Document:

Exhibit 10.10

 

Exhibit 10.10

AMENDMENT TO CONFIRMATION

     THIS AMENDMENT (this “Amendment”) is made as of August 3, 2007, between Bank of America, N.A.
(“Dealer”) and Horizon Lines, Inc. (“Issuer”).

     WHEREAS, Dealer and Issuer are parties to a Confirmation dated as of August 1, 2007 (the
“Confirmation”) evidencing an Issuer Warrant Transaction with the Reference Number NY-30801;

     WHEREAS, the parties wish to amend the Confirmation on the terms and conditions set forth in
this Amendment;

     NOW, THEREFORE, in consideration of their mutual covenants herein contained, the parties
hereto agree as follows:

     Section 1. Terms Used but Not Defined Herein. Terms used but not defined herein shall have
the respective meanings given to them in the Confirmation.

     Section 2. Amendment to the Confirmation.

	 	(a)	 	The “Premium” under the Confirmation shall be USD 3,587,463.00. For the
avoidance of doubt, the Premium per Warrant set forth in the Confirmation shall remain
unchanged.
	 
	 	(b)	 	The “Number of Warrants” under Annex A shall be 26,664 for Components 1 through
99 and 26,720 for Component 100.

     Section 3. Representations and Warranties.

     Issuer represents and warrants to Dealer as follows:

	 	(a)	 	On the date of this Amendment, (A) none of Issuer and its officers and
directors is aware of any material nonpublic information regarding Issuer or the Shares
and (B) the registration statement filed by Issuer with the Securities and Exchange
Commission (“SEC”) and became effective in accordance with the Securities Act of 1933,
as amended (the “Securities Act”), including all the documents filed by Issuer pursuant
to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and
incorporated by reference therein, does not contain any untrue statement of a material
fact or any omission of a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances in which they were made,
not misleading.
	 
	 	(b)	 	Issuer is not entering into this Amendment to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or
to raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange
Act.
	 
	 	(c)	 	The representations and warranties of Issuer set forth in Section 3 of the
Agreement and Section 7 of the Confirmation are true and correct and are hereby deemed
to be repeated to Dealer as if set forth herein.

     Section 4. Effectiveness. This Amendment shall become effective upon execution by the
parties hereto.

     Section 5. Counterparts. This Amendment may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if all of the signatures thereto and hereto
were upon the same instrument.

 

 

     Section 6. Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of the State of New York.

     Section 7. Effectiveness of Confirmation. Except as amended hereby, all the terms of the
Confirmation shall remain and continue in full force and effect and are hereby confirmed in all
respects.

2

 

     IN WITNESS WHEREOF, the parties have signed this Amendment as of the date and year first
above written.

	 	 	 	 	 	 	 
	 	 	Yours faithfully,	 	 
	 
	 	 	 	 	 	 
	 	 	BANK OF AMERICA, N.A.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

Agreed and Accepted By:

HORIZON LINES, INC.

	 	 	 	 	 
	By:

	 	/s/ Robert S. Zuckerman
 

	 	 
	 

	 	Name: Robert S. Zuckerman	 	 
	 

	 	Title: SecretaryExhibit 10.11

 

Exhibit 10.11

AMENDMENT TO CONFIRMATION

     THIS AMENDMENT (this “Amendment”) is made as of August 3, 2007, between Wachovia Capital
Markets, LLC, solely as agent of Wachovia Bank, National Association (“Dealer”) and Horizon Lines,
Inc. (“Issuer”).

     WHEREAS, Dealer and Issuer are parties to a Confirmation dated as of August 1, 2007 (the
“Confirmation”) evidencing an Issuer Warrant Transaction;

     WHEREAS, the parties wish to amend the Confirmation on the terms and conditions set forth in
this Amendment;

     NOW, THEREFORE, in consideration of their mutual covenants herein contained, the parties
hereto agree as follows:

     Section 1. Terms Used but Not Defined Herein. Terms used but not defined herein shall have
the respective meanings given to them in the Confirmation.

     Section 2. Amendment to the Confirmation.

	 	(a)	 	The “Premium” under the Confirmation shall be USD 3,587,463.00. For the
avoidance of doubt, the Premium per Warrant set forth in the Confirmation shall remain
unchanged.
	 
	 	(b)	 	The “Number of Warrants” under Annex A shall be 26,664 for Components 1 through
99 and 26,720 for Component 100.

     Section 3. Representations and Warranties.

     Issuer represents and warrants to Dealer as follows:

	 	(a)	 	On the date of this Amendment, (A) none of Issuer and its officers and
directors is aware of any material nonpublic information regarding Issuer or the Shares
and (B) the registration statement filed by Issuer with the Securities and Exchange
Commission (“SEC”) and became effective in accordance with the Securities Act of 1933,
as amended (the “Securities Act”), including all the documents filed by Issuer pursuant
to the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and
incorporated by reference therein, does not contain any untrue statement of a material
fact or any omission of a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances in which they were made,
not misleading.
	 
	 	(b)	 	Issuer is not entering into this Amendment to create actual or apparent trading
activity in the Shares (or any security convertible into or exchangeable for Shares) or
to raise or depress or otherwise manipulate the price of the Shares (or any security
convertible into or exchangeable for Shares) or otherwise in violation of the Exchange
Act.
	 
	 	(c)	 	The representations and warranties of Issuer set forth in Section 3 of the
Agreement and Section 7 of the Confirmation are true and correct and are hereby deemed
to be repeated to Dealer as if set forth herein.

     Section 4. Effectiveness. This Amendment shall become effective upon execution by the
parties hereto.

 

 

     Section 5. Counterparts. This Amendment may be signed in any number of counterparts, each of
which shall be an original, with the same effect as if all of the signatures thereto and hereto
were upon the same instrument.

     Section 6. Governing Law. This Amendment shall be governed by and construed in accordance
with the laws of the State of New York.

     Section 7. Effectiveness of Confirmation. Except as amended hereby, all the terms of the
Confirmation shall remain and continue in full force and effect and are hereby confirmed in all
respects.

2

 

     IN WITNESS WHEREOF, the parties have signed this Amendment as of the date and year first above
written.

	 	 	 	 	 	 	 
	 	 	WACHOVIA BANK, NATIONAL ASSOCIATION  
	 
	 	 	 	 	 	 
	 	 	By: Wachovia Capital Markets, LLC, acting solely in its capacity as its

Agent
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Cathleen Burke	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	Cathleen Burke	 	 
	 

	 	Title:	 	Managing Director	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL MARKETS, LLC, acting solely in its
capacity as Agent of Wachovia Bank, National Association	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Cathleen Burke	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Cathleen Burke	 	 
	 

	 	Title:
	 	Managing Director	 	 

Agreed and Accepted By:

HORIZON LINES, INC.

	 	 	 	 	 
	By:

	 	/s/ Robert S. Zuckerman	 	 
	 

	 	 

Name: Robert S. Zuckerman
	 	 
	 

	 	Title: SecretaryExhibit 10.12

 

Exhibit 10.12

	 		
	
	 	

Published CUSIP Number: 44043LAA8

EXECUTION COPY

$375,000,000

CREDIT AGREEMENT

among

HORIZON LINES, INC.,

as Borrower,

CERTAIN SUBSIDIARIES OF THE BORROWER

FROM TIME TO TIME PARTIES HERETO,

as Guarantors,

THE LENDERS PARTIES HERETO,

BANK OF AMERICA, N.A.,

as Syndication Agent,

GOLDMAN SACHS CREDIT PARTNERS L.P.,

LASALLE BANK, NATIONAL ASSOCIATION and

JPMORGAN CHASE BANK, N.A.,

as Joint Documentation Agents,

and

WACHOVIA BANK, NATIONAL ASSOCIATION,

as Administrative Agent

Dated as of August 8, 2007

WACHOVIA CAPITAL MARKETS, LLC, and

BANC OF AMERICA SECURITIES LLC,

as Joint Lead Arrangers

WACHOVIA CAPITAL MARKETS, LLC,

BANC OF AMERICA SECURITIES LLC and

GOLDMAN SACHS CREDIT PARTNERS L.P.,

as Joint Bookrunners

Prepared by:

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I DEFINITIONS
	 	 	1	 
	Section 1.1 Defined Terms
	 	 	1	 
	Section 1.2 Other Definitional Provisions
	 	 	35	 
	Section 1.3 Accounting Terms
	 	 	35	 
	Section 1.4 Time References
	 	 	36	 
	 
	 	 	 	 
	ARTICLE II THE LOANS; AMOUNT AND TERMS
	 	 	36	 
	Section 2.1 Revolving Loans
	 	 	36	 
	Section 2.2 Term Loan
	 	 	38	 
	Section 2.3 Letter of Credit Subfacility
	 	 	40	 
	Section 2.4 Swingline Loan Subfacility
	 	 	44	 
	Section 2.5 Incremental Facility
	 	 	46	 
	Section 2.6 Fees
	 	 	47	 
	Section 2.7 Commitment Reductions
	 	 	47	 
	Section 2.8 Prepayments
	 	 	48	 
	Section 2.9 Default Rate and Payment Dates
	 	 	51	 
	Section 2.10 Conversion/Extension Options
	 	 	51	 
	Section 2.11 Computation of Interest and Fees; Usury
	 	 	52	 
	Section 2.12 Pro Rata Treatment and Payments
	 	 	53	 
	Section 2.13 Non-Receipt of Funds by the Administrative Agent
	 	 	56	 
	Section 2.14 Inability to Determine Interest Rate
	 	 	57	 
	Section 2.15 Illegality
	 	 	57	 
	Section 2.16 Requirements of Law; Yield Protection
	 	 	58	 
	Section 2.17 Indemnity; Eurocurrency Liabilities
	 	 	60	 
	Section 2.18 Taxes
	 	 	60	 
	Section 2.19 Indemnification; Nature of Issuing Lender’s Duties
	 	 	63	 
	Section 2.20 Replacement of Lenders
	 	 	64	 
	 
