

	 	Covanta Hydro Operations, Inc.
(Tennessee)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	35.

	 	Covanta Imperial Power
Services, Inc.
(California)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	36.

	 	Covanta Indianapolis, Inc.
(Indiana)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	37.

	 	Covanta Kent, Inc.
(Michigan)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	38.

	 	Covanta Lake II, Inc.
(Florida)
	 	Issued: 750 shares common

Issued: 250 shares preferred
	 	75% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	39.

	 	Covanta Lancaster, Inc.
(Pennsylvania)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	40.

	 	Covanta Lee, Inc.
(Florida)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	41.

	 	Covanta Long Island, Inc. (Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	42.

	 	Covanta Marion Land Corp. (Oregon)
	 	Issued to Covanta: 1000 common shares
	 	76.923% owned by Covanta
Systems, LLC

23.177% owned by a third party
	 
	 	 	 	 	 	 
	43.

	 	Covanta Marion, Inc.
(Oregon)
	 	Issued: 10 shares
	 	100% owned by Covanta Systems, LLC
	 
	 	 	 	 	 	 
	44.

	 	Covanta Mid-Conn, Inc. (Connecticut)
	 	Issued: 1,000 shares
	 	100% owned by Covanta RRS
Holdings, Inc.
	 
	 	 	 	 	 	 
	45.

	 	Covanta Montgomery, Inc.
(Maryland)
	 	Issued: 100 shares
	 	100% owned by Covanta Systems, LLC

SCHEDULE 4.2-4

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	46.

	 	Covanta New Martinsville

Hydroelectric Corporation

(Delaware)
	 	Issued: 10 shares
	 	100% owned by Covanta Power

Equity Corporation
	 
	 	 	 	 	 	 
	47.

	 	Covanta New Martinsville

Hydro-Operations Corporation

(West Virginia)
	 	Issued: 400 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	48.

	 	Covanta Oahu Waste Energy
Recovery Inc.
(California)
	 	Issued: 1,000 shares
	 	100% owned by Covanta RRS
Holdings, Inc.
	 
	 	 	 	 	 	 
	49.

	 	Covanta Omega Lease, Inc. (Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta
Haverhill, Inc.
	 
	 	 	 	 	 	 
	50.

	 	Covanta Onondaga Five Corp.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	51.

	 	Covanta Onondaga Four Corp.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	52.

	 	Covanta Onondaga Operations, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	53.

	 	Covanta Onondaga Three Corp.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	54.

	 	Covanta Onondaga Two Corp.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	55.

	 	Covanta Onondaga, Inc.
(New York)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	56.

	 	Covanta OPW Associates, Inc.
(Connecticut)
	 	Issued: 100 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	57.

	 	Covanta OPWH, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	58.

	 	Covanta Pasco, Inc.
(Florida)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC

SCHEDULE 4.2-5

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	59.

	 	Covanta Pinellas, Inc.
(Florida)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	60.

	 	Covanta Plant Services of New
Jersey, Inc.
(New Jersey)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy
Services, Inc.
	 
	 	 	 	 	 	 
	61.

	 	Covanta Power Equity

Corporation

(Delaware)
	 	Issued: 1,000 shares of Common Class A
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	62.

	 	Covanta Power International
Holdings, Inc.
(Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	63.

	 	Covanta Power Pacific, Inc.
(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	64.

	 	Covanta Power Plant

Operations

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	65.

	 	Covanta Projects of Hawaii, Inc.
(Hawaii)
	 	Issued: 1,000 shares
	 	100% owned by Covanta RRS
Holdings, Inc.
	 
	 	 	 	 	 	 
	66.

	 	Covanta Projects, Inc.
(Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Energy
Group, Inc.
	 
	 	 	 	 	 	 
	67.

	 	Covanta RRS Holdings Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	68.

	 	Covanta Secure Services, LLC
(formerly known as Covanta Secure
Services, Inc.) (Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	69.

	 	Covanta SIGC Energy, Inc.
(California)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	70.

	 	Covanta SIGC Energy II, Inc.
(California
	 	Issued: 1,000 shares
	 	100% owned by Covanta Energy
Americas, Inc.

SCHEDULE 4.2-6

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	71.

	 	Covanta SIGC Geothermal
Operations, Inc.
(Delaware)
	 	Issued: 500 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	72.

	 	Covanta Stanislaus, Inc.
(California)
	 	Issued: 100 shares
	 	100% owned by Covanta

Systems, LLC
	 
	 	 	 	 	 	 
	73.

	 	Covanta Systems LLC

(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	74.

	 	Covanta Tampa Bay, Inc.
(Florida)
	 	Issued: 100 shares
	 	100% owned by Covanta Water
Systems, Inc.
	 
	 	 	 	 	 	 
	75.

	 	Covanta Tampa Construction, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Water
Systems, Inc.
	 
	 	 	 	 	 	 
	76.

	 	Covanta Union, Inc.
(New Jersey)
	 	Issued: 100 shares
	 	100% owned by Covanta
Systems, LLC.
	 
	 	 	 	 	 	 
	77.

	 	Covanta Wallingford Associates, Inc.
(Connecticut)
	 	Issued: 100 shares
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	78.

	 	Covanta Waste to Energy LLC
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta
Projects, Inc.
	 
	 	 	 	 	 	 
	79.

	 	Covanta Water Holdings, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta
Projects, Inc.
	 
	 	 	 	 	 	 
	80.

	 	Covanta Water Systems, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Water
Holdings, Inc.
	 
	 	 	 	 	 	 
	81.

	 	Covanta Water Treatment
Services, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Water
Holdings, Inc.
	 
	 	 	 	 	 	 
	82.

	 	ERC Energy II, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Power

Equity Corporation
	 
	 	 	 	 	 	 
	83.

	 	ERC Energy, Inc.
(Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Power
International Holdings, Inc.

SCHEDULE 4.2-7

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	84.

	 	Haverhill Power LLC

(Delaware)
	 	Issued: 10,000 shares
	 	100% owned by Covanta
Haverhill, Inc.
	 
	 	 	 	 	 	 
	85.

	 	Heber Field Energy II, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Power

Equity Corporation
	 
	 	 	 	 	 	 
	86.

	 	LMI, Inc.
(Massachusetts)
	 	Issued: 10,000 shares
	 	100% owned by Covanta
Haverhill, Inc.
	 
	 	 	 	 	 	 
	87.

	 	Mammoth Geothermal Company

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	88.

	 	Mammoth Power Company

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	89.

	 	Michigan Waste Energy, Inc.
(Delaware)
	 	Issued: 1,000 shares
	 	100% owned by Covanta RRS
Holdings, Inc.
	 
	 	 	 	 	 	 
	90.

	 	Mt. Lassen Power
(California)
	 	Issued: 10 shares
	 	100% owed by Covanta
Power International
Holdings, Inc.
	 
	 	 	 	 	 	 
	91.

	 	Pacific Energy Resources

Incorporated

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	92.

	 	Pacific Geothermal Company

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	93.

	 	Pacific Hydropower Company

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	94.

	 	Pacific Oroville Power, Inc.
(California)
	 	Issued: 1,000 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	95.

	 	Pacific Recovery Corporation

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	96.

	 	Pacific Wood Fuels Company

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.

SCHEDULE 4.2-8

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated
	 	 	(Jurisdiction of	 	 	 	Ownership As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	97.

	 	Covanta Otay 3 Company (f/k/a

Pacific Wood Services

Company)

(California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	98.

	 	Penstock Power Company (California)
	 	Issued: 10 shares
	 	100% owned by Covanta Power
Pacific, Inc.
	 
	 	 	 	 	 	 
	99.

	 	Three Mountain Operations, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	100.

	 	Three Mountain Power, LLC (Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Energy
Americas, Inc.
	 
	 	 	 	 	 	 
	101.

	 	Covanta Waste to Energy Asia
Investments*
(Mauritius)
	 	Issued: 2 shares issued at $1.00 par value
	 	100% owned by Covanta Waste
to Energy, LLC
	 
	 	 	 	 	 	 
	102.

	 	Olmec Insurance, Ltd. (Bermuda)
	 	Issued: Issued: 1,000,000 common shares
have been 50% called and paid totaling
$500,000
	 	100% owned by Covanta Energy
Group, Inc.

(B) Subsidiaries of Covanta ARC Holdings, Inc.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	1.

	 	Covanta Hempstead Company
(New York)
	 	General Partnership
	 	100% directly and/or

indirectly owned by

Covanta ARC LLC
	 
	 	 	 	 	 	 
	2.

	 	Covanta Essex Company (New Jersey)
	 	General Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	3.

	 	Covanta Niagara, L.P. (Delaware)
	 	Limited Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC

SCHEDULE 4.2-9

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	4.

	 	Covanta Southeastern Connecticut
Company
(Connecticut)
	 	General Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	5.

	 	Covanta Delaware Valley, L.P.
(Delaware)
	 	Limited Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	6.

	 	Covanta SEMASS, L.P. (Delaware)
	 	Limited Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	7.

	 	SEMASS Partnership

(Massachusetts)
	 	Limited Partnership
	 	90% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	8.

	 	Covanta Company of SEMASS, L.P.
(Delaware)
	 	Limited Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	9.

	 	Covanta Capital District, L.P.
(Delaware)
	 	Limited Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	10.

	 	Covanta ARC Company

(Delaware)
	 	General Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	11.

	 	TransRiver Marketing Company,
L.P. (Delaware)
	 	Limited Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	12.

	 	TransRiver Waste LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by TransRiver
Marketing Company, L.P.
	 
	 	 	 	 	 	 
	13.

	 	TransRiver Transfer Systems LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by TransRiver
Marketing Company, L.P.
	 
	 	 	 	 	 	 
	14.

	 	Covanta Hempstead LLC (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC

SCHEDULE 4.2-10

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	15.

	 	Covanta Hempstead II, LLC.
(f/k/a Covanta Hempstead II, Inc.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by Hempstead LLC
	 
	 	 	 	 	 	 
	16.

	 	Covanta Essex LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	17.

	 	Covanta Essex II, LLC (f/k/a
Covanta Essex II, Inc.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta Essex LLC
	 
	 	 	 	 	 	 
	18.

	 	Covanta Niagara LLC (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	19.

	 	Covanta Niagara II, LLC. (f/k/a
Covanta Niagara II, Inc.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

Niagara LLC
	 
	 	 	 	 	 	 
	20.

	 	Covanta SECONN LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	21.

	 	Covanta Connecticut (S.E.), LLC
(f/k/a Covanta Connecticut
(S.E.), Inc.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

SECONN LLC
	 
	 	 	 	 	 	 
	22.

	 	Covanta Southeastern Connecticut,
L.P. (Delaware)
	 	Limited Partnership
	 	100% directly and/or

indirectly owned by Covanta

ARC LLC
	 
	 	 	 	 	 	 
	23.

	 	Covanta Delaware Valley LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	24.

	 	Covanta Delaware Valley II, LLC
(f/k/a Covanta Delaware Valley
II, Inc.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

Delaware Valley LLC
	 
	 	 	 	 	 	 
	25.

	 	Covanta Operations of SEMASS LLC
(f/k/a ARC Operations of SEMASS
LLC) (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	26.

	 	Covanta SEMASS LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC

SCHEDULE 4.2-11

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	27.

	 	Covanta SEMASS II, LLC
(f/k/a Covanta SEMASS II, Inc.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

SEMASS LLC
	 
	 	 	 	 	 	 
	28.

	 	Covanta Operations of SEMASS II,
LLC (f/k/a Covanta Operations of
SEMASS II, Inc.) (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta
Operations of SEMASS LLC
	 
	 	 	 	 	 	 
	29.

	 	Covanta Capital District LLC (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	30.

	 	Covanta Capital District II LLC (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

Capital District LLC
	 
	 	 	 	 	 	 
	31.

	 	Covanta Ref-Fuel Management LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	32.

	 	Covanta Ref-Fuel Management II,
LLC (f/k/a Covanta Ref-Fuel
Management II, Inc.) (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

Ref-Fuel Management LLC
	 
	 	 	 	 	 	 
	33.

	 	Covanta ARC LLC (Delaware)
	 	Limited Liability Company
	 	100% by Covanta Ref-Fuel Holdings LLC
	 
	 	 	 	 	 	 
	34.

	 	Covanta Ref-Fuel Holdings LLC

(Delaware)
	 	Limited Liability Company
	 	100% directly or indirectly
owned by Covanta ARC
Holdings, Inc.
	 
	 	 	 	 	 	 
	35.

	 	MSW Energy Hudson LLC (Delaware)
	 	Limited Liability Company
	 	100% owned by MSW Energy

Holdings LLC
	 
	 	 	 	 	 	 
	36.

	 	MSW Energy Holdings LLC (Delaware)
	 	Limited Liability Company
	 	100% directly or indirectly
owned by Covanta ARC
Holdings, Inc.
	 
	 	 	 	 	 	 
	37.

	 	MSW Energy Finance Co., Inc.
(Delaware)
	 	Uncertificated
	 	100% owned by MSW Energy Holdings LLC
	 
	 	 	 	 	 	 
	38.

	 	Covanta Ref-Fuel II LLC (Delaware)
	 	Limited Liability Company
	 	100% owned by MSW Energy Holdings II LLC

SCHEDULE 4.2-12

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	39.

	 	MSW Energy Holdings II
LLC (Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

Ref-Fuel LLC
	 
	 	 	 	 	 	 
	40.

	 	MSW Energy Finance Co. II, Inc.
(Delaware)
	 	Uncertificated
	 	100% owned by MSW Energy Holdings II LLC
	 
	 	 	 	 	 	 
	41.

	 	MSW Energy Erie LLC
	 	Limited Liability Company
	 	100% owned by MSW Energy Holdings LLC
	 
	 	 	 	 	 	 
	42.

	 	Covanta Ref-Fuel LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta

Ref-Fuel Finance LLC
	 
	 	 	 	 	 	 
	43.

	 	Covanta Ref-Fuel Finance LLC
(f/k/a Covanta Ref-Fuel Corp.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC
Holdings, Inc.
	 
	 	 	 	 	 	 
	44.

	 	MSW I Sub, LLC
	 	Limited Liability Company
	 	100% owned by Covanta ARC
Holdings, Inc.
	 
	 	 	 	 	 	 
	45.

	 	UAH Management Corp.
	 	Uncertificated
	 	100% owned by Covanta

Ref-Fuel Finance LLC
	 
	 	 	 	 	 	 
	46.

	 	TransRiver II, LLC (f/k/a
TransRiver II, Inc.)
(Delaware)
	 	Limited Liability Company
	 	100% owned by TransRiver LLC
	 
	 	 	 	 	 	 
	47.

	 	TransRiver LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC LLC
	 
	 	 	 	 	 	 
	48.

	 	TransRiver Portsmouth LLC
	 	Limited Liability Company
	 	100% owned by TransRiver
Marketing Company, L.P.
	 
	 	 	 	 	 	 
	49.

	 	Covanta Development Company LLC

(Delaware)
	 	Limited Liability Company
	 	100% owned by Covanta ARC Company
	 
	 	 	 	 	 	 
	50.

	 	UAH Groveville

Hydro Associates
	 	General Partnership
	 	100% directly and/or
indirectly owned by Covanta
ARC Holdings, Inc.

SCHEDULE 4.2-13

 

(C) Certain Partnerships, Limited Liability Companies and Joint Ventures

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	1.

	 	Covanta Haverhill Associates
(Massachusetts)
	 	Covanta Haverhill, Inc., General
Partner — 88%

Haverhill Power, LLC, General Partner — 12%
	 	Covanta Haverhill, Inc.
88% General Partner
Interest; Haverhill
Power, LLC, 12% Limited
Partner Interest
	 
	 	 	 	 	 	 
	2.

	 	Covanta Hennepin Energy Resource
Co., Limited Partnership

(Delaware)
	 	Covanta Energy Resource Corp.,
General Partner — 99%

Covanta OPWH, Inc, Limited Partner — 1%
	 	Covanta Energy Resource
Corp. 99% General
Partner Interest;
Covanta OPWH 1% Limited
Partner Interest
	 
	 	 	 	 	 	 
	3.

	 	Covanta Honolulu Resource

Recovery Venture

(Hawaii)
	 	Covanta Projects of Hawaii, Inc.,
General Partner — 50%

Covanta Oahu Waste Energy Recovery, Inc., General
Partner — 50%
	 	Covanta Projects of
Hawaii, Inc. 50% GP
Interest; Covanta Oahu
Waste Energy Recovery,
Inc. 50% GP Interest
	 
	 	 	 	 	 	 
	4.

	 	Covanta Huntington Limited

Partnership

(Delaware)
	 	Covanta Huntington Resource Recovery One Corp.,
Managing General Partner; Covanta Huntington Resource
Recovery Seven Corp., General Partner; Mission Funding
Zeta, Limited Partner; Pitney Bowes Credit Corporation,
Limited Partner; Allstate Insurance Company, Limited
Partner
	 	Covanta Huntington
Resource Recovery One
Corp. and Covanta
Huntington Resource
Recovery Seven Corp.
collectively, General
Partners; Mission
Funding Zeta, Limited
Partner; Pitney Bowes
Credit Corporation,
Limited Partner;
Allstate Insurance
Company, Limited
Partner. Interests of
each partner varies from
time to time depending
upon type of interest.
	 
	 	 	 	 	 	 
	5.

	 	Covanta Onondaga Limited

Partnership

(Delaware)
	 	Covanta Onondaga, Inc., General Partner; Covanta
Onondaga Two Corp., General Partner; Covanta Onondaga
Three Corp., General Partner; Covanta Onondaga Four
Corp., General Partner; Covanta Onondaga Five Corp.,
General Partner;
	 	Covanta Onondaga, Inc.
Covanta Onondaga Two
Corp.; Covanta Onondaga
Three Corp.; Covanta
Onondaga Four Corp.; and
Covanta Onondaga Five
collectively own all
General Partnership
interests
	 
	 	 	 	 	 	 
	6.

	 	Covanta Operations of Union LLC

(New Jersey)
	 	Covanta Projects, Inc. owns 99%

Covanta Waste to Energy, LLC owns 1%
	 	Covanta Projects, Inc.
99% Covanta Waste to
Energy, LLC, 1% Interest.

SCHEDULE 4.2-14

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	7.

	 	Covanta Projects of Wallingford,
L.P.
(Delaware)
	 	Covanta OPW Associates, Inc., 2% General Partner
interest

Covanta Wallingford Associates, Inc., 98% Limited
Partner interest
	 	Covanta OPW Associates,
Inc. 2% General Partner
Interest; Covanta
Wallingford Associates,
Inc. 98% Limited Partner
Interest
	 
	 	 	 	 	 	 
	8.

	 	Covanta SBR Associates
(Massachusetts)
	 	Covanta Haverhill, Inc., 35%
General Partner

Covanta Omega Lease, Inc., 65% General Partner
	 	Covanta Haverhill, Inc.
34.7% General Partner
Interest; Covanta Omega
Lease, Inc. 65.3%
General Partner Interest
	 
	 	 	 	 	 	 
	9.

	 	Covanta Warren Energy Resource
Co., Limited Partnership

(Delaware)
	 	Covanta Warren Holdings I, Inc.,
99% General Partner

Covanta Warren Holdings II, Inc., 1% Limited Partner
	 	Covanta Warren Holdings
I, Inc., 99% General
Partner
Covanta Warren Holdings
II, Inc., 1% Limited
Partner
	 
	 	 	 	 	 	 
	10.

	 	DSS Environmental, Inc.

(New York)
	 	Issued: 100 shares
	 	90% owned by Covanta
Water Systems, Inc. and
10% owned by individual
shareholders.
	 
	 	 	 	 	 	 
	11.

	 	Generating Resource Recovery
Partners L.P.
(California)
	 	Pacific Recovery Corporation (a California
Corporation), General Partner — 50%

Covanta Power Pacific, Inc., Limited Partner — 50%
	 	Pacific Recovery
Corporation 50% General
Partner Interest;
Covanta Power Pacific,
Inc., 50% LP Interest
	 
	 	 	 	 	 	 
	12.

	 	Heber Loan Partners

(California)
	 	ERC Energy, Inc. — 50%

ERC Energy II, Inc. — 50%
	 	ERC Energy, Inc. has a
50% GP interest;
ERC Energy II, Inc. has
a 50% GP interest.
	 
	 	 	 	 	 	 
	13.

	 	Pacific Energy Operating Group, LP

(California)
	 	Pacific Recovery Corporation,
General Partner — 50%

Covanta Power Pacific, Inc., Limited Partner — 50%
	 	Pacific Recovery
Corporation — 50%
General Partner
Interest; Covanta Power
Pacific, Inc., — 50%
Limited Partner

SCHEDULE 4.2-15

 

     (D) Subsidiaries of Covanta Power International Holdings Inc.

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	1.

	 	Bal-Sam India Holdings Limited
(Mauritius)
	 	Issued: 2 shares
	 	100% owned by Covanta
Energy India Investments
Ltd.
	 
	 	 	 	 	 	 
	2.

	 	Covanta Bangladesh Operating Limited

(Bangladesh)
	 	Issued: 96 shares
	 	100% owned by Covanta Energy
International Investments
Limited (f/k/a Covanta Energy
India Investments, Ltd.)*
(*per Bangladeshi law each
Covanta director holds 1
share)
	 
	 	 	 	 	 	 
	3.

	 	Covanta Two Ltd.
(Mauritius)
	 	Issued: 2 shares
	 	100% owned by Covanta Energy
International Investments
Limited (f/k/a Covanta Energy
India Investments, Ltd.)
	 
	 	 	 	 	 	 
	4.

	 	Covanta Cayman (Rojana) Ltd.
(Cayman Islands)
	 	Issued: 3 shares issued at $1.00 par value
	 	100% owned by Covanta Three
Ltd.
	 
	 	 	 	 	 	 
	5.

	 	Covanta Cayman (Sahacogen) Ltd.
(Cayman Islands)
	 	Issued: 3 shares issued at $1.00 par value
	 	100% owned by Covanta Two Ltd.
	 
	 	 	 	 	 	 
	6.

	 	Covanta Energy Asia Holdings Ltd.
(f/k/a Covanta Chinese Investments
Ltd.)
(Mauritius)
	 	Issued: 42,822,195 shares at U.S. $1.00 par value
	 	100% owned by Covanta Energy
International Investments
Limited (f/k/a Covanta Energy
India Investments, Ltd.)
	 
	 	 	 	 	 	 
	7.

	 	Covanta Energy (Thailand) Ltd.
(Thailand)
	 	Issued:
9,800 ordinary shares (100 Baht ea.)
10,200 preferred shares (100 Baht ea.)
(Per Thai law 7 Covanta employees hold 1 share each)
	 	100%* owned by Covanta Power
International Holdings,
Inc.(*per Thai law 7 Covanta
employees hold 1 share each)
	 
	 	 	 	 	 	 
	8.

	 	Covanta Energy Asia Pacific Limited

(Hong Kong)
	 	Issued: 100 shares each at HK $10.00 par value
	 	50% owned by Covanta Power
Development Inc. and 50% owned
by Covanta Power International
Holdings, Inc.

SCHEDULE 4.2-16

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	9.

	 	Covanta Energy China (Alpha)
Ltd. (Mauritius)
	 	Issued: 9,460,002 shares at $1.00 par value
	 	100% owned by Covanta Energy
Asia Holdings Ltd. (f/k/a
Covanta Chinese Investments
Ltd.)
	 
	 	 	 	 	 	 
	10.

	 	Covanta Waste to Energy Asia Ltd.
(f/k/a Covanta Energy China (Beta)
Ltd.)
(Mauritius)
	 	Issued: 12,000,002 shares issued at $1.00 par value
	 	100% owned by Covanta Energy
Asia Holdings Ltd. (f/k/a
Covanta Chinese Investments
Ltd.)
	 
	 	 	 	 	 	 
	11.

	 	Covanta Energy China (Delta)
Ltd.
(Mauritius)
	 	Issued: 12,150,002 shares issued at $1.00 par value
	 	100% owned by Covanta Energy
Asia Holdings Ltd. (f/k/a
Covanta Chinese Investments
Ltd.)
	 
	 	 	 	 	 	 
	12.

	 	Covanta Energy China
(Gamma) Ltd.
(Mauritius)
	 	Issued: 7,350,002 shares issued at $1.00 par value
	 	100% owned by Covanta Energy
Asia Holdings Ltd. (f/k/a
Covanta Chinese Investments
Ltd.)
	 
	 	 	 	 	 	 
	13.

	 	Covanta Energy India (Balaji)
Ltd.
(Mauritius)
	 	Issued: 100,000 shares.
	 	100% owned by Covanta
Energy India Investments Ltd.
	 
	 	 	 	 	 	 
	14.

	 	Covanta Energy India (CBM) Limited
(Mauritius)
	 	Issued: 2 shares issued at U.S. $1.00 par value
	 	100% owned by Covanta
Energy India Investments
Ltd.
	 
	 	 	 	 	 	 
	15.

	 	Covanta Energy India Pvt. Ltd.
(India)
	 	Issued:
Covanta Five Ltd. — 9,900 shares;
Covanta One Ltd. — 100 shares
	 	99% owned by Covanta Five
Ltd., 1% owned by Covanta One
Ltd.
	 
	 	 	 	 	 	 
	16.

	 	Covanta Energy India

(Samalpatti) Limited

(Mauritius)
	 	Issued: 15 shares
	 	100% owned by Covanta
Energy India Investments
Ltd.
	 
	 	 	 	 	 	 
	17.

	 	Covanta Energy India
Investments Ltd.
(Mauritius)
	 	Issued: 2 shares
	 	100% owned by Covanta
Power International
Holdings, Inc.
	 
	 	 	 	 	 	 
	18.

	 	Covanta Energy Limited

(UK)
	 	Issued: 1 share
	 	100% owned by Covanta Power
International Holdings, Inc.
	 
	 	 	 	 	 	 
	19.

	 	Covanta Italy Holding S.r.l.
	 	Capital Contribution Euro 10,000.00
	 	100% owned by Covanta Energy

Limited
	 
	 	 	 	 	 	 
	20.

	 	Covanta Italy I S.r.l.
	 	Capital Contribution Euro 10,000.00
	 	100% owned by Covanta Energy

Limited

SCHEDULE 4.2-17

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	21.

	 	Covanta Italy II S.r.l.
	 	Capital Contribution Euro 10,000.00
	 	100% owned by Covanta Energy Limited
	 
	 	 	 	 	 	 
	22.

	 	Covanta Energy Philippines
Holdings, Inc.
(Philippines)
	 	Issued: 52,605 shares at Php 100 par value

(Per Philippine law each Covanta director holds 1 share)
	 	100%* owned by Covanta
Power International
Holdings, Inc. (*per
Philippine law each Covanta
director holds 1 share)
	 
	 	 	 	 	 	 
	23.

	 	Covanta Five Ltd.
(Mauritius)
	 	Issued: 2 shares
	 	100% owned by Covanta
Energy India Investments
Ltd.
	 
	 	 	 	 	 	 
	24.

	 	Covanta Four Ltd.
(Mauritius)
	 	Issued: 2 shares
	 	100% owned by Covanta
Energy India Investments
Ltd.
	 
	 	 	 	 	 	 
	25.

	 	Covanta India Operating Pvt. Ltd.
(India)
	 	Issued: Covanta Four Ltd.: 13,410 shares; Mr. S.
Ramesh (Covanta India employee) holds 1,480 shares and
his wife, Mrs. Usha Ramesh, holds 10 shares
	 	90% owned by Covanta Four
Ltd., remainder held by
Covanta Indian employee S.
Ramesh and wife, Usha Ramesh,
in their personal capacities
	 
	 	 	 	 	 	 
	26.

	 	Covanta Madurai Operating Pvt. Ltd.
(India)
	 	Issued: Covanta Five Ltd.: 10,426 shares;
Covanta One Ltd.: 20 shares
	 	99.8085% owned by Covanta Five
Ltd.;
0.1915% owned by Covanta One
Ltd.
	 
	 	 	 	 	 	 
	27.

	 	Covanta One Ltd.
(Mauritius)
	 	Issued: 2 shares issued at $11.00 par value
	 	100% owned by Covanta Energy
International Investments
Limited (f/k/a Covanta Energy
India Investments Ltd.)
	 
	 	 	 	 	 	 
	28.

	 	Covanta Philippines Operating, Inc.
(Cayman Islands)
	 	Issued: 2 shares
	 	100% owned by Covanta
Energy India Investments
Ltd.
	 
	 	 	 	 	 	 
	29.

	 	Covanta Power Development of
Mauritius, Inc. (f/k/a Covanta
Power Development of Bolivia, Inc.)
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Power
International Holdings, Inc.

SCHEDULE 4.2-18

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	30.

	 	Covanta Power Development, Inc.
(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Power
International Holdings, Inc.
	 
	 	 	 	 	 	 
	31.

	 	Covanta Samalpatti
Operating Pvt. Ltd.
(India)
	 	Issued: Covanta Five Ltd.: 10,420 shares; Covanta One
Ltd.: 2 shares
	 	99.9808% owned by Covanta One
Ltd; 0.0192% held by Covanta
One Ltd.
	 
	 	 	 	 	 	 
	32.

	 	Covanta Three Limited

(Mauritius)
	 	Issued: 2 shares
	 	100% owned by Covanta Energy
International Investments
Limited (f/k/a Covanta Energy
India Investments Ltd.)
	 
	 	 	 	 	 	 
	33.

	 	Covanta Waste to Energy of Italy,
Inc. (Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta Power
International Holdings, Inc.
	 
	 	 	 	 	 	 
	34.

	 	Edison (Bataan) Cogeneration

Corporation

(Philippines)
	 	Issued: 4,800,000 common stock

(Per Philippine law each Covanta director holds 1 share)
	 	100%* owned by Covanta
Power International
Holdings, Inc. (*per
Philippine law each Covanta
director holds 1 share)
	 
	 	 	 	 	 	 
	35.

	 	Enereurope Holdings III B.V.
(Netherlands)
	 	Issued: EUR 20,000 and NLG 44,074.20
	 	100% owned by Covanta Power
International Holdings, Inc.
	 
	 	 	 	 	 	 
	36.

	 	Goa Holdings, Ltd.
(Mauritius)
	 	Issued: 10,000 shares; 34,852 convertible debentures
(Per the terms of issuance, the convertible debentures
automatically converted to shares upon the commercial
operation date of the Samalpatti Project, but, the
company has not yet effected the necessary
recapitalization with the Mauritius authorities.)
	 	100% owned by Covanta Energy
India (Samalpatti) Ltd.
	 
	 	 	 	 	 	 
	37.

	 	Hidro Operaciones Don Pedro
S.A.
(Costa Rica)
	 	780 shares @ 1,00
	 	100% owned by Covanta
Power International
Holdings, Inc.
	 
	 	 	 	 	 	 
	38.

	 	Linan Ogden-Jinjiang
Cogeneration Co., Ltd.
(People’s Republic of China)
	 	Covanta Energy China (Alpha) Ltd. — 63.85% interest
local private Chinese interests — 36.15%
Authorized: Capital of $14,800,000
Issued: All issued
	 	63.85% owned by Covanta Energy
China (Alpha) Ltd.;
36.15% is owned by local
private Chinese interests.

SCHEDULE 4.2-19

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	39.

	 	Madurai Power Corporation
Pvt. Ltd. (India)
	 	Issued: Covanta Energy India (Balaji) Ltd.— 15,506,033
shares (76.643%);
Samayanallur Power Investments Pvt. Ltd. (Indian
developer) — 4,725,482 shares (23.357%)
	 	Covanta Energy India (Balaji)
Ltd. (76.643%); Samayanallur
Power Investments Pvt. Ltd.
(Indian developer) (23.357%)
	 
	 	 	 	 	 	 
	40.

	 	Magellan Cogeneration, Inc.
(Philippines)
	 	Issued: 659,000 at Php 100 par value

(Per Philippine law each Covanta director holds 1 share)
	 	100% owned by Covanta
Energy Philippine
Holdings, Inc. (*per
Philippine law each Covanta
director holds 1 share)
	 
	 	 	 	 	 	 
	41.

	 	Ogden Energy (Gulf) Limited

(Mauritius)
	 	Issued: 2 shares issued at $1.00 par value
	 	100% owned by Covanta
Power International
Holdings, Inc.
	 
	 	 	 	 	 	 
	42.

	 	Ogden Energy India
(Bakreshwar) Ltd.
(Mauritius)
	 	Issued: 2 shares
	 	100% owned by Covanta
Power International
Holdings, Inc.
	 
	 	 	 	 	 	 
	43.

	 	Ogden Power Development -
Cayman, Inc.
(Cayman Islands)
	 	Issued: 75 A shares at $1.00 par value and 2 non-voting
redeemable shares at $.01 par value
	 	100% owned by Covanta
Energy India Investments
Ltd.
	 
	 	 	 	 	 	 
	44.

	 	Ogden Taiwan Investments Limited

(Mauritius)
	 	Issued: 2 shares issued at $1.00 par value
	 	100% owned by Covanta Energy
International Investments
Limited (f/k/a Covanta Energy
India Investments Ltd.)
	 
	 	 	 	 	 	 
	45.

	 	Covanta Mauritius O&M Ltd. (f/k/a
OPDB, Ltd.)
(Cayman Islands)
	 	Issued: 2 shares issued at $1.00 par value
	 	100% owned by Covanta Power
Development of Mauritius, Inc.
	 
	 	 	 	 	 	 
	46.

	 	OPI Quezon, LLC

(Delaware)
	 	Issued: 100 shares
	 	100% owned by Covanta
Power International
Holdings, Inc.
	 
	 	 	 	 	 	 
	47.

	 	Power Operations and Maintenance
Ltd.
(Bermuda)
	 	Issued: 12,000 issued at $1.00 par value
	 	100% owned by Covanta Four Ltd.

SCHEDULE 4.2-20

 

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Description of
	 	 	Name	 	 	 	Anticipated Ownership
	 	 	(Jurisdiction of	 	 	 	As of the
	 	 	Organization)	 	Capital Stock or Equity Interests	 	Closing Date
	48.

	 	Taixing Ogden-Yanjiang
Cogeneration Co., Ltd.
(People’s Republic of China)
	 	Covanta Energy China (Delta) Ltd. — 60% interest

Covanta Energy China (Gamma) Ltd. — 36.3% interest

Local Chinese government controlled entity — 3.7%
interest

Authorized: Registered capital of $20,250,000
Issued: All issued
	 	60% owned by Covanta Energy
China (Delta) Ltd.; 36.3%
owned by Covanta Energy China
(Gamma) Ltd.; 3.7% owned by
local Chinese government
controlled entity

SCHEDULE 4.2-21

 

SCHEDULE 4.12

TO CREDIT AGREEMENT

REAL ESTATE ASSETS

	I.	 	Fee Interests

	 	A.	 	Office Locations

	 	 	Fairfield, New Jersey Corporate Headquarters

	 	•	 	40 Lane Road, Township of Fairfield, Essex County, New Jersey 07007, owned by
Covanta Projects, Inc.

	B.	 	Project Locations
	 
	 	 	Marion County WTE Project, Oregon 

	 	•	 	Ground Lease between Covanta Marion Land Corp. and Covanta Marion, Inc., dated
November 1, 1986.
	 
	 	•	 	Special Warranty Deed from Covanta Marion, Inc. to Covanta Marion Land Corp.,
dated as of December 11, 1986.
	 
	 	•	 	Commercial Deeds of Trust and Security Agreements, dated as of September 1,
1984 and February 15, 1985.

	 	 	Mount Lassen Biomass Project, California

	 	•	 	59 acre parcel situated in County of Lassen, California, owned by Mt. Lassen
Power

	 	 	Pacific Oroville Biomass Project, California

	 	•	 	43.29 acre parcel situated in the City of Oroville, County of Butte,
California, owned by Pacific Oroville Power, Inc.

	C.	 	Other

	 	•	 	83 acres of undeveloped desert land situated between Sidewinder Road and Ogilby
Road in the Imperial Valley, California, owned by Covanta Secure Services, LLC.
	 
	 	•	 	12.89 acres of unimproved, industrial land (site of former power plant
operations) situated in the City of Lawrence, Massachusetts, owned by Covanta
Haverhill Properties, Inc.

SCHEDULE 4.12-1

 

	II.	 	Leasehold Interests

	 	A.	 	Office Locations

	 	•	 	Lease Agreement, dated June 12, 2006 between Catellus Operating Limited
Partnership and Covanta Power Pacific, Inc. for office space located at 12110 E.
Slauson Avenue, Units 8 and 9, Santa Fe Springs, California 90670.
	 
	 	•	 	Lease Agreement, dated November 1, 2004, between Brian S. Baas and Wesley J.
Sphar, and Covanta Power Pacific, Inc. for office space located at 2825 and 2829
Childress Drive, Anderson, CA 96007.
	 
	 	•	 	Lease between Mack-Cali Chestnut Ridge LLC and Covanta Ref-Fuel Corp. dated
November 11, 1986, as amended.0
	 
	 	•	 	Subordination, Non-Disturbance and Attornment Agreement between LaSalle
National Bank as Lender, Chestnut Ridge Associates as Lessor and Ref-Fuel Corp. as
Lessee dated January 11, 1995.1
	 
	 	•	 	Lease between Chestnut Ridge Associates and Del Monte Fresh Produce N.A. Inc.
dated October 13, 1993, as amended, as assigned by Del Monte Fresh Produce N.A.
Inc. to Ref-Fuel Corp. on December 17, 1996, as amended.2
	 
	 	•	 	Sublease between Ref-Fuel Corp. and Par IV Management LLC dated August 6,
2003.3
	 
	 	•	 	Sublease Agreement between Covanta Ref-Fuel Corp. and Delta Power Company, LLC
dated January 1, 2004, as amended.4

	B.	 	Project Locations
	 
	 	 	Burney Mountain Power Biomass Project, California

	 	•	 	Ground Lease between Fruit Growers Supply Company and Ultrapower I, dated as of
December 1, 1982, as amended November 9, 1983.

 

			
	1	 	Base lease expires 2/28/07.
	 
	2	 	Base lease expires 2/28/07.
	 
	3	 	Base lease expires 2/28/07.
	 
	4	 	Base lease expires 2/28/07.
	 
	5	 	Base lease expires 2/28/07.

SCHEDULE 4.12-2

 

	 	•	 	Sublease between Burney Mountain Power and Three Mountain Power, LLC, dated
January 1, 2005.

	 	 	Detroit WTE Project, Michigan

	 	•	 	Lease Agreement between Michigan Waste Energy, Inc. and Resource Recovery
Business Trust 1991-A, as amended and supplemented, dated October 23, 1991.
	 
	 	•	 	Sublease Agreement between the Greater Detroit Resource Recovery Authority and
Michigan Waste Energy, Inc., dated September 10, 1986.
	 
	 	•	 	Lease Agreement between Michigan Waste Energy, Inc. and Resource Recovery
Business Trust 1991-B, dated October 23, 1991, as amended.

	 	 	Honolulu WTE Project, Hawaii

	 	•	 	Lease Agreement between State Street Bank and Trust Company and Covanta
Honolulu Resource Recovery Venture (f/k/a Honolulu Resource Recovery Venture),
dated July 7, 1993.

	 	 	Marion County WTE Project, Oregon

	 	•	 	Ground Lease between Covanta Marion Land Corp. and Covanta Marion, Inc., dated
November 1, 1986.

	 	 	Montgomery County WTE Project, Maryland

	 	•	 	Facility Site Agreement between Potomac Electric Power Company and the
Northeast Maryland Waste Disposal Authority (assumed by Covanta Montgomery, Inc),
dated as of October 5, 1989.

	 	 	Otay Biogas Project, California

	 	•	 	Operating Agreement and Subpermit for Conversion Systems, dated April 15, 1982,
between Cambrian Energy Systems, Inc. and Herzog Contracting Corp.
	 
	 	•	 	Assignment of Lease between Cambrian Energy Systems, Inc. and Central Plants,
Inc., dated June 11, 1982.
	 
	 	•	 	Assignment of Operating Agreement and Subpermit between Central Plants, Inc.
and Pacific Lighting Energy Systems, dated October 22, 1984.
	 
	 	•	 	Assignment and Assumption of Assignment (Landfill Gas Lease — Otay Landfill)
between Pacific Energy and Pacific Recovery Corporation, dated January 1, 1992.

SCHEDULE 4.12-3

 

	 	 	Oxnard Biogas Project, California

	 	•	 	Landfill Gas Lease and Operating Agreement for Conversion Systems between
Cambrian Energy Systems, Inc. and The City of Oxnard, dated November 25, 1981.
	 
	 	•	 	Memorandum of Lease between Cambrian Energy Systems, Inc. and The City of
Oxnard, dated November 25, 1981.
	 
	 	•	 	Assignment of Lease between Cambrian Energy Systems, Inc. and Central Plants,
Inc., dated December 1, 1981 (Assignment of Lease dated November 25, 1981).
	 
	 	•	 	Memorandum of Assignment of Lease between Cambrian Energy Systems, Inc. and
Central Plants, Inc., dated December 1, 1981.
	 
	 	•	 	Amendment to Landfill Gas Lease and Operating Agreement for Conversion Systems
between Central Plants, Inc. and City of Oxnard dated November 23, 1983 (First
Amendment to Landfill Gas Lease, dated November 25, 1981).
	 
	 	•	 	Amendment to Landfill Gas Lease and Operating Agreement for Conversion Systems
between Pacific Lighting Energy Systems and City of Oxnard dated June 26, 1984
(Second Amendment to Landfill Gas Lease, dated November 25, 1981).
	 
	 	•	 	Third Amendment to Landfill Gas Lease and Operating Agreement for Conversion
Systems between Pacific Recovery Corporation and the City of Oxnard dated June 23,
1992 (with reference to Landfill Gas Lease dated November 25, 1981).
	 
	 	•	 	Landfill Gas Lease, and Operating Agreement for Conversion Systems among
Cambrian Energy Systems and Jack Martin Roth, Geraldine K. Roth, Gerald K. Roth,
Harold W. Muckenthaler, Beverly A. Baier, Robert W. Baier, R. Jane Baier, Eleanor
F Bailard, Jeanne B. Ware, Bank of California, N.A., as Executor of the Estate of
Louis T. Kraemer, Deceased, and Stacy H. Dobrzensky and Bank of California, N.A.,
as Executors of the Estate of W. R. Bailard, Deceased, and Ventura Regional County
Sanitation District, dated December 1, 1983 (Bailard Landfill).
	 
	 	•	 	Memorandum of Lease among Cambrian Energy Systems, L.P., Jack Martin Roth,
Geraldine K. Roth, Gerald K. Roth, Harold W. Muckenthaler, Beverly A. Baier,
Robert W. Baier, R. Jane Baier, Eleanor F. Bailard, Jeanne B. Ware, Bank of
California, N.A., as Executor of the Estate of Louis T. Kraemer, Deceased, and
Stacy H. Dobrzensky and Bank of California, N.A., as Executors of the Estate of W.
R. Bailard,

SCHEDULE 4.12-4

 

	 	 	 	Deceased, and Ventura Regional County Sanitation District, dated December 1, 1983
(Bailard Landfill).
	 
	 	•	 	Assignment of Lease between Cambrian Energy Systems and Pacific Lighting Energy
Systems, dated March 14, 1984 (Bailard Landfill).
	 
	 	•	 	Memorandum of Assignment of Lease between Cambrian Energy Systems and Pacific
Lighting Energy Systems, dated March 14, 1984 (Bailard Landfill).
	 
	 	•	 	Assignment, Assumption and Consent to Assignment between Pacific Lighting
Energy Systems and Oxnard Landfill Associates, dated January 25, 1985 (Bailard
Landfill).
	 
	 	•	 	Memorandum of Assignment of Lease between Pacific Lighting Energy Systems and
Oxnard Landfill Associates, dated January 25, 1985 (Bailard Landfill).
	 
	 	•	 	Landfill Gas Lease and Operating Agreement for Conversion Systems among
Cambrian Energy Systems, Inc., Ventura Coastal Corporation, and Ventura Regional
County Sanitation District, dated April 22, 1983 (Ventura Landfill).
	 
	 	•	 	Memorandum of Lease among Cambrian Energy Systems, Ventura Coastal Corporation
and Ventura Regional County Sanitation District, dated April 22, 1983 (Rerecorded
March 13, 1985) (Ventura Landfill).
	 
	 	•	 	Assignment of Lease between Cambrian Energy Systems and Central Plants, Inc.,
dated June 3, 1983 (Ventura Landfill).
	 
	 	•	 	Memorandum of Assignment of Lease between Cambrian Energy Systems, Inc. and
Central Plants, Inc., dated June 3, 1983 (Ventura Landfill).
	 
	 	•	 	Memorandum of Assignment of Lease between Central Plants, Inc. and Pacific
Lighting Energy Systems, dated March 14, 1984 (Rerecorded December 14, 1984)
(Ventura Landfill).
	 
	 	•	 	Memorandum of Assignment of Lease between Pacific Lighting Energy Systems and
Oxnard Landfill Associates, dated January 25, 1985 (Ventura Landfill).
	 
	 	•	 	First Amendment to Landfill Gas Lease and Operating Agreement for Conversion
Systems between Oxnard Landfill Associates and Ventura Regional Sanitation
District, dated April 18, 1991 (Ventura Landfill).

SCHEDULE 4.12-5

 

	 	•	 	Landfill Gas Lease and Operating Agreement for Conversion Systems among
Cambrian Energy Systems, J.H.&R. Properties, C.H.F&S. Properties, J.&C.
Properties, and Ventura Regional County Sanitation District, dated November 30,
1983.
	 
	 	•	 	Memorandum of Lease among Cambrian Energy Systems, J.H.&R. Properties,
C.H.F.&S. Properties, J.& C. Properties, and Ventura Regional Sanitation District,
dated November 30, 1983.
	 
	 	•	 	Assignment of Lease between Cambrian Energy Systems and Pacific Lighting Energy
Systems, dated December 21, 1983.
	 
	 	•	 	Memorandum of Assignment of Lease between Cambrian Energy Systems and Pacific
Lighting Energy Systems, dated December 21, 1983.
	 
	 	•	 	Memorandum of Assignment of Lease between Cambrian Energy Systems and Pacific
Lighting Energy Systems, dated March 14, 1984.
	 
	 	•	 	Assignment of Lease between Central Plants, Inc. and Pacific Lighting Energy
Systems, dated March 14, 1984.
	 
	 	•	 	Assignment of Lease between Cambrian Energy Systems and Pacific Lighting Energy
Systems, dated May 22, 1984.

	 	 	Salinas/Crazy Horse Biogas Project, California

	 	•	 	Landfill Gas Lease and Operating Agreement for Conversion Systems among
Cambrian Energy Systems and the City of Salinas and Salinas Disposal Service,
Inc., dated July 3, 1984.
	 
	 	•	 	Memorandum of Lease among Cambrian Energy Systems, City of Salinas and Salinas
Disposal Service, Inc., dated July 3, 1984.
	 
	 	•	 	Assignment of Lease between Cambrian Energy Systems and Pacific Lighting Energy
Systems dated August 27, 1984.
	 
	 	•	 	Amendment No. 1 to Landfill Gas Lease between Salinas Valley Solid Waste
Authority, as successor to the City of Salinas and Pacific Lighting Energy Systems
(Pacific Energy) as successor to Cambrian Energy Systems, dated September 24,
1997.

	 	 	Stockton Biogas Project, California

	 	•	 	Landfill Gas Lease and Operating Agreement for Conversion Systems between
Cambrian Energy Systems, Inc. and the City of Stockton, dated August 27, 1982.

SCHEDULE 4.12-6

 

	 	•	 	Memorandum of Lease between Cambrian Energy Systems, Inc and the City of
Stockton, dated August 27, 1982.
	 
	 	•	 	Memorandum of Assignment of Lease between Cambrian Energy Systems, Inc. and
Central Plants, Inc., dated October 6, 1982.
	 
	 	•	 	Assignment of Lease between Central Plants, Inc. and Pacific Lighting Energy
Systems, dated March 14, 1984.
	 
	 	•	 	Memorandum of Assignment of Lease between Central Plants Inc. and Pacific
Lighting Systems, dated March 14, 1984.
	 
	 	•	 	First Amendment to Landfill Gas Lease and Operating Agreement for Conversion
Systems between Pacific Gas and Electric Company and Pacific Lighting Energy
Systems and the City of Stockton, dated May 14, 1986.
	 
	 	•	 	Amendment to City of Stockton-Pacific Energy-Austin Road Landfill Gas Lease and
Operating Agreement, dated August 17, 1992.
	 
	 	•	 	Amendment to Landfill Gas Lease and Operating Agreement for Conversion Systems
between the City of Stockton and Ogden Power Pacific, Inc. — Austin Road
Landfill, dated September 18, 1998.

	 	 	Three Mountain Power Project, California

	 	•	 	Sublease between Burney Mountain Power and Three Mountain Power, LLC, dated
January 1, 2005.

	 	 	Warren County WTE Project, New Jersey

	 	•	 	Ground Lease between Pollution Control Financing Authority of Warren County and
Covanta Warren Energy Resource Co., L.P., dated July 22, 1986, as amended.
	 
	 	•	 	Easement Lease between Pollution Control Financing Authority of Warren County
and Covanta Warren Energy Resource Co., L.P., dated July 22, 1986, as amended.

SCHEDULE 4.12-7

 

SCHEDULE 4.15

TO CREDIT AGREEMENT

MATERIAL CONTRACTS

	A.	 	Corporate

	 	1.	 	Corporate Services and Expense Reimbursement Agreement, dated March 10, 2004, between
Covanta Energy Corporation and Danielson Holding Corporation; and
	 
	 	2.	 	Tax Sharing Agreement, dated March 10, 2004, between Danielson Holding Corporation
and Covanta Energy Corporation and the other parties thereto, as amended.

	B.	 	Parent Guarantees/Support Agreements

	 	1.	 	Covanta Guaranty, dated October 1, 1985, between Covanta Energy Corporation and the City
of Alexandria; Alexandria Sanitation Authority; Arlington County and Arlington Solid Waste
Authority, as amended;
	 
	 	2.	 	Covanta Guaranty, dated December 20, 1985, between Covanta Energy Corporation, Town
of Babylon and the Town of Babylon Industrial Development Agency;
	 
	 	3.	 	Covanta Guarantee, dated as of August 1, 1985, as amended, among Covanta Bristol,
Inc. and the Bristol Contracting Communities.
	 
	 	4.	 	Covanta Guarantee, dated December 21, 1992, between Covanta Energy Corporation and
Greater Detroit Resource Recovery Authority.
	 
	 	5.	 	Covanta Guaranty, dated February 1, 1988, between Covanta Energy Corporation and
County of Fairfax; Fairfax County Solid Waste Authority;
	 
	 	6.	 	Covanta Guaranty, dated August 1998, between Covanta Energy Corporation and Covanta
Haverhill Associates (f/k/a Ogden Haverhill Associates);
	 
	 	7.	 	Covanta Guaranty, dated January 9, 1985, between Covanta Energy Corporation and
Hillsborough County, Florida, as amended; and Covanta Guaranty, dated August 17, 2005
between Covanta Energy Corporation and Hillsborough County, Florida (which becomes
effective only upon the effective date of the Extension Operations and Management
Agreement);
	 
	 	8.	 	Covanta Operating Guaranty, dated December 21, 1992, between Covanta Energy
Corporation and City and County of Honolulu;
	 
	 	9.	 	Covanta Liquidated Damages Guaranty, dated July 7, 1993, between Covanta Energy
Corporation and City and County of Honolulu, Connecticut Bank and

SCHEDULE 4.15 - 1

 

	 	 	 	Trust and Hawaii Solid Waste Disposal Energy & Resource Recovery Facility Trust (assigned
to OPI 12/21/92);
	 
	 	10.	 	Amended and Restated Covanta Guaranty Agreement, dated June 29, 1989, between Covanta
Energy Corporation and Town of Huntington;
	 
	 	11.	 	Covanta Guaranty, dated December 1, 1995, between Covanta Indianapolis, Inc. and
the City of Indianapolis;
	 
	 	12.	 	Covanta Guaranty, dated December 1, 1996, between Covanta Indianapolis, Inc. and
the City of Indianapolis;
	 
	 	13.	 	Covanta Guaranty, dated October 1, 1987, between Covanta Energy Corporation and
County of Kent; Department of Public Works;
	 
	 	14.	 	Covanta Guaranty, dated September 25, 1987, between Covanta Energy Corporation and
Lancaster County Solid Waste Management Authority;
	 
	 	15.	 	Covanta Guaranty, dated January 16, 1990, between Covanta Energy Corporation and Lee
County and the Covanta Guaranty, dated January 31, 2006 between Covanta Energy Corporation
and Lee County (which becomes effective only upon the effective date of the Amended and
Restated Service Agreement);;
	 
	 	16.	 	Covanta Guaranty, dated December 21, 1992 and reaffirmed on July 1, 1996, between
Covanta Energy Corporation and Greater Detroit Resource Recovery Authority;
	 
	 	17.	 	Covanta Guaranty, dated December 21, 1992, between Covanta Energy Corporation and The
Detroit Edison Co.;
	 
	 	18.	 	Covanta Guaranty, dated October 21, 1991, and amended July 1, 1996, among Covanta
Energy Corporation, Ogden Projects, Inc., Michigan Waste Energy and Greater Detroit
Resource Recovery Authority;
	 
	 	19.	 	Covanta Guaranty, dated November 16, 1990, between Covanta Energy Corporation and
Northeast Maryland Waste Disposal Authority;
	 
	 	20.	 	Guarantee Agreement, dated October 10, 2003, from Covanta Energy Corporation to
Covanta Onondaga Limited Partnership;
	 
	 	21.	 	Covanta Guaranty, dated April 15, 1989, between Covanta Energy Corporation and Pasco
County;
	 
	 	22.	 	Covanta Guarantee, dated as of May 1, 1990, among Covanta Stanislaus, Inc., the City
of Modesto and Stanislaus County, California, as amended;
	 
	 	23.	 	Covanta Guaranty, dated June 1, 1998, between Covanta Energy Corporation and Covanta
Union, Inc.;

SCHEDULE 4.15 - 2

 

	 	24.	 	Insurance Agreement, dated April 1, 2001, between American Ref-Fuel Company of
Southeastern Connecticut, ARC and MBIA Insurance Company;
	 
	 	25.	 	Equity Contribution Agreement, dated as of April 30, 2001 between MSW Energy Holdings
LLC, Covanta Ref-Fuel Finance LLC, Covanta Ref-Fuel Holdings LLC and Covanta ARC LLC, as
amended on December 12, 2003;
	 
	 	26.	 	Certain subsidiaries have general partner liability under law to subsidiaries that
are general partnerships or limited partnerships;
	 
	 	27.	 	Second Amended and Restated Company Support Agreement, entered into as of April 30,
2001, by and between American Ref-Fuel Company of Hempstead and American Ref-Fuel Company
LLC;
	 
	 	28.	 	Parent Company Guaranty, entered into as of June 1, 2001, by American Ref-Fuel
Company LLC in favor of The Chase Manhattan Bank, as trustee;
	 
	 	29.	 	Amended and Restated Company Support Agreement, dated as of December 1, 1997, by and
among American Ref-Fuel Company of Essex County, and Covanta ARC LLC;
	 
	 	30.	 	Reimbursement Agreement, by and among ARC Essex, American Ref-Fuel Company LLC and
Browning-Ferris Industries, dated as of April 30, 2001;
	 
	 	31.	 	Reimbursement Agreement, by and among ARC Essex, American Ref-Fuel Company LLC and
Duke Capital Corporation, dated as of April 30, 2001;
	 
	 	32.	 	Parent Company Guaranty, entered into as of June 1, 2001, by American Ref-Fuel
Company LLC, in favor of Manufacturers and Traders Trust Company;
	 
	 	33.	 	Parent Company Issuer Guaranty, entered into as of June 1, 2001, by American Ref-Fuel
Company LLC in favor of the Niagara County Industrial Development Agency ;
	 
	 	34.	 	Corporate Guaranty Agreement, entered into as of April 30, 2001, by American Ref-Fuel
Company LLC, in favor of Occidental Chemical Corporation and Hooker Energy Corporation;
	 
	 	35.	 	Company Support Agreement, entered into as of April 30, 2001, by and between American
Ref-Fuel Company of Southeastern Connecticut and American Ref-Fuel Company LLC;
	 
	 	36.	 	Parent Undertaking, entered into as of April 30, 2001, by and between American
Ref-Fuel Company of Southeastern Connecticut and American Ref-Fuel Company LLC;
	 
	 	37.	 	Corporate Guaranty Agreement, dated as of April 30, 2001, between American Ref-Fuel
Company LLC and State Street Bank and Trust Company, as Trustee, in

SCHEDULE 4.15 - 3

 

	 	 	 	connection with Corporate Credit Bonds/Tax Exempt Interest (American REF-Fuel Company of
Southeastern Connecticut Project — 1992 Series A);
	 
	 	38.	 	Corporate Guaranty Agreement, dated as of October 1, 2001, between American Ref-Fuel
Company LLC and State Street Bank and Trust Company, as trustee in connection with the
Corporate Credit Bonds (American Ref-fuel Company LLC — I Series A);
	 
	 	39.	 	Corporate Credit Guaranty, dated as of October 1, 2001, between ARC and State Street
Bank and Trust Company, as Trustee (American Ref-fuel Company LLC — II Series A);
	 
	 	40.	 	Company Support Agreement, entered into as of November 1, 2001, by and between
American Ref-Fuel Operations of SEMASS, L.P. and ARC;
	 
	 	41.	 	Contingent Capital Loan Agreement, entered into as of November 1, 2001, by and
between American Ref-Fuel Operations of SEMASS, L.P. and ARC;
	 
	 	42.	 	Corporate Guaranty Agreement I, dated as of April 30, 2001, made by American Ref-Fuel
Company LLC to and for the benefit of State Street Bank and Trust Company (as successor to
Fleet National Bank), as Owner Trustee;
	 
	 	43.	 	Corporate Guaranty Agreement II, dated as of April 30, 2001, made by American
Ref-Fuel Company LLC to and for the benefit of State Street Bank and Trust Company (as
successor to Fleet National Bank), as Owner Trustee;
	 
	 	44.	 	Corporate Guaranty Agreement III, dated as of April 1, 2001, made by American
Ref-Fuel Company LLC to and for the benefit of General Electric Capital Corporation;
	 
	 	45.	 	Corporate Guaranty Agreement IV, dated as of April 1, 2001, made by American Ref-Fuel
Company LLC to and for the benefit of General Electric Capital Corporation;
	 
	 	46.	 	Amended and Restated Corporate Guarantee Agreement I, entered into as of August 28,
2001, by American Ref-Fuel Company LLC, in favor of and for the benefit of Viacom, Inc.;
	 
	 	47.	 	Amended and Restated Corporate Guarantee Agreement II, entered into as of August 28,
2001, by American Ref-Fuel Company LLC, in favor of and for the benefit of Viacom, Inc.;
	 
	 	48.	 	Indemnity Letter, dated April 16, 1997, from American Ref-Fuel Company of Delaware
County, L.P. and Browning-Ferris Industries, Inc. to the Delaware County Industrial
Development Authority;

SCHEDULE 4.15 - 4

 

	 	49.	 	Guarantee Agreement, dated as of August 28, 2001, from American Ref-Fuel Company LLC
to and for the benefit of the Delaware County Solid Waste Authority;
	 
	 	50.	 	Operator Guaranty, dated December 10, 1996, by Covanta Projects, Inc. in favor of
Quezon Power (Philippines), Limited Co. (assigned to project lenders);
	 
	 	51.	 	Guaranty (O&M), dated April 2, 1999, by Covanta Energy Group, Inc., as amended
October 31, 2004, in favor of NEPC Consortium Power Ltd. (assigned to Overseas Private
Investment Corporation);
	 
	 	52.	 	Guarantee, Dated April 25, 2000, by Covanta Energy Corporation in favor of Madurai
Power Corporation Pvt. Ltd. (assigned to project lenders);
	 
	 	53.	 	Share Retention and Financial Support Agreement, dated April 25, 2000 among Covanta
Energy Corporation, Covanta Energy India (Balaji) Ltd., Samayanallur Power Investments
Pvt. Ltd., ICICI Limited and Madurai Power Corporation Pvt. Ltd. (assigned to project
lenders).
	 
	 	54.	 	Operation and Maintenance Guarantee, dated December 16, 1999, by Covanta Energy
Group, Inc. in favor of Samalpatti Power Company Pvt. Ltd. (assigned to project lenders).

	C.	 	Energy Contracts

	 	1.	 	Amended and Restated Energy Purchase Agreement, dated October 23, 1991, between Detroit
Edison Company and Michigan Waste Energy, Inc, as amended;
	 
	 	2.	 	Energy Purchase Agreement, dated July 11, 1986, between Consolidated Edison Company
of New York, Inc. and American REF-FUEL Company of Hempstead;
	 
	 	3.	 	Parallel Generation & Energy Purchase Agreement, as amended, dated October 10, 1986,
between Long Island Lighting Company and American REF-FUEL Company of Hempstead;
	 
	 	4.	 	Agreement for Purchase of Electric Power, as amended, dated July 1, 1985, between
Public Service Electric and Gas Company and American REF-FUEL Company of Essex County;
	 
	 	5.	 	Electrical Energy Purchase Agreement, as amended, dated December 2, 1988, between
Connecticut Resources Recovery Authority, Southeastern Connecticut Regional Resources
Recovery Authority, American Ref-Fuel Company of Southeastern Connecticut and The
Connecticut Light and Power Company;
	 
	 	6.	 	Power Purchase Agreement, as amended, dated June 29, 1993, between American Ref-Fuel
Company of Niagara, L.P. and Niagara Mohawk Power Corporation;

SCHEDULE 4.15 - 5

 

	 	7.	 	Power Sales Agreement, as amended, dated October 31, 1985, between Commonwealth
Electric Company and SEMASS Partnership;
	 
	 	8.	 	Power Sales Agreement for SEMASS Expansion, as amended, dated January 15, 1988,
between Commonwealth Electric Company and SEMASS Partnership;
	 
	 	9.	 	Agreement for Purchase of Electric Power, as amended, dated November 18, 1988,
between Atlantic City Electric Company and ARC Delaware as assignee of Delaware Resource
Management, Inc.;
	 
	 	10.	 	Power Purchase Agreement, dated May 21, 1998, between Tamil Nadu Electricity Board
and Madurai Power Corporation Pvt. Ltd., as amended;
	 
	 	11.	 	Steam Sales Agreement, as amended, dated May 5, 1993, between American Ref-Fuel
Company of Niagara, L.P. and Occidental Chemical Company;
	 
	 	12.	 	Interconnection Agreement, dated June 1, 2000, between American Ref-Fuel Company of
Delaware Valley, L.P. and Philadelphia Electric Company;

	D.	 	Service/Waste/Operating Contracts

	 	1.	 	Amended and Restated Facility Operation Agreement dated as of October 1, 2985 among
Alexandria Sanitation Authority, Arlington Solid Waste Authority, City of Alexandria,
Virginia, Arlington County Virginia and Covanta Alexandria/Arlington, Inc., as amended and
interpolated on December 16, 1998.
	 
	 	2.	 	Amended and Restated Service Agreement between, dated August 1, 1995, Covanta
Babylon, Inc. and the Town of Babylon, as amended;
	 
	 	3.	 	Amended and Restated Service Agreement, dated August 1, 1985, between Covanta
Bristol, Inc. and the Bristol Resource Recovery Facility Operating Committee, as amended;
	 
	 	4.	 	Second Amended and Restated Agreement for Operation and Maintenance of Solid Waste
Disposal Resource Recovery and Energy Generating Facility, dated December 15, 1985, as
amended and restated as of July 1, 1996, between Greater Detroit Resource Recovery
Authority and Michigan Waste Energy, Inc.;
	 
	 	5.	 	Service Agreement, dated August 28, 1985, among County of Fairfax, Virginia, Fairfax
County Solid Waste Authority and Covanta Fairfax, Inc., as amended and supplemented;
	 
	 	6.	 	Amended and Restated Service Agreement between, dated August 1, 1998, Covanta
Haverhill Associates and Covanta Haverhill, Inc.;
	 
	 	7.	 	Operations and Management Agreement, dated November 7, 1984, between Hillsborough
County and Covanta Hillsborough, Inc, as amended and Extension

SCHEDULE 4.15 - 6

 

	 	 	 	Operation and Management Agreement between Hillsborough County, Florida and Covanta
Hillsborough, Inc. dated August 17, 2005;
	 
	 	8.	 	Contract for Waste Processing and Disposal Services, dated July 3, 1985, between the
City and County of Honolulu and Covanta Honolulu Resource Recovery Venture (f/k/a Honolulu
Resource Recovery Venture), as amended and supplemented;
	 
	 	9.	 	Amended and Restated Solid Waste Disposal Service Agreement, dated June 29, 1989,
between the Town of Huntington and Covanta Huntington, Limited Partnership, as amended;
	 
	 	10.	 	Agreement, dated June 1, 1988, between the Solid Waste Disposal Authority of the City
of Huntsville and Covanta Huntsville, Inc., as amended;
	 
	 	11.	 	Amended and Restated Service Agreement, dated September 23, 1985, between the Board
of Public Works on behalf of the City of Indianapolis and Covanta Indianapolis, Inc., as
amended;
	 
	 	12.	 	Amended and Restated Construction and Service Agreement, dated October 1, 1987,
between Covanta Kent Inc. and County of Kent;
	 
	 	13.	 	Service Agreement, dated September 25, 1987, between Lancaster County Solid Waste
Management Authority and Covanta Lancaster, Inc.;
	 
	 	14.	 	Service Agreement, dated August 29, 1990, as amended, between Covanta Lee, Inc. and
Lee County, Florida and Amended and Restated Service Agreement between Lee County and
Covanta Lee, Inc. dated January 31, 2006;
	 
	 	15.	 	Agreement for Electric Generation Facility Operation, Maintenance and Maintenance
Services 2000, dated December 22, 2001, between Covanta Mid-Conn, Inc. (f/k/a Resource
Recovery Systems of Connecticut, Inc.) and Connecticut Resources Recovery Authority;
	 
	 	16.	 	Amended and Restated Agreement for Operation and Maintenance of Power Block Facility,
dated December 22, 2001, between Resource Recovery Systems of Connecticut and Connecticut
Resources Recovery Authority;
	 
	 	17.	 	Service Agreement, dated November 16, 1990, between Northeast Maryland Waste Disposal
Authority and Covanta Montgomery, Inc., as amended;
	 
	 	18.	 	Second Amended and Restated Solid Waste Disposal Service Agreement, dated October 10,
2003, between Covanta Onondaga Limited Partnership & Onondaga County Resource Recovery
Association;
	 
	 	19.	 	Amended and Restated Completion, Operations and Maintenance Agreement, dated October
10, 2003, between Covanta Onondaga Limited Partnership and Covanta Onondaga Operations,
Inc.;

SCHEDULE 4.15 - 7

 

	 	20.	 	Operating and Maintenance Agreement, dated October 10, 2003, by and between Covanta
Onondaga Limited Partnership and Covanta Onondaga Operations, Inc.;
	 
	 	21.	 	Amended and Restated Service Agreement, dated March 28, 1989, between Covanta Pasco,
Inc. and Pasco County, as amended;
	 
	 	22.	 	Amended and Restated Service Agreement for the Supply and Acceptance of Solid Waste,
dated June 1, 1986, between Covanta Stanislaus, Inc. and the City of Modesto and the
County of Stanislaus, as amended;
	 
	 	23.	 	Amended and Restated Waste Disposal Contract, dated February 15, 1998, between Union
County Utilities Authority and Covanta Union, Inc., as amended and restated June 15, 1998;
	 
	 	24.	 	Operations and Maintenance Agreement, dated June 1, 1998, between Covanta Union, Inc.
and Covanta Operations of Union LLC, Inc.;
	 
	 	25.	 	Amended and Restated Solid Waste Disposal Agreement, dated as of May 1, 1990, between
BFI Waste Systems of North America, Inc. and Covanta Haverhill Associates, as amended; and
	 
	 	26.	 	BFI Solid Waste Disposal Agreement, dated April 15, 1986, between Haverhill Power,
Inc., Refuse Fuels Associates, and Browning-Ferris Industries, Inc.
	 
	 	27.	 	Service Agreement, as amended, dated December 1, 1985, between American REF-FUEL
Company of Hempstead, the Town of Hempstead and the Town Board of Hempstead on behalf of
the Town of Hempstead Refuse Disposal District;
	 
	 	28.	 	Amended and Restated Service Agreement, dated February 28, 1986, between American
REF-FUEL Company of Essex County and the Port Authority of New York and New Jersey;
	 
	 	29.	 	Service Agreement, as amended, dated December 1, 1987, between Connecticut Resources
Recovery Authority and American Ref-Fuel Company of Southeastern Connecticut;
	 
	 	30.	 	Limited Landfill Services Agreement, dated March 1, 1990, between EAC Operations,
Inc. and Carver Marion Wareham Regional Refuse Disposal District;
	 
	 	31.	 	Amended and Restated Operating Services Agreement , dated November 1, 2001, between
American Ref-Fuel Operations of SEMASS, L.P. and SEMASS Partnership;
	 
	 	32.	 	Amended and Restated Management Services Agreement, dated November 1, 2001, between
SEMASS Partnership and American Ref-Fuel Operations of SEMASS, L.P.;

SCHEDULE 4.15 - 8

 

	 	33.	 	Waste Management Agreement, as amended, dated May 25, 1982, between SEMASS
Partnership and Carver, Marion, Wareham Regional Refuse Disposal District;
	 
	 	34.	 	Amended and Restated Waste Services Agreement, dated November 1, 2001, between SEMASS
Partnership and American Ref-Fuel Operations of SEMASS, L.P.;
	 
	 	35.	 	Amended and Restated Waste Services Agreement, dated November 1, 2001, between SEMASS
Partnership and American Ref-Fuel Operations of SEMASS, L.P.;
	 
	 	36.	 	Amended and Restated Waste Services Subcontract Agreement, dated November 1, 2001,
between American Ref-Fuel Operations of SEMASS, L.P. and TransRiver Marketing Company,
L.P.;
	 
	 	37.	 	Community Host Agreement, as amended, dated January 30, 1989, between Westinghouse
Electric Corporation, American Ref-Fuel Company of Delaware County, L.P., County of
Delaware and City of Chester;
	 
	 	38.	 	Restated Service Agreement, as amended, dated December 1, 1988, between Delaware
County Solid Waste Authority, Delaware Resource Management, Inc., Westinghouse Electric
Corporation and American Ref-Fuel Company of Delaware County, L.P.;
	 
	 	39.	 	Department of Sanitation City of New York Supply and Service Agreement, dated August
16, 2004, between TransRiver Marketing Company, L.P. and City of New York Department of
Sanitation;
	 
	 	40.	 	Plant Operation and Maintenance Agreement, dated December 1, 1995, as amended,
between Quezon Power (Philippines), Limited Co. and Covanta Philippines Operating, Inc.
	 
	 	41.	 	Plant Operation and Maintenance Agreement, dated April 2, 1999, as amended, between
NEPC Consortium Power Limited and Covanta Bangladesh Operations, Ltd.
	 
	 	42.	 	Operation and Maintenance Agreement, dated April 25, 2000, between Covanta Madurai
Operating Pvt. Ltd. And Madurai Power Corporation Pvt. Ltd.
	 
	 	43.	 	Operation and Maintenance Agreement, dated December 3, 1999, between Samalpatti Power
Company Pvt. Ltd. And Covanta Samalpatti Operating Pvt. Ltd.