	 	 	 	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	65	 
	Section 3.1 Financial Condition
	 	 	66	 
	Section 3.2 No Material Adverse Effect
	 	 	66	 
	Section 3.3 Corporate Existence; Compliance with Law
	 	 	67	 
	Section 3.4 Corporate Power; Authorization; Enforceable Obligations
	 	 	67	 
	Section 3.5 No Legal Bar; No Default
	 	 	67	 
	Section 3.6 No Material Litigation
	 	 	68	 
	Section 3.7 Investment Company Act
	 	 	68	 
	Section 3.8 Margin Regulations
	 	 	68	 
	Section 3.9 ERISA
	 	 	68	 
	Section 3.10 Environmental Matters
	 	 	69	 
	Section 3.11 Use of Proceeds
	 	 	70	 
	Section 3.12 Subsidiaries; Joint Ventures; Partnerships
	 	 	70	 
	Section 3.13 Ownership
	 	 	71	 
	Section 3.14 Taxes
	 	 	71	 
	Section 3.15 Intellectual Property Rights
	 	 	71	 
	Section 3.16 Solvency
	 	 	72	 

i 

 

	 	 	 	 	 
	 	 	Page
	Section 3.17 Location of Collateral
	 	 	72	 
	Section 3.18 No Burdensome Restrictions
	 	 	72	 
	Section 3.19 Brokers’ Fees
	 	 	73	 
	Section 3.20 Labor Matters
	 	 	73	 
	Section 3.21 Accuracy and Completeness of Information
	 	 	73	 
	Section 3.22 Insurance
	 	 	73	 
	Section 3.23 Security Documents
	 	 	73	 
	Section 3.24 Classification of Senior Indebtedness
	 	 	74	 
	Section 3.25 Anti-Terrorism Laws
	 	 	74	 
	Section 3.26 Compliance with OFAC Rules and Regulations
	 	 	74	 
	Section 3.27 Compliance with FCPA
	 	 	75	 
	Section 3.28 Consent; Governmental Authorizations
	 	 	75	 
	Section 3.29 Vessels
	 	 	75	 
	Section 3.30 Qualification
	 	 	76	 
	 
	 	 	 	 
	ARTICLE IV CONDITIONS PRECEDENT
	 	 	76	 
	Section 4.1 Conditions to Closing Date
	 	 	76	 
	Section 4.2 Conditions to All Extensions of Credit
	 	 	83	 
	 
	 	 	 	 
	ARTICLE V AFFIRMATIVE COVENANTS
	 	 	84	 
	Section 5.1 Financial Statements
	 	 	85	 
	Section 5.2 Certificates; Other Information
	 	 	86	 
	Section 5.3 Payment of Taxes and Other Obligations
	 	 	87	 
	Section 5.4 Conduct of Business and Maintenance of Existence
	 	 	87	 
	Section 5.5 Maintenance of Property; Insurance
	 	 	87	 
	Section 5.6 Inspection of Property; Books and Records; Discussions
	 	 	88	 
	Section 5.7 Notices
	 	 	88	 
	Section 5.8 Environmental Laws
	 	 	90	 
	Section 5.9 Additional Guarantors
	 	 	90	 
	Section 5.10 Compliance with Law
	 	 	91	 
	Section 5.11 Pledged Assets
	 	 	91	 
	Section 5.12 Covenants Regarding Patents, Trademarks and Copyrights
	 	 	92	 
	Section 5.13 Landlord Waivers
	 	 	93	 
	Section 5.14 Further Assurances; Post-Closing Covenant
	 	 	93	 
	 
	 	 	 	 
	ARTICLE VI FINANCIAL COVENANTS
	 	 	94	 
	Section 6.1 Consolidated Senior Secured Leverage Ratio
	 	 	94	 
	Section 6.2 Minimum Interest Coverage Ratio
	 	 	94	 
	 
	 	 	 	 
	ARTICLE VII NEGATIVE COVENANTS
	 	 	95	 
	Section 7.1 Indebtedness
	 	 	95	 
	Section 7.2 Liens
	 	 	97	 
	Section 7.3 Nature of Business
	 	 	97	 
	Section 7.4 Consolidation, Merger, Sale or Purchase of Assets, etc
	 	 	98	 
	Section 7.5 Advances, Investments and Loans
	 	 	100	 
	Section 7.6 Transactions with Affiliates
	 	 	100	 
	Section 7.7 Ownership of Subsidiaries; Restrictions
	 	 	100	 
	Section 7.8 Corporate Changes
	 	 	100	 
	Section 7.9 Limitation on Restricted Actions
	 	 	101	 

ii 

 

	 	 	 	 	 
	 	 	Page
	Section 7.10 Restricted Payments
	 	 	102	 
	Section 7.11 Amendment of Subordinated Debt
	 	 	102	 
	Section 7.12 Sale Leasebacks
	 	 	102	 
	Section 7.13 No Further Negative Pledges
	 	 	102	 
	 
	 	 	 	 
	ARTICLE VIII EVENTS OF DEFAULT
	 	 	103	 
	Section 8.1 Events of Default
	 	 	103	 
	Section 8.2 Acceleration; Remedies
	 	 	107	 
	 
	 	 	 	 
	ARTICLE IX THE ADMINISTRATIVE AGENT
	 	 	107	 
	Section 9.1 Appointment
	 	 	107	 
	Section 9.2 Delegation of Duties
	 	 	108	 
	Section 9.3 Exculpatory Provisions
	 	 	108	 
	Section 9.4 Reliance by Administrative Agent
	 	 	109	 
	Section 9.5 Notice of Default
	 	 	109	 
	Section 9.6 Non-Reliance on Administrative Agent and Other Lenders
	 	 	110	 
	Section 9.7 Indemnification
	 	 	110	 
	Section 9.8 Administrative Agent in Its Individual Capacity
	 	 	111	 
	Section 9.9 Successor Administrative Agent
	 	 	111	 
	Section 9.10 Other Agents
	 	 	112	 
	Section 9.11 Nature of Duties
	 	 	112	 
	Section 9.12 Releases; Amendments to Vessel Fleet Mortgage
	 	 	112	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	112	 
	Section 10.1 Amendments, Waivers and Release of Collateral
	 	 	112	 
	Section 10.2 Notices
	 	 	116	 
	Section 10.3 No Waiver; Cumulative Remedies
	 	 	117	 
	Section 10.4 Survival of Representations and Warranties
	 	 	117	 
	Section 10.5 Payment of Expenses and Taxes
	 	 	118	 
	Section 10.6 Successors and Assigns; Participations; Purchasing Lenders
	 	 	119	 
	Section 10.7 Adjustments; Set-off
	 	 	122	 
	Section 10.8 Table of Contents and Section Headings
	 	 	123	 
	Section 10.9 Counterparts
	 	 	123	 
	Section 10.10 Effectiveness
	 	 	124	 
	Section 10.11 Severability
	 	 	124	 
	Section 10.12 Integration
	 	 	124	 
	Section 10.13 Governing Law
	 	 	124	 
	Section 10.14 Consent to Jurisdiction and Service of Process
	 	 	124	 
	Section 10.15 Confidentiality
	 	 	125	 
	Section 10.16 Acknowledgments
	 	 	126	 
	Section 10.17 Waivers of Jury Trial; Waiver of Consequential Damages
	 	 	126	 
	Section 10.18 Patriot Act Notice
	 	 	126	 
	Section 10.19 Resolution of Drafting Ambiguities
	 	 	127	 
	 
	 	 	 	 
	ARTICLE XI GUARANTY
	 	 	127	 
	Section 11.1 The Guaranty
	 	 	127	 
	Section 11.2 Bankruptcy
	 	 	128	 
	Section 11.3 Nature of Liability
	 	 	128	 
	Section 11.4 Independent Obligation
	 	 	128	 

iii 

 

	 	 	 	 	 
	 	 	Page
	Section 11.5 Authorization
	 	 	129	 
	Section 11.6 Reliance
	 	 	129	 
	Section 11.7 Waiver
	 	 	129	 
	Section 11.8 Limitation on Enforcement
	 	 	130	 
	Section 11.9 Confirmation of Payment
	 	 	131	 

iv 

 

Schedules

	 	 	 
	Schedule 1.1(a)

	 	Investments
	Schedule 1.1(b)

	 	Liens
	Schedule 1.1(c)

	 	Chartered Vessel Documents
	Schedule 3.3

	 	Jurisdictions of Organization and Qualification
	Schedule 3.12

	 	Subsidiaries
	Schedule 3.15

	 	Intellectual Property
	Schedule 3.17(a)

	 	Location of Real Property
	Schedule 3.17(b)

	 	Location of Collateral
	Schedule 3.17(c)

	 	Chief Executive Offices
	Schedule 3.17(d)

	 	Real Estate Mortgaged Properties
	Schedule 3.20

	 	Labor Matters
	Schedule 3.22

	 	Insurance
	Schedule 3.29

	 	Vessels
	Schedule 7.1(b)

	 	Indebtedness
	Schedule 7.6

	 	Transactions with Affiliates

Exhibits

	 	 	 
	Exhibit 1.1(a)

	 	Form of Account Designation Letter
	Exhibit 1.1(b)

	 	Form of Assignment Agreement
	Exhibit 1.1(c)

	 	Form of Assignment of Insurances
	Exhibit 1.1(d)

	 	Form of Joinder Agreement
	Exhibit 1.1(e)

	 	Form of Notice of Borrowing
	Exhibit 1.1(f)

	 	Form of Notice of Conversion/Extension
	Exhibit 1.1(g)

	 	Form of Permitted Acquisition Certificate
	Exhibit 1.1(h)

	 	Form of Vessel Fleet Mortgage
	Exhibit 1.1(i)

	 	Form of Pledge Agreement
	Exhibit 1.1(j)

	 	Form of Security Agreement
	Exhibit 2.1(a)

	 	Form of Funding Indemnity Letter
	Exhibit 2.1(e)

	 	Form of Revolving Note
	Exhibit 2.2(d)

	 	Form of Term Loan Note
	Exhibit 2.4(d)

	 	Form of Swingline Note
	Exhibit 2.18

	 	Form of Tax Exempt Certificate
	Exhibit 4.1(b)

	 	Form of Officer’s Certificate
	Exhibit 4.1(h)

	 	Form of Solvency Certificate
	Exhibit 4.1(r)

	 	Form of Financial Condition Certificate
	Exhibit 4.1(s)

	 	Form of Patriot Act Certificate
	Exhibit 5.2(b)

	 	Form of Officer’s Compliance Certificate
	Exhibit 5.14(b)

	 	Form of Landlord Waiver

v 

 

     CREDIT AGREEMENT, dated as of August 8, 2007 among HORIZON LINES, INC., a Delaware corporation
(the “Borrower”), each of those Subsidiaries of the Borrower identified as a “Guarantor” on
the signature pages hereto and such other Subsidiaries of the Borrower as may from time to time
become a party hereto, as “Guarantors” (each a “Guarantor” and, collectively, the
“Guarantors”), the several banks and other financial institutions as are, or may from time
to time become parties to this Agreement (each a “Lender” and, collectively, the
“Lenders”) and WACHOVIA BANK, NATIONAL ASSOCIATION, a national banking association, as
administrative agent for the Lenders hereunder (in such capacity, the “Administrative
Agent” or the “Agent”).

W I T N E S S E T H:

     WHEREAS, the Credit Parties (as hereinafter defined) have requested that the Lenders make
loans and other financial accommodations to the Credit Parties in an aggregate amount of up to
$375,000,000, as more particularly described herein; and

     WHEREAS, the Lenders have agreed to make such loans and other financial accommodations to the
Credit Parties on the terms and conditions contained herein.

     NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged by the parties hereto, such parties hereby agree as follows:

ARTICLE I

DEFINITIONS

     Section 1.1 Defined Terms.

     As used in this Agreement, terms defined in the preamble to this Agreement have the meanings
therein indicated, and the following terms have the following meanings:

     “2007 Senior Unsecured Convertible Notes” shall mean the 4.25% Convertible Senior
Notes due 2012, issued by the Borrower.

     “ABR Default Rate” shall have the meaning set forth in Section 2.9(b).

     “Accessible Borrowing Availability” shall mean, as of any date of determination, the
amount that the Borrower is able to borrow on such date under the Revolving Committed Amount
without a Default or Event of Default occurring or existing after giving pro forma effect to such
borrowing.

     “Account Designation Letter” shall mean the Account Designation Letter dated as of the
Closing Date from the Borrower to the Administrative Agent in substantially the form attached
hereto as Exhibit 1.1(a).

 

 

     “Additional Credit Party” shall mean each Person that becomes a Guarantor by execution
of a Joinder Agreement in accordance with Section 5.9.

     “Additional Loan” shall have the meaning set forth in Section 2.5.

     “Administrative Agent” or “Agent” shall have the meaning set forth in the
first paragraph of this Agreement and shall include any successors in such capacity.

     “Administrative Details Form” shall mean, with respect to any Lender, a document
containing such Lender’s contact information for purposes of notices provided under this Agreement
and account details for purposes of payments made to such Lender under this Agreement.

     “Affiliate” shall mean as to any Person, any other Person that, directly or
indirectly, is in control of, is controlled by, or is under common control with, such Person. For
purposes of this definition, a Person shall be deemed to be “controlled by” a Person if such Person
possesses, directly or indirectly, power either (a) to vote 15% or more of the Capital Stock having
ordinary voting power for the election of directors (or the equivalent) of such Person or (b) to
direct or cause the direction of the management and policies of such Person whether by contract or
otherwise.

     “Agreement” or “Credit Agreement” shall mean this Agreement, as amended,
modified, extended, restated, replaced, or supplemented from time to time in accordance with its
terms.

     “Alternate Base Rate” shall mean, for any day, a rate per annum equal to the greater
of (a) the Prime Rate in effect on such day and (b) the Federal Funds Effective Rate in effect on
such day plus 1/2 of 1%. For purposes hereof: “Prime Rate” shall mean, at any
time, the rate of interest per annum publicly announced or otherwise identified from time to time
by Wachovia at its principal office in Charlotte, North Carolina as its prime rate. Each change in
the Prime Rate shall be effective as of the opening of business on the day such change in the Prime
Rate occurs. The parties hereto acknowledge that the rate announced publicly by Wachovia as its
Prime Rate is an index or base rate and shall not necessarily be its lowest or best rate charged to
its customers or other banks; and “Federal Funds Effective Rate” shall mean, for any day,
the weighted average of the rates on overnight federal funds transactions with members of the
Federal Reserve System arranged by federal funds brokers, as published on the next succeeding
Business Day by the Federal Reserve Bank of New York, or, if such rate is not so published on the
next succeeding Business Day, the average of the quotations for the day of such transactions
received by the Administrative Agent from three federal funds brokers of recognized standing
selected by it. If for any reason the Administrative Agent shall have determined (which
determination shall be conclusive in the absence of manifest error) that it is unable to ascertain
the Federal Funds Effective Rate, for any reason, including the inability or failure of the
Administrative Agent to obtain sufficient quotations in accordance with the terms above, the
Alternate Base Rate shall be determined without regard to clause (b) of the first sentence of this
definition, as appropriate, until the circumstances giving rise to such inability no longer exist.

2

 

Any change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds
Effective Rate shall be effective on the opening of business on the date of such change.

     “Alternate Base Rate Loans” shall mean Loans that bear interest at an interest rate
based on the Alternate Base Rate.

     “Applicable Percentage” shall mean, for any day, the rate per annum set forth below
opposite the applicable Level (as referenced below) then in effect (based on the Consolidated
Senior Secured Leverage Ratio), it being understood that the Applicable Percentage for (a) Loans
that are Alternate Base Rate Loans shall be the percentage set forth under the column “Base Rate
Margin”, (b) Loans that are LIBOR Rate Loans shall be the percentage set forth under the column
“LIBOR Margin and L/C Fee”, (c) the Letter of Credit Fee shall be the percentage set forth under
the column “LIBOR Margin and L/C Fee” and (d) the Commitment Fee shall be the percentage set forth
under the column “Commitment Fee”:

	 	 	 	 	 	 	 	 	 
	 	 	Consolidated Senior	 	 	 	 	 	 
	 	 	Secured Leverage	 	Base Rate	 	LIBOR Margin and	 	 
	Level	 	Ratio	 	Margin	 	L/C Fee	 	Commitment Fee
	I
	 	< 1.25 to 1.00
	 	0.25%
	 	1.25%
	 	0.25%
	II
	 	> 1.25 to 1.00 but < 2.00 to 1.00
	 	0.50%
	 	1.50%
	 	0.30%
	III
	 	> 2.00 to 1.00 but < 2.75 to 1.00
	 	0.75%
	 	1.75%
	 	0.35%
	IV
	 	> 2.75 to 1.00
	 	1.00%
	 	2.00%
	 	0.40%

     The Applicable Percentage shall, in each case, be determined and adjusted quarterly on the
date five (5) Business Days after the date on which the Administrative Agent has received from the
Borrower the quarterly financial information (in the case of the first three fiscal quarters of the
Borrower’s fiscal year), the annual financial information (in the case of the fourth fiscal quarter
of the Borrower’s fiscal year) and the certifications required to be delivered to the
Administrative Agent and the Lenders in accordance with the provisions of Sections 5.1(a), 5.1(b)
and 5.2(b) (each an “Interest Determination Date”). Such Applicable Percentage shall be
effective from such Interest Determination Date until the next such Interest Determination Date;
provided that the initial Applicable Percentage on the Closing Date shall be based on Level
II until such date that the Borrower delivers to the Administrative Agent the financial statements
for the first full fiscal quarter after the Closing Date. After the Closing Date, if the Credit
Parties shall fail to provide the financial information or certifications in accordance with the
provisions of Sections 5.1(a), 5.1(b) and 5.2(b), the Applicable Percentage shall, on the date five
(5) Business Days after the date by which the Credit Parties were so required to provide such
financial information or certifications to the Administrative Agent and the Lenders, be based on
Level IV until such time as such information or certifications are provided, whereupon the Level
shall be determined by the then current Consolidated Senior Secured Leverage Ratio. In the event
that any financial statement or certification delivered pursuant to Section 5.1 is shown to be
inaccurate (regardless of whether this Agreement or the Commitments are in effect when such
inaccuracy is discovered), and such inaccuracy, if corrected, would have led to the application of

3

 

a higher Applicable Percentage for any period (an “Applicable Period”) than the Applicable
Percentage applied for such Applicable Period, and only in such case, then the Borrower shall
immediately (i) deliver to the Administrative Agent a corrected compliance certificate for such
Applicable Period, (ii) determine the Applicable Percentage for such Applicable Period based upon
the corrected compliance certificate, and (iii) immediately pay to the Administrative Agent the
accrued additional interest owing as a result of such increased Applicable Percentage for such
Applicable Period, which payment shall be promptly applied by the Administrative Agent in
accordance with Section 2.12. It is acknowledged and agreed that nothing contained herein shall
limit the rights of the Administrative Agent and Lenders with respect to Sections 2.9 and 8.1 and
other of their respective rights under this Agreement and the obligation to repay any such amounts
shall survive termination of this Agreement.

     “Approved Bank” shall have the meaning set forth in the definition of “Cash
Equivalents and Short-Term Investments.”

     “Approved Fund” shall mean, with respect to any Lender, any fund or trust or entity
that invests in commercial bank loans in the ordinary course and is advised or managed by (a) such
Lender, (b) an Affiliate of such Lender, (c) any other Lender or any Affiliate thereof or (d) the
same investment advisor or an Affiliate of such investment advisor as any Person described in
clauses (a) – (c).

     “Asset Disposition” shall mean the disposition of any or all of the assets (including,
without limitation, the Capital Stock of a Subsidiary or any ownership interest in a joint venture)
of any Credit Party or any Subsidiary whether by sale, lease, transfer or otherwise, in a single
transaction or in a series of transactions. The term “Asset Disposition” shall not include (a) the
sale, lease, transfer or other disposition of assets permitted by Subsections 7.4(a)(i) through
(xiv), or (b) any Equity Issuance.