	E.	 	Financing and Real Estate Agreements

SCHEDULE 4.15 - 9

 

	 	1.	 	Conditional Sale and Security Agreement, dated as of July 1, 1998, as amended, among
Covanta Alexandria/Arlington, Inc., Alexandria Sanitation Authority and Arlington County
Solid Waste Authority;
	 
	 	2.	 	Amended and Restated Installment Sale Agreement, dated as of June 1, 2001, between
the Niagara County Industrial Development Agency, Niagara County, New York and American
Ref-Fuel Company of Niagara, L.P.
	 
	 	3.	 	Operating Lease Agreement. Dated as of November 1, 1998, among Covanta
Alexandria/Arlington, Inc., Alexandria Sanitation Authority and Arlington County Solid
Waste Authority;
	 
	 	4.	 	Loan Agreement dated as of December 1, 1993, between Covanta Bristol, Inc. and
Bristol Resource Recovery Facility Operating Committee. Facility Site Sublease Agreement,
dated December 1, 1985, as amended and restated August 1, 1995, between Town of Babylon
Industrial Development Agency and Covanta Babylon, Inc.;
	 
	 	5.	 	Facility Lease Agreement, dated December 1, 1985, as amended and restated August 1,
1995, between Town of Babylon Industrial Development Agency and Covanta Babylon, Inc.;
	 
	 	6.	 	Participation Agreement, dated September 1, 1991, among Michigan Waste Energy, Inc.,
Greater Detroit Resource Recovery Authority, Resource Recovery Business Trust-A, PMCC
Leasing Corp., Wilmington Trust Company, and William J. Wade;
	 
	 	7.	 	Participation Agreement, dated September 1, 1991, among Michigan Waste Energy, Inc.,
Greater Detroit Resource Recovery Authority, Resource Recovery Business Trust-B, Aircraft
Services Corp., Wilmington Trust Company, and William J. Wade;
	 
	 	8.	 	Lease Agreement, dated October 23, 1991, between Michigan Waste Energy, Inc. and
Resource Recovery Business Trust-A, as amended;
	 
	 	9.	 	Lease Agreement, dated October 23, 1991, between Michigan Waste Energy, Inc. and
Resource Recovery Business Trust-B, as amended;
	 
	 	10.	 	Conditional Sale and Security Agreement, dated February 1, 1988, between Fairfax
County Solid Waste Authority and Covanta Fairfax, Inc., as amended March 1, 1995;
	 
	 	11.	 	Amended and Restated Lease Agreement, dated December 1, 1986, between SBR Associates
and Refuse Fuels Associates, as amended;
	 
	 	12.	 	New Facility Site Lease, Indenture of Lease, dated December 1, 1986, u/d/t dated
January 11, 1980, between Covanta Haverhill Associates and Dale F. Rogers and B. Richard
Rogers, Trustees of the D&R Realty Trust;

SCHEDULE 4.15 - 10

 

	 	13.	 	Lease Agreement dated as of November 1, 1989, as amended, between Connecticut Bank &
Trust Company and Honolulu Resource Recovery Venture;
	 
	 	14.	 	Participation and Assignment Agreement, dated as of November 1, 1989, as amended,
among Honolulu Resource Recovery Venture, Ford Motor Credit Corporation, Connecticut Bank
& Trust Company, and the City and County of Honolulu;
	 
	 	15.	 	Facility Lease Agreement, dated January 15, 1997, between Covanta Huntington Limited
Partnership and the Suffolk County Industrial Development Agency;
	 
	 	16.	 	First Amended and Restated Agreement of Limited Partnership, dated October 7, 1991,
by and among Ogden Martin Systems of Huntington Resource Recovery One Corp., Pitney Bowes
Credit Corporation, Ogden Martin Systems of Huntington Resource Recovery Six Corp., and
Ogden Martin Systems of Huntington Resource Recovery Seven Corp.;
	 
	 	17.	 	Financing Agreement, dated as of December 1, 1985, between the City of Indianapolis
and Massburn, Inc.;
	 
	 	18.	 	Loan Agreement, dated as of November 1, 1988, as supplemented, between Covanta Lake,
Inc. and NRG/Recovery Group, Inc.;
	 
	 	19.	 	Amended and Restated Lease Agreement, dated October 10, 2003, between Onondaga County
Resource Recovery Association and Covanta Onondaga Limited Partnership;
	 
	 	20.	 	Second Amended and Restated Agreement of Limited Partnership of Covanta Onondaga
Limited Partnership, dated October 10, 2003, by and among Covanta Onondaga, Inc., Covanta
Onondaga Two Corp., Covanta Onondaga Three Corp., Covanta Onondaga Four Corp., Covanta
Onondaga Five Corp., Ford Motor Credit Company, Mariner Investment Strategies, Inc., and
IEA-COV, LLC;
	 
	 	21.	 	Lease Agreement dated as of January 1, 2000 between Stanislaus Waste to Energy
Financing Authority and Covanta Stanislaus, Inc.;
	 
	 	22.	 	Sublease Agreement dated as of January 1, 2000 between Stanislaus Waste Energy
Financing Authority and Covanta Stanislaus, Inc.;
	 
	 	23.	 	Facility Lease Agreement, dated June 15, 1998, by and between the Union County
Utilities Authority and Covanta Union, Inc;
	 
	 	24.	 	$275 million aggregate principal amount 6.26% Senior Notes due 2015 of American
Ref-Fuel Company LLC, issued May 1, 2003;
	 
	 	25.	 	Indenture and First Supplemental Indenture, dated May 1, 2003, between American
Ref-Fuel Company LLC and Wachovia Bank, National Association, as Trustee and Securities
Intermediary;

SCHEDULE 4.15 - 11

 

	 	26.	 	$200 million aggregate principal amount 8 1/2% Senior Secured Notes due 2010 of MSW
Energy Holdings LLC, issued June 25, 2003;
	 
	 	27.	 	Indenture, by and among MSW Energy Holdings LLC, MSW Energy Finance Co., Inc., and
the Guarantor Parties named therein, and Wells Fargo Bank, National Bank, as Trustee,
dated as of June 25, 2003;
	 
	 	28.	 	$225 million aggregate principal amount Series A and Series B 7 3/8% Senior Secured
Notes due 2010 of MSW Energy Holdings II LLC, issued November 24, 2003;
	 
	 	29.	 	Indenture, by and among MSW Energy Holdings II LLC, MSW Energy Finance II Co., Inc.,
and the Guarantor Parties named therein, and Wells Fargo Bank Minnesota, National Bank, as
Trustee, dated as of November 24, 2003.
	 
	 	30.	 	Quitclaim Deed, dated September 5, 2001, between Waste Systems International Lynn
Transfer Station, Inc. to TransRiver Marketing Company, L.P.;
	 
	 	31.	 	Lease Agreement, as amended, dated December 1, 1985, between Town of Hempstead
Industrial Development Agency and American REF-FUEL Company of Hempstead;
	 
	 	32.	 	Site Lease Agreement, dated November 1, 1986, between Town of Hempstead Industrial
Development Agency and American REF-FUEL Company of Hempstead;
	 
	 	33.	 	Amended and Restated Company Sublease Agreement, dated June 1, 2001, between Town of
Hempstead Industrial Development Agency and American REF-FUEL Company of Hempstead;
	 
	 	34.	 	Agency Sublease, dated March 1, 1997, between Town of Hempstead Industrial
Development Agency and American REF-FUEL Company of Hempstead;
	 
	 	35.	 	Lessee Guaranty and Security Agreement, dated September 1, 1986, between American
REF-FUEL Company of Hempstead, Bankers Trust Company and The Chase Manhattan Bank;
	 
	 	36.	 	Escrow and Security Agreement, dated February 28, 1986, between American REF-FUEL
Company of Essex County, the Port Authority of New York and New Jersey and Midlantic
National Bank;
	 
	 	37.	 	Lease and Agreement, as amended, dated February 28, 1986, between American REF-FUEL
Company of Essex County and the Port Authority of New York and New Jersey;
	 
	 	38.	 	Lease Agreement, as amended, dated December 1, 1988, between Connecticut Resources
Recovery Authority and American Ref-Fuel Company of Southeastern Connecticut;

SCHEDULE 4.15 - 12

 

	 	39.	 	Site Lease, dated December 1, 1988, between Southeastern Connecticut Regional
Resources Recovery Authority and American Ref-Fuel Company of Southeastern Connecticut;
	 
	 	40.	 	Loan Agreement (Duke Capital Series A), as amended, dated December 1, 1998, between
Connecticut Resources Recovery Authority and American Ref-Fuel Company of Southeastern
Connecticut;
	 
	 	41.	 	Loan Agreement (BFI Series A), as amended, dated December 1, 1998, between
Connecticut Resources Recovery Authority and American Ref-Fuel Company of Southeastern
Connecticut;
	 
	 	42.	 	Loan Agreement, dated January 15, 1992, between Connecticut Resources Recovery
Authority and American Ref-Fuel Company of Southeastern Connecticut;
	 
	 	43.	 	Lease Guaranty and Security Agreement, as amended, dated December 1, 1988, between
American Ref-Fuel Company of Southeastern Connecticut to The Connecticut National Bank;
	 
	 	44.	 	Payment-In-Lieu-Of-Tax Agreement, as amended, dated August 1, 1993, between American
Ref-Fuel Company of Niagara, L.P. and Niagara County Industrial Development Agency;
	 
	 	45.	 	Deed, dated May 5, 1993, by Hooker Energy Corporation granting to American Ref-Fuel
Company of Niagara, L.P.;
	 
	 	46.	 	A-1 Boilerhouse Lease, dated May 5, 1993, between American Ref-Fuel Company of
Niagara, L.P. and Occidental Chemical Corporation;
	 
	 	47.	 	Mortgage and Security Agreement, dated June 1, 2001, between American Ref-Fuel
Company of Niagara, L.P., Niagara County Industrial Development Agency and Manufacturers
and Traders Trust Company;
	 
	 	48.	 	Quitclaim Deed re: Lot 40-1, Rochester, MA Site, dated August 5, 1987, between
William Byrne and SEMASS;
	 
	 	49.	 	Quitclaim Deed re: Lot 40-2, dated August 5, 1987, between SEMASS and Commonwealth
Electric;
	 
	 	50.	 	Quitclaim Deed re: 131 and 141 Cranberry Highway, dated December 27, 1984, between
William Byrne to Bank of New England as Trustee for SEMASS;
	 
	 	51.	 	Amended and Restated Loan, Security and Trust Agreement, dated November 1, 2001,
between Massachusetts Development Finance Agency, SEMASS Partnership and State Street Bank
and Trust Company;

SCHEDULE 4.15 - 13

 

	 	52.	 	Settlement Agreement, dated October 19, 1995, between Carver, Marion, Wareham
Regional Refuse Disposal District and SEMASS Partnership (Pls.) and Board of Health for
the Town of Carver and Town of Carver (Defs.) and EAC Operations, Inc. (Third Party Def.);
	 
	 	53.	 	Settlement Agreement, as amended, dated March 30, 1990, between Wankinco River, Inc.,
The Carver, Marion, Wareham Regional Refuse Disposal District, SEMASS Partnership and EAC
Operations, Inc.;
	 
	 	54.	 	Subordinated Payment Agreement, dated November 1, 2001, between American Ref-Fuel
Operations of SEMASS, L.P. and SEMASS Partnership;
	 
	 	55.	 	Lease, as amended, dated April 15, 1983, between A.D. Makepeace Company and Carver,
Marion, Wareham Regional Refuse Disposal District, Wankinco River, Inc.;
	 
	 	56.	 	Ground Lease, as amended, dated June 30, 1986, between Town of Braintree, Mass. and
SEMASS Partnership;
	 
	 	57.	 	Quitclaim Deed, dated November 1, 1985, between Bank of New England to SEMASS
Partnership Trust Agreement;
	 
	 	58.	 	Mortgage Deed and Security Agreement, as amended, dated August 1, 1991, between State
Street Bank and Trust Company and SEMASS Partnership;
	 
	 	59.	 	Leasehold Mortgage Deed and Security Agreement, as amended, dated August 1, 1991,
between State Street Bank and Trust Company and SEMASS Partnership;
	 
	 	60.	 	Trust Agreement, dated August 1, 1991, between SEMASS Partnership, Wankinco River,
Inc. and Fleet National Bank;
	 
	 	61.	 	Declaration of Easements, Restrictions and Covenants, as amended, dated November 5,
1985, between SEMASS Partnership and Commonwealth Electric Company;
	 
	 	62.	 	Participation Agreement, dated April 1, 1997, between American Ref-Fuel Company of
Delaware County, L.P., TIFD III-L Inc., Delaware Resource Management, Inc., Fleet National
Bank, First Union National Bank, Browning-Ferris Industries, Inc. and Delaware Resource
Lessee Trust;
	 
	 	63.	 	Tax Indemnification Agreement, dated April 1, 1997, between American Ref-Fuel Company
of Delaware County, L.P. and TIFD III-L Inc.;
	 
	 	64.	 	ISDA Master Agreement, dated April 16, 1997, between American Ref-Fuel Company of
Delaware County, L.P. and General Electric Capital Corporation;

SCHEDULE 4.15 - 14

 

	 	65.	 	Amended and Restated Lease Security Agreement and Assignment, dated April 1, 1997,
between American Ref-Fuel Company of Delaware County, L.P. and Fleet National Bank;
	 
	 	66.	 	Real Estate Purchase and Sale Agreement, as amended, dated March 19, 1997, between
American Ref-Fuel Company of Delaware County, L.P. and Chester Solid Waste Associates;
	 
	 	67.	 	Amended and Restated Lease Agreement, dated April 1, 1997, between American Ref-Fuel
Company of Delaware County, L.P., Fleet National Bank and Delaware Resource Management,
Inc.;
	 
	 	68.	 	Assignment of Lease and Easement, dated April 11, 1997, between American Ref-Fuel
Company of Delaware County, L.P. and Chester Solid Waste Associates;
	 
	 	69.	 	Grant of Easement, dated April 16, 1997, between American Ref-Fuel Company of
Delaware County, L.P. to Fleet National Bank;
	 
	 	70.	 	Special Warranty Deed, dated April 16, 1997, between American Ref-Fuel Company of
Delaware County, L.P. and Chester Solid Waste Associates;
	 
	 	71.	 	Special Warranty Deed, dated April 16, 1997, between American Ref-Fuel Company of
Delaware County, L.P. and Chester Solid Waste Associates;
	 
	 	72.	 	Grant of Easement, dated April 16, 1997, between American Ref-Fuel Company of
Delaware County, L.P. and Chester Solid Waste Associates;
	 
	 	73.	 	Grant of Easement, dated April 16, 1997, between American Ref-Fuel Company of
Delaware County, L.P. and Chester Solid Waste Associates;
	 
	 	74.	 	Mutual Release and Settlement Agreement, dated August 28, 2001, between American
Ref-Fuel Company of Delaware County, L.P., American Ref-Fuel Company, LLC, Delaware
County, Delaware County Solid Waste Authority and Viacom, Inc.;
	 
	 	75.	 	Site Sublease, dated July 1, 1991, between The Connecticut National Bank and Delaware
Resource Management, Inc.;
	 
	 	76.	 	Facility Ground Lease, as amended, dated December 1, 1988, between Chester Solid
Waste Associates and Delaware Resource Management, Inc.;
	 
	 	77.	 	Common Agreement, dated April 25, 2000, between Madurai Power Corporation Pvt. Ltd.
And ICICI Limited (together with related novation, mortgage, pledge and security
agreements);

SCHEDULE 4.15 - 15

 

	 	78.	 	Working Capital Loan Consortium Agreement, dated August 29, 2002, among Madurai Power
Corporation Pvt. Ltd., ICICI Limited, State Bank of India and Central Bank of India;
	 
	 	79.	 	Land Lease Agreement, dated January 20, 1999, between Tamil Nadu Electricity Board
and Madurai Power Corporation Pvt. Ltd.;

	F.	 	Partnership and Joint Venture Agreements

	 	1.	 	Third Amended and Restated Development and Shareholders Agreement, dated October 18,
2004, among Ogden Power Development-Cayman, Inc., PMR Limited Co., PMR Power, Inc. and
Quezon Generating Company Ltd.
	 
	 	2.	 	Shareholders Agreement, dated April 25, 2000, among Covanta Energy India (Balaji),
Madurai Power Corporation Pvt. Ltd., Samayanallur Power Investments Pvt. Ltd. And Wartsila
BPC Investment LLC.
	 
	 	3.	 	Shareholders Agreement, dated February 26, 1999, as amended, among Shapoorji Pallonji
Infrastructure Capital Company Ltd., SIV Industries Ltd., Fenmor Energy Ltd., Wartsila
India Power Investment, LLC, Covanta Energy India (Samalpatti) Ltd., Goa Holdings Ltd. And
Samalpatti Power Company Pvt. Ltd.

SCHEDULE 4.15 - 16

 

SCHEDULE 4.26

TO CREDIT AGREEMENT

UNRESTRICTED SUBSIDIARIES

	1.	 	Magellan Cogeneration, Inc. [Philippines]
	 
	2.	 	Edison (Bataan) Cogeneration Corporation [Philippines]
	 
	3.	 	Covanta Energy Limited [UK]
	 
	4.	 	UAH Groveville Hydro Associates
	 
	5.	 	Covanta Mauritius O&M Ltd. [Cayman Islands]
	 
	6.	 	Covanta Energy (UK) Limited [UK]

SCHEDULE 4.26 - 1

 

SCHEDULE 5.13

TO CREDIT AGREEMENT

POST-CLOSING MATTERS

     No later than thirty (30) days after the Closing Date, Company shall deliver to Administrative
Agent (a) executed and effective releases of the pledges of the equity interests in Covanta Energy
Philippine Holdings, Inc. and Covanta Energy India Investments, Ltd., executed in connection with
the credit agreements described in clauses (i) and (ii) of the definition of Existing Indebtedness,
in form and substance reasonably satisfactory to Administrative Agent and (b) the original stock
certificate of Covanta Energy International Investments Limited reflecting its change of name from
Covanta Energy India Investments, Ltd., together with an undated stock power executed in blank by a
duly authorized officer of the pledgor thereof.

SCHEDULE 5.13 - 1

 

SCHEDULE 6.1

TO CREDIT AGREEMENT

CERTAIN INDEBTEDNESS

	 	•	 	Intercompany Indebtedness outstanding on the Closing Date of Company or any Restricted
Subsidiary owed to any Restricted Subsidiary or Company.
	 
	 	•	 	The following Indebtedness:

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	Alexandria

	 	Performance Guaranties
	 	Covanta Guaranty, dated October 1, 1985, between Covanta
Energy Corporation and the City of Alexandria; Alexandria
Sanitation Authority; Arlington County and Arlington
Solid Waste Authority, as amended
	 
	 	 	 	 
	Babylon

	 	Performance Guaranties
	 	Covanta Guaranty, dated December 20, 1985, between
Covanta Energy Corporation, Town of Babylon and the Town
of Babylon Industrial Development Agency
	 
	 	 	 	 
	Bristol

	 	Performance Guaranties
	 	Covanta Guaranty, dated August 1, 1985, between Covanta
Energy Corporation and City of Bristol; Town of Berlin;
Town of Burlington; City of New Britain; Town of
Plainville; Town of Plymouth; Town of Southington; Town
of Washington
	 
	 	 	 	 
	Mid-Conn

	 	Performance Guaranties
	 	Covanta Guaranty, dated October 1, 1996, between Covanta
Energy Corporation and Town of Branford, CT; Town of
Hartland, CT; and Town of Seymour, CT
	 
	 	 	 	 
	Fairfax

	 	Performance Guaranties
	 	Covanta Guaranty, dated February 1, 1988, between Covanta
Energy Corporation and County of Fairfax; Fairfax County
Solid Waste Authority
	 
	 	 	 	 
	Haverhill

	 	Performance Guaranties
	 	Covanta Guaranty, dated December 23, 1986, between
Covanta Energy Corporation and New England Power Co., as
amended
	 
	 	 	 	 
	Haverhill

	 	Performance Guaranties
	 	Covanta Guaranty, dated August 1998, between Covanta
Energy Corporation and Covanta Haverhill Associates
(f/k/a Ogden Haverhill Associates)
	 
	 	 	 	 
	Hennepin

	 	Performance Guaranties
	 	Covanta Guaranty, dated July 8, 2003, between Covanta
Energy Corporation and County of Hennepin
	 
	 	 	 	 
	Hillsborough

	 	Performance Guaranties
	 	Covanta Guaranty, dated January 9, 1985, between Covanta
Energy Corporation and

SCHEDULE 6.1 - 1

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	 

	 	 	 	Hillsborough County, Florida;
Guaranty between Hillsborough County, Florida and Covanta
Hillsborough, Inc. dated August 17, 2005 which becomes
effective only on the effective date of the Extension
Operation and Management Agreement entered into by the
parties on August 17, 2005 (effective only upon
Acceptance of the expansion of the Project)
	 
	 	 	 	 
	Honolulu

	 	Performance Guaranties
	 	Covanta Operating Guaranty, dated December 21, 1992,
between Covanta Energy Corporation and City and County of
Honolulu
	 
	 	 	 	 
	Honolulu

	 	Performance Guaranties
	 	Covanta Liquidated Damages Guaranty, dated July 7, 1993,
between Covanta Energy Corporation and City and County of
Honolulu; Connecticut Bank and Trust, Hawaii Solid Waste
Disposal, Energy & Resource Recovery Facility Trust
(assigned to OPI 12/21/92)
	 
	 	 	 	 
	Huntington

	 	Performance Guaranties
	 	Amended and Restated Covanta Guaranty, dated June 29,
1989, between Covanta Energy Corporation and Town of
Huntington
	 
	 	 	 	 
	Huntsville

	 	Performance Guaranties
	 	Covanta Guaranty, dated June 1, 1988, between Covanta
Energy Corporation and Solid Waste Disposal Authority of
the City of Huntsville
	 
	 	 	 	 
	Indianapolis

	 	Performance Guaranties
	 	Covanta Guaranty, dated December 1, 1985, between Covanta
Energy Corporation and City of Indianapolis
	 
	 	 	 	 
	Kent

	 	Performance Guaranties
	 	Covanta Guaranty, dated October 1, 1987, between Covanta
Energy Corporation and County of Kent; Department of
Public Works
	 
	 	 	 	 
	Lancaster

	 	Performance Guaranties
	 	Covanta Guaranty, dated September 25, 1987, between
Covanta Energy Corporation and Lancaster County Solid
Waste Management Authority
	 
	 	 	 	 
	Lee

	 	Performance Guaranties
	 	Covanta Guaranty, dated January 16, 1990, between Covanta
Energy Corporation and Lee County, as amended and
Guaranty dated January 31, 2006 between Lee County and
Covanta Lee, Inc. dated January 31, 2006 (which becomes
effective only on the effective date of the Amended and
Restated Service Agreement between Lee County and Covanta
Lee, Inc. dated January 31, 2006 (effective only upon
Acceptance

SCHEDULE 6.1 - 2

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	 

	 	 	 	of the expansion of the Project)
	 
	 	 	 	 
	Marion

	 	Performance Guaranties
	 	Guaranty Agreement, dated December 11, 1986, of Ogden
Corporation re: Obligations of Ogden Martin Systems of
Marion, Inc. and Ogden Marion Land Corp. to Columbia
Williamette Leasing, Inc.
	 
	 	 	 	 
	Marion

	 	Performance Guaranties
	 	Covanta Guaranty, dated September 10, 1984, between
Covanta Energy Corporation and Portland General Electric
Co.
	 
	 	 	 	 
	Marion

	 	Performance Guaranties
	 	Covanta Guaranty, dated September 10, 1984, between
Covanta Energy Corporation and Marion County Oregon
	 
	 	 	 	 
	Detroit

	 	Performance Guaranties
	 	Covanta Guaranty, dated December 21, 1992, and reaffirmed
on July 1, 1996, between Covanta Energy Corporation and
Greater Detroit Resource Authority
	 
	 	 	 	 
	Detroit

	 	Performance Guaranties
	 	Covanta Guaranty, dated December 21, 1992, between
Covanta Energy Corporation and The Detroit Edison Co.
	 
	 	 	 	 
	Detroit

	 	Performance Guaranties
	 	Covanta Guaranty, dated October 21, 1991, and amended
July 1, 1996, between Covanta Energy Corporation and
Ogden Projects, Inc., Michigan Waste to Energy, and
Greater Detroit Resource Authority
	 
	 	 	 	 
	Honolulu

	 	Performance Guaranties
	 	Assignment and Assumption Agreement, dated December 21,
1992, between Combustion Engineering, Inc., and Covanta
Projects, Inc.
	 
	 	 	 	 
	Montgomery

	 	Performance Guaranties
	 	Covanta Guaranty, dated November 16, 1990, between
Covanta Energy Corporation and Northeast Maryland Waste
Disposal Authority
	 
	 	 	 	 
	Onondaga

	 	Performance Guaranties
	 	Amended and Restated Covanta Guaranty, dated November 15,
1992, between Covanta Energy Corporation and Onondaga
County Resource Recovery Agency
	 
	 	 	 	 
	Onondaga

	 	Performance Guaranties
	 	Guarantee Agreement, dated October 10, 2003, between
Covanta Energy Corporation and Covanta Onondaga Limited
Partnership
	 
	 	 	 	 
	Pasco

	 	Performance Guaranties
	 	Covanta Guaranty, dated April 15, 1989, between

SCHEDULE 6.1 - 3

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	 

	 	 	 	Covanta Energy Corporation and Pasco County
	 
	 	 	 	 
	Stanislaus

	 	Performance Guaranties
	 	Covanta Guaranty, dated May 1, 1990, between Covanta
Energy Corporation and City of Modesto and County of
Stanislaus
	 
	 	 	 	 
	Union

	 	Performance Guaranties
	 	Covanta Guaranty, dated June 1, 1998, between Covanta
Energy Corporation and Covanta Union, Inc.
	 
	 	 	 	 
	Wallingford

	 	Performance Guaranties
	 	Covanta Guaranty, dated February 1, 1990, between Covanta
Energy Corporation and Connecticut Resources Recovery
Authority (Wallingford)
	 
	 	 	 	 
	Bessemer

	 	Performance Guaranties
	 	Guaranty, dated June 1, 1998, between Ogden Projects Inc.
and Government Utilities Service Corporation
	 
	 	 	 	 
	Koma-Kulshan

	 	Performance Guaranties
	 	Guaranty, dated December 15, 1989, between Covanta Power
Pacific Inc. and Puget Sound Power & Light Company
	 
	 	 	 	 
	Southeast Connecticut

	 	Company Support Agreement
	 	Company Support Agreement, entered into as of April 30,
2001, by and between Covanta Southeastern Connecticut
Company and Covanta ARC LLC
	 
	 	 	 	 
	Southeast Connecticut

	 	Company Support Agreement
	 	Parent Undertaking, entered into as of April 30, 2001, by
and between Covanta Southeastern Connecticut Company and
Covanta ARC LLC
	 
	 	 	 	 
	Southeast Connecticut

	 	Performance Guaranties
	 	Corporate Guaranty Agreement, dated as of April 30, 2001,
between Covanta ARC LLC and US Bank N.A., as trustee, in
connection with Corporate Credit Bonds/Tax Exempt
Interest (Covanta Southeastern Connecticut Company
Project — 1992 Series A)
	 
	 	 	 	 
	Southeast Connecticut

	 	Performance Guaranties
	 	Corporate Guaranty Agreement, dated as of April 30, 2001,
between Covanta ARC LLC and US Bank N.A., as trustee, in
connection with Corporate Credit Bonds/Tax Exempt
Interest (Covanta Southeastern Connecticut Company
Project — 1992 Series A)
	 
	 	 	 	 
	Southeast Connecticut

	 	Performance Guaranties
	 	Corporate Guaranty Agreement, dated as of October 1,
2001, between Covanta ARC LLC and State Street Bank and
Trust Company, as trustee in connection with the
Corporate Credit Bonds (Covanta ARC LLC — I Series A)

SCHEDULE 6.1 - 4

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	MSW Energy Holdings
LLC/American Ref-Fuel
Corp./Ref-Fuel Holdings

	 	Equity Contribution Agreement
	 	Equity Contribution Agreement dated as of April 30, 2001,
among MSW Energy Holding LLC , Covanta Ref-Fuel Finance
LLC, Covanta Ref-Fuel Holdings LLC and Covanta ARC LLC,
as amended
	 
	 	 	 	 
	MSW Energy Holdings LLC

	 	$200,000,000 Senior Secured Notes due 2010
(8.5%)
	 	Indenture dated as of June 25, 2003 relating to
$200,000,000 8.5% Senior Secured Notes due 2010, as
supplemented
	 
	 	 	 	 
	MSW Energy Holdings II LLC

	 	$225,000,000 Senior Secured Notes due 2010
(7.38%)
	 	Indenture dated as of November 24, 2003, relating to
$225,000,000 7.38% Senior Secured Notes due 2010 as
supplemented
	 
	 	 	 	 
	Babylon

	 	Interest Rate Swap
	 	Interest Rate Swap Agreement, dated August 1, 1985,
between Covanta Babylon, Inc. and AIG Financial Product
Corporation6
	 
	 	 	 	 
	Bessemer

	 	OPI’s Guarantee of Service Agreement (“S.A.”)
obligations, capped at $3 million
	 	Guarantee, dated June 1, 1998, by Covanta Projects, Inc.
for the benefit of The Governmental Utility Services
Corporation of the City of Bessemer
	 
	 	 	 	 
	Bristol

	 	Guarantee of performance obligations under
Power Purchase Agreement (“PPA”).
	 	Electricity Guarantee, dated as of August 1, 1985, by
Covanta Energy Corporation to and for the benefit of The
Connecticut Light and Power Company
	 
	 	 	 	 
	CEC

	 	Program Agreement guarantees CEC’s
obligations to reimburse amounts paid by ACE
for losses and expenses under the retention
for Workers’ Compensation, General Liability
Automobile Liability for the policy period.
This is a post petition insurance policy.
	 	Program Agreement, dated October 20, 2003, between ACE
American Insurance Company and Covanta Energy
Corporation, Inc.
	 
	 	 	 	 
	Haripur

	 	Performance L/C’s securing
obligations under Power Purchase Agreement (“PPA”)
	 	L/C issued per Application for Standby Letter of Credit,
dated June 15, 2004, between Covanta Energy Corporation
and Citibank
	 
	 	 	 	 
	Haripur

	 	Guarantee of operations and maintenance
(“O&M”) obligations
	 	Guarantee dated April 2, 1999 from Covanta Energy Group,
Inc. as amended October 31, 2004 to NEPC Consortium Power
Ltd
	 
	 	 	 	 
	Huntington

	 	Guarantee of Partnership obligations,
including tax indemnity and termination put
price.
	 	Covanta Corporation Guarantee Agreement, dated January
30, 1992, by Covanta Energy Corporation to Allstate
Insurance Co. and Ogden Martin Systems of Huntington
Resource Recovery Nine Corporation
	 
	 	 	 	 
	 

	 	 	 	First Amended & Restated Ogden Corporation Guarantee
Agreement: dated January 30, 1992,

6
Covanta Babylon has no obligation to pay AIG unless Town of Babylon
pays Covanta Babylon (i.e., The cost of the Swap is a pass through to
   the client.)

SCHEDULE 6.1 - 5

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	 

	 	 	 	for Mission Zeta and Pitney Bowes Credit Corporation
	 
	 	 	 	 
	Koma Kulshan

	 	Guarantee of PPA Obligations
	 	Guarantee, dated December 15, 1989, by Covanta Power
Pacific, Inc. (f/k/a Pacific Energy) for the benefit of
Puget Sound Power & Light Company]
	 
	 	 	 	 
	Madurai

	 	Parent support undertakings with respect to
standby Equity Commitment, Interest Rate
Differential and equity retention
	 	Share Retention and Financial Support Agreement dated
April 25, 2000 among Covanta Energy Corporation, Covanta
Energy (Balaji) Ltd., Samayanallur Power Investments Pvt.
Ltd., ICICI Limited, and Madurai Power Corporation Pvt.
Ltd.
	 
	 	 	 	 
	Madurai

	 	Guarantee of O&M obligations
	 	O&M Guarantee dated April 25, 2000 by Covanta Energy
Corporation for benefit of Madurai Power Corporation Pvt.
Ltd.
	 
	 	 	 	 
	Madurai

	 	Contingent share premium
	 	Shareholders Agreement dated April 25, 2000 among Covanta
Energy India (Balaji) Ltd., Madurai Power Corporation
Pvt. Ltd., Samayanallur Power Investments Pvt. Ltd. and
Wartsilla BPC Investment LLC
	 
	 	 	 	 
	Union

	 	Guarantee of Operating Lease Obligations
	 	Subordinated Rent Guarantee Agreement: dated June 1,
1998, by Covanta Energy Corporation for the benefit of
the Union County Utilities Authority and Summit Bank, as
Trustee
	 
	 	 	 	 
	DHC and CEC

	 	Indemnity Agreement
	 	Indemnity Agreement with ACE that supports the surety

program with ACE
	 
	 	 	 	 
	CEC

	 	Program Agreement guarantees CEC’s
obligations to reimburse amounts paid by ACE
for losses and expenses under the retention
for WC, GL and Auto liability for the policy
period
	 	Program Agreement dated October 20, 2004 between ACE
American Insurance Company and Covanta Energy Corporation
	 
	 	 	 	 
	Hempstead

	 	Project debt
	 	Lease Agreement dated as of December 1, 1985, between the
Town of Hempstead Industrial Development Agency, as
Lessor, and Covanta Hempstead Company, as Lessee; Lessee
Guarantee and Security Agreement dated as of September 1,
1986, between Covanta Hempstead Company and JP Morgan
Chase Bank N.A., as Trustee
	 
	 	 	 	 
	Hempstead

	 	Company Support Agreement
	 	Second Amended and Restated Company Support Agreement,
entered into as of April 30, 2001, by and between Covanta
Hempstead Company and Covanta ARC LLC
	 
	 	 	 	 
	Essex

	 	Project debt
	 	Conditional Sale Agreement dated as of February 28, 1986,
between Covanta Essex Company, as Purchaser, and The Port
Authority of New York and New Jersey, as Seller, as
amended

SCHEDULE 6.1 - 6

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	Essex

	 	Company Support Agreement
	 	Amended and Restated Company Support Agreement, dated as
of December 1, 1997, by and among Covanta Essex Company,
and Covanta ARC LLC
	 
	 	 	 	 
	Essex

	 	Reimbursement Agreement
	 	Reimbursement Agreement, by and among, Covanta Essex LLC,
Covanta ARC LLC and Allied Waste Industries, Inc., dated
as of April 30, 2001
	 
	 	 	 	 
	Essex

	 	Reimbursement Agreement
	 	Reimbursement Agreement, by and among, Covanta Essex
LLC, Covanta ARC LLC and Duke Capital Corporation, dated
as of April 30, 2001.
	 
	 	 	 	 
	SECONN

	 	Project debt
	 	Lease Agreement dated as of September 1, 1988, between
the Connecticut Resources Recovery Authority and Covanta
Southeastern Connecticut Company, as amended; Lessee
Guarantee and Security Agreement dated as of December 1,
1988, between Covanta Southeastern Connecticut Company
and the Trustee, as amended
	 
	 	 	 	 
	Niagara

	 	Project debt
	 	Amended and Restated Installment Sale Agreement dated as
of June 1, 2001, between the Niagara County Industrial
Development Agency, Niagara County, New York and Covanta
Niagara, L.P.; Memorandum of Amended and Restated
Installment Sale Agreement dated as of June 1, 2001,
between the Niagara County Industrial Development Agency
and Covanta Niagara, L.P.
	 
	 	 	 	 
	Niagara

	 	Performance Guaranties
	 	Guaranty Agreement, entered into as of October 13, 2004
by Covanta ARC LLC in favor of Constellation New Energy,
Inc.
	 