     “Assignment Agreement” shall mean an Assignment Agreement, in substantially the form
of Exhibit 1.1(b).

     “Assignment of Insurances” shall mean an Assignment of Insurances substantially in the
form attached hereto as Exhibit 1.1(c).

     “Bank Product” shall mean any of the following products, services or facilities
extended to a Credit Party or any Subsidiary by any Bank Product Provider or Hedging Agreement
Provider: (a) Cash Management Services; (b) products under Hedging Agreements; (c) commercial
credit card and merchant card services; and (d) leases and other banking products or services as
may be requested by a Credit Party or any Subsidiary, other than letters of credit.

     “Bank Product Obligations” shall mean all liabilities and obligations of the Credit
Parties relating to Bank Products.

     “Bank Product Provider” shall mean any Person that provides Bank Products (other than
Hedging Agreements) to a Credit Party or any of its Subsidiaries to the extent such Person is (a) a
Lender or an Affiliate of a Lender or (b) any other Person (i) that was a Lender (or an

4

 

Affiliate of a Lender) at the time such Person provided such Bank Products or (ii) with
respect to any such Bank Product that was in existence prior to the Closing Date, that was a Lender
(or an Affiliate of a Lender) as of the Closing Date or on the date that is 30 days after the
Closing Date, but, in the case of either clause (i) or (ii), has ceased to be a Lender (or whose
Affiliate has ceased to be a Lender) under this Agreement.

     “Bankruptcy Code” shall mean the Bankruptcy Code in Title 11 of the United States
Code, as amended, modified, succeeded or replaced from time to time.

     “Bankruptcy Event” shall mean any of the events described in Section 8.1(e).

     “Bookrunners” shall mean Wachovia Capital Markets, LLC, together with its successors
and assigns, Banc of America Securities LLC, together with its successors and assigns, and Goldman
Sachs Credit Partners L.P., together with its successors and assigns.

     “Borrower” shall have the meaning set forth in the first paragraph of this Agreement.

     “Borrowing Date” shall mean, in respect of any Loan, the date such Loan is made.

     “Business” shall have the meaning set forth in Section 3.10.

     “Business Day” shall mean any day other than a Saturday, Sunday or other day on which
commercial banks in Charlotte, North Carolina or New York, New York are authorized or required by
law to close; provided, however, that when used in connection with a rate
determination, borrowing or payment in respect of a LIBOR Rate Loan, the term “Business Day” shall
also exclude any day on which banks in London, England are not open for dealings in Dollar deposits
in the London interbank market.

     “Capital Lease” shall mean any lease of property, real or personal, the obligations
with respect to which are required to be capitalized on a balance sheet of the lessee in accordance
with GAAP.

     “Capital Lease Obligations” shall mean the capitalized lease obligations relating to a
Capital Lease determined in accordance with GAAP.

     “Capital Stock” shall mean (a) in the case of a corporation, capital stock, (b) in the
case of an association or business entity, any and all shares, interests, participations, rights or
other equivalents (however designated) of capital stock, (c) in the case of a partnership,
partnership interests (whether general or limited), (d) in the case of a limited liability company,
membership interests and (e) any other interest or participation that confers on a Person the right
to receive a share of the profits and losses of, or distributions of assets of, the issuing Person.

     “Cash Equivalents and Short-Term Investments” shall mean (a) securities issued or
directly and fully guaranteed or insured by the United States of America or any agency or
instrumentality thereof (provided that the full faith and credit of the United States of
America is pledged in support thereof) having maturities of not more than twelve (12) months from
the date of acquisition (“Government Obligations”), (b) Dollar denominated time deposits,
certificates of

5

 

deposit, Eurodollar time deposits and Eurodollar certificates of deposit of (i) any domestic
commercial bank of recognized standing having capital and surplus in excess of $250,000,000 or (ii)
any bank whose short-term commercial paper rating at the time of the acquisition thereof is at
least A-1 or the equivalent thereof from S&P or from Moody’s is at least P-1 or the equivalent
thereof from Moody’s (any such bank being an “Approved Bank”), in each case with maturities
of not more than 364 days from the date of acquisition, (c) commercial paper and variable or fixed
rate notes issued by any Approved Bank (or by the parent company thereof) or any commercial paper
and variable rate notes issued by, or guaranteed by, any domestic corporation rated A-1 (or the
equivalent thereof) or better by S&P or P-1 (or the equivalent thereof) or better by Moody’s and
maturing within 270 days of the date of acquisition, (d) repurchase agreements with a bank or trust
company (including a Lender) or a recognized securities dealer having capital and surplus in excess
of $500,000,000 for direct obligations issued by or fully guaranteed by the United States of
America, (e) obligations of any state of the United States or any political subdivision thereof for
the payment of the principal and redemption price of and interest on which there shall have been
irrevocably deposited Government Obligations maturing as to principal and interest at times and in
amounts sufficient to provide such payment, (f) auction preferred stock and auction rate securities
rated in the highest short-term credit rating category by S&P or Moody’s, (g) money market accounts
subject to Rule 2a-7 of the Investment Company Act of 1940 (“SEC Rule 2a-7”) which consist
primarily of cash and cash equivalents set forth in clauses (a) through (f) above and of which 95%
shall at all times be comprised of First Tier Securities (as defined in SEC Rule 2a-7) and any
remaining amount shall at all times be comprised of Second Tier Securities (as defined in SEC Rule
2a-7), (h) shares of any so-called “money market fund,” provided that such fund is registered under
the Investment Company Act of 1940, has net assets of at least $100,000,000 and has an investment
portfolio with an average maturity of 365 days or less, (i) privately offered investment funds
subject to Rule 3c-7 of the Investment Company Act of 1940 that maintain a constant net asset value
per share and a AAA rating from at least two of the following rating agencies: S&P, Moody’s and
Fitch Ratings            and (i) in the case of Foreign Subsidiaries, substantially similar foreign
equivalents of those Cash Equivalents and Short-Term Investments described in clauses (a) through
(h) above.

     “Cash Management Services” shall mean any services provided from time to time by any
Bank Product Provider to any Credit Party or Subsidiary in connection with operating, collections,
payroll, trust, or other depository or disbursement accounts, including automatic clearinghouse,
controlled disbursement, depository, electronic funds transfer, information reporting, lockbox,
stop payment, overdraft and/or wire transfer services.

     “CCF Account” shall mean the Capital Construction Fund Account established pursuant to
46 App. U.S.C. § 1177.

     “Change of Control” shall mean at any time the occurrence of any of the following
events: (a) any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the
Exchange Act), is or becomes the “beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the
Exchange Act, except that a person shall be deemed to have “beneficial ownership” of all securities
that such person has the right to acquire, whether such right is exercisable immediately or only
after the passage of time), directly or indirectly, of 35% or more of the then outstanding

6

 

Voting Stock of the Borrower; (b) the replacement of a majority of the Board of Directors of
the Borrower over a two-year period from the directors who constituted the Board of Directors at
the beginning of such period, and such replacement shall not have been approved by a vote of at
least a majority of the Board of Directors of the Borrower then still in office who either were
members of such Board of Directors at the beginning of such period or whose election as a member of
such Board of Directors was previously so approved; or (c) the occurrence of a “Change of Control”
(or any comparable term) under, and as defined in, the documents evidencing (i) the 2007 Senior
Unsecured Convertible Notes or (ii) any Indebtedness permitted under Section 7.1(j).

     “Chartered Vessel” shall mean any Vessel leased, chartered, subleased or subchartered
by a Credit Party or any Subsidiary pursuant to one or more Chartered Vessel Documents.

     “Chartered Vessel Documents” shall mean all Vessel leases, charters, subleases,
subcharters and all related documents in respect of any Chartered Vessel, including (a) those
listed on Schedule 1.1(c) hereto and all Operative Documents (as defined in the respective
Vessel leases, charters, subleases or subcharters and, if applicable, (b) the Subcharter Agreement
and (c) the Guarantee and Indemnity Agreement.

     “Closing Date” shall mean the date of this Agreement.

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

     “Collateral” shall mean a collective reference to the collateral which is identified
in, and at any time will be covered by, the Security Documents and any other property or assets of
a Credit Party, whether tangible or intangible and whether real or personal, that may from time to
time secure the Credit Party Obligations.

     “Commitment” shall mean the Revolving Commitments, the LOC Commitment, the Term Loan
Commitments and the Swingline Commitment, individually or collectively, as appropriate.

     “Commitment Fee” shall have the meaning set forth in Section 2.6(a).

     “Commitment Percentage” shall mean the Revolving Commitment Percentage and/or the Term
Loan Commitment Percentage, as appropriate.

     “Commitment Period” shall mean (a) with respect to Revolving Loans and Swingline
Loans, the period from and including the Closing Date to but excluding the Revolver Maturity Date
and (b) with respect to Letters of Credit, the period from and including the Closing Date to but
excluding the date that is thirty (30) days prior to the Revolver Maturity Date.

     “Commonly Controlled Entity” shall mean an entity, whether or not incorporated, which
is under common control with a Credit Party within the meaning of Section 4001(b)(1) of ERISA or is
part of a group that includes a Credit Party and which is treated as a single employer under

7

 

Section 414(b) or 414(c) of the Code or, solely for the purposes of Section 412 of the Code to the
extent required by such section, Section 414(m) or 414(o) of the Code.

     “Consolidated” shall mean, when used with reference to financial statements or
financial statement items of the Credit Parties and their Subsidiaries or any other Person, such
statements or items on a consolidated basis in accordance with the consolidation principles of
GAAP.

     “Consolidated EBITDA” shall mean, as of any date of determination for the four
consecutive fiscal quarter period ending on such date, without duplication, (a) Consolidated Net
Income for such period plus (b) the sum of the following to the extent deducted in
calculating Consolidated Net Income (all as determined in accordance with GAAP): (i) Consolidated
Interest Expense for such period, (ii) tax expense (including, without limitation, any federal,
state, local and foreign income and similar taxes) of the Credit Parties and their Subsidiaries for
such period, (iii) depreciation and amortization expense of the Credit Parties and their
Subsidiaries for such period, (iv) any extraordinary or nonrecurring charges or non-cash charges or
expenses (including charges for the cumulative effect of accounting changes) for such period, (v)
the interest component of rent expense for such period associated with all Capital Lease
Obligations and Synthetic Leases under which any Credit Party or Subsidiary is the lessee and (vi)
Transaction Costs incurred by a Credit Party or any Subsidiary, (vii) transaction costs and
expenses incurred in connection with Permitted Acquisitions, (viii) any expense or loss associated
with (A) any proposed or completed equity or debt financing on or prior to the Closing Date and (B)
the early retirement, extinguishment or refinancing of debt including bonuses paid with respect to
the completion of any of the foregoing, (ix) any non-recurring cash or non-cash fees, expenses or
charges associated with any restructuring of the Borrower and changes in the Borrower’s method of
operations pursuant to its cost reduction programs in an aggregate amount not to exceed, with
respect to such cash fees, expenses or charges, 10% of Consolidated EBITDA during such period, (x)
non-cash charges resulting from the application of purchase accounting, (xi) non-cash compensation
charges, including any such charges arising from stock options, restricted stock grants or other
equity-incentive programs or from the forgiveness of loans made to employees in connection with the
purchase of equity and related tax gross-up payments made in cash on or prior to the Closing Date,
(xii) non-cash expenses resulting from the granting of stock options, restricted stock or
restricted stock unit awards under equity compensation programs solely with respect to Capital
Stock, (xiii) expenses incurred as a result of the repurchase, redemption or retention by the
Borrower of Capital Stock earned under equity compensation programs solely in order to make
withholding tax payments, (xiv) expenses incurred as a result of the Share Repurchase Program (but
excluding the actual cost of any share repurchase) and (xv) the amount of any minority interest
expense attributable to minority equity interests of the Credit Parties and their Subsidiaries in
any joint venture thereof, minus (c) non-cash charges previously added back to Consolidated
Net Income in determining Consolidated EBITDA to the extent such non-cash charges have become cash
charges during such period minus (d) any other extraordinary or non-recurring cash or
non-cash gains during such period minus (e) the amount of any minority interest income
attributable to minority equity interests of the Credit Parties and their Subsidiaries in any joint
venture thereof to the extent included in the calculation of Consolidated Net Income.

8

 

     “Consolidated Funded Debt” shall mean, on any date of calculation, Funded Debt of the
Credit Parties and their Subsidiaries on a Consolidated basis.

     “Consolidated Interest Expense” shall mean, as of any date of determination for any
period ending on such date, all interest expense (excluding amortization of debt discount, premium
and deferred financing costs or write-off of financing costs, but including the interest component
under Capital Leases) for such period of the Credit Parties and their Subsidiaries on a
Consolidated basis.

     “Consolidated Net Income” shall mean, as of any date of determination for any period
ending on such date, the net income (excluding extraordinary losses and gains and all non-cash
income expense, interest income and tax credits) of the Credit Parties and their Subsidiaries on a
Consolidated basis for such period, all as determined in accordance with GAAP.

     “Consolidated Senior Secured Leverage Ratio” shall mean, as of any date of
determination, for the Credit Parties and their Subsidiaries on a Consolidated basis, the ratio of
(a) the sum of (i) Consolidated Funded Debt of the Credit Parties and their Subsidiaries on such
date (excluding that portion of Consolidated Funded Debt consisting of unsecured Indebtedness)
minus (ii) cash and Cash Equivalents and Short-Term Investments on such date (excluding
cash and Cash Equivalents and Short-Term Investments held in the CCF Account) to the extent there
are no outstanding Revolving Loans during the thirty day period ending on such date to (b)
Consolidated EBITDA for the four quarter period ending on or immediately prior to such date.

     “Contractual Obligation” shall mean, as to any Person, any provision of any security
issued by such Person or of any contract, agreement, instrument or undertaking to which such Person
is a party or by which it or any of its property is bound.

     “Copyright Licenses” shall mean any agreement, whether written or oral, providing for
the grant by or to a Person of any right under any Copyright, including, without limitation, any
thereof referred to in Schedule 3.15.

     “Copyrights” shall mean all copyrights of the Credit Parties and their Subsidiaries in
all Works, whether now existing or hereafter created or acquired, all registrations and recordings
thereof, and all applications in connection therewith, including, without limitation,
registrations, recordings and applications in the United States Copyright Office or in any similar
office or agency of the United States, any state thereof or any other country or any political
subdivision thereof, or otherwise, including, without limitation, any thereof referred to in
Schedule 3.15 and all renewals thereof.

     “Credit Documents” shall mean this Agreement, each of the Notes, any Joinder
Agreement, the Letters of Credit, LOC Documents and the Security Documents and all other
agreements, documents, certificates and instruments delivered to the Administrative Agent or any
Lender and executed by any Credit Party in connection therewith (other than any agreement,
document, certificate or instrument related to a Hedging Agreement) which is specifically mentioned
herein or therein to be a “Credit Document”.

9

 

     “Credit Party” shall mean any of the Borrower or the Guarantors and shall not include
any Immaterial Subsidiaries.

     “Credit Party Obligations” shall mean, without duplication, (a) all of the
obligations, indebtedness and liabilities of the Credit Parties to the Lenders (including the
Issuing Lender) and the Administrative Agent, whenever arising, under this Agreement, the Notes or
any of the other Credit Documents, including principal, interest, fees, reimbursements and
indemnification obligations and other amounts (including, but not limited to, any interest accruing
after the occurrence of a filing of a petition of bankruptcy under the Bankruptcy Code with respect
to any Credit Party, regardless of whether such interest is an allowed claim under the Bankruptcy
Code), (b) Secured Hedging Obligations and (c) Bank Product Obligations..

     “CSX” shall mean CSX Corporation, a Virginia corporation.

     “Debt Issuance” shall mean the issuance of any Indebtedness by any Credit Party or any
of its Subsidiaries (excluding any Indebtedness of any Credit Party and its Subsidiaries permitted
to be incurred pursuant to Sections 7.1 (other than subsection 7.1(j)).

     “Default” shall mean any of the events specified in Section 8.1, whether or not any
requirement for the giving of notice or the lapse of time, or both, or any other condition, has
been satisfied.

     “Defaulting Lender” shall mean, at any time, any Lender that, at such time (a) has
failed to make a Loan required pursuant to the terms of this Agreement or failed to fund a
Participation Interest in accordance with the terms of this Agreement, (b) has failed to pay to the
Administrative Agent or any Lender an amount owed by such Lender pursuant to the terms of this
Agreement and such default remains uncured, or (c) has been deemed insolvent or has become subject
to a bankruptcy or insolvency proceeding or to a receiver, trustee or similar official.

     “Dollars” and “$” shall mean dollars in lawful currency of the United States
of America.

     “Domestic Lending Office” shall mean, initially, the office of each Lender designated
as such Lender’s Domestic Lending Office shown in such Lender’s Administrative Details Form; and
thereafter, such other office of such Lender as such Lender may from time to time specify to the
Administrative Agent and the Borrower as the office of such Lender at which Alternate Base Rate
Loans of such Lender are to be made.

     “Domestic Subsidiary” shall mean any Subsidiary that is organized and existing under
the laws of the United States or any state or commonwealth thereof or under the laws of the
District of Columbia.

     “Earnout” shall mean (a) any initially contingent payment obligation related to a
Permitted Acquisition, including, without limitation, earnout payments, purchase price adjustments,
deferred purchase price payments and bonuses and other forms of compensation to

10

 

directors, officers, employees or consultants, in each case so long as (i) such payment
obligations are contingent at the time such obligation is incurred or entered into, and subject to
adjustment based on the performance of the Person and/or assets so acquired, (ii) such payment
obligations are not guaranteed or subject, at the time such obligation is entered into, to any
minimum payment, in whole or in part by the Borrower or any of its Subsidiaries, (iii) such payment
obligations are not evidenced by a promissory note or secured by a pledge of assets by the Borrower
or any of its Subsidiaries, and (iv) the Borrower or any of its Subsidiaries which is the obligor
with respect to such payment obligation has the right, pursuant to the terms of the document or
instrument evidencing or creating the Earnout, to defer any payment thereon during the continuance
of, or if such payment would cause, a Default or Event of Default hereunder or (b) the portion of a
payment obligation described in clause (a) which has become fixed and matured.

     “Environmental Laws” shall mean any and all applicable foreign, federal, state, local
or municipal laws, rules, orders, regulations, statutes, ordinances, codes, decrees, requirements
of any Governmental Authority or other Requirement of Law (including common law) regulating,
relating to or imposing liability or standards of conduct concerning protection of (i) human health
from exposure to Materials of Environmental Concern or (ii) the environment, as now or may at any
time be in effect during the term of this Agreement.

     “Equity Issuance” shall mean any issuance after the Closing Date by any Credit Party
or any Subsidiary to any Person which is not a Credit Party or a Subsidiary of (a) shares or
interests of its Capital Stock, (b) any shares or interests of its Capital Stock pursuant to the
exercise of options or warrants or similar rights, (c) any shares of interests of its Capital Stock
pursuant to the conversion of any debt securities to equity or (d) warrants or options or similar
rights that are exercisable or convertible into shares or interests of its Capital Stock. The term
“Equity Issuance” shall not include (i) any Asset Disposition, (ii) any Debt Issuance or (iii) any
Capital Stock issued to the management and employees of the Credit Parties or any of their
Subsidiaries in connection with stock option plans and similar employee arrangements.

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

     “Eurodollar Reserve Percentage” shall mean for any day, the percentage (expressed as a
decimal and rounded upwards, if necessary, to the next higher 1/100th of 1%) which is in effect for
such day as prescribed by the Board of Governors of the Federal Reserve System (or any successor)
for determining the maximum reserve requirement (including without limitation any basic,
supplemental or emergency reserves) in respect of Eurocurrency liabilities, as defined in
Regulation D of such Board as in effect from time to time, or any similar category of liabilities
for a member bank of the Federal Reserve System in New York City.