	 	 	 	 
	Niagara

	 	Performance Guaranties
	 	Corporate Guaranty Agreement, entered into as of April
30, 2001, by Covanta ARC LLC, in favor of Occidental
Chemical Corporation and Hooker Energy Corporation
	SEMASS

	 	Project debt
	 	Amended and Restated Loan and Security Trust Agreement
dated as of November 1, 2001, among the Massachusetts
Development Finance Agency, SEMASS Partnership and US
Bank N.A., as Trustee
	SEMASS

	 	Company Support Agreement
	 	Company Support Agreement, entered into as of November 1,
2001, by and between Covanta SEMASS, L.P. and Covanta
ARC LLC

SCHEDULE 6.1 - 7

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	SEMASS

	 	Company Support Agreement
	 	Contingent Capital Loan Agreement, entered into as of
November 1, 2001, by and between Covanta SEMASS, L.P.
and Covanta ARC LLC
	 
	 	 	 	 
	Delaware Valley

	 	Project debt
	 	Amended and Restated Lease Agreement dated as of April 1,
1997, between US Bank, N.A., as Owner Trustee and Lessor,
and Delaware Resource Management, Inc., and Covanta
Delaware Valley, L.P., (f/k/a American Ref-Fuel Company
of Delaware Valley, L.P., and f/k/a American Ref-Fuel
Company of Delaware County, L.P.) as Lessee; and
Participation Agreement dated as of April 1, 1997, among
TIFD III-L Inc., as Owner Participant, Delaware Resource
Management Inc., as Original Lessee, American Ref-Fuel
Company of Delaware County, L.P., as Lessee, US Bank,
N.A., as Owner Trustee, First Union National Bank, as
Indenture Trustee, Browning-Ferris Industries, Inc., and
Delaware Resource Lessee Trust
	 
	 	 	 	 
	Delaware Valley

	 	Performance Guaranties
	 	Corporate Guaranty Agreement I dated as of April 30,
2001, made by Covanta ARC LLC to and for the benefit of
State Street Bank and Trust Company (as successor to
Fleet National Bank), as Owner Trustee
	 
	 	 	 	 
	Delaware Valley

	 	Performance Guaranties
	 	Corporate Guarantee Agreement II dated as of April 30,
2001, made by Covanta ARC LLC to and for the benefit of
State Street Bank and Trust Company (as successor to
Fleet National Bank), as Owner Trustee
	 
	 	 	 	 
	Delaware Valley

	 	Performance Guaranties
	 	Corporate Guaranty Agreement III dated as of April 1,
2001, made by Covanta ARC LLC to and for the benefit of
General Electric Capital Corporation
	 
	 	 	 	 
	Delaware Valley

	 	Performance Guaranties
	 	Corporate Guaranty Agreement IV dated as of April 1,
2001, made by Covanta ARC LLC to and for the benefit of
General Electric Capital Corporation
	 
	 	 	 	 
	Delaware Valley

	 	Performance Guaranties
	 	Amended and Restated Corporate Guarantee Agreement II
entered into as of August 28, 2001, by Covanta ARC LLC,
in favor of and for the benefit of Viacom, Inc.
	 
	 	 	 	 
	Delaware Valley

	 	Performance Guaranties
	 	Amended and Restated Corporate Guarantee Agreement I
entered into as of August 28, 2001, by Covanta ARC LLC,
in favor of and for the benefit of Viacom, Inc.

SCHEDULE 6.1 - 8

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	Delaware Valley

	 	Performance Guaranties
	 	Guarantee Agreement dated as of August 28, 2001, from
Covanta ARC LLC to and for the benefit of the Delaware
County Solid Waste Authority
	 
	 	 	 	 
	Covanta ARC LLC 

Hempstead

	 	$275,000,000 Senior Notes due 2015 (6.26%)
$42,670,000 Corporate Credit Bonds
	 	Indenture dated as of May 1, 2003, as supplemented
Amended and Restated Company Sublease Agreement, dated as
of June 1, 2001, between the Agency and the Company
	 
	 	 	 	 
	Hempstead

	 	$42,670,000 Corporate Credit Bonds
	 	Amended and Restated Company
Sublease Agreement, dated as of June 1, 2001, between the Agency and
the Company
	 
	 	 	 	 
	Hempstead

	 	Performance Guaranties
	 	Parent Company Guaranty, entered into as of June 1, 2001,
by Covanta ARC LLC in favor of The JP Morgan Chase, N.A.,
as trustee
	 
	 	 	 	 
	Niagara

	 	165,010,000 Corporate Credit Bonds
	 	Amended and Restated Company Sublease Agreement, dated as
of June 1, 2001, between the Agency and the Company
	 
	 	 	 	 
	Niagara

	 	Performance Guaranties
	 	Parent Company Issuer Guaranty, entered into as of June
1, 2001, by Covanta ARC LLC, in favor of Niagara County
Industrial Development Agency
	 
	 	 	 	 
	Niagara

	 	Performance Guaranties
	 	Parent Company Guaranty, entered into as of June 1, 2001,
by Covanta ARC LLC, in favor of Manufacturers and Traders
Trust Company
	 
	 	 	 	 
	SECONN

	 	$30,000,000 Corporate Credit Bonds
	 	Loan Agreement dated as of January 15, 1992, between the
Authority and Covanta Southeastern Connecticut Company
relating to the Bonds
	 
	 	 	 	 
	SECONN

	 	$13,500,000 Corporate Credit Bonds
	 	Loan Agreement dated as of December 1, 1998, between the
Authority and Covanta Southeastern Connecticut Company,
with regard to the BFI Series A Bonds, as amended; and
Loan Agreement dated as of December 1, 1998, between the
Authority and Covanta Southeastern Connecticut Company,
with regard to the Duke Capital Series A Bonds, as amended
	 
	 	 	 	 
	Delaware Valley

	 	Letter of Credit
	 	Letter of Credit issued for the benefit of the
Pennsylvania Department of Environmental Protection in a
face amount of $1,457,017 with a maturity date of June
24, 2007.
	 
	 	 	 	 
	Delaware Valley

	 	Indemnity Agreement
	 	Indemnity Letter, dated as of April 16, 1997, from
Covanta Delaware Valley, L.P. to Delaware County
Industrial Development Authority

SCHEDULE 6.1 - 9

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	Alexandria 975 TPD
Mass Burn WTE Facility.

	 	Project debt
	 	Amended and Restated Conditional Sale and Security
Agreement, dated July 1, 1998
between Alexandria Sanitation Authority, Arlington Solid
Waste and Covanta Alexandria/Arlington Inc.
	 
	 	 	 	 
	Alexandria WTE Facility
Clean Air Act Retrofit.
Operating Lease (Not on
Balance Sheet)

	 	Project debt
	 	Operating Lease Agreement, dated November 1, 1998,
between City of Alexandria, Virginia Sanitation Authority
and Arlington County Solid Waste Authority, and Covanta
Alexandria/Arlington, Inc.
	 
	 	 	 	 
	Babylon 750 TPD Mass Burn
WTE Facility.

	 	Project debt
	 	Facility Lease Agreement, dated December 1, 1985, as
amended and restated, dated
August 1, 1995, between Covanta Babylon, Inc. and the
Town of Babylon Industrial Development Agency; and
Interest Rate Swap Agreement, dated as of August 1, 1995
between Covanta Babylon, Inc. and AIG Financial Products
Corp.
	 
	 	 	 	 
	Bristol 650 TPD Mass Burn
WTE Facility.

	 	Project debt
	 	Loan Agreement, dated April 15, 2005, between Covanta
Bristol, Inc. and the Bristol Resource Recovery Facility
Operating Committee, as amended.
	 
	 	 	 	 
	Fairfax 3000 TPD Mass Burn
WTE Facility.

	 	Project debt
	 	Conditional Sale and Security Agreement, dated February
1, 1988 between Covanta Fairfax, Inc. and Fairfax County
Solid Waste Authority
	 
	 	 	 	 
	Haverhill 1650 TPD Mass Burn
WTE Facility.

	 	Project debt
	 	Amended and Restated Loan Agreement, dated August 1,
1998, between Covanta Haverhill Associates and
Massachusetts Industrial Finance Agency; OHA Series 1998
B Loan Agreement, dated as of December 1, 1998 between
Covanta Haverhill Associates and Massachusetts
Development Finance Agency; OHA Series 1999 A Loan
Agreement, dated as of December 1, 1999 between Covanta
Haverhill Associates and Massachusetts Development
Finance Agency; and Amended and Restated Loan Agreement,
dated as of August 1, 1998, between SBR Associates (a
Covanta Energy corporation (“CEC”) subsidiary) and
Massachusetts Industrial Finance Agency

SCHEDULE 6.1 - 10

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	Huntington 750 TPD Mass Burn
WTE Facility.

	 	Project debt
	 	Lease Agreement, dated January 15, 1997, between Ogden
Martin Systems of Huntington Limited Partnership and
Suffolk County Industrial Development Agency
	 
	 	 	 	 
	Indianapolis 2362 TPD Mass
Burn WTE Facility.

	 	Project debt
	 	Financing Agreement, dated September 1, 1985, between
Covanta Indianapolis, Inc. and the City of Indianapolis
	 
	 	 	 	 
	Lake 528 TPD Mass Burn WTE
Facility.

	 	Project debt
	 	Loan Agreement, dated
November 1, 1988, between Covanta
Lake Inc. and Lake County, Florida, as first supplemented
by the First Supplemental Loan Agreement dated 10-1-93
and the Second Supplemental Loan Agreement dated 12-14-04
	 
	 	 	 	 
	Marion 550 TPD Mass Burn WTE
Facility.

	 	Project debt
	 	Loan Agreements, dated October 1, 1995 and May 1, 1996,
between Covanta Marion, Inc. and Marion County, Oregon
	 
	 	 	 	 
	Onondaga 990 TPD Mass Burn
WTE Facility.

	 	Project debt
	 	Amended and Restated Lease Agreement, dated October 10,
2003, between Covanta Onondaga Limited Partnership and
Onondaga County Resource Recovery Agency, as amended;
Amended & Restated Limited Partnership Agreement, dated
November 15, 1994, between Covanta Onondaga, Inc., Ford
Motor Credit Co., Bushton Co., and DCC Project Finance
Nine, Inc. (Partnership deal treated partially as debt
for accounting purposes, but transaction is essentially a
Contingent Liability. See Schedule 7.4 (iv))
	 
	 	 	 	 
	Stanislaus 800 TPD Mass Burn
WTE Facility.

	 	Project debt
	 	Lease Agreement, dated January 1, 2000, between Covanta
Stanislaus, Inc. and Stanislaus Waste-to-Energy Financing
Agency
	 
	 	 	 	 
	Union 1440 TPD Mass Burn WTE Facility

	 	Project debt
	 	Facility Lease Agreement, dated June 15, 1998, between
the Union County Utilities Authority and Ogden Martin
Systems of Union, Inc.
	 
	 	 	 	 
	Wallingford 420 TPD Mass
Burn WTE Facility.

	 	Project debt
	 	Amended and Restated Lease Agreement, dated February 1,
1990 between Ogden Projects of Wallingford LP and
Connecticut Resources Recovery Authority
	 
	 	 	 	 
	Madurai

	 	Project debt
	 	Common Agreement, dated April 25, 2000, as amended,
between Madurai Power Corporation Pvt. Ltd. (f/k/a Balaji
Power Corporation Pvt. Ltd) and ICICI Limited

SCHEDULE 6.1 - 11

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	Madurai

	 	Project debt
	 	Working Capital Loan Consortium Agreement, dated August
29, 2002, among Madurai Power Corporation Pvt. Ltd. and,
ICICI Bank Ltd., State Bank of India, and Central Bank of
India
	 
	 	 	 	 
	Madurai

	 	Project debt
	 	Intercreditor Agreement, dated April 25, 2000, between
ICICI Limited and Guarantees, dated April 25, 2000, from
Covanta
	 
	 	 	 	 
	Quezon

	 	Guarantee of O&M Obligations
	 	Operator Guarantee dated December 10, 1996 by Covanta
Projects Inc. for the benefit of Quezon Power
(Philippines), Limited Co.
	 
	 	 	 	 
	Samalpatti

	 	Parent Undertaking to Retain Interest
	 	Letter Agreement dated December 16, 1999 between
Infrastructure Finance Company Ltd. and Covanta Energy
Group, Inc.
	 
	 	 	 	 
	Samalpatti

	 	Guarantee of O&M Obligations
	 	O&M Guarantee dated December 16, 1999 by Covanta Energy
Group, Inc. for the benefit of Samalpatti Power Company
Pvt. Ltd.
	 
	 	 	 	 
	Samalpatti

	 	Contingent Share Premium
	 	Agreement dated December 4,1999 among Covanta Energy
India (Samalpatti) Ltd., Goa Holdings Ltd. and Fenmor
Energy Ltd.
	 
	 	 	 	 
	Trezzo

	 	Contingent Subordinated Loan/Equity Commitment
	 	Capitalization Agreement dated July 23, 2004 among
Covanta Waste to Energy of Italy, Inc., Actelios S.p.A.
and Prima S.r.l.
	 
	 	 	 	 
	Trezzo

	 	Guarantee of Service and Maintenance
Obligations
	 	Ogden Guarantee dated February 9, 2001 between Prima
S.r.l. and Covanta Energy Group, Inc.
	 
	 	 	 	 
	COVANTA SEMASS

	 	Letter of Credit
	 	Letter of Credit issued for the benefit of Rockland Trust
Company as Trustee, Massachusetts Department of
Environmental Protection in a face amount of $6,554,753
with a maturity date of June 24, 2007
	 
	 	 	 	 
	Covanta ARC LLC

	 	Program Agreement guarantees ARC’s
obligations to reimburse amounts paid
by Liberty Mutual for losses and expenses
under the deductible Workers’ Compensation
insurance policy
	 	Program Agreement, dated 1/01/2005-1/01/2006 between
Liberty Mutual and Covanta ARC LLC
	 
	 	 	 	 
	Covanta ARC LLC

	 	Program Agreement guarantees ARC’s
obligations to reimburse amounts paid
by Zurich for losses and expenses under the
deductible Workers’ Compensation insurance
policy
	 	Program Agreements, dated 1/01/2002-1/01/2005 between
Zurich and Covanta ARC LLC
	 
	 	 	 	 
	CEC

	 	Indemnity Agreement
	 	Indemnity Agreement with Chubb dated 4/12/2006 that

supports the surety program with Chubb
	 
	 	 	 	 
	CHC

	 	Indemnity Agreement
	 	Indemnity Agreement with AIG dated 10/28/2005 that

supports the surety program with AIG
	 
	 	 	 	 
	CEC

	 	Indemnity Agreement
	 	Indemnity Agreement with Travelers dated 9/28/2006 that

supports the surety program with Travelers

SCHEDULE 6.1 - 12

 

	 	 	 	 	 
	Project	 	Description	 	Agreement, as amended to date
	CEC

	 	Program Agreement guarantees CEC’s
obligations to reimburse amounts paid
by ACE for losses and expenses under the
retention Workers’ Compensation and Auto
Liability insurance policy
	 	Program Agreements, dated 10/20/2005 and 10/20/2006
between ACE and CEC
	 
	 	 	 	 
	CEC

	 	Program Agreement guarantees CEC’s
obligations to reimburse amounts paid
by AIG for losses and expenses under the
retention Workers’ Compensation, General
Liability and Auto Liability insurance policy
	 	Program Agreement, dated 10/20/2002-10/20/2003 between
AIG and CEC
	 
	 	 	 	 
	Covanta Energy Corporation

	 	Interest Rate Swap
	 	Interest Rate Swap Agreement, dated as of July 8, 2005,
between Calyon New York Branch and Covanta Energy
Corporation
	 
	 	 	 	 
	Covanta Energy Corporation

	 	Interest Rate Swap
	 	Interest Rate Swap Agreement, dated as of March 17, 2006,
between Calyon New York Branch and Covanta Energy
Corporation
	 
	 	 	 	 
	Covanta Energy Corporation

	 	Interest Rate Swap
	 	Interest Rate Swap Agreement, dated as of August 3, 2005,
between Goldman Sachs Capital Markets, L.P. and Covanta
Energy Corporation

SCHEDULE 6.1 - 13

 

SCHEDULE 6.1(x)(1)

TO CREDIT AGREEMENT

TERMS OF SUBORDINATION — AFFILIATES

          All Permitted Subordinated Indebtedness (as defined in the Credit Agreement to which this
Schedule 6.1(x)(1) is attached) incurred by Covanta Energy Corporation or any Guarantor Subsidiary
(the “Company”), owing to any Affiliate (as defined in the Credit Agreement) of the Company shall
be subject to the following terms and conditions, which shall be incorporated in a written
agreement (the “Agreement”) between the Company and any Affiliate to which any such Indebtedness is
owed.

          Section 1.01. Subordination of Liabilities. The Company, for itself, its successors
and assigns, covenants and agrees and each holder of the indebtedness evidenced by [DESCRIBE
INDEBTEDNESS DOCUMENTATION] (the “Subordinated Indebtedness”) by its acceptance thereof likewise
covenants and agrees that the payment of the principal of, and interest on, and all other amounts
owing in respect of, the Subordinated Indebtedness is hereby expressly subordinated, to the extent
and in the manner hereinafter set forth, to the prior payment in full in cash or discharge in full
of Senior Indebtedness (as defined in Section 1.08) in cash and cash collateralization of any
outstanding letters of credit thereunder. The subordination provisions set forth herein shall
constitute a continuing offer to all persons who, in reliance upon such provisions, become holders
of, or continue to hold, Senior Indebtedness, and such provisions are made for the benefit of the
holders of Senior Indebtedness, and such holders are hereby made obligees hereunder to the same
extent as if their names were written herein as such, and they and/or each of them may proceed to
enforce such provisions.

          Section 1.02. Company Not to Make Payments with Respect to Subordinated Indebtedness in
Certain Circumstances. (a) Upon the maturity of any Senior Indebtedness (including interest
thereon or fees or any other amounts owing in respect thereof), whether at stated maturity, by
acceleration or otherwise, all principal thereof and premium, if any, and interest thereon or fees
or any other amounts owing in respect thereof, in each case to the extent due and owing at such
time, shall first be paid in full in cash or discharged in full, or such payment duly provided for
in cash or in a manner satisfactory to the holder or holders of such Senior Indebtedness, including
cash collateralization of any outstanding letters of credit thereunder, before any payment is made
on account of the principal of (including installments thereof), or interest on, or any amount
otherwise owing in respect of, the Subordinated Indebtedness. Each holder of the Subordinated
Indebtedness hereby agrees that, so long as an Event of Default (as defined in the Credit
Agreement) has occurred and is continuing, no amounts owing in respect of the Subordinated
Indebtedness shall be made, asked, demanded, sued for, or otherwise taken, accepted or received.

     (a) In the event that notwithstanding the provisions of the preceding subsection (a) of this
Section 1.02, the Company shall make any payment on account of the principal of, or interest on, or
amounts otherwise owing in respect of, the Subordinated Indebtedness at a time when payment is not
permitted by said subsection

SCHEDULE 6.1(x)(1) - 1

 

(a), such payment shall be held by the holder of the Subordinated Indebtedness, in trust for
the benefit of, and shall be paid forthwith over and delivered to, the holders of Senior
Indebtedness or their representative or representatives under the agreements pursuant to which the
Senior Indebtedness may have been issued, as their respective interests may appear, for application
pro rata to the payment of all Senior Indebtedness remaining unpaid to the extent necessary to pay
all Senior Indebtedness in full in cash and cash collateralize any outstanding letters of credit
thereunder in accordance with the terms of such Senior Indebtedness, after giving effect to any
concurrent payment or distribution to or for the holders of Senior Indebtedness. Without in any
way modifying the subordination provisions set forth herein or affecting the subordination effected
hereby, the Company shall give the holder of the Subordinated Indebtedness prompt written notice of
any maturity of Senior Indebtedness after which such Senior Indebtedness remains unsatisfied.

          Section 1.03. Subordinated Indebtedness Subordinated to Prior Payment of all Senior
Indebtedness on Dissolution, Liquidation or Reorganization of Company. Upon any distribution
of assets of the Company that constitute Collateral upon any dissolution, winding up, liquidation
or reorganization of the Company (whether in bankruptcy, insolvency or receivership proceedings or
upon an assignment for the benefit of creditors or otherwise):

SCHEDULE 6.1(x)(1) - 2

 

     (a) the holders of all Senior Indebtedness shall first be entitled to receive payment in full
in cash or in a manner satisfactory to the holder or holders of such Senior Indebtedness of the
principal thereof, premium, if any, and interest (including, without limitation, all interest
accruing after the commencement of any bankruptcy, insolvency, receivership or similar proceeding
at the rate provided in the governing documentation whether or not such interest is an allowed
claim in such proceeding) and all other amounts due thereon before the holder of the Subordinated
Indebtedness is entitled to receive any payment on account of the principal of or interest on or
any other amount owing in respect of the Subordinated Indebtedness,

     (b) any payment or distribution of assets of the Company of any kind or character that
constitute Collateral, whether in cash, property or securities to which the holder of the
Subordinated Indebtedness would be entitled except for the subordination provisions set forth
herein, shall be paid by the liquidating trustee or agent or other person making such payment or
distribution, whether a trustee or agent, directly to the holders of Senior Indebtedness or their
representative or representatives under the agreements pursuant to which the Senior Indebtedness
may have been issued, to the extent necessary to make payment in full of all Senior Indebtedness
remaining unpaid, after giving effect to any concurrent payment or distribution to the holders of
such Senior Indebtedness; and

     (c) in the event that, notwithstanding the foregoing provisions of this Section 1.03, any
payment or distribution of assets of the Company of any kind or character that constitute
Collateral, whether in cash, property or securities, shall be received by the holder of the
Subordinated Indebtedness on account of principal of, or interest or other amounts due on, the
Subordinated Indebtedness before all Senior Indebtedness is paid in full in cash or in a manner
satisfactory to the holder or holders of such Senior Indebtedness or otherwise discharged in full,
or effective provisions made for its payment, such payment or distribution shall be received and
held in trust for and shall be paid over to the holders of the Senior Indebtedness remaining unpaid
or unprovided for or their representative or representatives under the agreements pursuant to which
the Senior Indebtedness may have been issued, for application to the payment of such Senior
Indebtedness until all such Senior Indebtedness shall have been paid in full in cash or in a manner
satisfactory to the holder or holders of such Senior Indebtedness or otherwise discharged in full,
after giving effect to any concurrent payment or distribution to the holders of such Senior
Indebtedness.

          Without in any way modifying the subordination provisions set forth herein or affecting the
subordination effected hereby, the Company shall give prompt written notice to the holder of the
Subordinated Indebtedness of any dissolution, winding up, liquidation or reorganization of the
Company (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment for
the benefit of creditors or otherwise).

          Section 1.04. Furtherance of Subordination. Each holder of the Subordinated
Indebtedness agrees as follows:

SCHEDULE 6.1(x)(1) - 3

 

     (a) If any proceeding referred to in Section 1.03 above is commenced by or against the
Company:

     (i) the Administrative Agent (as defined in the Credit Agreement referred to in Section 1.08
below), acting on behalf of each holder of the Senior Indebtedness, is hereby irrevocably
authorized and empowered (in its own name or in the name of the holder of the Subordinated
Indebtedness or otherwise), but shall have no obligation, to demand, sue for, collect and receive
every payment or distribution referred to in Section 1.03(b) and give acquittance therefor and to
file claims and proofs of claim and take such other action (including, without limitation, voting
the claims arising under the Subordinated Indebtedness or enforcing any security interest or other
lien securing payment of the Subordinated Indebtedness) as it may deem necessary or advisable for
the exercise or enforcement of or causing enforcement of any of the rights or interests of the
holders of the Senior Indebtedness hereunder; and

     (ii) each holder of the Subordinated Indebtedness shall duly and promptly take such action as
the Administrative Agent may request (A) to collect the Subordinated Indebtedness for the account
of the holders of the Senior Indebtedness and to file appropriate claims or proofs of claim in
respect of the Subordinated Indebtedness, (B) to execute and deliver to the Administrative Agent
such powers of attorney, assignments or other instruments as Administrative Agent may request in
order to enable the Administrative Agent to enforce any and all claims with respect to, and any
security interests and other liens securing payment of, the Subordinated Indebtedness, and (C) to
collect and receive any and all payments or distributions that may be payable or deliverable upon
or with respect to the Subordinated Indebtedness.

     (iii) The holders of the Senior Indebtedness are hereby authorized to demand specific
performance of this Agreement, whether or not the Company shall have complied with any of the
provisions hereof applicable to it, at any time when the holder of the Subordinated Indebtedness
shall have failed to comply with any of the provisions of this Agreement applicable to it. The
holder of the Subordinated Indebtedness hereby irrevocably waives any defense based on the adequacy
of a remedy at law that might be asserted as a bar to such remedy of specific performance.

          Section 1.05. Subrogation. Subject to the prior payment or discharge in cash in full
of all Senior Indebtedness, the holder of the Subordinated Indebtedness shall be subrogated to the
rights of the holders of Senior Indebtedness to receive payments or distributions of assets of the
Company applicable to the Senior Indebtedness until all amounts owing in respect of the
Subordinated Indebtedness shall be paid or discharged in full, and for the purpose of such
subrogation no payments or distributions to the holders of the Senior Indebtedness by or on behalf
of the Company or by or on behalf of the holder of the Subordinated Indebtedness by virtue of the
subordination provisions set forth herein that otherwise would have been made to the holder of the
Subordinated Indebtedness, shall be deemed to be payment by the Company to or on account of the
Subordinated Indebtedness, it being understood that the subordination provisions set forth herein
are and are intended solely for the purpose of defining the relative rights of the

SCHEDULE 6.1(x)(1) - 4

 

holder of the Subordinated Indebtedness, on the one hand, and the holders of the Senior
Indebtedness, on the other hand.

          Section 1.06. Obligation of the Company Unconditional. Nothing contained in the
subordination provisions set forth herein or in the documents evidencing the Subordinated
Indebtedness is intended to or shall impair, as between the Company and the holder of the
Subordinated Indebtedness, the obligation of the Company, which is absolute and unconditional, to
pay to the holder of the Subordinated Indebtedness the principal of and interest on the
Subordinated Indebtedness as and when the same shall become due and payable in accordance with its
terms, or is intended to or shall affect the relative rights of the holder of the Subordinated
Indebtedness and creditors of the Company other than the holders of the Senior Indebtedness, nor
shall anything herein or therein prevent the holder of the Subordinated Indebtedness from
exercising all remedies otherwise permitted by applicable law, subject to the rights, if any, under
the subordination provisions set forth herein of the holders of Senior Indebtedness in respect of
cash, property, or securities of the Company received upon the exercise of any such remedy. Upon
any distribution of assets of the Company referred to herein, the holder of the Subordinated
Indebtedness shall be entitled to rely upon any order or decree made by any court of competent
jurisdiction in which such dissolution, winding up, liquidation or reorganization proceedings are
pending, or a certificate of the liquidating trustee or agent or other person making any
distribution to the holder of the Subordinated Indebtedness, for the purpose of ascertaining the
persons entitled to participate in such distribution, the holders of the Senior Indebtedness and
other indebtedness of the Company, the amount thereof or payable thereon, the amount or amounts
paid or distributed thereon and all other facts pertinent thereto or hereto.

          Section 1.07. Subordination Rights Not Impaired by Acts or Omissions of Company or
Holders of Senior Indebtedness. No rights of any present or future holders of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced
or impaired by an act or failure to act on the part of the Company or by any act or failure to act
in good faith by any such holder, or by any noncompliance by the Company with the terms and
provisions of the Subordinated Indebtedness, regardless of any knowledge thereof which any such
holder may have or be otherwise charged with. The holders of the Senior Indebtedness may, without
in any way affecting the obligations of the holder of the Subordinated Indebtedness with respect
thereto, at any time or from time to time and in their absolute discretion, change the manner,
place or terms of payment of, change or extend the time of payment of, or renew or alter, any
Senior Indebtedness, or amend, modify or supplement any agreement or instrument governing or
evidencing such Senior Indebtedness or any other document referred to therein, or exercise or
refrain from exercising any other of their rights under the Senior Indebtedness including, without
limitation, the waiver of a default thereunder and the release of any collateral securing such
Senior Indebtedness, all without notice to or consent from the holder of the Subordinated
Indebtedness.

          Section 1.08. Senior Indebtedness. (a) The term “Senior Indebtedness” shall mean, at
any time, the Obligations as such term is defined in the Credit Agreement (as defined below), but
excluding indemnification and other contingent obligations (other

SCHEDULE 6.1(x)(1) - 5

 

than contingent reimbursement obligations in respect of amounts that may be drawn under
outstanding letters of credit) in respect of which no assertion of liability and no claim or demand
for payment has been made (and, in the case of indemnification obligations, no notice for
indemnification has been issued by the indemnitee) at such time.

     (b) As used in this Agreement, the terms set forth below shall have the respective meanings
provided below:

     “Credit Agreement” shall mean the Credit Agreement, dated as of February [ ]. 2007, among the
Covanta Energy Corporation, Covanta Holding Corporation, as a guarantor, certain subsidiaries of
the Company, as guarantors, the Lenders party thereto, JPMorgan Chase Bank, N.A., as administrative
agent (in such capacity, the “Administrative Agent”), and the other banks party thereto, as same
may be amended, modified, extended, renewed, restated or supplemented from time to time, and
including any agreement extending the maturity of, refinancing or restructuring all or any portion
of, or increasing the Obligations under such agreement or of any successor agreements.

SCHEDULE 6.1(x)(1) - 6

 

SCHEDULE 6.2

TO CREDIT AGREEMENT

TERMS OF SUBORDINATION — NON-AFFILIATES

          All Permitted Subordinated Indebtedness (as defined in the Credit Agreement to which this
Schedule 6.1(x)(2) is attached) incurred by Covanta Energy Corporation or any Guarantor Subsidiary
(the “Company”) owing to any person other than an Affiliate (as defined in the Credit Agreement) of
the Company shall be evidenced by a promissory note and shall (i) to the extent such Permitted
Subordinated Indebtedness constitutes a sale of notes through an initial purchaser in a customary
144(a) transaction, have the subordination provisions set forth in Part A and (ii) to the extent
such Permitted Subordinated Indebtedness does not constitute a sale of notes through an initial
purchaser in a customary 144(a) transaction, have the subordination provisions set forth in Part B,
of this Schedule 6.1(x)(2) attached as Annex A thereto or incorporated within the text thereof
(mutatis mutandis), and shall include in the text of such promissory note the language: “THE
INDEBTEDNESS EVIDENCED BY THIS NOTE IS SUBORDINATE AND JUNIOR IN RIGHT OF PAYMENT TO ALL SENIOR
INDEBTEDNESS (AS DEFINED IN ANNEX A HERETO) TO THE EXTENT PROVIDED IN ANNEX A.”

Part A.

ANNEX A

          The payment of principal, interest and premium, if any, on the notes (the “Subordinated
Indebtedness”) will be subordinated to the prior payment in full of all Senior Indebtedness,
including Senior Indebtedness incurred after the date of the indenture relating to the Subordinated
Indebtedness (the “Indenture”).

          The holders of Senior Indebtedness will be entitled to receive payment in full of all
obligations due in respect of Senior Indebtedness (including interest after the commencement of any
bankruptcy proceeding at the rate specified with respect to the Senior Indebtedness) before the
holders of Subordinated Indebtedness will be entitled to receive any payment with respect to the
Subordinated Indebtedness (except that holders of Subordinated Indebtedness may receive and retain
Permitted Junior Securities), in the event of any distribution to creditors of the Company:

          (1) in a liquidation or dissolution of the Company;

          (2) in a bankruptcy, reorganization, insolvency, receivership or similar proceeding relating
to the Company or its property;

          (3) in an assignment for the benefit of creditors; or

SCHEDULE 6.1(x)(2)

 

 

          (4) in any marshaling of the Company’s assets and liabilities.

          The Company also may not make any payment in respect of the Subordinated Indebtedness (except
in Permitted Junior Securities) if:

          (1) a payment default on Senior Indebtedness occurs and is continuing beyond any applicable
grace period; or

          (2) any other default occurs and is continuing on Senior Indebtedness that permits holders of
the Senior Indebtedness to accelerate its maturity and the trustee receives a notice of such
default (a “Payment Blockage Notice”) from the Company or the holders of any Senior Indebtedness.

          Payments on the Subordinated Indebtedness may and will be resumed:

          (1) in the case of a payment default, upon the date on which such default is cured or waived;
and

          (2) in the case of a nonpayment default, upon the earlier of the date on which such nonpayment
default is cured or waived or 179 days after the date on which the applicable Payment Blockage
Notice is received, unless the maturity of any Senior Indebtedness has been accelerated.

          No new Payment Blockage Notice may be delivered unless and until:

          (1) 360 days have elapsed since the delivery of the immediately prior Payment Blockage Notice;
and

          (2) all scheduled payments of principal, interest and premium, if any, on the Subordinated
Indebtedness that have come due have been paid in full in cash.

          No nonpayment default that existed or was continuing on the date of delivery of any Payment
Blockage Notice to the trustee will be, or be made, the basis for a subsequent Payment Blockage
Notice.

          If the trustee or any holder of the Subordinated Indebtedness receives a payment in respect of
the Subordinated Indebtedness (except in Permitted Junior Securities) when:

          (1) the payment is prohibited by these subordination provisions; and

          (2) the trustee or the holder has actual knowledge that the payment is prohibited,

the trustee or the holder, as the case may be, will hold the payment in trust for the benefit of
the holders of Senior Indebtedness. Upon the proper written request of the

SCHEDULE 6.1(x)(2)

 

 

Administrative Agent (as defined below), the trustee or the holder, as the case may be, will
deliver the amounts in trust to the Administrative Agent.

          The Company must promptly notify holders of Senior Indebtedness if payment on the Subordinated
Indebtedness is accelerated because of an event of default under the Indenture.

          Insert in “Certain Definitions”:

          “Credit Agreement” means the Credit Agreement, dated as of February 9, 2007, among Covanta
Energy Corporation, Covanta Holding Corporation, as a guarantor, certain subsidiaries of Covanta
Energy Corporation, as guarantors, the Lenders party thereto, JPMorgan Chase Bank, N.A., as
administrative agent (in such capacity, the “Administrative Agent”) and the other banks party
thereto, as same may be amended, modified, extended, renewed, restated or supplemented from time to
time, and including any agreement extending the maturity of, refinancing or restructuring all or
any portion of, or increasing the Obligations under such agreement or of any successor agreements.

          “Permitted Junior Securities” means:

          (1) equity interests in Company; or

          (2) debt securities that are subordinated to all Senior Indebtedness to substantially the same
extent as, or to a greater extent than, the notes are subordinated to Senior Indebtedness under the
Indenture.

          “Senior Indebtedness” means at any time, the Obligations as such term is defined in the Credit
Agreement, but excluding indemnification and other contingent obligations (other than contingent
reimbursement obligations in respect of amounts that may be drawn under outstanding letters of
credit) in respect of which no assertion of liability and no claim or demand for payment has been
made (and, in the case of indemnification obligations, no notice for indemnification has been
issued by the indemnitee) at such time.

SCHEDULE 6.1(x)(2)

 

 

Part B.

ANNEX A

          Section 1.01. Subordination of Liabilities. The Company for itself, its successors
and assigns, covenants and agrees and each holder of the promissory note to which this Annex A is
attached (the “Note”) by its acceptance thereof likewise covenants and agrees that the payment of
the principal of, and interest on, and all other amounts owing in respect of, the Note is hereby
expressly subordinated, to the extent and in the manner hereinafter set forth, to the prior payment
in full in cash or discharge in full of the Senior Indebtedness (as defined in Section 1.08) in
cash and cash collateralization of any outstanding letters of credit thereunder. The provisions of
this Annex A shall constitute a continuing offer to all persons who, in reliance upon such
provisions, become holders of, or continue to hold, Senior Indebtedness, and such provisions are
made for the benefit of the holders of Senior Indebtedness, and such holders are hereby made
obligees hereunder to the same extent as if their names were written herein as such, and they
and/or each of them may proceed to enforce such provisions.