     “Event of Default” shall mean any of the events specified in Section 8.1;
provided, however, that any requirement for the giving of notice or the lapse of
time, or both, or any other condition, has been satisfied.

11

 

     “Exchange Act” shall mean the Securities Exchange Act of 1934, together with any
amendment thereto and rules and regulations promulgated thereunder.

     “Existing Notes” shall mean any and all outstanding (i) 9.0% Senior Notes due 2012 of
Horizon Lines, LLC and Horizon Lines Holding Corporation and (ii) 11.0% Senior Notes due 2013 of
H-Lines Finance Holding Corporation.

     “Extension of Credit” shall mean, as to any Lender, the making of a Loan by such
Lender or the issuance, increase or extension of, or participation in, a Letter of Credit or
Swingline Loan by such Lender.

     “Federal Funds Effective Rate” shall have the meaning set forth in the definition of
“Alternate Base Rate”.

     “Fee Letter” shall mean the letter agreement dated July 18, 2007, addressed to the
Borrower from Wachovia, Bank of America, N.A. and the Bookrunners, as amended, modified, extended,
restated, replaced, or supplemented from time to time.

     “Flood Hazard Property” shall mean any Real Estate Mortgaged Property that is in an
area designated by the Federal Emergency Management Agency as having special flood or mudslide
hazards.

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

     “Funded Debt ” shall mean, without duplication, all Indebtedness for borrowed money of
the Borrower and its Subsidiaries which is payable more than one year from the date of creation
thereof and shall include (a) Capital Lease Obligations and (b) all Indebtedness consisting of
reimbursement obligations with respect to letters of credit other than letters of credit issued to
finance inventory or equipment purchases or to secure other debt appearing on the balance sheet of
the obligor minus the aggregate amount of such Indebtedness constituting pay-in-kind
interest or capitalized interest.

     “GAAP” shall mean generally accepted accounting principles in effect in the United
States of America (or, in the case of Foreign Subsidiaries with significant operations outside the
United States of America, generally accepted accounting principles in effect from time to time in
their respective jurisdictions of incorporation or formation) applied on a consistent basis,
subject, however, in the case of determination of compliance with the financial
covenants set out in Article VI to the provisions of Section 1.3.

     “Government Acts” shall have the meaning set forth in Section 2.19.

     “Government Obligations” shall have the meaning set forth in the definition of “Cash
Equivalents and Short-Term Investments.”

     “Governmental Authority” shall mean the government of the United States of America or
any other nation, or of any political subdivision thereof, whether state or local, and any agency,

12

 

authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the European Union or the
European Central Bank).

     “Guarantee and Indemnity Agreement” shall mean the Amended and Restated Guarantee and
Indemnity Agreement, dated as of July 7, 2004, by and among HLH and Horizon Lines, LLC, as
guarantors, and CSX, Shipco and SL Service, as beneficiaries, as such agreement may from time to
time be amended, restated, supplemented, modified or otherwise changed.

     “Guarantor” shall have the meaning set forth in the first paragraph of this Agreement
and shall include any Person that becomes a guarantor after the Closing Date in accordance with
Section 5.9 of this Agreement.

     “Guaranty” shall mean the guaranty of the Guarantors set forth in Article XI.

     “Guaranty Obligations” shall mean, with respect to any Person, without duplication,
any obligations of such Person (other than endorsements in the ordinary course of business of
negotiable instruments for deposit or collection) guaranteeing or intended to guarantee any
Indebtedness of any other Person in any manner, whether direct or indirect, and including without
limitation any obligation, whether or not contingent, (a) to purchase any such Indebtedness or any
property constituting security therefor, (b) to advance or provide funds or other support for the
payment or purchase of any such Indebtedness or to maintain working capital, solvency or other
balance sheet condition of such other Person (including without limitation keep well agreements,
maintenance agreements, comfort letters or similar agreements or arrangements) for the benefit of
any holder of Indebtedness of such other Person, (c) to lease or purchase property, securities or
services primarily for the purpose of assuring the holder of such Indebtedness, or (d) to otherwise
assure or hold harmless the holder of such Indebtedness against loss in respect thereof. The
amount of any Guaranty Obligation hereunder shall (subject to any limitations set forth therein) be
deemed to be an amount equal to the outstanding principal amount (or maximum principal amount, if
larger) of the Indebtedness in respect of which such Guaranty Obligation is made; provided
that the term Guaranty Obligations shall not include endorsements for collections or deposits in
the ordinary course of business..

     “Hedging Agreement Provider” shall mean any Person that enters into a Hedging
Agreement with a Credit Party or any of its Subsidiaries that is permitted by Section 7.1(e) to the
extent that (a) such Person is a Lender, an Affiliate of a Lender or any other Person that was a
Lender (or an Affiliate of a Lender) at the time it entered into the Hedging Agreement but has
ceased to be a Lender (or whose Affiliate has ceased to be a Lender) under the Credit Agreement or
(b) such Person is a Lender or an Affiliate of a Lender on the Closing Date and the Hedging
Agreement was entered into on or prior to the Closing Date (even if such Person ceases to be a
Lender or such Person’s Affiliate ceases to be a Lender).

     “Hedging Agreements” shall mean, with respect to any Person, any agreement entered
into to protect such Person against fluctuations in interest rates, price of Capital Stock, or
currency or raw materials values, including, without limitation, any interest rate swap, cap or

13

 

collar agreement or similar arrangement between such Person and one or more counterparties, any
foreign currency exchange agreement, currency protection agreements, commodity purchase or option
agreements or other interest or exchange rate hedging agreements, but excluding any forward
purchase contract.

     “HLH” shall mean HLH, LLC, a Delaware limited liability company.

     “Immaterial Subsidiary” shall mean a direct or indirect Subsidiary of the Borrower
with respect to which each of the following is satisfied: (a) the aggregate net sales of such
Subsidiary are less than $2,000,000 for the period of twelve (12) months most recently ended prior
to such Subsidiary being designated an Immaterial Subsidiary, (b) the book value of the tangible
assets of such Subsidiary is less than $1,500,000, (c) after giving pro forma effect to the
designation of such Subsidiary as an Immaterial Subsidiary, (i) the aggregate net sales of all
Immaterial Subsidiaries for the twelve (12) months most recently ended prior to such designation do
not exceed 2.50% of the aggregate net sales of the Credit Parties during such period and (ii) the
aggregate book value of the tangible assets of all Immaterial Subsidiaries does not exceed 5.0% of
the aggregate book value of the tangible assets of the Credit Parties, (d) the Borrower has
designated such Subsidiary as an Immaterial Subsidiary under the Agreement and the Borrower has
provided written notice to the Administrative Agent in reasonable detail of such designation within
five (5) days after designation thereof, (e) such Subsidiary does not own any Capital Stock or hold
any Lien on any property of a Credit Party; provided that Horizon Lines Holding Corp. shall
be permitted to own the Capital Stock of HLH, LLC and Horizon Lines of Puerto Rico, Inc. so long as
it pledges such Capital Stock to the Administrative Agent pursuant to the terms of the Pledge
Agreement, and (f) such Subsidiary has never been a Credit Party after being an Immaterial
Subsidiary.

     “Incremental Facility” shall have the meaning set forth in Section 2.5.

     “Incremental Term Loan” shall have the meaning set forth in Section 2.5.

     “Incremental Revolver” shall have the meaning set forth in Section 2.5.

     “Indebtedness” shall mean, with respect to any Person, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such Person evidenced by
bonds, debentures, notes or similar instruments, (c) all obligations of such Person under
conditional sale or other title retention agreements relating to property acquired by such Person,
(d) all obligations of such Person in respect of the deferred purchase price of property or
services (excluding accounts payable and accrued expenses incurred in the ordinary course of
business) and, to the extent such obligation constitutes an Earnout, solely to the extent of the
obligation described in clause (b) of the definition of the term Earnout, (e) all Indebtedness of
others secured by (or for which the holder of such Indebtedness has an existing right, contingent
or otherwise, to be secured by) any Lien on property owned or acquired by such Person, whether or
not the Indebtedness secured thereby has been assumed, provided that if the Person has not assumed
or otherwise become liable in respect of such Indebtedness, such Indebtedness shall be deemed to be
in an amount equal to the lesser of (x) the aggregate principal amount of such Indebtedness and (y)
the fair market value of the property to which such Lien relates as

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determined in good faith by a financial officer of such Person, (f) all Guaranty Obligations
by such Person with respect to Indebtedness of others, (g) all Capital Lease Obligations of such
Person, (h) all preferred Capital Stock (other than Qualified Preferred Stock) issued by such
Person or other equity interests issued by such Person and which by the terms thereof could be (at
the request of the holders thereof or otherwise) subject to mandatory sinking fund payments,
redemption or other acceleration prior to the date which is six (6) months after the later of the
Revolver Maturity Date and the Term Loan Maturity Date, (i) the principal balance outstanding under
any Synthetic Lease, tax retention operating lease, off balance sheet loan or similar off balance
sheet financing product plus any accrued interest thereon, (j) all reimbursement
obligations of such Person as an account party in respect of letters of credit and letters of
guaranty, (k) all reimbursement obligations of such Person in respect of bankers’ acceptances and
(l) all obligations of such Person under Hedging Agreements. The Indebtedness of any Person shall
include the Indebtedness of any other entity (including any partnership in which such Person is a
general partner) to the extent such Person is liable therefor as a result of such Person’s
ownership interest in or other relationship with such entity, except to the extent the terms of
such Indebtedness provide that such Person is not liable therefor. Notwithstanding the foregoing,
any obligation of such Person or any of its Subsidiaries in respect of (x) minimum guaranteed
commissions, or other similar payments, to clients, minimum returns to clients or stop loss limits
in favor of clients or indemnification obligations to clients, in each case pursuant to contracts
to provide services to clients entered into in the ordinary course of business, (y) account credits
to participants under any compensation plan and (z) operating leases shall be deemed not to
constitute Indebtedness.