          Section 1.02. Company Not to Make Payments with Respect to Notes in Certain
Circumstances.

          (a) Upon the maturity of any Senior Indebtedness (including interest thereon or fees
or any other amounts owing in respect thereof), whether at stated maturity, by acceleration
or otherwise, all principal thereof and premium, if any, and interest thereon or fees or
any other amounts owing in respect thereof, in each case to the extent due and owing at
such time, shall first be paid in full in cash or discharged in full, or such payment duly
provided for in cash or in a manner satisfactory to the holder or holders of such Senior
Indebtedness, including cash collateralization of any outstanding letters of credit
thereunder, before any payment is made on account of the principal of (including
installments thereof), or interest on, or any amount otherwise owing in respect of, the
Note. Each holder of the Note hereby agrees that, so long as an Event of Default (as
defined in the Credit Agreement) has occurred and is continuing, no amounts owing in
respect of the Note shall be made, asked, demanded, sued for, or otherwise taken, accepted
or received.

          (b) In the event that notwithstanding the provisions of the preceding subsection (a)
of this Section 1.02, the Company shall make any payment on account of the principal of, or
interest on, or amounts otherwise owing in respect of, the Note at a time when payment is
not permitted by said subsection (a), such payment shall be held by the holder of the Note,
in trust for the benefit of, and shall be paid forthwith over and delivered to, the holders
of Senior Indebtedness or their representative or representatives under the agreements
pursuant to which the Senior Indebtedness may have been issued, as their respective
interests may appear, for application pro rata, to the payment of all Senior Indebtedness

SCHEDULE 6.1(x)(2)

 

 

remaining unpaid to the extent necessary to pay all Senior Indebtedness in full in
cash and cash collateralize any outstanding letters of credit thereunder in accordance with
the term of such Senior Indebtedness, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Indebtedness. Without in any way modifying
the provisions of this Annex A or affecting the subordination effected hereby, the Company
shall give the holder of the Note prompt written notice of any maturity of Senior
Indebtedness after which such Senior Indebtedness remains unsatisfied.

          Section 1.03. Note Subordinated to Prior Payment of all Senior Indebtedness on
Dissolution, Liquidation or Reorganization of Company. Upon any distribution of assets of the
Company that constitute Collateral upon any dissolution, winding up, liquidation or reorganization
of the Company (whether in bankruptcy, insolvency or receivership proceedings or upon an assignment
for the benefit of creditors or otherwise):

SCHEDULE 6.1(x)(2)

 

 

          (a) the holders of all Senior Indebtedness shall first be entitled to receive payment
in full in cash or in a manner satisfactory to the holder or holders of such Senior
Indebtedness of the principal thereof, premium, if any, and interest (including, without
limitation, all interest accruing after the commencement of any bankruptcy, insolvency,
receivership or similar proceeding at the rate provided in the governing documentation
whether or not such interest is an allowed claim in such proceeding) and all other amounts
due thereon before the holder of the Note is entitled to receive any payment on account of
the principal of or interest on or any other amount owing in respect of the Note;

          (b) any payment or distribution of assets of the Company of any kind or character that
constitute Collateral, whether in cash, property or securities to which the holder of the
Note would be entitled except for the provisions of this Annex A shall be paid by the
liquidating trustee or agent or other person making such payment or distribution, whether a
trustee or agent; directly to the holders of Senior Indebtedness or their representative or
representatives under the agreements pursuant to which the Senior Indebtedness may have
been issued, to the extent necessary to make payment in full of all Senior Indebtedness
remaining unpaid, after giving effect to any concurrent payment or distribution to the
holders of such Senior Indebtedness; and

          (c) in the event that, notwithstanding the foregoing provisions of this Section 1.03,
any payment or distribution of assets of the Company of any kind or character that
constitute Collateral, whether in cash, property or securities, shall be received by the
holder of the Note on account of principal of, or interest or other amounts due on, the
Note before all Senior Indebtedness is paid in full in cash or in a manner satisfactory to
the holder or holders of such Senior Indebtedness or otherwise discharged in full, or
effective provisions made for its payment, such payment or distribution shall be received
and held in trust for and shall be paid over to the holders of the Senior Indebtedness
remaining unpaid or unprovided for or their representative or representatives under the
agreements pursuant to which the Senior Indebtedness may have been issued, for application
to the payment of such Senior Indebtedness until all such Senior Indebtedness shall have
been paid in full in cash or in a manner satisfactory to the holder or holders of such
Senior Indebtedness or otherwise discharged in full, after giving effect to any concurrent
payment or distribution to the holders of such Senior Indebtedness.

          Without in any way modifying the provisions of this Annex A or affecting the subordination
effected hereby, the Company shall give prompt written notice to the holder of the Note of any
dissolution, winding up, liquidation or reorganization of the Company (whether in bankruptcy,
insolvency or receivership proceedings or upon an assignment for the benefit of creditors or
otherwise).

SCHEDULE 6.1(x)(2)

 

 

          Section 1.04. In Furtherance of Subordination. Each holder of the Note agrees as
follows:

          (a) If any proceeding referred to in Section 1.03 above is commenced by or against the
Company

               the Administrative Agent (as defined in the Credit Agreement referred to in
Section 1.08 below), acting on behalf of each holder of the Senior Indebtedness, is
hereby irrevocably authorized and empowered (in its own name or in the name of the
holder of the Note or otherwise), but shall have no obligation, to demand, sue for,
collect and receive every payment or distribution referred to in Section 1.03(b)
and give acquittance therefor and to file claims and proofs of claim and take such
other action (including, without limitation, voting the claims arising under the
Note or enforcing any security interest or other lien securing payment of the Note)
as it may deem necessary or advisable for the exercise or enforcement of or causing
enforcement of any of the rights or interests of the holders of the Senior
Indebtedness hereunder; and

               The Administrative Agent is hereby authorized to demand specific performance
of this Note, whether or not the Company shall have complied with any of the
provisions hereof applicable to it, at any time when the holder of the Note shall
have failed to comply with any of the provisions of this Note applicable to it. The
holder of the Note hereby irrevocably waives any defense based on the adequacy of a
remedy at law that might be asserted as a bar to such remedy of specific
performance.

          Section 1.05. Subrogation. Subject to the prior payment or discharge in cash in full
of all Senior Indebtedness, the holder of the Note shall be subrogated to the rights of the holders
of Senior Indebtedness to receive payments or distributions of assets of the Company applicable to
the Senior Indebtedness until all amounts owing on the Note shall be paid or discharged in full,
and for the purpose of such subrogation no payments or distributions to the holders of the Senior
Indebtedness by or on behalf of the Company or by or on behalf of the holder of the Note by virtue
of this Annex A which otherwise would have been made to the holder of the Note, shall be deemed to
be payment by the Company to or on account of the Note, it being understood that the provisions of
this Annex A are and are intended solely for the purpose of defining the relative rights of the
holder of the Note, on the one hand, and the holders of the Senior Indebtedness, on the other hand.

          Section 1.06. Obligation of the Company Unconditional. Nothing contained in this
Annex A or in the Note is intended to or shall impair, as between the Company and the holder of the
Note, the obligation of the Company, which is absolute and unconditional, to pay to the holder of
the Note the principal of and interest on the Note as and when the same shall become due and
payable in accordance with its terms, or

SCHEDULE 6.1(x)(2)

 

 

is intended to or shall affect the relative rights of the holder of the Note and creditors of
the Company other than the holders of the Senior Indebtedness, nor shall anything herein or therein
prevent the holder of the Note from exercising all remedies otherwise permitted by applicable law,
subject to the rights, if any, under this Annex A of the holders of Senior Indebtedness in respect
of cash, property, or securities of the Company received upon the exercise of any such remedy.
Upon any distribution of assets of the Company referred to in this Annex A, the holder of the Note
shall be entitled to rely upon any order or decree made by any court of competent jurisdiction in
which such dissolution, winding up, liquidation or reorganization proceedings are pending, or a
certificate of the liquidating trustee or agent or other person making any distribution to the
holder of the Note, for the purpose of ascertaining the persons entitled to participate in such
distribution, the holders of the Senior Indebtedness and other indebtedness of the Company, the
amount thereof or payable thereon, the amount or amounts paid or distributed thereon and all other
facts pertinent thereto or to this Annex A.

          Section 1.07. Subordination Rights Not Impaired by Acts or Omissions of Company or
Holders of Senior Indebtedness. No rights of any present or future holders of any Senior
Indebtedness to enforce subordination as herein provided shall at any time in any way be prejudiced
or impaired by an act or failure to act on the part of the Company or by any act or failure to act
in good faith by any such holder, or by any noncompliance by the Company with the terms and
provisions of the Note, regardless of any knowledge thereof which any such holder may have or be
otherwise charged with. The holders of the Senior Indebtedness may, without in any way affecting
the obligations of the holder of the Note with respect thereto, at any time or from time to time
and in their absolute discretion, change the manner, place or terms of payment of, change or extend
the time of payment of, or renew or alter, any Senior Indebtedness, or amend, modify or supplement
any agreement or instrument governing or evidencing such Senior Indebtedness or any other document
referred to therein, or exercise or refrain from exercising any other of their rights under the
Senior Indebtedness including, without limitation, the waiver of a default thereunder and the
release of any collateral securing such Senior Indebtedness, all without notice to or consent from
the holder of the Note.

          Section 1.08. Senior Indebtedness. (a) The term “Senior Indebtedness” shall mean,
at any time, the Obligations as such term is defined in the Credit Agreement (as defined below),
but excluding indemnification and other contingent obligations (other than contingent reimbursement
obligations in respect of amounts that may be drawn under outstanding letters of credit) in respect
of which no assertion of liability and no claim or demand for payment has been made (and, in the
case of indemnification obligations, no notice for indemnification has been issued by the
indemnitee) at such time.

SCHEDULE 6.1(x)(2)

 

 

     (b) As used in this Agreement, the terms set forth below shall have the respective
meanings provided below:

     “Credit Agreement” shall mean the Credit Agreement, dated as of February 9, 2007,
among Covanta Energy Corporation, Covanta Holding Corporation, as a guarantor, certain
subsidiaries of Covanta Energy Corporation, as guarantors, the Lenders party thereto,
JPMorgan Chase Bank, N.A., as administrative agent (in such capacity, the “Administrative
Agent”), and the other banks party thereto, as same may be amended, modified, extended,
renewed, restated or supplemented from time to time, and including any agreement extending
the maturity of, refinancing or restructuring all or any portion of, or increasing the
Obligations under such agreement or of any successor agreements.

SCHEDULE 6.1(x)(2)

 

 

SCHEDULE 6.2

TO CREDIT AGREEMENT

CERTAIN LIENS

Pledge by Covanta Waste to Energy of Italy, Inc. (CWTEI) to Banca Nazionale del Lavoro S.p.A., as
agent, in connection with the Trezzo project financing and pursuant to the Contratto di
Capitalizzazion dated July 23, 2004, of (i) a CWTEI bank account securing its obligation to
contribute equity or make subordinated loans of up to 130k Euros if the project waste permit is not
increased to 500 tonnes/day by 06-30-06 and up to 990k Euros in the event of an adverse outcome in
ongoing arbitration with the EPC contractor; and (ii) CWTEI’s (a) equity interest in Prima s.r.l.
(the project company) and (b) right to be repaid by Prima s.r.l. for any amounts owed to CWTEI by
Prima s.r.l., in the event of an acceleration of the underlying non-recourse project financing.

Liens and pledges with respect to indebtedness, leases and other material project documents
concerning Projects and electrical generation plants and cogeneration plants of Affiliates to which
Foreign Subsidiaries are a party

Liens in existence on the date of this Agreement on or with respect to assets of any Subsidiary of
Company, to the extent such Liens secure an obligation of such Subsidiary of Company (or an
Affiliate in which such Subsidiary is an equity owner) to Persons other than the Company and its
Excluded Subsidiaries and their respective Affiliates, so long as (a) such obligation is associated
with a Project (or a project of an Affiliate in which such Subsidiary is an equity owner), (b) such
Lien is limited to (1) assets associated with such Project (or project of an Affiliate in which
such Subsidiary is an equity owner) (which in any event shall not include assets held by any
Borrower other than a Borrower whose sole business is the ownership and/or operation of such
Project and substantially all of whose assets are associated with such Project), and/or (2) equity
interests in such Subsidiary, but in the case of clause (2) only if such Subsidiary’s sole business
is the ownership and/or operation of such Project (or project of an Affiliate in which such
Subsidiary is an equity owner) and substantially all of such Subsidiary’s assets are associated
with such Project (or project of an Affiliate in which such Subsidiary is an equity owner) and (c)
such obligation is otherwise permitted under this Agreement.1

Liens on Intellectual Property set forth on Schedule 4.5 to the Pledge and Security Agreement.

Liens in existence on the date of this Agreement evidenced by financing statements listed on Annex
A hereto.

 

			
	1	 	Emergence entities may have certain outstanding
obligations with respect to Bankrupt Subsidiaries; however, we cannot make
representations that agreements will be assumed prior to the emergence of those
entities.

SCHEDULE 6.2 - 1

 

 

SCHEDULE 6.10

TO CREDIT AGREEMENT

CERTAIN TRANSACTIONS WITH AFFILIATES

	•	 	Corporate Services and Expense Reimbursement Agreement between Danielson Holding
Corporation and Covanta Energy Corporation dated March 10, 2004;

	•	 	Master Waste Delivery Agreements dated as of October 1, 1995, between TransRiver and
certain of the former American Ref-Fuel project partnerships, other written and oral
brokerage arrangements between TransRiver and certain of the waste-to-energy project
partnerships and corporations, and similar brokerage arrangements for metals sales among
all such parties; Management Services Agreement, dated November 1, 2003, between Covanta
Energy Asia Pacific Ltd. and Covanta Energy International Investments Limited (f/k/a
Covanta Energy India Investments Ltd.), as amended pursuant to Amendment No. 1 dated as of
August 8, 2006;

	•	 	Management Services Agreement, dated January 1, 2002, between Covanta Energy (Thailand)
Ltd. and Covanta Philippines Operating, Inc.;

	•	 	Consultancy and Management Services Agreement, dated March 19, 2000, between Covanta
Energy Philippines Holdings, Inc. (f/k/a Ogden Energy Philippine Holdings, Inc.) and
Covanta Philippines Operating, Inc.(f/k/a Ogden Philippines Operating, Inc.);

	•	 	Asset Management Services Agreement, dated as of August 8, 2006, between Covanta Energy
(Thailand) Ltd. and Covanta Energy India (Balaji) Ltd.

	•	 	Asset Management Services Agreement, dated as of August 8, 2006, between Covanta Energy
(Thailand) Ltd. and Covanta Energy India (Samalpatti) Ltd.

	•	 	Asset Management Services Agreement, dated as of August 8, 2006, between Covanta Energy
(Thailand) Ltd. and Covanta Energy Asia Holdings Ltd. (f/k/a Covanta Chinese Investments
Ltd.)

	•	 	Management Services Agreement, dated July 1, 2002, between Covanta Energy (Thailand)
Ltd. and Covanta One Ltd.;

	•	 	Consultancy and Management Services Agreement, dated August 23, 2001 between Covanta
Energy India Pvt. Ltd. and Covanta Samalpatti Operating Pvt. Ltd. (f/k/a Ogden Madhya
Pradesh Operating Pvt. Ltd.);

	•	 	Plant Operation and Maintenance Agreement, dated December 1, 1995, as amended, between
Quezon Power (Philippines), Limited Co. (as successor-in-interest to Quezon Power, Inc.)
and Covanta Philippines Operating, Inc.;

	•	 	Plant Operation and Maintenance Agreement, dated April 2, 1999, by and

SCHEDULE 6.10 - 1

 

 

	 	 	between NEPC Consortium Power Limited and Covanta Bangladesh Operations, Ltd, as amended;

	•	 	Technical Services Agreement, dated July 1, 1999, by and between NEPC Consortium Power
Ltd. and Covanta One Ltd.;

	•	 	Operation and Maintenance Agreement, dated April 25, 2000, between Ogden Balaji O&M
Services Private Ltd & Madurai Power Corporation Pvt. Ltd. (f/k/a Balaji Power Corporation
Pvt. Ltd.);

	•	 	Operation and Maintenance Agreement, dated December 3, 1999, between Samalpatti Power
Company Private Ltd. and Covanta Samalpatti Operating Pvt. Ltd. (f/k/a Ogden Madhya
Pradesh Operating Pvt. Ltd.); and

	•	 	Amended and Restated Operating Services Agreement, dated November 1, 2001 by and
between SEMASS Partnership and American Ref-Fuel Operations of SEMASS, L.P.

	•	 	Tax Sharing Agreement, dated March 10, 2004, between Danielson Holding Corporation and
Covanta Energy Corporation and the other parties thereto, as amended.

	•	 	Tax Sharing/Allocation Agreement between Covanta Energy Corporation and Covanta Tampa
Construction.

	•	 	Tax Sharing/Allocation Agreement between Covanta Energy Corporation and Covanta Lake
II, Inc.

	•	 	Tax Sharing/Allocation Agreement between Covanta Energy Corporation and Covanta Warren
Energy Resources Co., LP, Covanta Equity of Stanislaus, Inc. and Covanta Equity of
Alexandria/Arlington, Inc.

	•	 	Operating and Maintenance Agreement between OMS of Union and Ogden Martin Operations of
Union LLC

SCHEDULE 6.10 - 2exv10w2

 

Exhibit 10.2

EXECUTION VERSION

PLEDGE AND SECURITY AGREEMENT

dated as of February 9, 2007

between

EACH OF COVANTA ENERGY CORPORATION

AND THE OTHER GRANTORS PARTY HERETO

and

JPMORGAN CHASE BANK, N.A.,

as Collateral Agent

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	PAGE	 
	SECTION 1. DEFINITIONS; GRANT OF SECURITY
	 	 	4	 
	1.1 General Definitions
	 	 	4	 
	1.2 Definitions; Interpretation
	 	 	33	 
	 
	 	 	 	 
	SECTION 2. GRANT OF SECURITY
	 	 	36	 
	2.1 Grant of Security
	 	 	36	 
	2.2 Certain Limited Exclusions
	 	 	38	 
	 
	 	 	 	 
	SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE
	 	 	43	 
	3.1 Security for Obligations
	 	 	43	 
	3.2 Continuing Liability Under Collateral
	 	 	44	 
	 
	 	 	 	 
	SECTION 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS
	 	 	46	 
	4.1 Generally
	 	 	46	 
	4.2 Equipment and Inventory
	 	 	62	 
	4.3 Receivables
	 	 	65	 
	4.4 Investment Property
	 	 	73	 
	4.5 Intellectual Property
	 	 	97	 
	 
	 	 	 	 
	SECTION 5. FURTHER ASSURANCES; ADDITIONAL GRANTORS
	 	 	107	 
	5.1 Further Assurances
	 	 	107	 
	5.2 Additional Grantors
	 	 	112	 
	 
	 	 	 	 
	SECTION 6. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT
	 	 	113	 
	6.1 Power of Attorney
	 	 	114	 
	6.2 No Duty on the Part of Collateral Agent or Secured Parties
	 	 	119	 
	 
	 	 	 	 
	SECTION 7. REMEDIES
	 	 	120	 
	7.1 Generally
	 	 	120	 
	7.2 Application of Proceeds
	 	 	127	 
	7.3 Sales on Credit
	 	 	129	 
	7.4 Investment Property
	 	 	130	 
	7.5 Intellectual Property
	 	 	133	 
	7.6 Cash Proceeds
	 	 	140	 
	 
	 	 	 	 
	SECTION 8. COLLATERAL AGENT
	 	 	142	 
	 
	 	 	 	 
	SECTION 9. CONTINUING SECURITY INTEREST; TRANSFER OF LOANS
	 	 	147	 
	 
	 	 	 	 
	SECTION 10. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM
	 	 	150	 
	 
	 	 	 	 
	SECTION 11. MISCELLANEOUS
	 	 	152	 

i

 

SCHEDULES AND EXHIBITS

SCHEDULE 1.1 — IMMATERIAL RESTRICTED SUBSIDIARIES

SCHEDULE 2.2 — DESCRIPTION OF EXCLUDED INVESTMENT PROPERTY

SCHEDULE 4.1 — GENERAL INFORMATION

SCHEDULE 4.1.A.1 — CERTAIN CORPORATE NAME CHANGES

SCHEDULE 4.2 — LOCATION OF EQUIPMENT AND INVENTORY

SCHEDULE 4.4 — INVESTMENT PROPERTY

SCHEDULE 4.5 — INTELLECTUAL PROPERTY – EXCEPTIONS

EXHIBIT A — PLEDGE SUPPLEMENT

ii

 

     This PLEDGE AND SECURITY AGREEMENT, dated as of February 9, 2007 (this “Agreement”), between
EACH OF THE UNDERSIGNED, whether as an original signatory hereto or as an Additional Grantor (as
herein defined) (each, a “Grantor”), and JPMORGAN CHASE BANK, N.A., as collateral agent for the
Secured Parties (as herein defined) (in such capacity as collateral agent, the “Collateral Agent”).

RECITALS:

     WHEREAS, reference is made to that certain Credit and Guaranty Agreement, dated as of the date
hereof (as it may be amended, restated, supplemented or otherwise modified from time to time, the
“Credit Agreement”), by and among COVANTA ENERGY CORPORATION, a Delaware corporation (“Company”),
COVANTA HOLDING CORPORATION, a Delaware corporation, CERTAIN SUBSIDIARIES OF COMPANY, as
guarantors, the Lenders party thereto from time to time (the “Lenders”), JPMORGAN CHASE BANK, N.A.,
as Administrative Agent, Revolving Issuing Bank and a Funded LC Issuing Bank, UBS AG, STAMFORD
BRANCH, as a Funded LC Issuing Bank, LEHMAN COMMERCIAL PAPER INC. and MERRILL LYNCH, PIERCE, FENNER
& SMITH INCORPORATED, as Syndication Agents, and BANK OF AMERICA, N.A. and BARCLAYS BANK PLC, as
Documentation Agents;

     WHEREAS, subject to the terms and conditions of the Credit Agreement, certain Grantors may
enter into one or more Permitted Hedge Agreements with one or more Lender Counterparties;

     WHEREAS, in consideration of the extensions of credit and other accommodations of Lenders and
Lender Counterparties as set forth in the Credit Agreement and the Permitted Hedge Agreements,
respectively, each Grantor has agreed to secure such Grantor’s obligations under the Credit
Documents and the Permitted Hedge Agreements as set forth herein;

     NOW, THEREFORE, in consideration of the premises and the agreements, provisions and covenants
herein contained, each Grantor and the Collateral Agent agree as follows:

SECTION 1. DEFINITIONS; GRANT OF SECURITY.

     1.1 General Definitions. In this Agreement, the following terms shall have the following
meanings:

          “Account Debtor” shall mean each Person who is obligated on a Receivable or any Supporting
Obligation related thereto.

          “Accounts” shall mean all “accounts” as defined in Article 9 of the UCC.

          “Additional Grantors” shall have the meaning assigned in Section 5.2.

          “Agreement” shall have the meaning set forth in the preamble.

          “Cash Proceeds” shall have the meaning assigned in Section 7.6.

 

 

          “Chattel Paper” shall mean all “chattel paper” as defined in Article 9 of the UCC, including,
without limitation, “electronic chattel paper” or “tangible chattel paper”, as each term is defined
in Article 9 of the UCC.

          “Collateral” shall have the meaning assigned in Section 2.1.

          “Collateral Account” shall mean any account established by the Collateral Agent.

          “Collateral Agent” shall have the meaning set forth in the preamble.

          “Collateral Records” shall mean books, records, ledger cards, files, correspondence, customer
lists, blueprints, technical specifications, manuals, computer software, computer printouts, tapes,
disks and related data processing software and similar items that at any time evidence or contain
information relating to any of the Collateral or are otherwise necessary or helpful in the
collection thereof or realization thereupon.

          “Collateral Support” shall mean all property (real or personal) assigned, hypothecated or
otherwise securing any Collateral and shall include any security agreement or other agreement
granting a lien or security interest in such real or personal property.

          “Company” shall have the meaning set forth in the recitals.

          “Controlled Foreign Corporation” shall mean (x) any corporation which is organized under the
laws of a jurisdiction other than a state of the United States or the District of Columbia or (y)
any partnership, limited liability company or other business entity either (i) classified as a
corporation for U.S. federal income tax purposes or (ii) that owns an interest (directly or
indirectly) in a corporation which is organized under the laws of a jurisdiction other than a state
of the United States or the District of Columbia.

          “Copyright Licenses” shall mean any and all agreements providing for the granting of any right
in or to Copyrights (whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement referred to in Schedule 4.5(B) (as such schedule may be amended or
supplemented from time to time).

          “Copyrights” shall mean all United States and foreign copyrights, whether registered or
unregistered and: (i) all registrations and applications therefor including, without limitation,
the registrations and applications referred to in Schedule 4.5(A) (as such schedule may be amended
or supplemented from time to time), (ii) all extensions and renewals thereof, (iii) all rights to
sue for past, present and future infringements thereof, and (iv) all Proceeds of the foregoing,
and, if not otherwise included in the definition of “Proceeds” herein, licenses, royalties, income,
payments, claims, damages and proceeds of suit.

          “Credit Agreement” shall have the meaning set forth in the recitals.

          “Deposit Accounts” shall mean all “deposit accounts” as defined in Article 9 of the UCC.

          “Documents” shall mean all “documents” as defined in Article 9 of the UCC.

2

 

          “Equipment” shall mean all “equipment” as defined in Article 9 of the UCC including, without
limitation, all machinery, manufacturing equipment, data processing equipment, computers, office
equipment, furnishings, furniture, appliances, fixtures and tools, all accessions or additions
thereto, all parts thereof, whether or not at any time of determination incorporated or installed
therein or attached thereto, and all replacements therefor, wherever located, now or hereafter
existing, including any fixtures.

          “Excluded Property” shall have the meaning set forth in Section 2.2.

          “General Intangibles” shall mean all “general intangibles” as defined in Article 9 of the UCC,
including, without limitation, all “payment intangibles” as defined in Article 9 of the UCC, all
interest rate or currency protection or hedging arrangements, all tax refunds, all licenses,
permits, concessions and authorizations.

          “Goods” shall mean all “goods” as defined in Article 9 of the UCC including, without
limitation, all Inventory and Equipment.

          “Grantors” shall have the meaning set forth in the preamble.

          “Immaterial Restricted Subsidiary” shall mean (i) each Subsidiary of Company listed on
Schedule 1.1 and (ii) any Subsidiary that is not a Guarantor Subsidiary with total assets of
$1,500,000 or less and with total revenues of $3,000,000 or less for the most recent four quarter
period and designated as an “Immaterial Restricted Subsidiary” in writing by Company to the
Collateral Agent, provided that the aggregate assets and revenues (for such period) for all such
Subsidiaries which are designated as “Immaterial Restricted Subsidiaries” may not exceed
$20,000,000 at any time (and Company shall amend its designations in order to comply with this
proviso).

          “Instruments” shall mean all “instruments” as defined in Article 9 of the UCC.

          “Insurance” shall mean (i) all insurance policies covering any or all of the Collateral
(regardless of whether the Collateral Agent is the loss payee thereof) and (ii) any key man life
insurance policies.

          “Intellectual Property” shall mean, collectively, the Copyrights, the Copyright Licenses, the
Patents, the Patent Licenses, the Trademarks, the Trademark Licenses, the Trade Secrets, and the
Trade Secret Licenses.

          “Inventory” shall mean all “inventory” as defined in Article 9 of the UCC including, without
limitation, all goods held for sale or lease or to be furnished under contracts of service or so
leased or furnished, all raw materials, work in process, finished goods, and materials used or
consumed in the manufacture, packing, shipping, advertising, selling, leasing, furnishing or
production of such inventory or otherwise used or consumed in any Grantor’s business; all goods in
which any Grantor has an interest in mass or a joint or other interest or right of any kind; and
all goods which are returned to or repossessed by any Grantor, all computer programs embedded in
any goods and all accessions thereto and products thereof.

          “Investment Property” shall mean: (i) all “investment property” (as such term is defined in
Article 9 of the UCC) and (ii) all of the following (regardless of whether classified as investment
property under the UCC): all Pledged Equity Interests and Pledged Debt; provided,

3

 

however, that Investment Property shall not include any Securities Accounts, Deposit Accounts
or Commodities Accounts.

          “Lender” shall have the meaning set forth in the recitals.

          “Letter of Credit Right” shall mean “letter of credit right” as defined in Article 9 of the
UCC.

          “Non-Assignable Contract” shall mean any agreement, contract or license to which any Grantor
is a party for which the assignment or granting of a security interest therein by such Grantor is
restricted or purported to be restricted (either by its terms or by any federal or state statutory
prohibition or otherwise irrespective of whether such prohibition or restriction is enforceable
under Section 9-406 through 409 of the UCC).

          “Patent Licenses” shall mean all agreements providing for the granting of any right in or to
Patents (whether such Grantor is licensee or licensor thereunder) including, without limitation,
each agreement referred to in Schedule 4.5(D) (as such schedule may be amended or supplemented from
time to time).

          “Patents” shall mean all United States and foreign patents and applications for any of the
foregoing, including, but not limited to: (i) each patent and patent application referred to in
Schedule 4.5(C) hereto (as such schedule may be amended or supplemented from time to time), (ii)
all reissues, divisions, continuations, continuations-in-part, extensions, renewals, and
reexaminations thereof, (iii) all rights to sue for past, present and future infringements thereof,
(iv) all licenses, claims, damages, and proceeds of suit arising therefrom, and (v) all Proceeds of
the foregoing, and, if not otherwise included in the definition of “Proceeds” herein, licenses,
royalties, income, payments, claims, damages, and proceeds of suit.

          “Pledge Supplement” shall mean any supplement to this agreement in substantially the form of
Exhibit A.

          “Pledged Debt” shall mean, with respect to any Grantor, all indebtedness owed to such Grantor,
including, without limitation, all indebtedness described on Schedule 4.4(A) under the heading
“Pledged Debt” (as such schedule may be amended or supplemented from time to time), issued by the
obligors named therein, the instruments evidencing such indebtedness, and all interest, cash,
instruments and other property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such indebtedness.

          “Pledged Equity Interests” shall mean all Pledged Stock, Pledged LLC Interests, Pledged
Partnership Interests and Pledged Trust Interests.

          “Pledged LLC Interests” shall mean, with respect to any Grantor, all interests in any limited
liability company directly owned by such Grantor including, without limitation, all limited
liability company interests listed on Schedule 4.4(A) under the heading “Pledged LLC Interests” (as
such schedule may be amended or supplemented from time to time) and the certificates, if any,
representing such limited liability company interests and any interest of such Grantor on the books
and records of such limited liability company and all dividends, distributions, cash, warrants,
rights, options, instruments, securities and other property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all of such limited
liability company interests.

4

 

          “Pledged Partnership Interests” shall mean, with respect to any Grantor, all interests in any
general partnership, limited partnership, limited liability partnership or other partnership
directly owned by such Grantor including, without limitation, all partnership interests listed on
Schedule 4.4(A) under the heading “Pledged Partnership Interests” (as such schedule may be amended
or supplemented from time to time) and the certificates, if any, representing such partnership
interests and any interest of such Grantor on the books and records of such partnership and all
dividends, distributions, cash, warrants, rights, options, instruments, securities and other
property or proceeds from time to time received, receivable or otherwise distributed in respect of
or in exchange for any or all of such partnership interests.

          “Pledged Stock” shall mean, with respect to any Grantor, all shares of capital stock directly
owned by such Grantor, including, without limitation, all shares of capital stock described on
Schedule 4.4(A) under the heading “Pledged Stock” (as such schedule may be amended or supplemented
from time to time), and the certificates, if any, representing such shares and any interest of such
Grantor in the entries on the books of the issuer of such shares, and all dividends, distributions,
cash, warrants, rights, options, instruments, securities and other property or proceeds from time
to time received, receivable or otherwise distributed in respect of or in exchange for any or all
of such shares.

          “Pledged Trust Interests” shall mean, with respect to any Grantor, all interests in a Delaware
business trust or other trust directly owned by such Grantor including, without limitation, all
trust interests listed on Schedule 4.4(A) under the heading “Pledged Trust Interests” (as such
schedule may be amended or supplemented from time to time) and the certificates, if any,
representing such trust interests and any interest of such Grantor on the books and records of such
trust and all dividends, distributions, cash, warrants, rights, options, instruments, securities
and other property or proceeds from time to time received, receivable or otherwise distributed in
respect of or in exchange for any or all of such trust interests.

          “Proceeds” shall mean: (i) all “proceeds” as defined in Article 9 of the UCC, (ii) payments
or distributions made with respect to any Investment Property and (iii) whatever is receivable or
received when Collateral or proceeds are sold, exchanged, collected or otherwise disposed of,
whether such disposition is voluntary or involuntary.

          “Receivables” shall mean all rights to payment, whether or not earned by performance, for
goods or other property sold, leased, licensed, assigned or otherwise disposed of, or services
rendered or to be rendered, including, without limitation all such rights constituting or evidenced
by any Account, Chattel Paper, Instrument, General Intangible or Investment Property, together with
all of Grantor’s rights, if any, in any goods or other property giving rise to such right to
payment and all Collateral Support and Supporting Obligations related thereto.

          “Receivables Records” shall mean (i) all original copies of all documents, instruments or
other writings or electronic records or other Records evidencing the Receivables, (ii) all books,
correspondence, credit or other files, Records, ledger sheets or cards, invoices, and other papers
relating to Receivables, including, without limitation, all tapes, cards, computer tapes, computer
discs, computer runs, record keeping systems and other papers and documents relating to the
Receivables, whether in the possession or under the control of Grantor or any computer bureau or
agent from time to time acting for Grantor or otherwise, (iii) all evidences of the filing of
financing statements and the registration of other instruments in connection therewith, and
amendments, supplements or other modifications thereto, notices to other creditors or secured
parties, and certificates, acknowledgments, or other writings, including, without limitation, lien
search reports, from filing or other registration officers, (iv) all credit information,

5

 

reports and memoranda relating thereto and (v) all other written or nonwritten forms of
information related in any way to the foregoing or any Receivable.

          “Record” shall have the meaning specified in Article 9 of the UCC.

          “Secured Obligations” shall have the meaning assigned in Section 3.1.

          “Secured Parties” shall mean the Agents, Issuing Banks, Lenders and the Lender Counterparties
and shall include, without limitation, all former Agents, Issuing Banks, Lenders and Lender
Counterparties to the extent that any Obligations owing to such Persons were incurred while such
Persons were Agents, Issuing Banks, Lenders or Lender Counterparties and such Obligations have not
been paid or satisfied in full.

          “Securities” shall mean any stock, shares, partnership interests, voting trust certificates,
certificates of interest or participation in any profit-sharing agreement or arrangement, options,
warrants, bonds, debentures, notes, or other evidences of indebtedness, secured or unsecured,
convertible, subordinated or otherwise, or in general any instruments commonly known as
“securities” or any certificates of interest, shares or participations in temporary or interim
certificates for the purchase or acquisition of, or any right to subscribe to, purchase or acquire,
any of the foregoing.

          “Supporting Obligation” shall mean all “supporting obligations” as defined in Article 9 of the
UCC.

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

          “Trademark Licenses” shall mean any and all agreements providing for the granting of any right
in or to Trademarks (whether such Grantor is licensee or licensor thereunder) including, without
limitation, each agreement referred to in Schedule 4.5(F) (as such schedule may be amended or
supplemented from time to time).