     “Insolvency” shall mean, with respect to any Multiemployer Plan, the condition that
such Plan is insolvent within the meaning of such term as used in Section 4245 of ERISA.

     “Intellectual Property” shall mean, collectively, all Copyrights, Copyright Licenses,
Patents, Patent Licenses, Trademarks and Trademark Licenses owned or held by the Credit Parties and
their Subsidiaries, along with any goodwill associated therewith and any rights to sue for
infringement thereof held by the Credit Parties.

     “Interest Coverage Ratio” shall mean, as of any date of determination, for the Credit
Parties and their Subsidiaries on a Consolidated basis for the four quarter period ending on or
immediately prior to such date, the ratio of (a) Consolidated EBITDA for such period to (b)
Consolidated Interest Expense, to the extent paid in cash during such period, net of cash interest
income.

     “Interest Payment Date” shall mean (a) as to any Alternate Base Rate Loan, the last
Business Day of each March, June, September and December and on the applicable Maturity Date, (b)
as to any LIBOR Rate Loan having an Interest Period of three (3) months or less, the last day of
such Interest Period, (c) as to any LIBOR Rate Loan having an Interest Period longer than three (3)
months, (i) each three (3) month anniversary following the first day of such Interest Period and
(ii) the last day of such Interest Period and (d) as to any Loan which is the subject of a
mandatory prepayment required pursuant to Section 2.8(b), the date on which such mandatory
prepayment is due.

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     “Interest Period” shall mean, with respect to any LIBOR Rate Loan,

     (a) initially, the period commencing on the Borrowing Date or conversion date, as the
case may be, with respect to such LIBOR Rate Loan and ending one, two, three or six (6)
months thereafter or nine (9) or twelve (12) months if agreed to by all relevant Lenders,
subject to availability to all applicable Lenders, as selected by the Borrower in the Notice
of Borrowing or Notice of Conversion given with respect thereto; and

     (b) thereafter, each period commencing on the last day of the immediately preceding
Interest Period applicable to such LIBOR Rate Loan and ending one, two, three or six (6)
months thereafter (or nine (9) or twelve (12) months if agreed to by all relevant Lenders),
subject to availability to all applicable Lenders, as selected by the Borrower by
irrevocable notice to the Administrative Agent not less than three (3) Business Days prior
to the last day of the then current Interest Period with respect thereto; provided
that the foregoing provisions are subject to the following:

     (i) if any Interest Period pertaining to a LIBOR Rate Loan would otherwise end
on a day that is not a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless the result of such extension would be to carry
such Interest Period into another calendar month in which event such Interest Period
shall end on the immediately preceding Business Day;

     (ii) any Interest Period pertaining to a LIBOR Rate Loan that begins on the
last Business Day of a calendar month (or on a day for which there is no numerically
corresponding day in the calendar month at the end of such Interest Period) shall
end on the last Business Day of the relevant calendar month;

     (iii) if the Borrower shall fail to give notice as provided above, the Borrower
shall be deemed to have selected an Alternate Base Rate Loan to replace the affected
LIBOR Rate Loan;

     (iv) no Interest Period in respect of any Loan shall extend beyond the
applicable Maturity Date and, further with regard to the Term Loan, no Interest
Period shall extend beyond any principal amortization payment date with respect to
such Term Loan unless the portion of such Term Loan consisting of Alternate Base
Rate Loans together with the portion of such Term Loan consisting of LIBOR Rate
Loans with Interest Periods expiring prior to or concurrently with the date such
principal amortization payment date is due, is at least equal to the amount of such
principal amortization payment due on such date; and

     (v) no more than ten (10) LIBOR Rate Loans may be in effect at any time. For
purposes hereof, LIBOR Rate Loans with different Interest Periods shall be
considered as separate LIBOR Rate Loans, even if they shall begin on the same date
and have the same duration, although borrowings, extensions and conversions may, in
accordance with the provisions hereof, be combined at the

16

 

end of existing Interest Periods to constitute a new LIBOR Rate Loan with a single
Interest Period.

     “Investment” shall mean, with respect to any Person, (a) the acquisition (whether for
cash, property, services, assumption of Indebtedness, securities or otherwise) by such Person of
shares of Capital Stock, other ownership interests or other securities of any other Person or
bonds, notes, debentures or all or substantially all of the assets (other than the acquisition of
assets that would be deemed capital expenditures) of any other Person, (b) any deposit with, or
advance, loan or other extension of credit by such Person to, any other Person (other than deposits
made in the ordinary course of business and deposits associated with the purchase, construction,
modification or improvement of Vessels or the lease of Vessels) or (c) any other capital
contribution to or investment by such Person in any other Person, including, without limitation,
any Guaranty Obligation (including any support for a letter of credit issued on behalf of such
other Person) incurred for the benefit of such other Person. The amount of any Investment shall be
the original cost of such Investment plus the cost of all additions thereto, without any
adjustments for increases or decreases in value, or write-ups, write-downs or write-offs with
respect to such Investments less Returned Investments.

     “Issuing Lender” shall mean Wachovia or any successor in such capacity.

     “Issuing Lender Fees” shall have the meaning set forth in Section 2.6(c).

     “Joinder Agreement” shall mean a Joinder Agreement in substantially the form of
Exhibit 1.1(d), executed and delivered by an Additional Credit Party in accordance with the
provisions of Section 5.9.

     “Lender” shall have the meaning set forth in the first paragraph of this Agreement and
shall include the Revolving Lenders, the Term Loan Lenders, the Issuing Lender and the Swingline
Lender.

     “Lender Commitment Letter” shall mean, with respect to any Lender, the letter (or
other correspondence) to such Lender from the Administrative Agent notifying such Lender of its
Revolving Commitment Percentage and/or Term Loan Commitment Percentage.

     “Letter of Credit” shall mean any letter of credit issued by the Issuing Lender
pursuant to the terms hereof, in each case as such letter of credit may be amended, modified,
extended, renewed or replaced from time to time.

     “Letter of Credit Facing Fee” shall have the meaning set forth in Section 2.6(c).

     “Letter of Credit Fee” shall have the meaning set forth in Section 2.6(b).

     “LIBOR” shall mean, for any LIBOR Rate Loan for any Interest Period therefor, the rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) appearing on Reuters Screen
LIBOR01 Page (or any successor page) as the London interbank offered rate for deposits in Dollars
at approximately 11:00 A.M. (London time) two (2) Business Days prior to the first day of such

17

 

Interest Period for a term comparable to such Interest Period. If for any reason such rate is not
available, then “LIBOR” shall mean the rate per annum at which, as determined by the Administrative
Agent in accordance with customary practices, Dollars in an amount comparable to the Loans then
requested are being offered to leading banks at approximately 11:00 A.M. (London time), two (2)
Business Days prior to the commencement of the applicable Interest Period for settlement in
immediately available funds by leading banks in the London interbank market for a period equal to
the Interest Period selected.

     “LIBOR Lending Office” shall mean, initially, the office(s) of each Lender designated
as such Lender’s LIBOR Lending Office in such Lender’s Administrative Details Form; and thereafter,
such other office of such Lender as such Lender may from time to time specify to the Administrative
Agent and the Borrower as the office of such Lender at which the LIBOR Rate Loans of such Lender
are to be made.

     “LIBOR Rate” shall mean a rate per annum (rounded upwards, if necessary, to the next
higher 1/100th of 1%) determined by the Administrative Agent pursuant to the following formula:

     “LIBOR Rate Loan” shall mean Loans the rate of interest applicable to which is based
on the LIBOR Rate.

     “Lien” shall mean any mortgage, pledge, hypothecation, assignment, deposit
arrangement, encumbrance, lien (statutory or other), charge or other security interest or any
preference, priority or other security agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title retention agreement
and any Capital Lease having substantially the same economic effect as any of the foregoing).

     “Loan” shall mean a Revolving Loan, the Term Loan and/or a Swingline Loan, as
appropriate.

     “LOC Commitment” shall mean the commitment of the Issuing Lender to issue Letters of
Credit up to the LOC Committed Amount and, with respect to each Revolving Lender, the commitment of
such Revolving Lender to purchase Participation Interests in the Letters of Credit up to such
Lender’s Revolving Commitment Percentage of the LOC Committed Amount, as such amount may be reduced
from time to time in accordance with the provisions hereof.

     “LOC Committed Amount” shall have the meaning set forth in Section 2.3(a).

     “LOC Documents” shall mean, with respect to each Letter of Credit, such Letter of
Credit, any amendments thereto, any documents delivered in connection therewith, any application
therefor, and any agreements, instruments, guarantees or other documents (whether general in
application or applicable only to such Letter of Credit) governing or providing for

18

 

(a) the rights and obligations of the parties concerned or (b) any collateral security for such
obligations.

     “LOC Obligations” shall mean, at any time, the sum of (a) the maximum amount which is,
or at any time thereafter may become, available to be drawn under Letters of Credit then
outstanding, assuming compliance with all requirements for drawings referred to in such Letters of
Credit plus (b) the aggregate amount of all drawings under Letters of Credit honored by the
Issuing Lender but not theretofore reimbursed.

     “Mandatory LOC Borrowing” shall have the meaning set forth in Section 2.3(e).

     “Mandatory Swingline Borrowing” shall have the meaning set forth in Section
2.4(b)(ii).

     “Material Adverse Effect” shall mean a material adverse effect on (a) the business,
operations, property, assets or condition (financial or otherwise) of the Borrower, individually,
or the Credit Parties and their Subsidiaries taken as a whole, (b) the ability of the Credit
Parties and their Subsidiaries taken as a whole, to perform their payment obligations under the
Credit Documents or the ability of the Credit Parties taken as a whole to perform their material
obligations (other than payment obligations) under the Credit Documents or (c) the validity or
enforceability of this Agreement, any of the Notes or any of the other Credit Documents or the
material rights or remedies of the Administrative Agent or the Lenders hereunder or thereunder.

     “Materials of Environmental Concern” shall mean any gasoline or petroleum (including
crude oil or any fraction thereof) or petroleum products or any hazardous or toxic substances,
materials or wastes, defined or regulated as such in or under any Environmental Law, including,
without limitation, asbestos, perchlorate, polychlorinated biphenyls and urea-formaldehyde
insulation.