          “Trademarks” shall mean all United States, and foreign trademarks, trade names, corporate
names, company names, business names, fictitious business names, Internet domain names, service
marks, certification marks, collective marks, logos, other source or business identifiers, all
registrations and applications for any of the foregoing including, but not limited to: (i) the
registrations and applications referred to in Schedule 4.5(E) (as such schedule may be amended or
supplemented from time to time), (ii) all extensions or renewals of any of the foregoing, (iii) the
goodwill of the business connected with the use of and symbolized by the foregoing, (iv) the right
to sue for past, present and future infringement or dilution of any of the foregoing or for any
injury to goodwill, and (v) all Proceeds of the foregoing, and, if not otherwise included in the
definition of “Proceeds” herein, licenses, royalties, income, payments, claims, damages, and
proceeds of suit.

          “Trade Secret Licenses” shall mean any and all agreements providing for the granting of any
right in or to Trade Secrets (whether such Grantor is licensee or licensor thereunder) including,
without limitation, each agreement referred to in Schedule 4.5(G) (as such schedule may be amended
or supplemented from time to time).

          “Trade Secrets” shall mean all trade secrets and all other confidential or proprietary
information and know-how, including but not limited to: (i) the right to sue for past,

6

 

present and future misappropriation or other violation of any Trade Secret, and (ii) all
Proceeds of the foregoing, and, if not otherwise included in the definition of “Proceeds” herein,
licenses, royalties, income, payments, claims, damages, and proceeds of suit.

          “UCC” shall mean the Uniform Commercial Code as in effect from time to time in the State of
New York or, when the context relates to perfection or priority of a security interest,, the
Uniform Commercial Code as in effect from time to time in any other applicable jurisdiction.

          “United States” shall mean the United States of America.

     1.2 Definitions; Interpretation. All capitalized terms used herein (including the preamble
and recitals hereto) and not otherwise defined herein shall have the meanings ascribed thereto in
the Credit Agreement or, if not defined therein, in the UCC. References to “Sections,” “Exhibits”
and “Schedules” shall be to Sections, Exhibits and Schedules, as the case may be, of this Agreement
unless otherwise specifically provided. Section headings in this Agreement are included herein for
convenience of reference only and shall not constitute a part of this Agreement for any other
purpose or be given any substantive effect. Any of the terms defined herein may, unless the
context otherwise requires, be used in the singular or the plural, depending on the reference. The
use herein of the word “include” or “including”, when following any general statement, term or
matter, shall not be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters, whether or not
nonlimiting language (such as “without limitation” or “but not limited to” or words of similar
import) is used with reference thereto, but rather shall be deemed to refer to all other items or
matters that fall within the broadest possible scope of such general statement, term or matter. If
any conflict or inconsistency exists between this Agreement and the Credit Agreement, the Credit
Agreement shall govern. All references herein to provisions of the UCC shall include all successor
provisions under any subsequent version or amendment to any Article of the UCC.

SECTION 2. GRANT OF SECURITY.

     2.1 Grant of Security. Each Grantor hereby grants to the Collateral Agent a security interest
in and continuing lien on all of such Grantor’s right, title and interest in, to and under the
following property of such Grantor, in each case whether now owned or existing or hereafter
acquired or arising and wherever located (all of which being hereinafter collectively referred to
as the “Collateral”):

(a) Accounts;

(b) Chattel Paper;

(c) Documents;

(d) General Intangibles;

(e) Goods;

(f) Instruments;

(g) Insurance;

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(h) Intellectual Property;

(i) Investment Property;

(j) to the extent not otherwise included above, all Collateral Records, Collateral Support and
Supporting Obligations relating to any of the foregoing; and

(k) to the extent not otherwise included above, all Proceeds, products, accessions, rents and
profits of or in respect of any of the foregoing.

     2.2 Certain Limited Exclusions. Notwithstanding anything herein to the contrary, in no event
shall the Collateral include or the security interest granted under Section 2.1 hereof attach to
(a) any motor vehicle or other asset that is covered by a certificate of title under a statute of
any jurisdiction under the law of which indication of a security interest on such certificate is
required as a condition of perfection thereof; (b) any lease, license, contract, property rights or
agreement and any assets subject to any thereof, to which any Grantor is a party or any of its
rights or interests thereunder or any property to which such Grantor has any right, title or
interest which is subject to any such lease, license, contract property right or agreement if and
for so long as the grant of such security interest requires governmental consent, approval, license
or authorization or shall constitute or result in (i) the abandonment, invalidation or
unenforceability of any right, title or interest of any Grantor therein or (ii) in a breach or
termination pursuant to the terms of, or a default under, any such lease, license, contract
property rights or agreement (other than to the extent that any such term would be rendered
ineffective pursuant to Sections 9-406, 9-407, 9-408 or 9-409 of the UCC (or any successor
provision or provisions) of any relevant jurisdiction or any other applicable law (including the
Bankruptcy Code) or principles of equity), provided however that the Collateral shall include and
such security interest shall attach immediately at such time as the condition causing such
abandonment, invalidation or unenforceability shall be remedied and to the extent severable, shall
attach immediately to any portion of such lease, license, contract, property rights or agreement
that does not result in any of the consequences specified in (i) or (ii) above; (c) any of the
outstanding Capital Stock of a Controlled Foreign Corporation in excess of 65% of the voting power
of all classes of Capital Stock of such Controlled Foreign Corporation entitled to vote; (d) margin
stock and equity interests in any Immaterial Restricted Subsidiary, Unrestricted Subsidiary or
Excluded Subsidiary listed on Schedule 1.1(b)-2 of the Credit Agreement; (e) any capital stock the
pledge of which would result in additional financial reporting requirements under Rule 3-16 under
Regulation S-X but only to the extent necessary for such Grantor not to be subject to such
reporting requirements; (f) any application to register Trademarks in the U.S. Patent and Trademark
Office (the “PTO”) based upon Grantor’s “intent to use” such Trademark (but only if the grant of
security interest to such intent-to-use Trademark violates 15 U.S.C. § 1060(a)) unless and until a
“Statement of Use” or “Amendment to Allege Use” is filed in the PTO with respect thereto, at which
point the Collateral shall include, and the security interest granted hereunder shall attach to,
such application; (g) the Investment Property identified on Schedule 2.2; or (h) all Letter of
Credit Rights (all such property included in clauses (a)-(h) above excluded from the definition of
“Collateral” shall be referred to as “Excluded Property”). Notwithstanding anything contained
herein to the contrary, Grantors shall not be required to take any action intended to cause
Excluded Property to constitute Collateral and none of the covenants or representations and
warranties shall be deemed to apply to any property constituting Excluded Property.

SECTION 3. SECURITY FOR OBLIGATIONS; GRANTORS REMAIN LIABLE.

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     3.1 Security for Obligations. This Agreement secures, and the Collateral is collateral
security for, the prompt and complete payment or performance in full when due, whether at stated
maturity, by required prepayment, declaration, acceleration, demand or otherwise (including the
payment of amounts that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code, 11 U.S.C. §362(a) (and any successor provision thereof)), of all
Obligations of every Grantor (the “Secured Obligations”).

     3.2 Continuing Liability Under Collateral. Notwithstanding anything herein to the contrary,
(i) each Grantor shall remain liable for all obligations under the Collateral the same as if this
Agreement had not been executed and nothing contained herein is intended or shall be a delegation
of duties to the Collateral Agent or any Secured Party, (ii) each Grantor shall remain liable under
each of the agreements included in the Collateral the same as if this Agreement had not been
executed, including, without limitation, any agreements relating to Pledged Partnership Interests
or Pledged LLC Interests, to perform all of the obligations undertaken by it thereunder all in
accordance with and pursuant to the terms and provisions thereof and neither the Collateral Agent
nor any Secured Party shall have any obligation or liability under any of such agreements by reason
of or arising out of this Agreement or any other document related thereto nor shall the Collateral
Agent nor any Secured Party have any obligation to make any inquiry as to the nature or sufficiency
of any payment received by it or have any obligation to take any action to collect or enforce any
rights under any agreement included in the Collateral, including, without limitation, any
agreements relating to Pledged Partnership Interests or Pledged LLC Interests, and (iii) the
exercise by the Collateral Agent of any of its rights hereunder shall not release any Grantor from
any of its duties or obligations under the contracts and agreements included in the Collateral.

SECTION 4. REPRESENTATIONS AND WARRANTIES AND COVENANTS.

     4.1 Generally.

          (a) Representations and Warranties. Each Grantor hereby represents and warrants with
respect to itself that:

          (i) it owns the Collateral purported to be owned by it or otherwise has the rights it purports
to have in each item of Collateral and, as to all Collateral whether now existing or hereafter
acquired, will continue to own or have such rights in each item of the Collateral, subject to its
rights to dispose of or abandon such rights to the extent permitted hereunder or under the Credit
Agreement, in each case free and clear of any and all Liens of all other Persons, including,
without limitation, liens arising as a result of such Grantor becoming bound (as a result of merger
or otherwise) as debtor under a security agreement entered into by another Person other than
Permitted Liens;

          (ii) it has indicated on Schedule 4.1(A) as of the Closing Date: (w) the type of organization
of such Grantor, (x) the jurisdiction of organization of such Grantor, (y) its organizational
identification number and (z) the jurisdiction where the chief executive office or its sole place
of business is (or the principal residence if such Grantor is a natural person), and for the
one-year period preceding the Closing Date has been, located;

          (iii) as of the Closing Date, the full legal name of such Grantor is as set forth on Schedule
4.1(A) and it has not had any other legal names in the last five (5) years, since the Closing Date
except for those names set forth on Schedule 4.1(B);

9

 

          (iv) except as provided on Schedule 4.1(C), as of the Closing Date it has not changed its
name, jurisdiction of organization, chief executive office or sole place of business (or principal
residence if such Grantor is a natural person) or its corporate structure in any way (e.g., by
merger, consolidation, change in corporate form or otherwise) within the past five (5) years;

          (v) as of the Closing Date it has not within the last five (5) years become bound (whether as
a result of merger or otherwise) as debtor under a security agreement entered into by another
Person, which has not heretofore been terminated other than the agreements identified on Schedule
4.1(D) hereof;

          (vi) with respect to each agreement identified on Schedule 4.1(D), it has indicated on
Schedule 4.1 (A) and Schedule 4.1(B) the information as of the Closing Date required pursuant to
Section 4.1(a)(ii), (iii) and (iv) with respect to the debtor under each such agreement;

          (vii) (x) to the extent required under this Agreement, upon the filing of all UCC financing
statements naming each Grantor as “debtor” and the Collateral Agent as “secured party” and
describing the Collateral in the filing offices set forth opposite such Grantor’s name on Schedule
4.1(E) hereof and other filings delivered by each Grantor and (y) to the extent not subject to
Article 9 of the UCC and to the extent that a perfected first priority security interest may be
obtained by the recordation of the security interest in the applicable intellectual property
registries, upon recordation of the security interests granted hereunder in Patents, Trademarks and
Copyrights in the applicable intellectual property registries, including but not limited to the
United States Patent and Trademark Office and the United States Copyright Office, the security
interests granted to the Collateral Agent hereunder constitute valid and perfected first priority
Liens (subject in the case of priority only to Permitted Liens and to the rights of the United
States government (including any agency or department thereof) with respect to United States
government Receivables) on all of the Collateral to the extent that a security interest may be
perfected by the filing of a UCC financing statement or by the recordation of the security interest
in the United States Patent and Trademark Office or the United States Copyright Office;

          (viii) except as set forth on Schedule 4.1(F), as such schedule may be amended or supplemented
from time to time, subject to the requirements set forth on Schedule 5.13 of the Credit Agreement
with respect to the Collateral described therein, all actions and consents (other than actions and
consents required by the UCC, any other applicable law or, solely with respect to Pledged Equity
Interests in Persons organized outside the United States, those that need to be made or obtained
outside of the United States), including all filings, notices, registrations and recordings,
necessary for the exercise by the Collateral Agent of the voting or other rights provided for in
this Agreement or the exercise of remedies in respect of the Collateral have been made or obtained;
provided that filing of assignments in the applicable intellectual property registries may be
necessary to the exercise of certain remedies in respect of Intellectual Property and the exercise
of remedies in respect of Non-Assignable Contracts (other than those provided under 9-406, 9-407
and 9-408 of the UCC , to the extent that they apply) may require the consent of the other party
thereto;

          (ix) other than the financing statements filed in favor of the Collateral Agent, no effective
UCC financing statement, fixture filing or other instrument similar in effect under any applicable
law which is effective to perfect a security interest under the UCC as in effect on the Closing
Date in all or any part of the Collateral on file in any filing or recording office on the Closing
Date or has been authorized by such Grantor for filing at any time thereafter

10

 

except for (x) financing statements or other instruments similar in effect for which proper
termination statements or releases have been delivered to the Collateral Agent for filing and (y)
financing statements or other instruments similar in effect or filed in connection with Permitted
Liens;

          (x) no authorization, approval or other action by, and no notice to or filing with, any
Governmental Authority or regulatory body is required for either (i) the pledge or grant by any
Grantor of the security interest purported to be created in favor of the Collateral Agent hereunder
or (ii) the exercise by Collateral Agent of any rights or remedies in respect of any Collateral
(whether specifically granted or created hereunder or created or provided for by applicable law),
except (A) for actions required with respect to accounts where the United States government or
subdivision thereof is an Account Debtor, (B) for the filings contemplated by clause (vii) and
(viii) above, (C) as may be required, in connection with the disposition of any Investment
Property, by laws generally affecting the offering and sale of Securities and (D) for the exercise
of right and remedies in respect of any foreign Intellectual Property and Pledged Equity Interests
issued by a Controlled Foreign Corporation;

          (xi) all information supplied by any Grantor with respect to any of the Collateral (in each
case taken as a whole with respect to any particular Collateral) is accurate and complete in all
material respects as of the date supplied by such Grantor, except as could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect;

          (xii) none of the Collateral constitutes, or is the Proceeds of, “farm products” (as defined
in the UCC);

          (xiii) it does not own any “as extracted collateral” (as defined in the UCC) or any timber to
be cut; and

          (xiv) as of the Closing Date, such Grantor has been duly organized as an entity of the type
as set forth opposite such Grantor’s name on Schedule 4.1(A) solely under the laws of the
jurisdiction as set forth opposite such Grantor’s name on Schedule 4.1(A) and remains duly existing
as such. Such Grantor has not filed any certificates of domestication, transfer or continuance in
any other jurisdiction as of the Closing Date.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees with respect
to itself that:

          (i) except for the security interest created by this Agreement, it shall not create or suffer
to exist any Lien upon or with respect to any of the Collateral, except Permitted Liens, and such
Grantor shall defend the Collateral against all Persons at any time claiming any interest therein
adverse to the Collateral Agent;

          (ii) it shall not produce, use or permit any Collateral to be used unlawfully or in violation
of any provision of this Agreement or any applicable statute, regulation or ordinance or any policy
of insurance covering the Collateral if such violation or noncompliance could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect;

          (iii) except as listed on Schedule 4.1.A.1, it shall not change such Grantor’s legal name,
identity, corporate structure (e.g., by merger, consolidation, change in corporate form or
otherwise), type of organization or jurisdiction of organization unless it shall

11

 

have (a) notified the Collateral Agent in writing, by executing and delivering to the
Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A attached
hereto, together with all Supplements to applicable Schedules showing such change thereto, at least
thirty (30) days prior to any such change or establishment, identifying such new proposed name,
identity, corporate structure, jurisdiction of organization and providing such other information in
connection therewith as the Collateral Agent may reasonably request and (b) taken all actions
necessary or reasonably requested by the Collateral Agent to maintain the continuous validity,
perfection and at least the same priority of the Collateral Agent’s security interest in the
Collateral intended to be granted and agreed to hereby;

          (iv) except as otherwise permitted under the Credit Agreement it shall not file any
certificates of domestication, transfer or continuance in any jurisdiction other than the
jurisdiction set forth opposite such Grantor’s name on Schedule 4.1(A);

          (v) it shall not take or permit any action which could materially impair the Collateral
Agent’s rights in the Collateral, subject to Grantors’ rights to dispose of or abandon rights in
the Collateral to the extent permitted hereunder or under the Credit Agreement or the right to
grant Permitted Liens; and

          (vi) it shall not sell, transfer, exclusively license or assign (by operation of law or
otherwise) any Collateral except as otherwise permitted in accordance with the Credit Agreement.

     4.2 Equipment and Inventory.

          (a) Representations and Warranties. Each Grantor represents and warrants with respect
to itself that:

          (i) all of its Equipment and Inventory included in the Collateral other than Equipment out for
repair or Equipment and Inventory in transit is kept on the Closing Date and during the past 18
months has been kept only at one of the locations specified in Schedule 4.2; and

          (ii) any Goods now or hereafter produced by such Grantor included in the Collateral have been
and will be produced in material compliance with the requirements of the Fair Labor Standards Act,
as amended.

          (b) Covenants and Agreements. Each Grantor covenants and agrees with respect to
itself that:

          (i) it shall keep the Equipment, Inventory and any Documents evidencing any of its Equipment
and Inventory other than Equipment out for repair or Equipment and Inventory in transit in one of
the locations specified on Schedule 4.2 (as such schedule may be amended or supplemented from time
to time) unless it shall have (a) notified the Collateral Agent in writing, no later than
forty-five (45) days after any change in locations, identifying such new locations and providing
such other information in connection therewith as the Collateral Agent may reasonably request;

          (ii) it shall keep (or cause to be kept) records of its Inventory which are accurate in all
material respects, as is customarily maintained under similar circumstances by

12

 

Persons of established reputation engaged in similar business, and in any event in conformity
with GAAP; and

          (iii) it shall not deliver any Document evidencing any of its Equipment and Inventory to any
Person other than the issuer of such Document to claim the Goods evidenced therefor or the
Collateral Agent.

     4.3 Receivables.

          (a) Representations and Warranties. Each Grantor represents and warrants that none of
the Account Debtors in respect of any of its Receivables in excess of $1,000,000 individually or
$5,000,000 in the aggregate is the government of the United States or any agency or instrumentality
thereof.

          (b) Covenants and Agreements: Each Grantor hereby covenants and agrees with respect
to itself that:

          (i) it shall keep and maintain at its own cost and expense records of its Receivables
consistent with its past practice;

          (ii) at the request of the Collateral Agent after the occurrence and during the continuation
of an Event of Default, it shall mark conspicuously, in form and manner reasonably satisfactory to
the Collateral Agent, all of its Chattel Paper and Instruments (other than any delivered to the
Collateral Agent as provided herein and Instruments deposited in a Deposit Account for collection
in the ordinary course of business), as well as its Receivables Records with an appropriate
reference to the fact that the Collateral Agent has a security interest therein;

          (iii) it shall perform in all material respects all of its obligations with respect to the
Receivables in accordance with its normal business practice;

          (iv) other than in the ordinary course of business as generally conducted by it, and except as
otherwise provided in subsection (v) below, following the occurrence and during the continuation of
an Event of Default, such Grantor shall not (w) grant any extension or renewal of the time of
payment of any of its Receivables, (x) compromise or settle any dispute, claim or legal proceeding
with respect to any of its Receivables for less than the total unpaid balance thereof, (y) release,
wholly or partially, any Person liable for the payment thereof, or (z) allow any credit or discount
thereon;

          (v) except as otherwise provided in this subsection, each Grantor shall continue to collect in
accordance with its past business practice, all amounts due or to become due to such Grantor under
its Receivables and any Supporting Obligation and diligently exercise in accordance with its past
business practice each material right it may have under any of its Receivables, or any Supporting
Obligation or Collateral Support therefor, in each case, at its own expense, and in connection with
such collections and exercise, such Grantor shall take such action as such Grantor may deem
necessary or advisable. Notwithstanding the foregoing, the Collateral Agent shall have the right
at any time following the occurrence and during the continuation of an Event of Default to notify,
or require any Grantor to notify, any Account Debtor of the Collateral Agent’s security interest in
the Receivables and any Supporting Obligation and, in addition, at any time following the
occurrence and during the continuation of an Event of Default, the Collateral Agent may: (1)
direct the Account Debtors under any Receivables to make payment of

13

 

all amounts due or to become due to such Grantor thereunder directly to the Collateral Agent;
(2) notify, or require any Grantor to notify, each Person maintaining a lockbox or similar
arrangement to which Account Debtors under any Receivables have been directed to make payment to
remit all amounts representing collections on checks and other payment items from time to time sent
to or deposited in such lockbox or other arrangement directly to the Collateral Agent; and (3)
enforce, at the expense of such Grantor, collection of any such Receivables and to adjust, settle
or compromise the amount or payment thereof, in the same manner and to the same extent as such
Grantor might have done. If the Collateral Agent notifies any Grantor that it has elected to
collect the Receivables in accordance with the preceding sentence, any payments of Receivables
received by such Grantor shall be forthwith (and in any event within two (2) Business Days)
deposited by such Grantor in the exact form received, duly indorsed by such Grantor to the
Collateral Agent if required, in a Deposit Account designated by the Collateral Agent, and until so
turned over, all amounts and proceeds (including checks and other instruments) received by such
Grantor in respect of the Receivables, any Supporting Obligation or Collateral Support shall be
received in trust for the benefit of the Collateral Agent hereunder and shall be segregated from
other funds of such Grantor and such Grantor shall not adjust, settle or compromise the amount or
payment of any Receivable, or release wholly or partly any Account Debtor or obligor thereof, or
allow any credit or discount thereon; and

          (vi) subject to any underlying contractual requirements or provisions, it shall use its
commercially reasonable efforts to keep in full force and effect any material Supporting Obligation
or Collateral Support relating to any of its material Receivables.

          (c) Delivery of Receivables. With respect to any of its Receivables in excess of
$1,000,000 individually or $5,000,000 in the aggregate that is evidenced by, or constitutes,
Chattel Paper or Instruments (other than Instruments deposited or to be deposited for collection in
the ordinary course of business), each Grantor shall, at the request of the Collateral Agent, cause
each originally executed copy thereof to be delivered to the Collateral Agent (or its agent or
designee) appropriately indorsed to the Collateral Agent or indorsed in blank: (i) with respect to
any such Receivables in existence on the date hereof, on or prior to the date hereof and (ii) with
respect to any such Receivables hereafter arising, within ten (10) days of such Grantor acquiring
rights therein.

     4.4 Investment Property.

          4.4.1 Investment Property Generally

          (a) Covenants and Agreements. Each Grantor hereby covenants and agrees with respect
to itself that:

          (i) in the event it acquires rights in any Investment Property in excess of $1,000,000
individually or $5,000,000 in the aggregate after the date hereof, it shall deliver to the
Collateral Agent a completed Pledge Supplement, substantially in the form of Exhibit A attached
hereto, together with Supplements to Schedules thereto, reflecting such new Investment Property;
provided, such Grantor shall not be required to deliver any Pledge Supplement solely for the
purpose set forth in this clause (i) more than twice a year. Notwithstanding the foregoing, it is
understood and agreed that the security interest of the Collateral Agent shall attach to all
Investment Property immediately upon any Grantor’s acquisition of rights therein and shall not be
affected by the failure of any Grantor to deliver a supplement to Schedule 4.4 as required hereby;

14

 

          (ii) except as provided in the next sentence, in the event such Grantor receives any
dividends, interest or distributions on any Investment Property, or any securities or other
property upon the merger, consolidation, liquidation or dissolution of any issuer of any Investment
Property, then (a) such dividends, interest or distributions and securities or other property shall
be included in the definition of Collateral without further action and (b) such Grantor shall
immediately take all steps, if any, necessary or advisable to ensure the validity, perfection,
priority and, if applicable, control of the Collateral Agent over such Investment Property
(including, without limitation, delivery thereof to the Collateral Agent if required by this
Agreement) and pending any such action such Grantor shall be deemed to hold such dividends,
interest, distributions, securities or other property in trust for the benefit of the Collateral
Agent and shall segregate such dividends, distributions, Securities or other property from all
other property of such Grantor. Notwithstanding the foregoing, so long as no Event of Default
shall have occurred and be continuing, the Collateral Agent authorizes each Grantor to retain all
ordinary cash dividends and distributions paid in the normal course of the business of the issuer
and consistent with the past practice of the issuer and all scheduled payments of interest; and

          (iii) each Grantor consents to the grant by each other Grantor of a Security Interest in all
Investment Property to the Collateral Agent.

          (b) Delivery.

          (i) Each Grantor agrees that with respect to any Investment Property in which it currently has
rights it shall comply with the provisions of this Section 4.4.1(b) on or before the Credit Date
and with respect to any Investment Property hereafter acquired by such Grantor it shall comply with
the provisions of this Section 4.4.1(b) within fifteen (15) days of acquiring rights therein, in
each case in form and substance reasonably satisfactory to the Collateral Agent. With respect to
any Investment Property that is represented by a certificate or that is an “instrument” (other than
(A) any Investment Property credited to a Securities Account, (B) Investment Property but only so
long as such Investment Property is not yet required to be delivered pursuant to Section 5.13 of
the Credit Agreement , (C) instruments in a principal amount not in excess of $1,000,000
individually or $5,000,000 in the aggregate and (D) instruments deposited or to be deposited for
collection in the ordinary course of business) it shall cause such certificate or instrument to be
delivered to the Collateral Agent, indorsed in blank by an “effective indorsement” (as defined in
Section 8-107 of the UCC), regardless of whether such certificate constitutes a “certificated
security” for purposes of the UCC.

          (c) Voting and Distributions.

          (i) So long as no Event of Default shall have occurred and be continuing and the Collateral
Agent has not given the applicable Grantor five (5) Business Days prior written notice to the
contrary:

	 	(1)	 	except as otherwise provided under the covenants and agreements relating to
investment property in this Agreement or elsewhere herein or in the Credit Agreement,
each Grantor shall be entitled to exercise or refrain from exercising any and all
voting and other consensual rights pertaining to the Investment Property or any part
thereof for any purpose not inconsistent with the terms of this Agreement or the
Credit Agreement;
	 
	 	(2)	 	the Collateral Agent shall promptly execute and deliver (or cause to be
executed and delivered) to each Grantor all proxies, and other instruments as such
Grantor

15

 

	 	 	 	may from time to time reasonably request for the purpose of enabling such Grantor
to exercise the voting and other consensual rights when and to the extent which it
is entitled to exercise pursuant to clause (1) above; and
	 
	 	(3)	 	upon the occurrence and during the continuation of an Event of Default and
upon two (2) Business Days prior written notice from the Collateral Agent to such
Grantor of the Collateral Agent’s intention to exercise such rights:

	 	(A)	 	all rights of each Grantor to exercise the voting and other
consensual rights which it would otherwise be entitled to exercise pursuant
hereto shall cease and all such rights shall thereupon become vested in the
Collateral Agent who shall thereupon have the sole right to exercise such
voting and other consensual rights; and
	 
	 	(B)	 	in order to permit the Collateral Agent to exercise the
voting and other consensual rights which it may be entitled to exercise
pursuant hereto and to receive all dividends and other distributions which it
may be entitled to receive hereunder: (1) each Grantor shall promptly execute
and deliver (or cause to be executed and delivered) to the Collateral Agent
all proxies, dividend payment orders and other instruments as the Collateral
Agent may from time to time reasonably request and (2) each Grantor
acknowledges that the Collateral Agent may utilize the power of attorney set
forth in Section 6.1.
	 
	 	4.4.2	 	Pledged Equity Interests

            (a) Representations and Warranties. Each Grantor hereby represents and warrants with
respect to itself, that:

            (i) as of the Closing Date, Schedule 4.4(A) sets forth under the headings “Pledged Stock,
“Pledged LLC Interests,” “Pledged Partnership Interests” and “Pledged Trust Interests,”
respectively, all of the Pledged Stock, Pledged LLC Interests, Pledged Partnership Interests and
Pledged Trust Interests owned by such Grantor and such Pledged Equity Interests constitute the
percentage of issued and outstanding shares of stock, percentage of membership interests,
percentage of partnership interests or percentage of beneficial interest of the respective issuers
thereof indicated on such Schedule;

            (ii) it is the record and beneficial owner of such Pledged Equity Interests free of all Liens
of other Persons other than Permitted Liens and (in the case of Pledged Equity Interests not issued
by a Subsidiary or an Affiliate of such Grantor, to such Grantor’s best knowledge) there are no
outstanding warrants, options or other rights to purchase, or shareholder, voting trust or similar
agreements outstanding with respect to, or property that is convertible into, or that requires the
issuance or sale of, any such Pledged Equity Interests;

            (iii) (in the case of Pledged Equity Interests not issued by a Subsidiary or an Affiliate of
such Grantor, to such Grantor’s best knowledge) no consent of any Person including any other
general or limited partner, any other member of a limited liability company, any other shareholder
or any other trust beneficiary is necessary or desirable in connection with the creation,
perfection (except as set forth on Schedule 5.13 of the Credit Agreement) or first priority status
of the security interest of the Collateral Agent in any such Pledged Equity Interests

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or the exercise by the Collateral Agent of the voting or other rights provided for in this
Agreement or the exercise of remedies in respect thereof;

          (iv) none of such Pledged LLC Interests nor Pledged Partnership Interests are or represent
interests in issuers that: (a) are registered as investment companies or (b) are dealt in or traded
on securities exchanges or markets; and

          (v) except as otherwise set forth on Schedule 4.4(B) (as such schedule may be amended or
supplemented from time to time), all of the Pledged LLC Interests and Pledged Partnership
Interests, in each case issued by a domestic Subsidiary of such Grantor, are or represent interests
in issuers that have opted to be treated as securities under the uniform commercial code of any
jurisdiction.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees that:

          (i) unless otherwise permitted under the Credit Agreement, without the prior written consent
of the Collateral Agent, it shall not vote to enable or take any other action to: cause any issuer
of any Pledged Partnership Interests or Pledged LLC Interests owned by such Grantor which are not
securities (for purposes of the UCC) on the date hereof to elect or otherwise take any action to
cause such Pledged Partnership Interests or Pledged LLC Interests to be treated as securities for
purposes of the UCC unless prior to taking such actions, such Grantor shall promptly notify the
Collateral Agent in writing of any such election or action and, in such event, shall take all steps
necessary to establish the Collateral Agent’s “control” thereof;

          (ii) except as expressly permitted by the Credit Agreement, without the prior written consent
of the Collateral Agent, it shall not permit any issuer of any Pledged Equity Interest which is a
Subsidiary of such Grantor to merge or consolidate unless (i) if such issuer is required to be a
Grantor under this Agreement, such issuer creates a security interest that is perfected by a filed
financing statement (that is not effective solely under section 9-508 of the UCC) in collateral in
which such new debtor has or acquires rights, and (ii) all the outstanding capital stock or other
equity interests of the surviving or resulting corporation, limited liability company, partnership
or other entity which is a Subsidiary of such Grantor and which is owned by such Grantor is, upon
such merger or consolidation, pledged hereunder; provided that if the surviving or resulting
Grantors upon any such merger or consolidation involves an issuer which is a Controlled Foreign
Corporation, then such Grantor shall only be required to pledge equity interests in accordance with
Section 2.2; and

          (iii) each Grantor consents to the grant by each other Grantor of a security interest in all
Investment Property to the Collateral Agent and, without limiting the foregoing, consents to the
transfer of any Pledged Partnership Interest and any Pledged LLC Interest to the Collateral Agent
or its nominee following the occurrence and during the continuation of an Event of Default and to
the substitution of the Collateral Agent or its nominee as a partner in any partnership or as a
member in any limited liability company with all the rights and powers related thereto.

          4.4.3 Pledged Debt

          (i) Representations and Warranties. Each Grantor hereby represents and warrants with
respect to itself that Schedule 4.4 sets forth as of the Closing Date under the heading “Pledged
Debt” all of the Pledged Debt owned by such Grantor in excess of $1,000,000

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individually or $5,000,000 in the aggregate owned by any Grantor and to the knowledge of such
Grantor, all of such Pledged Debt has been duly authorized, authenticated or issued, and delivered
and is the legal, valid and binding obligation of the issuers thereof and is not in default.

          (b) Covenants and Agreements. In addition to the foregoing, upon the occurrence and
during the continuance of an Event of Default, if any issuer of any Investment Property is a direct
Subsidiary of a Grantor and is located in a jurisdiction outside of the United States (other than
the issuers listed on Schedule 4.4(D)), at the request of the Collateral Agent, (a) such Grantor
shall take such additional actions to cause such issuer that is a Subsidiary of such Grantor and
(b) such Grantor shall use commercially reasonable efforts to cause the issuer that is not a
Subsidiary of such Grantor, in each case, to register the pledge on its books and records or making
such filings or recordings, in each case as may be reasonably necessary or advisable, under the
laws of such issuer’s jurisdiction to insure the validity, perfection and priority of the security
interest of the Collateral Agent. Upon the occurrence and during the continuation of an Event of
Default, the Collateral Agent shall have the right, with two (2) Business Days prior notice to any
Grantor, to transfer all or any portion of the Investment Property to its name or the name of its
nominee or agent. In addition, the Collateral Agent shall have the right at any time following the
occurrence and during the continuation of an Event of Default, without notice to any Grantor, to
exchange any certificates or instruments representing any Investment Property for certificates or
instruments of smaller or larger denominations.

     4.5 Intellectual Property.

          (a) Representations and Warranties. Except as disclosed in Schedule 4.5(H) (as such
schedule may be amended or supplemented from time to time), each Grantor hereby represents and
warrants with respect to itself that:

          (i) Schedule 4.5 (as such schedule may be amended or supplemented from time to time) sets
forth a true and complete list of (a) all United States and state registrations of and applications
for Patents, Trademarks, and Copyrights owned by each Grantor; and (b) all Patent Licenses,
Trademark Licenses, Trade Secret Licenses and Copyright Licenses material to the business of such
Grantor except for non-exclusive licenses to commercially available software;

          (ii) except as could not reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect, (a) it is the sole and exclusive owner of the entire right, title, and
interest in and to all United States Intellectual Property of such Grantor listed on Schedule 4.5
(as such schedule may be amended or supplemented from time to time), and owns or has the valid
right to use, all other United States Intellectual Property that is material to the conduct of its
business, free and clear of all Liens, except for Permitted Liens; and (b) all United States
Intellectual Property owned by such Grantor and material to the conduct of its business is
subsisting and has not been adjudged invalid or unenforceable;

          (iii) to such Grantor’s knowledge, (A) all United States Intellectual Property material to the
conduct of such Grantor’s business is subsisting and unexpired, (B) no holding, decision, or
judgment has been rendered in any action or proceeding before any court or administrative authority
challenging the validity of, such Grantor’s right to register, or such Grantor’s rights to own or
use, any United States Intellectual Property and (C) no such action or proceeding is pending or
threatened (except for routine office actions issued in the course of prosecution) that could
reasonably be expected to have a Material Adverse Effect;

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          (iv) to the best of such Grantor’s knowledge, (a) the conduct of such Grantor’s business does
not infringe upon any Intellectual Property right owned or controlled by a third party; and (b) no
third party is infringing upon in any material respect any rights in any United States Intellectual
Property owned by such Grantor; and

          (v) to such Grantor’s knowledge, (a) none of the Trade Secrets owned by such Grantor that are
material to its business have been used, divulged, disclosed or appropriated to the detriment of
such Grantor for the benefit of any other person; and (b) no employee, independent contractor or
agent of such Grantor is in default or breach of any term of any employment agreement,
non-disclosure agreement, assignment of inventions agreement or similar agreement or contract
relating in any way to the protection, ownership, and use of such Grantor’s Intellectual Property.

          (b) Covenants and Agreements. Each Grantor hereby covenants and agrees with respect
to itself as follows:

          (i) it shall not do any act or knowingly omit to do any act whereby any of the United States
Intellectual Property which is material to the business of such Grantor may lapse, or become
abandoned, dedicated to the public, or unenforceable;

          (ii) with respect to any United States Trademarks which are material to the business of such
Grantor, such Grantor (a) shall not cease the use of any of such Trademarks or fail to maintain the
level of the quality of products sold and services rendered under any of such Trademark at a level
at least substantially consistent with the quality of such products and services as of the date
hereof and (b) shall take commercially reasonable steps necessary to require that licensees of such
Trademarks use such consistent standards of quality;

          (iii) it shall promptly notify the Collateral Agent if it knows that any item of the United
States Intellectual Property that is material to the business of such Grantor is reasonably likely
to become (a) abandoned or dedicated to the public or placed in the public domain, (b) invalid or
unenforceable (other than as a result of the expiration of its non-renewable or natural term), or
(c) subject to any adverse determination or development (including the institution of proceedings)
in any action or proceeding in the United States Patent and Trademark Office or the United States
Copyright Office, or any court (other than office actions in the course of prosecution that do not
materially affect such Grantor’s right to use such Intellectual Property);

          (iv) it shall take all reasonable steps in the United States Patent and Trademark Office and
the United States Copyright Office to pursue any application and maintain any registration of each
Trademark, Patent, and Copyright owned by such Grantor that is material to its business which is
now or shall become included in the Intellectual Property including, but not limited to, those
items on Schedule 4.5 (as it may be amended or supplemented from time to time), but only to the
extent that such items remain material to such Grantor’s business;

          (v) in the event that any United States Intellectual Property owned by such Grantor that is
material to the business of such Grantor is infringed by a third party, such Grantor shall upon an
Authorized Officer of such Grantor obtaining knowledge of such infringement promptly take actions
that such Grantor deems are commercially reasonable to limit or prevent such infringement and
protect its rights in such Intellectual Property;

          (vi) it shall promptly (but in no event more than once per quarter) report to the Collateral
Agent the occurrence of any of the following which occurred since the last report

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to the Collateral Agent: (i) the filing of any application to register any Patent, Trademark
or Copyright with the United States Patent and Trademark Office or the United States Copyright
Office (whether such application is filed by such Grantor or through any agent, employee, licensee,
or designee thereof) and (ii) the registration of any Intellectual Property by any such office, in
each case by executing and delivering to the Collateral Agent a completed Pledge Supplement,
substantially in the form of Exhibit A attached hereto, together with all Supplements to Schedules
thereto; and

          (vii) it shall take steps that are, in such Grantor’s reasonable business judgment,
commercially reasonable to protect the secrecy of all Trade Secrets that are material to the
business of such Grantor.

SECTION 5. FURTHER ASSURANCES; ADDITIONAL GRANTORS.

     5.1 Further Assurances.

          (a) Subject to specific limitations contained herein, each Grantor agrees that from time to
time, at the expense of such Grantor, that it shall promptly execute and deliver all further
instruments and documents, and take all further action, that may be necessary or that the
Collateral Agent may reasonably request, in order to create and/or maintain the validity,
perfection or priority of and protect any security interest granted hereby or to enable the
Collateral Agent to exercise and enforce its rights and remedies hereunder with respect to any
Collateral. Without limiting the generality of the foregoing, each Grantor shall:

          (i) file such financing or continuation statements, or amendments thereto, and execute and
deliver such other agreements, instruments, endorsements, powers of attorney or notices, as may be
necessary or as the Collateral Agent may reasonably request, in order to perfect and preserve the
security interests granted hereby;

          (ii) take all actions necessary to ensure the recordation of appropriate evidence of the liens
and security interest granted hereunder in the United States Intellectual Property with any
intellectual property registry in which said Intellectual Property is registered or in which an
application for registration is pending including, without limitation, the United States Patent and
Trademark Office, the United States Copyright Office and the various Secretaries of State;

          (iii) at any reasonable time following the occurrence and during the continuation of an Event
of Default, upon request by the Collateral Agent, assemble the Collateral and allow inspection of
the Collateral by the Collateral Agent, or persons designated by the Collateral Agent; and

          (iv) at the Collateral Agent’s reasonable request, appear in and defend any action or
proceeding that may affect such Grantor’s title to or the Collateral Agent’s security interest in
all or any part of the Collateral.

          (b) Each Grantor hereby authorizes the Collateral Agent to file a Record or Records,
including, without limitation, financing or continuation statements, and amendments thereto, in any
jurisdictions and with any filing offices as the Collateral Agent may determine, in its sole
discretion, are necessary or advisable to perfect the security interest granted to the Collateral
Agent herein. Such financing statements may describe the Collateral in the same manner as
described herein or may contain an indication or description of collateral that describes

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such property in any other manner as the Collateral Agent may determine, in its sole
discretion, is necessary, advisable or prudent to ensure the perfection of the security interest in
the Collateral granted to the Collateral Agent herein, including, without limitation, describing
such property as “all assets” or “all personal property, whether now owned or hereafter acquired.”
Each Grantor shall furnish to the Collateral Agent from time to time statements and schedules
further identifying and describing the Collateral and such other reports in connection with the
Collateral as the Collateral Agent may reasonably request, all in reasonable detail.

     5.2 Additional Grantors. From time to time subsequent to the date hereof, additional Persons
may become parties hereto as additional Grantors (each, an “Additional Grantor”), by executing a
Counterpart Agreement. Upon delivery of any such counterpart agreement to the Collateral Agent,
notice of which is hereby waived by Grantors, each Additional Grantor shall be a Grantor and shall
be as fully a party hereto as if Additional Grantor were an original signatory hereto. Each
Grantor expressly agrees that its obligations arising hereunder shall not be affected or diminished
by the addition or release of any other Grantor hereunder, nor by any election of Collateral Agent
not to cause any Subsidiary of Company to become an Additional Grantor hereunder. This Agreement
shall be fully effective as to any Grantor that is or becomes a party hereto regardless of whether
any other Person becomes or fails to become or ceases to be a Grantor hereunder.

SECTION 6. COLLATERAL AGENT APPOINTED ATTORNEY-IN-FACT.

     6.1 Power of Attorney. Until payment in full of all Secured Obligations (other than unmatured
indemnification obligations), the cancellation or termination of the Commitments and the
cancellation, cash collateralization or expiration of all outstanding Letters of Credit, each
Grantor hereby irrevocably appoints the Collateral Agent (such appointment being coupled with an
interest) as such Grantor’s attorney-in-fact, with full authority in the place and stead of such
Grantor and in the name of such Grantor, the Collateral Agent or otherwise, from time to time in
the Collateral Agent’s discretion to take any action and to execute any instrument that the
Collateral Agent may deem reasonably necessary or advisable to accomplish the purposes of this
Agreement, including, without limitation, the following:

          (a) upon the occurrence and during the continuance of any Event of Default, to obtain and
adjust insurance required to be maintained by such Grantor or paid to the Collateral Agent pursuant
to the Credit Agreement;

          (b) upon the occurrence and during the continuance of any Event of Default, to ask for,
demand, collect, sue for, recover, compound, receive and give acquittance and receipts for moneys
due and to become due under or in respect of any of the Collateral;

          (c) upon the occurrence and during the continuance of any Event of Default, to receive,
endorse and collect any drafts or other instruments, documents and chattel paper in connection with
clause (b) above;

          (d) upon the occurrence and during the continuance of any Event of Default, to file any claims
or take any action or institute any proceedings that the Collateral Agent may deem necessary or
desirable for the collection of any of the Collateral or otherwise to enforce the rights of the
Collateral Agent with respect to any of the Collateral;

          (e) to prepare and file any UCC financing statements against such Grantor as debtor;

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          (f) to prepare, sign, and file for recordation in any intellectual property registry,
appropriate evidence of the lien and security interest granted herein in the Intellectual Property
in the name of such Grantor as debtor;

          (g) upon the occurrence and during the continuance of any Event of Default, to take or cause
to be taken all actions necessary to perform or comply or cause performance or compliance with the
terms of this Agreement, including, without limitation, access to pay or discharge taxes or Liens
(other than Permitted Liens) levied or placed upon or threatened against the Collateral, the
legality or validity thereof and the amounts necessary to discharge the same to be determined by
the Collateral Agent in its sole discretion, any such payments made by the Collateral Agent to
become obligations of such Grantor to the Collateral Agent, due and payable immediately without
demand; and

          (h) upon the occurrence and during the continuance of any Event of Default, generally to sell,
transfer, pledge, make any agreement with respect to or otherwise deal with any of the Collateral
as fully and completely as though the Collateral Agent were the absolute owner thereof for all
purposes, and to do, at the Collateral Agent’s option and such Grantor’s expense, at any time or
from time to time, all acts and things that the Collateral Agent deems reasonably necessary to
protect, preserve or realize upon the Collateral and the Collateral Agent’s security interest
therein in order to effect the intent of this Agreement, all as fully and effectively as such
Grantor might do.

     6.2 No Duty on the Part of Collateral Agent or Secured Parties. The powers conferred on the
Collateral Agent hereunder are solely to protect the interests of the Collateral Agent in the
Collateral and shall not impose any duty upon the Collateral Agent or any Secured Party to exercise
any such powers. The Collateral Agent and the Secured Parties shall be accountable only for
amounts that they actually receive as a result of the exercise of such powers, and neither they nor
any of their officers, directors, employees or agents shall be responsible to any Grantor for any
act or failure to act hereunder, except for their own gross negligence or willful misconduct.

SECTION 7. REMEDIES.

     7.1 Generally.

          (a) If any Event of Default shall have occurred and be continuing, the Collateral Agent may
exercise in respect of the Collateral, in addition to all other rights and remedies provided for
herein or otherwise available to it at law or in equity, all the rights and remedies of the
Collateral Agent on default under the UCC (whether or not the UCC applies to the affected
Collateral) to collect, enforce or satisfy any Secured Obligations then owing, whether by
acceleration or otherwise, and also may pursue any of the following separately, successively or
simultaneously:

          (i) require any Grantor to, and each Grantor hereby agrees that it shall at its expense and
promptly upon request of the Collateral Agent forthwith, assemble all or part of the Collateral as
directed by the Collateral Agent and make it available to the Collateral Agent at a place to be
designated by the Collateral Agent that is reasonably convenient to both parties;

          (ii) enter onto the property where any Collateral is located and take possession thereof with
or without judicial process;

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          (iii) prior to the disposition of the Collateral, store, process, repair or recondition the
Collateral or otherwise prepare the Collateral for disposition in any manner to the extent the
Collateral Agent deems appropriate; and

          (iv) without notice except as specified below or under the UCC, sell, assign, lease, license
(on an exclusive or nonexclusive basis) or otherwise dispose of the Collateral or any part thereof
in one or more parcels at public or private sale, at any of the Collateral Agent’s offices or
elsewhere, for cash, on credit or for future delivery, at such time or times and at such price or
prices and upon such other terms as the Collateral Agent may deem commercially reasonable.

          (b) The Collateral Agent or any Secured Party may be the purchaser of any or all of the
Collateral at any public or private (to the extent that the portion of the Collateral being
privately sold is of a kind that is customarily sold on a recognized market or the subject of
widely distributed standard price quotations) sale in accordance with the UCC and the Collateral
Agent, as collateral agent for and representative of the Secured Parties, shall be entitled, for
the purpose of bidding and making settlement or payment of the purchase price for all or any
portion of the Collateral sold at any such sale made in accordance with the UCC, to use and apply
any of the Secured Obligations as a credit on account of the purchase price for any Collateral
payable by the Collateral Agent at such sale. Each purchaser at any such sale shall hold the
property sold absolutely free from any claim or right on the part of any Grantor, and each Grantor
hereby waives (to the extent permitted by applicable law) all rights of redemption, stay and/or
appraisal which it now has or may at any time in the future have under any rule of law or statute
now existing or hereafter enacted. Each Grantor agrees that, to the extent notice of sale shall be
required by law, at least ten (10) days notice to such Grantor of the time and place of any public
sale or the time after which any private sale is to be made shall constitute reasonable
notification. The Collateral Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. The Collateral Agent may adjourn any public or
private sale from time to time by announcement at the time and place fixed therefor, and such sale
may, without further notice, be made at the time and place to which it was so adjourned. Each
Grantor hereby waives any claims against the Collateral Agent arising by reason of the fact that
the price at which any Collateral may have been sold at such a private sale was less than the price
which might have been obtained at a public sale, even if the Collateral Agent accepts the first
offer received and does not offer such Collateral to more than one offeree. If the proceeds of any
sale or other disposition of the Collateral are insufficient to pay all the Secured Obligations,
Grantors shall be liable for the deficiency and the fees of any attorneys employed by the
Collateral Agent to collect such deficiency. Nothing in this Section shall in any way alter the
rights of the Collateral Agent hereunder.

          (c) The Collateral Agent may sell the Collateral without giving any warranties as to the
Collateral. The Collateral Agent may specifically disclaim or modify any warranties of title or
the like. This procedure will not be considered to adversely affect the commercial reasonableness
of any sale of the Collateral.

          (d) The Collateral Agent shall have no obligation to marshal any of the Collateral.

     7.2 Application of Proceeds. Except as expressly provided elsewhere in this Agreement or in
the Credit Agreement, all proceeds received by the Collateral Agent in respect of any sale, any
collection from, or other realization upon all or any part of the Collateral shall be

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applied in full or in part by the Collateral Agent in payment of the Secured Obligations in
the following order:

     First, to pay incurred and unpaid fees and expenses of the Agents under the
Credit Documents;

     Second, to the Administrative Agent, for application by it towards payment of
amounts then due and owing and remaining unpaid in respect of the Secured Obligations, pro
rata among the Secured Parties according to the amounts of the Secured Obligations then due
and owing and remaining unpaid to the Secured Parties; and

     Third, any balance remaining after the Secured Obligations shall have been
paid in full, the Commitments shall have terminated or been cancelled and the Letters of
Credit shall have been cancelled, cash collateralized or have expired shall be paid over to
the Company or to whomsoever may be lawfully entitled to receive the same.

     7.3 Sales on Credit. If Collateral Agent sells any of the Collateral upon credit, Grantor
will be credited only with payments actually made by purchaser and received by Collateral Agent and
applied to indebtedness of the purchaser. In the event the purchaser fails to pay for the
Collateral, Collateral Agent may resell the Collateral and Grantor shall be credited with proceeds
of the sale.

     7.4 Investment Property.

     Each Grantor recognizes that, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws, the Collateral Agent may be compelled, with respect to
any sale of all or any part of the Investment Property conducted without prior registration or
qualification of such Investment Property under the Securities Act and/or such state securities
laws, to limit purchasers to those who will agree, among other things, to acquire the Investment
Property for their own account, for investment and not with a view to the distribution or resale
thereof. Each Grantor acknowledges that any such private sale may be at prices and on terms less
favorable than those obtainable through a public sale without such restrictions (including a public
offering made pursuant to a registration statement under the Securities Act) and, notwithstanding
such circumstances, each Grantor agrees that the fact that any such sale is conducted as a private
sale shall not, in and of itself, cause such sale to not be deemed to have been made in a
commercially reasonable manner and that the Collateral Agent shall have no obligation to engage in
public sales and no obligation to delay the sale of any Investment Property for the period of time
necessary to permit the issuer thereof to register it for a form of public sale requiring
registration under the Securities Act or under applicable state securities laws, even if such
issuer would, or should, agree to so register it. If the Collateral Agent determines to exercise
its right to sell any or all of the Investment Property, upon written request, each Grantor shall
and shall cause each issuer of any Pledged Stock to be sold hereunder, each partnership and each
limited liability company, in each case, which is a Subsidiary of such Grantor, from time to time
to furnish to the Collateral Agent all such information as the Collateral Agent may request in
order to determine the number and nature of interest, shares or other instruments included in the
Investment Property which may be sold by the Collateral Agent in exempt transactions under the
Securities Act and the rules and regulations of the Securities and Exchange Commission thereunder,
as the same are from time to time in effect.

     7.5 Intellectual Property.

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          (a) Anything contained herein to the contrary notwithstanding, upon the occurrence and during
the continuation of an Event of Default:

          (i) the Collateral Agent shall have the right (but not the obligation) to bring suit or
otherwise commence any action or proceeding in the name of any Grantor, the Collateral Agent or
otherwise, in the Collateral Agent’s sole discretion, to enforce any Intellectual Property, in
which event such Grantor shall, at the request of the Collateral Agent, do any and all lawful acts
and execute any and all documents required by the Collateral Agent in aid of such enforcement and
such Grantor shall promptly, upon demand, reimburse and indemnify the Collateral Agent as provided
in Section 10 hereof in connection with the exercise of its rights under this Section;

          (ii) in the event of a sale or other disposition of the Intellectual Property pursuant to
Section 7.1, such Grantor shall, upon written demand from the Collateral Agent, assign, convey or
otherwise transfer to the Collateral Agent or the third-party acquirer, as the case may be, all of
such Grantor’s right, title and interest in and to the Intellectual Property and shall execute and
deliver to the Collateral Agent or the third-party acquirer, as the case may be, such documents as
are necessary or appropriate to carry out the intent and purposes of this Agreement;

          (iii) within five (5) Business Days after written notice from the Collateral Agent, each
Grantor shall identify to the Collateral Agent, by name, title and job responsibility, such key
personnel in such Grantor’s employ on the date such notice was received that are reasonably
essential to permit such Grantor to continue, directly or indirectly, to produce, advertise and
sell the products and services sold or delivered by such Grantor under or in connection with
material Trademarks, and such Granter shall use commercially reasonable efforts to maintain such
essential personnel in such Grantor’s employ and available to perform their then-current functions
at such Grantor’s expense consistent with the salary and benefit structure applicable to each as of
the date such notice was received by Grantor; and

          (iv) for the avoidance of doubt, the Collateral Agent shall have all of the rights specified
in Sections 4.3 and 7.6 of this Agreement with respect to amounts due or to become due to such
Grantor in respect of the Intellectual Property in the same manner and to the same extent as such
Grantor has with respect to other Receivables.

          (b) If (i) an Event of Default shall have occurred and, by reason of cure, waiver,
modification, amendment or otherwise, no longer be continuing, (ii) no other Event of Default shall
have occurred and be continuing, (iii) an assignment or other transfer to the Collateral Agent of
any rights, title and interests in and to the Intellectual Property shall have been previously
made, and (iv) the Secured Obligations shall not have become immediately due and payable, upon the
written request of any Grantor, the Collateral Agent shall promptly execute and deliver to such
Grantor, at such Grantor’s sole cost and expense, such assignments or other transfer as may be
necessary to reassign to such Grantor any such rights, title and interests as may have been
assigned to the Collateral Agent as aforesaid, subject to any disposition thereof that may have
been made by the Collateral Agent; provided, after giving effect to such reassignment, the
Collateral Agent’s security interest granted pursuant hereto, as well as all other rights and
remedies of the Collateral Agent granted hereunder, shall continue to be in full force and effect;
and provided further, the rights, title and interests so reassigned shall be free and clear of any
other Liens granted by or on behalf of the Collateral Agent and the Secured Parties.

          (c) Solely for the purpose of enabling the Collateral Agent to exercise rights and remedies
under this Section 7 and at such time as the Collateral Agent shall be lawfully

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entitled to exercise such rights and remedies, each Grantor hereby grants to the Collateral
Agent, to the extent it has the right to do so, an irrevocable, nonexclusive license (exercisable
without payment of royalty or other compensation to such Grantor), subject, in the case of
Trademarks, to sufficient rights to quality control and inspection in favor of such Grantor to
avoid the risk of invalidation of said Trademarks and subject to exclusive licenses validly granted
by Grantor in accordance with the terms this Agreement and the other Credit Documents prior to the
date that the Collateral Agent exercises its rights under this Section, to use, operate under,
license, or sublicense any Intellectual Property now owned or hereafter acquired by such Grantor,
and wherever the same may be located.

     7.6 Cash Proceeds. In addition to the rights of the Collateral Agent specified in Section 4.3
with respect to payments of Receivables, all proceeds of any Collateral received by any Grantor
consisting of cash, checks and other non-cash items (collectively, “Cash Proceeds”) shall, if an
Event of Default shall have occurred and is continuing be held by such Grantor in trust for the
Collateral Agent, segregated from other funds of such Grantor, and shall, forthwith upon receipt by
such Grantor, unless otherwise provided pursuant to Section 4.4.1(a)(ii), be turned over to the
Collateral Agent in the exact form received by such Grantor (duly indorsed by such Grantor to the
Collateral Agent, if required) and held by the Collateral Agent in the Collateral Account. Any
Cash Proceeds received by the Collateral Agent (whether from a Grantor or otherwise): (i) if no
Event of Default shall have occurred and be continuing, shall be handled as required by the Credit
Agreement and (ii) if an Event of Default shall have occurred and be continuing, may, in the sole
discretion of the Collateral Agent, (A) be held by the Collateral Agent for the ratable benefit of
the Secured Parties, as collateral security for the Secured Obligations (whether matured or
unmatured) and/or (B) then or at any time thereafter may be applied by the Collateral Agent against
the Secured Obligations then due and owing in accordance with the Credit Agreement.

SECTION 8. COLLATERAL AGENT.

     The Collateral Agent has been appointed to act as Collateral Agent hereunder by Lenders and,
by their acceptance of the benefits hereof, the other Secured Parties. The Collateral Agent shall
be obligated, and shall have the right hereunder, to make demands, to give notices, to exercise or
refrain from exercising any rights, and to take or refrain from taking any action (including,
without limitation, the release or substitution of Collateral), solely in accordance with this
Agreement and the Credit Agreement; provided, the Collateral Agent shall, after payment in full of
all Obligations under the Credit Agreement and the other Credit Documents, exercise, or refrain
from exercising, any remedies provided for herein in accordance with the instructions of the
holders of a majority of the aggregate notional amount (or, with respect to any Permitted Hedge
Agreement that has been terminated in accordance with its terms, the amount then due and payable
(exclusive of expenses and similar payments but including any early termination payments then due)
under such Permitted Hedge Agreement) under all Permitted Hedge Agreements. In furtherance of the
foregoing provisions of this Section, each Secured Party, by its acceptance of the benefits hereof,
agrees that it shall have no right individually to realize upon any of the Collateral hereunder, it
being understood and agreed by such Secured Party that all rights and remedies hereunder may be
exercised solely by the Collateral Agent for the benefit of Secured Parties in accordance with the
terms of this Section. Collateral Agent may resign at any time by giving thirty (30) days’ prior
written notice thereof to Lenders and the Grantors. Upon any such notice of resignation, Requisite
Lenders shall have the right, upon five (5) Business Days’ notice to the Administrative Agent, to
appoint a successor Collateral Agent. Upon the acceptance of any appointment as Collateral Agent
hereunder by a successor Collateral Agent, that successor Collateral Agent shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the retiring Collateral
Agent under this Agreement, and the

26

 

retiring Collateral Agent under this Agreement shall promptly (i) transfer to such successor
Collateral Agent all sums, Securities and other items of Collateral held hereunder, together with
all records and other documents necessary or appropriate in connection with the performance of the
duties of the successor Collateral Agent under this Agreement, and (ii) execute and deliver to such
successor Collateral Agent or otherwise authorize the filing of such amendments to financing
statements, and take such other actions, as may be necessary or appropriate in connection with the
assignment to such successor Collateral Agent of the security interests created hereunder,
whereupon such retiring Collateral Agent shall be discharged from its duties and obligations under
this Agreement. After any retiring Collateral Agent’s resignation hereunder as the Collateral
Agent, the provisions of this Agreement shall inure to its benefit as to any actions taken or
omitted to be taken by it under this Agreement while it was the Collateral Agent hereunder.

SECTION 9. CONTINUING SECURITY INTEREST; TRANSFER OF LOANS.

     This Agreement shall create a continuing security interest in the Collateral and shall remain
in full force and effect until the payment in full of all Secured Obligations, the cancellation or
termination of the Commitments and the cancellation, cash collateralization or expiration of all
outstanding Letters of Credit, be binding upon each Grantor, its successors and assigns, and inure,
together with the rights and remedies of the Collateral Agent hereunder, to the benefit of the
Collateral Agent and its successors, transferees and assigns. Without limiting the generality of
the foregoing, but subject to the terms of the Credit Agreement, any Lender may assign or otherwise
transfer any Loans held by it to any other Person, and such other Person shall thereupon become
vested with all the benefits in respect thereof granted to Lenders herein or otherwise. Upon the
payment in full of all Secured Obligations, the cancellation or termination of the Commitments and
the cancellation, cash collateralization or expiration of all outstanding Letters of Credit, the
security interest granted hereby shall automatically terminate hereunder and of record and all
rights to the Collateral shall automatically revert to Grantors. Upon any such termination the
Collateral Agent shall, at Grantors’ expense, execute and deliver to Grantors or otherwise
authorize the filing of such documents as Grantors shall reasonably request, including financing
statement amendments to evidence such termination. Upon any disposition of property permitted by
the Credit Agreement or the designation of any issuer of Pledged Equity Interest as an Unrestricted
Subsidiary in accordance with Section 5.14 of the Credit Agreement, the Liens granted herein shall
be deemed to be automatically released and such property or Pledged Equity Interest of such
Unrestricted Subsidiary shall automatically revert to the applicable Grantor with no further action
on the part of any Person. The Collateral Agent shall, at Grantor’s expense, execute and deliver
or otherwise authorize the filing of such documents as Grantors shall reasonably request, in form
and substance reasonably satisfactory to the Collateral Agent, including financing statement
amendments to evidence such release.

SECTION 10. STANDARD OF CARE; COLLATERAL AGENT MAY PERFORM.

     The powers conferred on the Collateral Agent hereunder are solely to protect its interest in
the Collateral and shall not impose any duty upon it to exercise any such powers. Except for the
exercise of reasonable care in the custody of any Collateral in its possession and the accounting
for moneys actually received by it hereunder, the Collateral Agent shall have no duty as to any
Collateral or as to the taking of any necessary steps to preserve rights against prior parties or
any other rights pertaining to any Collateral. The Collateral Agent shall be deemed to have
exercised reasonable care in the custody and preservation of Collateral in its possession if such
Collateral is accorded treatment substantially equal to that which the Collateral Agent accords its
own property. Neither the Collateral Agent nor any of its directors, officers,

27

 

employees or agents shall be liable for failure to demand, collect or realize upon all or any
part of the Collateral or for any delay in doing so or shall be under any obligation to sell or
otherwise dispose of any Collateral upon the request of any Grantor or otherwise. If any Grantor
fails to perform any agreement contained herein, the Collateral Agent may itself perform, or cause
performance of, such agreement, and the expenses of the Collateral Agent incurred in connection
therewith shall be payable by each Grantor under Section 10.2 of the Credit Agreement.

SECTION 11. MISCELLANEOUS.

     Any notice required or permitted to be given under this Agreement shall be given in accordance
with Section 10.1 of the Credit Agreement. No failure or delay on the part of the Collateral Agent
in the exercise of any power, right or privilege hereunder or under any other Credit Document shall
impair such power, right or privilege or be construed to be a waiver of any default or acquiescence
therein, nor shall any single or partial exercise of any such power, right or privilege preclude
other or further exercise thereof or of any other power, right or privilege. All rights and
remedies existing under this Agreement and the other Credit Documents are cumulative to, and not
exclusive of, any rights or remedies otherwise available. In case any provision in or obligation
under this Agreement shall be invalid, illegal or unenforceable in any jurisdiction, the validity,
legality and enforceability of the remaining provisions or obligations, or of such provision or
obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. All
covenants hereunder shall be given independent effect so that if a particular action or condition
is not permitted by any of such covenants, the fact that it would be permitted by an exception to,
or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of
a Default or an Event of Default if such action is taken or condition exists. This Agreement shall
be binding upon and inure to the benefit of the Collateral Agent and Grantors and their respective
successors and assigns. No Grantor shall, without the prior written consent of the Collateral
Agent given in accordance with the Credit Agreement, assign any right, duty or obligation
hereunder. This Agreement and the other Credit Documents embody the entire agreement and
understanding between Grantors and the Collateral Agent and supersede all prior agreements and
understandings between such parties relating to the subject matter hereof and thereof.
Accordingly, the Credit Documents 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. This Agreement may be executed in one or more counterparts and by different parties
hereto in separate counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the same document.

          THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

[Signature page follows]

28

 

     IN WITNESS WHEREOF, each Grantor and the Collateral Agent have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly authorized as of the date
first written above.

	 	 	 	 	 
	 	COVANTA ENERGY CORPORATION,

A DELAWARE CORPORATION, AND 

EACH OF ITS SUBSIDIARIES LISTED

ON ANNEX X HERETO

 	 
	 	By:  	/s/ Anthony
J. Orlando	 
	 	 	Name:  	Anthony J. Orlando	 
	 	 	Title:  	Authorized Officer	 

29

 

	 	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, N.A.,

as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert Anastasio	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Robert Anastasio	 	 
	 	 	Title:   Vice President	 	 

30

 

ANNEX X

TO PLEDGE AND SECURITY AGREEMENT

Subsidiaries

	 	 	 
	1.
	 	8309 Tujunga Avenue Corp., a California corporation
	2.
	 	Amor 14 Corporation, a Delaware corporation
	3.
	 	Burney Mountain Power, a California corporation
	4.
	 	Covanta Acquisition, Inc., a Delaware corporation
	5.
	 	Covanta ARC Holdings, Inc., a Delaware corporation
	6.
	 	Covanta Bessemer, Inc., a Delaware corporation
	7.
	 	Covanta Cunningham Environmental Support, Inc., a New York corporation
	8.
	 	Covanta Energy Americas, Inc., a Delaware corporation
	9.
	 	Covanta Energy Construction, Inc., a Delaware corporation
	10.
	 	Covanta Energy Group, Inc., a Delaware corporation
	11.
	 	Covanta Energy International, Inc., a Delaware corporation
	12.
	 	Covanta Energy Resource Corp., a Delaware corporation
	13.
	 	Covanta Energy Services, Inc., a Delaware corporation
	14.
	 	Covanta Energy West, Inc., a Delaware corporation
	15.
	 	Covanta Engineering Services, Inc., a New Jersey corporation
	16.
	 	Covanta Geothermal Operations Holdings, Inc., a Delaware corporation
	17.
	 	Covanta Geothermal Operations, Inc., a Delaware corporation
	18.
	 	Covanta Haverhill Properties, Inc., a Massachusetts corporation
	19.
	 	Covanta Heber Field Energy, Inc., a Delaware corporation
	20.
	 	Covanta Hennepin Energy Resource Co., Limited Partnership,
	 
	 	a
Delaware limited partnership

	 
	 	By: Covanta Energy Resource Corp.,
its General Partner
	21.
	 	Covanta Hillsborough, Inc., a Florida corporation

	22.
	 	Covanta Honolulu Resource Recovery Venture, a Hawaii General Partnership
	 
	 	By: Covanta Oahu Waste Energy
Recovery, Inc., its General Partner
	 
	 	By: Covanta Projects of Hawaii, Inc., its General Partner
	23.
	 	Covanta Huntsville, Inc., an Alabama corporation
	24.
	 	Covanta Hydro Energy, Inc., a Delaware corporation
	25.
	 	Covanta Hydro Operations West, Inc., Delaware corporation
	26.
	 	Covanta Hydro Operations, Inc., a Tennessee corporation
	27.
	 	Covanta Imperial Power Services, Inc., a California corporation
	28.
	 	Covanta Kent, Inc., a Michigan corporation
	29.
	 	Covanta Lancaster, Inc., a Pennsylvania corporation
	30.
	 	Covanta Lee, Inc., a Florida corporation
	31.
	 	Covanta Long Island, Inc., a Delaware corporation
	32.
	 	Covanta Marion Land Corp., an Oregon corporation
	33.
	 	Covanta Marion, Inc., an Oregon corporation
	34.
	 	Covanta Mid-Conn., Inc., a Connecticut corporation
	35.
	 	Covanta Montgomery, Inc., Maryland corporation
	36.
	 	Covanta New Martinsville Hydroelectric Corporation, a Delaware corporation
	37.
	 	Covanta New Martinsville Hydro-Operations Corporation, a West Virginia corporation
	38.
	 	Covanta Oahu Waste Energy Recovery, Inc., a California corporation
	39.
	 	Covanta Onondaga Operations, Inc., a Delaware corporation

SCHEDULE 2.2

 

	 	 	 
	40.
	 	Covanta Operations of Union LLC, a New Jersey limited liability company
	41.
	 	Covanta OPW Associates, Inc., a  Connecticut corporation
	42.
	 	Covanta OPWH, Inc., a Delaware corporation
	43.
	 	Covanta Otay 3 Company, a California corporation
	44.
	 	Covanta Pasco, Inc., a Florida corporation
	45.
	 	Covanta Pinellas, Inc., a Florida corporation
	46.
	 	Covanta Plant Services of New Jersey, Inc., a New Jersey corporation
	47.
	 	Covanta Power Development of Mauritius, Inc., a Delaware corporation
	48.
	 	Covanta Power Development, Inc., a Delaware corporation
	49.
	 	Covanta Power Equity Corporation, a Delaware corporation
	50.
	 	Covanta Power International Holdings, Inc., a Delaware corporation
	51.
	 	Covanta Power Pacific, Inc., a California corporation
	52.
	 	Covanta Power Plant Operations, a California corporation
	53.
	 	Covanta Projects of Hawaii, Inc., a Hawaii corporation
	54.
	 	Covanta Projects, Inc., a Delaware corporation
	55.
	 	Covanta Ref-Fuel Finance LLC (f/k/a Ref-Fuel Corp.), a Delaware limited liability company
	56.
	 	Covanta Ref-Fuel LLC (f/k/a Ref-Fuel LLC), a Delaware limited liability company
	57.
	 	Covanta RRS Holdings, Inc., a Delaware corporation
	58.
	 	Covanta Secure Services, LLC, a Delaware limited liability company
	59.
	 	Covanta SIGC Energy II, Inc., a California corporation
	60.
	 	Covanta SIGC Energy, Inc., a Delaware corporation
	61.
	 	Covanta SIGC Geothermal Operations, Inc., a California corporation
	62.
	 	Covanta Systems, LLC, a Delaware limited liability company
	63.
	 	Covanta Tampa Bay, Inc., a Florida corporation
	64.
	 	Covanta Tampa Construction, Inc., a Delaware corporation
	65.
	 	Covanta Wallingford Associates, Inc., a Connecticut corporation
	66.
	 	Covanta Warren Energy Resources Co., Limited Partnership, a Delaware limited partnership
	67.
	 	Covanta Warren Holdings I, Inc., a Virginia corporation
	68.
	 	Covanta Warren Holdings II, Inc., a California corporation
	69.
	 	Covanta Waste to Energy, LLC, a  Delaware limited liability company
	70.
	 	Covanta Water Holdings, Inc., a Delaware corporation
	71.
	 	Covanta Water Systems, Inc., a Delaware corporation
	72.
	 	Covanta Water Treatment Services, Inc., a Delaware corporation
	73.
	 	DSS Environmental, Inc., a New York corporation
	74.
	 	ERC Energy II, Inc., a Delaware corporation
	75.
	 	ERC Energy, Inc., a Delaware corporation
	76.
	 	Generating Resource Recovery Partners L.P., a California limited partnership
	77.
	 	Heber Field Energy II, Inc., a Delaware corporation
	78.
	 	Heber Loan  Partners, a California general partnership
	 
	 	By:  ERC Energy, Inc., its General Partner
	 
	 	By:  ERC Energy II, Inc., its General Partner
	79.
	 	LMI, Inc., a Massachusetts corporation
	80.
	 	Mammoth Geothermal Company, a California corporation
	81.
	 	Mammoth Power Company, a California corporation
	82.
	 	Michigan Waste Energy, Inc., a Delaware corporation
	83.
	 	MSW I Sub, LLC, a Delaware limited liability company
	84.
	 	Mt. Lassen Power, a California corporation
	85.
	 	Pacific Energy Operating Group, L.P., a California limited partnership
	86.
	 	Pacific Geothermal Company, a California corporation

2

 

	 	 	 
	87.
	 	Pacific Oroville Power, Inc., a California corporation
	88.
	 	Pacific Recovery Corporation, a California corporation
	89.
	 	Pacific Wood Fuels Company, a California corporation
	90.
	 	Three Mountain Operations, Inc., a Delaware corporation
	91.
	 	Three Mountain Power, LLC, a Delaware corporation
	92.
	 	UAH Management Corp., a New York corporation

3

 

SCHEDULE 1.1

TO PLEDGE AND SECURITY AGREEMENT

IMMATERIAL RESTRICTED SUBSIDIARIES

	1.	 	Ogden Energy (Gulf) Ltd. (Mauritius)
	 
	2.	 	Ogden Energy India (Bakreshwar) Ltd. (Mauritius)
	 
	3.	 	Hidro Operaciones Don Pedro SA (Costa Rica)
	 
	4.	 	Enereurope Holdings III, B.V. (Netherlands)
	 
	5.	 	Olmec Insurance, Ltd. (Bermuda)
	 
	6.	 	Covanta Waste to Energy Asia Investments (Mauritius)
	 
	7.	 	Covanta Mauritius O&M Ltd. (Cayman Islands)
	 
	8.	 	Covanta Energy Asia Pacific Ltd. (Hong Kong)
	 
	9.	 	Covanta Energy (Thailand) Ltd. (Thailand)
	 
	10.	 	Pacific Hydropower Company
	 
	11.	 	Covanta SBR Associates
	 
	12.	 	Haverhill Power, LLC
	 
	13.	 	TransRiver Portsmouth LLC

SCHEDULE 1.1-1

 

SCHEDULE 2.2

TO PLEDGE AND SECURITY AGREEMENT

DESCRIPTION OF EXCLUDED INVESTMENT PROPERTY

None.

SCHEDULE 2.2-1

 

SCHEDULE 4.1

TO PLEDGE AND SECURITY AGREEMENT

GENERAL INFORMATION

	(A)	 	Full Legal Name, Type of Organization, Jurisdiction of Organization, Chief Executive
Office/Sole Place of Business (or Residence if Grantor is a Natural Person) and Organizational
Identification Number of each Grantor:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Jurisdiction of	 	Chief Executive	 	Principal Place	 	Organization
	Full Legal Name	 	Organization	 	Organization	 	Office	 	of Business	 	I.D.#
	Covanta Energy Corporation

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0371308	 
	8309 Tujunga Avenue Corp.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1415364	 
	Amor 14 Corporation

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0934789	 
	Burney Mountain Power

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1805093	 
	Covanta Acquisition, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2470550	 
	Covanta Bessemer, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2556526	 
	Covanta Cunningham Environmental Support, Inc.

	 	Corporation
	 	New York
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	N/A	 
	Covanta Energy Americas, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2418229	 
	Covanta Energy Construction, Inc

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3247112	 
	Covanta Energy Group, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2708045	 
	Covanta Energy International, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2554245	 
	Covanta Energy Resource Corp.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0952230	 
	Covanta Energy Services, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2225312	 
	Covanta Energy West, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3010023	 
	Covanta Engineering Services, Inc.

	 	Corporation
	 	New Jersey
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0100269861	 
	Covanta Geothermal Operations Holdings, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3100117	 
	Covanta Geothermal Operations, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2247464	 
	Covanta Haverhill Properties, Inc.

	 	Corporation
	 	Massachusetts
	 	40 Lane Road

Fairfield, NJ 07004
	 	100 Recovery Way

Haverhill, MA

01835
	 	 	133382130	 
	Covanta Heber Field Energy, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2247465	 

SCHEDULE 4.1-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Jurisdiction of	 	Chief Executive	 	Principal Place	 	Organization
	Full Legal Name	 	Organization	 	Organization	 	Office	 	of Business	 	I.D.#
	Covanta Hennepin Energy Resource Co., Limited
Partnership

	 	Limited Partnership
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	505 6th Avenue North

Minneapolis, MN 55405
	 	 	2048510	 
	Covanta Hillsborough, Inc.

	 	Corporation
	 	Florida
	 	40 Lane Road

Fairfield, NJ 07004
	 	350 Falkenberg Rd.
Tampa, FL 33619
	 	 	H16487	 
	Covanta Honolulu Resource Recovery Venture

	 	Partnership
	 	Hawaii
	 	40 Lane Road

Fairfield, NJ 07004
	 	91-174 Hanua St.
Kapolei, HI 96707
	 	 	10303 G5	 
	Covanta Huntsville, Inc.

	 	Corporation
	 	Alabama
	 	40 Lane Road

Fairfield, NJ 07004
	 	5251 Triana Blvd.
Huntsville, AL 35805
	 	 	D/C 123-860	 
	Covanta Hydro Energy, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2247463	 
	Covanta Hydro Operations West, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3266488	 
	Covanta Hydro Operations, Inc.

	 	Corporation
	 	Tennessee
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0223406	 
	Covanta Imperial Power Services, Inc.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1098520	 
	Covanta Kent, Inc.

	 	Corporation
	 	Michigan
	 	40 Lane Road

Fairfield, NJ 07004
	 	950 Market Ave. SW
Grand Rapids, MI 49503
	 	 	198201	 
	Covanta Lancaster, Inc.

	 	Corporation
	 	Pennsylvania
	 	40 Lane Road

Fairfield, NJ 07004
	 	1911 River Rd.
Bainbridge, PA 17502
	 	 	978004	 
	Covanta Lee, Inc.

	 	Corporation
	 	Florida
	 	40 Lane Road

Fairfield, NJ 07004
	 	10500 Buckingham Rd.
Suite 400

Fort Myers, FL 33905
	 	 	L53388	 
	Covanta Long Island, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2275573	 
	Covanta Marion Land Corp.

	 	Corporation
	 	Oregon
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	046416-84	 
	Covanta Marion, Inc.

	 	Corporation
	 	Oregon
	 	40 Lane Road

Fairfield, NJ 07004
	 	4850 Brookdale Road, NE

P.O Box 9126

Brooks, OR 97305
	 	 	164271-14	 
	Covanta Mid-Conn, Inc.

	 	Corporation
	 	Connecticut
	 	40 Lane Road

Fairfield, NJ 07004
	 	Reserve Rd. Gate 20-40
Hartford, CT 06114
	 	 	0280999	 
	Covanta Montgomery, Inc.

	 	Corporation
	 	Maryland
	 	40 Lane Road

Fairfield, NJ 07004
	 	16101 Frederick Rd.
Derwood, MD 20855
	 	 	D02905776	 
	Covanta New Martinsville Hydroelectric Corporation

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2084251	 
	Covanta New Martinsville Hydro-Operations Corporation

	 	Corporation
	 	West Virginia
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	N/A	 

SCHEDULE 4.1-2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Jurisdiction of	 	Chief Executive	 	Principal Place	 	Organization
	Full Legal Name	 	Organization	 	Organization	 	Office	 	of Business	 	I.D.#
	Covanta Oahu Waste Energy Recovery, Inc.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C0584241	 
	Covanta Onondaga Operations, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2441463	 
	Covanta Operations of Union, LLC

	 	Limited Liability Company
	 	New Jersey
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0600052953	 
	Covanta OPW Associates, Inc.

	 	Corporation
	 	Connecticut
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0223117	 
	Covanta OPWH, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2247028	 
	Covanta Otay 3 Company

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1913008	 
	Covanta Pasco, Inc.

	 	Corporation
	 	Florida
	 	40 Lane Road

Fairfield, NJ 07004
	 	14230 Hays Road

Spring Hill, FL 34610
	 	 	M67467	 
	Covanta Pinellas, Inc.

	 	Corporation
	 	Florida
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	H060002193383	 
	Covanta Plant Services of New Jersey, Inc.

	 	Corporation
	 	New Jersey
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0100468383	 
	Covanta Power Development, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2294046	 
	Covanta Power Development of Mauritius, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2517590	 
	Covanta Power Equity Corporation

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2214964	 
	Covanta Power International Holdings, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	Bangkok Office
1093/160 Central City Tower
Bldg. 30th Fl.
Bangna — Trad KM.3 Road
Bangna, Bangkok 10260, Thailand
	 	 	2460596	 
	Covanta Power Pacific, Inc.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	2825 & 2829 Childress Drive

Anderson, CA 96007
	 	 	C1174445	 
	Covanta Power Plant Operations

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1913009	 
	Covanta Projects of Hawaii, Inc.

	 	Corporation
	 	Hawaii
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	44074 D1	 
	Covanta Projects, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2034649	 
	Covanta RRS Holdings, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2316649	 
	Covanta Secure Services, LLC

	 	Limited Liability Company
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2099817	 
	Covanta SIGC Energy II, Inc.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1917122	 

SCHEDULE 4.1-3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Jurisdiction of	 	Chief Executive	 	Principal Place	 	Organization
	Full Legal Name	 	Organization	 	Organization	 	Office	 	of Business	 	I.D.#
	Covanta SIGC Energy, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2451258	 
	Covanta SIGC Geothermal Operations, Inc.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1826449	 
	Covanta Systems, LLC

	 	Limited Liability Company
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2006444	 
	Covanta Tampa Bay, Inc.

	 	Corporation
	 	Florida
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	P	00000113137	 
	Covanta Tampa Construction, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3496972	 
	Covanta Wallingford Associates, Inc.

	 	Corporation
	 	Connecticut
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0222936	 
	Covanta Warren Energy Resources Co., Limited
Partnership

	 	Limited Partnership
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2063265	 
	Covanta Warren Holdings I, Inc.

	 	Corporation
	 	Virginia
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	0296124-1	 
	Covanta Warren Holdings II, Inc.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1599932	 
	Covanta Waste to Energy, LLC

	 	Limited Liability Company
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2572858	 
	Covanta Water Holdings, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2403545	 
	Covanta Water Systems, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2373409	 
	Covanta Water Treatment Services, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2472730	 
	DSS Environmental, Inc.

	 	Corporation
	 	New York
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	N/A	 
	ERC Energy II, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3032718	 
	ERC Energy, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2006939	 
	Generating Resource Recovery Partners L.P.

	 	Limited Partnership
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C9123900007	 
	Heber Field Energy II, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3032715	 
	Heber Loan Partners

	 	General Partnership
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	N/A	 
	LMI, Inc.

	 	Corporation
	 	Massachusetts
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	042943947	 
	Mammoth Geothermal Company

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1571375	 
	Mammoth Power Company

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1875010	 
	Michigan Waste Energy, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	5700 Russell St.

Detroit, MI 48211
	 	 	2273531	 

SCHEDULE 4.1-4

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Jurisdiction of	 	Chief Executive	 	Principal Place	 	Organization
	Full Legal Name	 	Organization	 	Organization	 	Office	 	of Business	 	I.D.#
	MSW I Sub, LLC

	 	Limited Liability Company
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3847555	 
	Mt. Lassen Power

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	463-210 Mooney Road

Westwood, CA 96137
	 	 	C1805094	 
	Pacific Geothermal Company

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1265808	 
	Pacific Energy Operating Group, L.P.

	 	Limited Partnership
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C8934100020	 
	Pacific Oroville Power, Inc.

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	3050 S. Fifth Ave.
Oroville, CA 95966
	 	 	C1280758	 
	Pacific Recovery Corporation

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1549635	 
	Pacific Wood Fuels Company

	 	Corporation
	 	California
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	C1531985	 
	Three Mountain Operations, Inc.

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3247135	 
	Three Mountain Power, LLC

	 	Limited Liability Company
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2942568	 
	Covanta ARC Holdings, Inc. (f/k/a American Ref-Fuel
Holdings Corp.)

	 	Corporation
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3383342	 
	 

	 	 	 	 	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 07645
	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 07645	 	 	 	 
	Covanta Ref-Fuel Finance LLC (f/k/a Covanta Ref-Fuel
Corp.)

	 	Limited Liability Company
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	3008643	 
	 

	 	 	 	 	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 076455
	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 07645	 	 	 	 
	Covanta Ref-Fuel LLC (f/k/a Ref-Fuel LLC)

	 	Limited Liability Company
	 	Delaware
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	2799966	 
	 

	 	 	 	 	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 07645
	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 07645	 	 	 	 

SCHEDULE 4.1-5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Type of	 	Jurisdiction of	 	Chief Executive	 	Principal Place	 	Organization
	Full Legal Name	 	Organization	 	Organization	 	Office	 	of Business	 	I.D.#
	UAH Management Corp.

	 	Corporation
	 	New York
	 	40 Lane Road

Fairfield, NJ 07004
	 	40 Lane Road

Fairfield, NJ 07004
	 	 	N/A	 
	 

	 	 	 	 	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 07645
	 	Formerly: 155 Chestnut Ridge Road

Montvale, NJ 07645	 	 	 	 

	 	(B)	 	Other Legal Names of each Grantor in the past five (5) years:
	 
	 	 	 	See prior legal names as described on Schedule 4.1(C).
	 
	 	(C)	 	Changes in Name, Jurisdiction of Organization, Chief Executive Office or Sole Place of
Business (or Principal Residence if Grantor is a Natural Person) and Corporate Structure
within past five (5) years:

	 	 	 	 	 
	Name of Grantor	 	Description of Change	 	Date of Change
	Covanta ARC Holdings, Inc.

	 	Name Change from: United American Energy Holdings Corp.
	 	10/15/2004
	 

	 	Name Change from: American Ref-Fuel Holdings Corp.
	 	8/10/2005
	Covanta Energy Americas, Inc.

	 	Name Change from: Ogden Power Corporation
	 	3/14/2002
	Covanta Energy Services, Inc.

	 	Name Change from: Ogden Resource Recovery Support Services, Inc.
	 	3/14/2002
	Covanta Otay 3 Company

	 	Name Change from: Pacific Wood Services Company
	 	5/23/2005
	Covanta Ref-Fuel Finance LLC

	 	Name Change from: United American Energy Corp. (De Corp.)
	 	10/18/2004
	 

	 	Name Change from: Ref-Fuel Corp.
	 	7/20/2005
	 

	 	Name Change from: Covanta Ref-Fuel Corp.
	 	1/1/2007
	Covanta Ref-Fuel LLC

	 	Name Change from: UAE Ref-Fuel LLC
	 	9/15/2004
	 

	 	Name Change from: Ref-Fuel LLC
	 	7/20/2005
	Covanta Secure Services, LLC

	 	Name Change from: Covanta Secure Services, Inc.
	 	7/1/2005
	Covanta Systems, LLC

	 	Name Change from: Covanta Systems, Inc.
	 	3/4/2004
	Covanta Warren Holdings I, Inc.

	 	Name Change from: Covanta Equity of Alexandria/Arlington, Inc.
	 	3/19/2004
	Covanta Warren Holdings II, Inc.

	 	Name Change from: Covanta Equity of Stanislaus, Inc.
	 	3/18/2004
	Covanta Waste to Energy, LLC

	 	Name Change from: Covanta Waste to Energy, Inc.
	 	3/4/2004

	 	(D)	 	Agreements which have not heretofore been terminated pursuant to which any Grantor is
bound as debtor within past five (5) years:

SCHEDULE 4.1-6

 

     None.

	 	(E)	 	Financing Statements:

	 	 	 
	Name of Grantor 	 	Filing Jurisdiction
	Covanta Energy Corporation

	 	Delaware
	8309 Tujunga Avenue Corp.

	 	California
	AMOR 14 Corporation

	 	Delaware
	Burney Mountain Power

	 	California
	Covanta Acquisition, Inc.

	 	Delaware
	Covanta Bessemer, Inc.

	 	Delaware
	Covanta Cunningham Environmental Support, Inc.

	 	New York
	Covanta Energy Americas, Inc.

	 	Delaware
	Covanta Energy Construction, Inc.

	 	Delaware
	Covanta Energy Group, Inc.

	 	Delaware
	Covanta Energy International, Inc.

	 	Delaware
	Covanta Energy Resource Corp.

	 	Delaware
	Covanta Energy Services, Inc.

	 	Delaware
	Covanta Energy West, Inc.

	 	Delaware
	Covanta Engineering Services, Inc.

	 	New Jersey
	Covanta Geothermal Operations Holdings, Inc.

	 	Delaware
	Covanta Geothermal Operations, Inc.

	 	Delaware
	Covanta Haverhill Properties, Inc.

	 	Massachusetts
	Covanta Heber Field Energy, Inc.

	 	Delaware
	Covanta Hennepin Energy Resource Co., Limited Partnership

	 	Delaware
	Covanta Hillsborough, Inc.

	 	Florida
	Covanta Honolulu Resource Recovery Venture

	 	Hawaii
	Covanta Huntsville, Inc.

	 	Alabama
	Covanta Hydro Energy, Inc.

	 	Delaware
	Covanta Hydro Operations West, Inc.

	 	Delaware
	Covanta Hydro Operations, Inc.

	 	Tennessee
	Covanta Imperial Power Services, Inc.

	 	California
	Covanta Kent, Inc.

	 	Michigan
	Covanta Lancaster, Inc.

	 	Pennsylvania
	Covanta Lee, Inc.

	 	Florida
	Covanta Long Island, Inc.

	 	Delaware
	Covanta Marion Land Corp.

	 	Oregon
	Covanta Marion, Inc.

	 	Oregon
	Covanta Mid-Conn, Inc.

	 	Connecticut
	Covanta Montgomery, Inc.

	 	Maryland
	Covanta New Martinsville Hydroelectric Corporation

	 	Delaware
	Covanta New Martinsville Hydro-Operations Corporation

	 	West Virginia
	Covanta Oahu Waste Energy Recovery, Inc.

	 	California
	Covanta Onondaga Operations, Inc.

	 	Delaware
	Covanta Operations of Union, LLC

	 	New Jersey
	Covanta OPW Associates, Inc.

	 	Connecticut
	Covanta OPWH, Inc.

	 	Delaware
	Covanta Otay 3 Company

	 	California
	Covanta Pasco, Inc.

	 	Florida
	Covanta Pinellas, Inc.

	 	Florida
	Covanta Plant Services of New Jersey, Inc.

	 	New Jersey
	Covanta Power Development, Inc.

	 	Delaware
	Covanta Power Development of Mauritius, Inc.

	 	Delaware

SCHEDULE 4.1-7

 

	 	 	 
	Name of Grantor 	 	Filing Jurisdiction
	Covanta Power Equity Corporation

	 	Delaware
	Covanta Power International Holdings, Inc.

	 	Delaware
	Covanta Power Pacific, Inc.

	 	California
	Covanta Power Plant Operations

	 	California
	Covanta Projects of Hawaii, Inc.

	 	Hawaii
	Covanta Projects, Inc.

	 	Delaware
	Covanta RRS Holdings, Inc.

	 	Delaware
	Covanta Secure Services, LLC

	 	Delaware
	Covanta SIGC Energy II, Inc.

	 	California
	Covanta SIGC Energy, Inc.

	 	Delaware
	Covanta SIGC Geothermal Operations, Inc.

	 	California
	Covanta Systems, LLC

	 	Delaware
	Covanta Tampa Bay, Inc.

	 	Florida
	Covanta Tampa Construction, Inc.

	 	Delaware
	Covanta Wallingford Associates, Inc.

	 	Connecticut
	Covanta Warren Energy Resource Co., Limited Partnership

	 	Delaware
	Covanta Warren Holdings I, Inc.

	 	Virginia
	Covanta Warren Holdings II, Inc.

	 	California
	Covanta Waste to Energy, LLC

	 	Delaware
	Covanta Water Holdings, Inc.

	 	Delaware
	Covanta Water Systems, Inc.

	 	Delaware
	Covanta Water Treatment Services, Inc.

	 	Delaware
	DSS Environmental, Inc.

	 	New York
	ERC Energy II, Inc.

	 	Delaware
	ERC Energy, Inc.

	 	Delaware
	Generating Resource Recovery Partners L.P.

	 	California
	Heber Field Energy II, Inc.

	 	Delaware
	Heber Loan Partners

	 	New Jersey
	LMI, Inc.

	 	Massachusetts
	Mammoth Geothermal Company

	 	California
	Mammoth Power Company

	 	California
	Michigan Waste Energy, Inc.

	 	Delaware
	MSW I Sub, LLC

	 	Delaware
	Mt. Lassen Power

	 	California
	Pacific Energy Operating Group, L.P.

	 	California
	Pacific Geothermal Company

	 	California
	Pacific Oroville Power, Inc.

	 	California
	Pacific Recovery Corporation

	 	California
	Pacific Wood Fuels Company

	 	California
	Three Mountain Operations, Inc.

	 	Delaware
	Three Mountain Power, LLC

	 	Delaware
	Covanta ARC Holdings, Inc. (f/k/a American Ref-Fuel Holdings Corp.)

	 	Delaware
	Covanta Ref-Fuel Finance LLC (f/k/a Covanta Ref-Fuel Corp.)

	 	Delaware
	Covanta Ref-Fuel LLC (f/k/a Ref-Fuel LLC)

	 	Delaware
	UAH Management Corp.

	 	New York

	(F)	 	Actions and Consents:

     None.

SCHEDULE 4.1-8

 

SCHEDULE 4.1.A.1

TO PLEDGE AND SECURITY AGREEMENT

CERTAIN COMPANY NAME CHANGES

None.

SCHEDULE 4.1.A.1-1

 

SCHEDULE 4.2

TO PLEDGE AND SECURITY AGREEMENT

LOCATION OF EQUIPMENT AND INVENTORY

	 	 	 
	Name of Grantor	 	Location of Equipment and Inventory
	Covanta Hennepin Energy Resource Co., Limited Partnership

	 	417 North 5th Street

Minneapolis, MN 55401
	 
	 	 
	 

	 	505 6th Avenue North

Minneapolis, MN 55405
	 
	 	 
	Mt. Lassen Power

	 	463-210 Mooney Road

Westwood, California 96137
	 
	 	 
	Pacific Oroville Power, Inc.

	 	3050 S. Fifth Avenue

Oroville, California 95966
	 
	 	 
	8309 Tujunga Avenue Corp.

	 	9075 S. Austin Rd.

Stockton, CA 95305
	 
	 	 
	Burney Mountain Power

	 	Hwy 299 E

37800 Energy Drive

Burney, CA 96013
	 
	 	 
	Covanta Haverhill Properties, Inc.

	 	100 Recovery Way

Haverhill, MA

01835
	 
	 	 
	Covanta Hillsborough, Inc.

	 	350 Falkenberg Rd.

Tampa, FL 33619
	 
	 	 
	Covanta Honolulu Resource Recovery Venture

	 	91-174 Hanua St.

Kapolei, HI 96707
	 
	 	 
	Covanta Huntsville, Inc.

	 	5251 Triana Blvd.

Huntsville, AL 35805
	 
	 	 
	Covanta Kent, Inc.

	 	950 Market Ave. SW

Grand Rapids, MI 49503
	 
	 	 
	Covanta Lancaster, Inc.

	 	1911 River Rd.

Bainbridge, PA 17502
	 
	 	 
	Covanta Lee, Inc.

	 	10500 Buckingham Rd.

Suite 400

Fort Myers, FL 33905
	 
	 	 
	Covanta Marion, Inc.

	 	4850 Brookdale Road, NE

P.O Box 9126

Brooks, OR 97305
	 
	 	 
	Covanta Mid-Conn, Inc.

	 	Reserve Rd. Gate 20-40

Hartford, CT 06114
	 
	 	 
	Covanta Montgomery, Inc.

	 	16101 Frederick Rd.

Derwood, MD 20855
	 
	 	 
	Covanta Pasco, Inc.

	 	14230 Hays Road

Spring Hill, FL 34610

SCHEDULE 4.2-1

 

	 	 	 
	Name of Grantor	 	Location of Equipment and Inventory
	Covanta Power International Holdings, Inc.

	 	Bangkok Office

1093/160 Central City Tower Bldg. 30th Fl.

Bangna — Trad KM.3 Road

Bangna, Bangkok 10260, Thailand
	 
	 	 
	Covanta Power Pacific, Inc.

	 	12110 E. Slauson Avenue

Unite 8-9

Santa Fe Springs, CA 90670
	 
	 	 
	 

	 	2825 and 2829 Childress Dr.

Anderson, CA
	 
	 	 
	 

	 	350 Crazy Horse Road

Salinas, CA 93907
	 
	 	 
	 

	 	1600 Maxwell Rd.

Chula Vista, CA 91911
	 
	 	 
	 

	 	2501 N. Ventura Rd.

Oxnard, CA 93030
	 
	 	 
	 

	 	9075 S. Austin Rd.

Stockton, CA 95305
	 
	 	 
	Michigan Waste Energy, Inc.

	 	5700 Russell St.

Detroit, MI 48211
	 
	 	 
	Pacific Recovery Corporation

	 	350 Crazy Horse Road

Salinas, CA 93907
	 
	 	 
	 

	 	1600 Maxwell Rd.

Chula Vista, CA 91911
	 
	 	 
	 

	 	2501 N. Ventura Rd.

Oxnard, CA 93030
	 
	 	 
	Covanta Warren Energy Resource Co., Limited Partnership

	 	218 Mt. Pisgah Avenue

Oxford, NJ 07863

SCHEDULE 4.2
- 2

 

SCHEDULE 4.4

TO PLEDGE AND SECURITY AGREEMENT

INVESTMENT PROPERTY

     (A) Pledged Stock, Pledged LLC Interests and Pledged Partnership Interests

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Power Pacific, Inc.

	 	8309 Tujunga Avenue Corp.
	 	Common
	 	Y
	 	 	3	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta SIGC Energy, Inc.

	 	Amor 14 Corporation
	 	Common
	 	Y
	 	 	10	 	 	$	1.00	 	 	 	5000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Burney Mountain Power
	 	Common
	 	Y
	 	 	4	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Water Systems, Inc.

	 	Covanta Acquisition, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Alexandria/Arlington,
Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Babylon, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Water Systems, Inc.

	 	Covanta Bessemer, Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Bristol, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Acquisition, Inc.

	 	Covanta Cunningham
Environmental Support, Inc.
	 	Common
	 	Y
	 	 	3	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy West, Inc.

	 	Covanta Energy Americas, Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Energy Construction,
Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Corporation

	 	Covanta Energy Group, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 

SCHEDULE 4.4-1

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Projects, Inc.

	 	Covanta Energy International,
Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta Energy Resource Corp.
	 	Common
	 	Y
	 	 	7	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta Energy Services, Inc.
	 	Common
	 	Y
	 	 	7	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy International, Inc.

	 	Covanta Energy West, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Engineering Services,
Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Warren Holdings I,
Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Warren Holdings II,
Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Fairfax, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Geothermal Operations
Holdings, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Geothermal Operations,
Inc.
	 	Common
	 	Y
	 	 	5	 	 	None
	 	 	1500	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Haverhill Properties,
Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Haverhill, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Equity Corporation

	 	Covanta Heber Field Energy,
Inc.
	 	Common
	 	Y
	 	 	6	 	 	None
	 	 	1500	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Hillsborough, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 

SCHEDULE 4.4-2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Systems, LLC

	 	Covanta Huntington Resource
Recovery One Corp.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Huntington Resource
Recovery Seven Corp.
	 	Common
	 	Y
	 	 	2	 	 	None
	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Huntsville, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Equity Corporation

	 	Covanta Hydro Energy, Inc.
	 	Common
	 	Y
	 	 	5	 	 	None
	 	 	1500	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Hydro Operations West,
Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Hydro Operations, Inc.
	 	Common
	 	Y
	 	 	5	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Imperial Power
Services, Inc.
	 	Common
	 	Y
	 	 	6	 	 	None
	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Indianapolis, Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Kent, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Lake II, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	.001	 	 	 	750	 	 	 	75	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Lancaster, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Lee, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Long Island, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Marion Land Corp.
	 	Common
	 	Y
	 	 	2	 	 	None
	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Marion, Inc.
	 	Common
	 	Y
	 	 	3	 	 	None
	 	 	10	 	 	 	100	 

SCHEDULE 4.4-3

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta RRS Holdings, Inc.

	 	Covanta Mid-Conn, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Montgomery, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Equity Corporation

	 	Covanta New Martinsville

Hydroelectric Corporation
	 	Common
	 	Y
	 	 	7	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta New Martinsville

Hydro-Operations Corporation
	 	Common
	 	Y
	 	 	6	 	 	$	0.01	 	 	 	400	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta RRS Holdings, Inc.

	 	Covanta Oahu Waste Energy
Recovery, Inc.
	 	Common
	 	Y
	 	 	2	 	 	None
	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Onondaga Five Corp.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Onondaga Four Corp.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Onondaga Operations,
Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Onondaga Three Corp.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Onondaga Two Corp.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Onondaga, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta OPW Associates, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta OPWH, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Pasco, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Pinellas, Inc.
	 	Common
	 	Y
	 	 	1	 	 	$	1.00	 	 	 	100	 	 	 	100	 

SCHEDULE 4.4-4

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Energy Services, Inc.

	 	Covanta Plant Services of New
Jersey, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Power Equity

Corporation
	 	Common Class A
	 	Y
	 	 	A5	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Power International
Holdings, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta Power Pacific, Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Covanta Power Plant Operations
	 	Common
	 	Y
	 	 	6	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta RRS Holdings, Inc.

	 	Covanta Projects of Hawaii,
Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Group, Inc.

	 	Covanta Projects, Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	0.50	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta RRS Holdings, Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta Secure Services, LLC
	 	Common
	 	Y
	 	 	7	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta SIGC Energy, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta SIGC Energy II, Inc.
	 	Common
	 	Y
	 	 	3	 	 	None
	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Covanta SIGC Geothermal
Operations, Inc.
	 	Common
	 	Y
	 	 	3	 	 	None
	 	 	500	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Stanislaus, Inc.
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta Systems, LLC
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 

SCHEDULE 4.4-5

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Water Systems, Inc.

	 	Covanta Tampa Bay, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Water Systems, Inc.

	 	Covanta Tampa Construction,
Inc.
	 	Common
	 	Y
	 	 	1	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Systems, LLC

	 	Covanta Union, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta Wallingford
Associates, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Projects, Inc.

	 	Covanta Waste to Energy, LLC
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Projects, Inc.

	 	Covanta Water Holdings, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Water Holdings, Inc.

	 	Covanta Water Systems, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Water Holdings, Inc.

	 	Covanta Water Treatment
Services, Inc.
	 	Common
	 	Y
	 	 	5	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Equity Corporation

	 	ERC Energy II, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Equity Corporation

	 	ERC Energy, Inc.
	 	Common
	 	Y
	 	 	8	 	 	$	0.05	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Equity Corporation

	 	Heber Field Energy II, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Mammoth Geothermal Company
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Mammoth Power Company
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta RRS Holdings, Inc.

	 	Michigan Waste Energy, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Mt. Lassen Power
	 	Common
	 	Y
	 	 	4	 	 	$	1.00	 	 	 	10	 	 	 	100	 

SCHEDULE 4.4-6

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Power Pacific, Inc.

	 	Pacific Energy Resources

Incorporated
	 	Common
	 	Y
	 	 	4	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Pacific Power, Inc.

	 	Covanta Pacific Geothermal

Company
	 	Common
	 	Y
	 	 	5	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Pacific Oroville Power, Inc.
	 	Common
	 	Y
	 	 	4	 	 	None
	 	 	1000	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Pacific Recovery Corporation
	 	Common
	 	Y
	 	 	4	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Pacific Wood Fuels Company
	 	Common
	 	Y
	 	 	4	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Penstock Power Company
	 	Common
	 	Y
	 	 	4	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Covanta Otay 3 Company
	 	Common
	 	Y
	 	 	4	 	 	None
	 	 	10	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Three Mountain Operations, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Americas, Inc.

	 	Three Mountain Power, LLC
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Resource Corp.

	 	Covanta Hennepin Energy
Resource Co., Limited
Partnership
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	99	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta OPWH, Inc.

	 	Covanta Hennepin Energy
Resource Co., Limited
Partnership
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Projects of Hawaii, Inc.

	 	Covanta Honolulu Resource

Recovery Venture
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 

SCHEDULE 4.4-7

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Oahu Waste Energy Recovery, Inc.

	 	Covanta Honolulu Resource

Recovery Venture
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Projects, Inc.

	 	Covanta Operations of Union,
LLC
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	99	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Waste to Energy, LLC

	 	Covanta Operations of Union,
LLC
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta OPW Associates, Inc.

	 	Covanta Projects of
Wallingford, L.P.
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	2	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Wallingford Associates, Inc.

	 	Covanta Projects of
Wallingford, L.P.
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	98	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Warren Holdings I, Inc.

	 	Covanta Warren Energy Resource
Co., Limited Partnership
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	99	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Warren Holdings II, Inc.

	 	Covanta Warren Energy Resource
Co., Limited Partnership
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	1	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Water Systems, Inc.

	 	DSS Environmental, Inc.
	 	Common
	 	Y
	 	 	51	 	 	None
	 	 	90	 	 	 	90	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pacific Recovery Corporation

	 	Generating Resource Recovery
Partners L.P.
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Pacific, Inc.

	 	Generating Resource Recovery
Partners L.P.
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ERC Energy, Inc.

	 	Heber Loan Partners
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	ERC Energy II, Inc.

	 	Heber Loan Partners
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Pacific Recovery Corporation

	 	Pacific Energy Operating
Group, L.P.
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 

SCHEDULE 4.4-8

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Power Pacific, Inc.

	 	Pacific Energy Operating
Group, L.P.
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	50	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power International Holdings, Inc.

	 	Covanta Energy International
Investments Limited (f/k/a
Covanta Energy India
Investments Ltd.)
	 	Ordinary
	 	Y
	 	 	8	 	 	$	1.00	 	 	 	13	 	 	 	65	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power International Holdings, Inc.

	 	Covanta Energy Philippines
Holdings, Inc.
	 	Not stated
	 	Y
	 	 	12	 	 	Not stated
	 	 	34,194	 	 	 	65	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power Development, Inc.

	 	Covanta Power Development of
Mauritius, Inc.
	 	Common
	 	Y
	 	 	3	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power International Holdings, Inc.

	 	Covanta Power Development,
Inc.
	 	Common
	 	Y
	 	 	5	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Power International Holdings, Inc.

	 	Covanta Waste to Energy of
Italy, Inc.
	 	Common
	 	Y
	 	 	2	 	 	$	1.00	 	 	 	100	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Energy Corporation

	 	Covanta ARC Holdings, Inc.
(f/k/a American Ref-Fuel
Holdings Corp.)
	 	Common
	 	Y
	 	 	1	 	 	$	0.001	 	 	 	263,987	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta ARC Holdings, Inc. (f/k/a American
Ref-Fuel Holdings Corp.)

	 	Covanta Ref-Fuel Finance LLC
(f/k/a Covanta Ref-Fuel Corp.)
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Ref-Fuel Finance LLC (f/k/a Covanta
Ref-Fuel Corp.)

	 	Covanta Ref-Fuel LLC (f/k/a

Covanta Ref-Fuel LLC)
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 

SCHEDULE 4.4
- 9

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	% of
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Outstanding
	 	 	 	 	 	 	 	 	Stock	 	 	 	 	 	No. of	 	Stock of
	 	 	 	 	Class of	 	Certificated	 	Certificate	 	Par	 	Pledged	 	the Stock
	Grantor	 	Stock Issuer	 	Stock	 	(Y/N)	 	No.	 	Value	 	Shares	 	Issuer
	Covanta Ref-Fuel LLC (f/k/a Covanta 

Ref-Fuel LLC)

	 	MSW Energy Holdings II LLC
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta ARC Holdings, Inc. (f/k/a American
Ref-Fuel Holdings Corp.)

	 	MSW I Sub, LLC (f/k/a MSW I
Sub, Inc.)
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta ARC Holdings, Inc. (f/k/a American
Ref-Fuel Holdings Corp.)

	 	MSW Energy Holdings LLC
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	98.315	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Covanta Ref-Fuel Finance LLC

	 	UAH Management Corp.
	 	N/A
	 	N
	 	 	N/A	 	 	 	N/A	 	 	 	N/A	 	 	 	100	 

     Pledged Trust Interests: None.

     Pledged Debt:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Original Principal	 	Outstanding	 	 	 	 
	Grantor	 	Issuer	 	Amount	 	Principal Balance	 	Issue Date	 	Maturity Date
	Each Grantor, as 

Payee

	 	Each Grantor, as

Maker
	 	N/A
	 	N/A
	 	Closing Date
	 	Demand

     (B) CERTIFICATED LLCs/PARTNERSHIP INTERESTS

     None.

SCHEDULE 4.4-10

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]