     “Maturity Date” shall mean the Revolver Maturity Date and/or the Term Loan Maturity
Date, as applicable.

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

     “Mortgage Trustee” shall mean the “Mortgagee” as defined in the applicable Vessel
Fleet Mortgage.

     “Mortgaged Vessel” shall mean, initially, each Vessel and all appurtenances thereto
owned by any Credit Party or Subsidiary and identified as such on Schedule 3.29, and
includes each other Vessel and all appurtenances thereto with respect to which a Vessel Fleet
Mortgage is granted pursuant to Section 5.14.

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

     “Net Cash Proceeds” shall mean the aggregate cash proceeds received by any Credit
Party or any Subsidiary in respect of any Asset Disposition, Debt Issuance or Recovery Event,

19

 

net of the sum of (a) direct costs (including, without limitation, legal, accounting and investment
banking fees, and sales commissions) associated therewith, (b) amounts held in escrow to be applied
as part of the purchase price of any Asset Disposition, (c) taxes paid or payable as a result
thereof and (d) the amount of any payments by the Credit Parties and their Subsidiaries of, and
reserves established by the Credit Parties and their Subsidiaries to fund, contingent liabilities
(including stipulated loss payments, if any, in the applicable Chartered Vessel Document)
reasonably estimated to be payable that related to such event (provided that any reversal of any
such reserves will be deemed to be Net Cash Proceeds received at the time and in the amount of such
reversal); it being understood that “Net Cash Proceeds” shall include, without limitation, any cash
received upon the sale or other disposition of any non-cash consideration received by any Credit
Party or any Subsidiary in any Asset Disposition, Debt Issuance or Recovery Event and any cash
released from escrow as part of the purchase price in connection with any Asset Disposition.

     “Note” or “Notes” shall mean the Revolving Notes, the Term Loan Notes and/or
the Swingline Note, collectively, separately or individually, as appropriate.

     “Notice of Borrowing” shall mean a request for a Revolving Loan borrowing pursuant to
Section 2.1(b)(i) or a request for a Swingline Loan borrowing pursuant to Section 2.4(b)(i), as
appropriate. A Form of Notice of Borrowing is attached as Exhibit 1.1(e).

     “Notice of Conversion/Extension” shall mean the written notice of conversion of a
LIBOR Rate Loan to an Alternate Base Rate Loan or an Alternate Base Rate Loan to a LIBOR Rate Loan,
or extension of a LIBOR Rate Loan, in each case substantially in the form of Exhibit
1.1(f).

     “OFAC” shall mean the U.S. Department of the Treasury’s Office of Foreign Assets
Control.

     “Operating Lease” shall mean, as applied to any Person, any lease (including, without
limitation, leases which may be terminated by the lessee at any time) of any property (whether
real, personal or mixed) which is not a Capital Lease other than any such lease in which that
Person is the lessor.

     “Participant” shall have the meaning set forth in Section 10.6(b).

     “Participation Interest” shall mean a participation interest purchased by a Revolving
Lender in LOC Obligations as provided in Section 2.3(c) and in Swingline Loans as provided in
Section 2.4(b)(ii).

     “Patent Licenses” shall mean all agreements, whether written or oral, providing for
the grant by or to a Person of any right to manufacture, use or sell any invention covered by a
Patent, including, without limitation, any thereof referred to in Schedule 3.15.

     “Patents” shall mean (a) all letters patent of the United States or any other country,
now existing or hereafter arising, and all reissues, reexaminations, patents of addition and
extensions

20

 

thereof, including, without limitation, any thereof referred to in Schedule 3.15, and (b)
all applications for letters patent of the United States or any other country, now existing or
hereafter arising, and all provisionals, divisions, continuations and continuations-in-part and
substitutes thereof, including, without limitation, any thereof referred to in Schedule
3.15.

     “Patriot Act” shall mean The Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L.
No. 107-56 (signed into law October 26, 2001)), as amended or modified from time to time.

     “PBGC” shall mean the Pension Benefit Guaranty Corporation established pursuant to
Subtitle A of Title IV of ERISA.

     “Permitted Acquisition” shall mean an acquisition or any series of related
acquisitions by a Credit Party of (a) all or substantially all of the assets or a majority of the
outstanding Voting Stock or economic interests of a Person that is incorporated, formed or
organized in the United States, (b) a Person that is incorporated, formed or organized in the
United States by a merger, amalgamation or consolidation or any other combination with such Person
or (c) any division, line of business or other business unit of a Person that is incorporated,
formed or organized in the United States (such Person or such division, line of business or other
business unit of such Person shall be referred to herein as the “Target”), in each case
that is a type of business (or assets used in a type of business) permitted to be engaged in by the
Credit Parties and their Subsidiaries pursuant to Section 7.3, in each case so long as (i) no
Default or Event of Default shall then exist or would exist after giving effect thereto, (ii) the
Credit Parties shall demonstrate to the reasonable satisfaction of the Administrative Agent that,
after giving effect to the acquisition on a Pro Forma Basis, the Credit Parties are in compliance
with each of the financial covenants set forth in Article VI, (iii) the Administrative Agent, on
behalf of the Secured Parties, shall have received (or shall receive in connection with the closing
of such acquisition) a first priority perfected security interest (subject to Permitted Liens) in
all property (including, without limitation, Capital Stock) acquired with respect to the Target in
accordance with the terms of Sections 5.9 and 5.11 and the Target, if a Person, shall have executed
a Joinder Agreement in accordance with the terms of Section 5.9, (iv) to the extent the total
consideration to be paid in connection with any Permitted Acquisition shall exceed $50,000,000 in
the aggregate, the Administrative Agent and the Lenders shall have received (A) a description of
the material terms of such acquisition, (B) audited financial statements (or, if unavailable,
management-prepared financial statements) of the Target for its two most recent fiscal years and
for any fiscal quarters ended within the fiscal year to date, (C) Consolidated projected income
statements of the Credit Parties and their Subsidiaries (giving effect to such acquisition), and
(D) not less than five (5) Business Days prior to the consummation of any such Permitted
Acquisition, a certificate substantially in the form of Exhibit 1.1(g), executed by a
Responsible Officer of the Borrower certifying that such Permitted Acquisition complies with the
requirements of this Agreement, all in form and substance reasonably satisfactory to the
Administrative Agent, (v) such acquisition shall not be a “hostile” acquisition and shall have been
approved by the Board of Directors (or equivalent) and/or shareholders (or equivalent) of the
applicable Credit Party and the Target and (vi) after giving effect to such acquisition, there
shall be at least $25,000,000 of Accessible Borrowing Availability less cash and Cash

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Equivalents and Short-Term Investments and the Consolidated Senior Secured Leverage shall be
less than 2.75 to 1.00 on a Pro Forma Basis.

     “Permitted Investments” shall mean:

     (a) cash and Cash Equivalents and Short-Term Investments;

     (b) Investments set forth on Schedule 1.1(a);

     (c) receivables owing to the Credit Parties or any of their Subsidiaries or any
receivables and advances to suppliers, in each case if created, acquired or made in the
ordinary course of business and payable or dischargeable in accordance with customary trade
terms;

     (d) Investments in and loans to any Credit Party;

     (e) loans and advances to officers, directors and employees in an aggregate amount not
to exceed $2,000,000 at any time outstanding; provided that such loans and advances
shall comply with all applicable Requirements of Law (including Sarbanes-Oxley);

     (f) Investments (including debt obligations) received in connection with the bankruptcy
or reorganization of suppliers and customers and in settlement of delinquent obligations of,
and other disputes with, customers and suppliers arising in the ordinary course of business;

     (g) Investments, acquisitions or transactions permitted under Section 7.4(b);

     (h) Permitted Acquisitions;

     (i) Hedging Agreements to the extent permitted hereunder;

     (j) Investments in the CCF Account; provided that no such Investment may be
made at any time a Default or Event of Default shall have occurred and be continuing;

     (k) Investments (other than Permitted Acquisitions) by a Credit Party or any Subsidiary
thereof in (i) a Subsidiary that is a Credit Party immediately prior to or contemporaneously
with the time of such Investment and (ii) a joint venture or a Subsidiary that is not a
Credit Party; provided that the aggregate amount of Investments by a Credit Party pursuant
to this clause (ii) shall not exceed an aggregate amount of $20,000,000 at any one time
outstanding;

     (l) deposits, prepayments and other credits to suppliers made in the ordinary course of
business consistent with the past practices of the Borrower and its Subsidiaries;

22

 

     (m) Investments received in lieu of cash in connection with Asset Dispositions to the
extent permitted under Section 7.4(a);

     (n) Investments made with respect to the purchase or redemption of the Existing Notes;

     (o) the Transactions;

     (p) loans or advances by the Borrower or any Subsidiary thereof to employees, directors
or officers of the Borrower or any Subsidiary thereof to finance the purchase by such
employees, directors or officers of Capital Stock of Borrower in an aggregate amount not to
exceed $3,500,000 at any time outstanding;

     (q) Investments permitted under Section 7.10; and

     (r) additional loan advances and/or Investments of a nature not contemplated by the
foregoing clauses hereof; provided that such loans, advances and/or Investments made
pursuant to this clause shall not exceed an aggregate amount of $25,000,000 at any one time
outstanding.

     “Permitted Liens” shall mean:

     (a) Liens created by or otherwise existing under or in connection with this Agreement
or the other Credit Documents in favor of the Administrative Agent (including in its
capacity as Mortgage Trustee) on behalf of the Secured Parties;

     (b) Liens in favor of a Hedging Agreement Provider in connection with a Secured Hedging
Agreement; provided that such Liens shall secure the Credit Party Obligations and
the obligations under such Secured Hedging Agreement on a pari passu basis;

     (c) Liens securing purchase money Indebtedness and Capital Lease Obligations (and
refinancings thereof) to the extent permitted under Section 7.1(c); provided, that
(i) any such Lien attaches to such property concurrently with or within one hundred twenty
(120) days after the acquisition thereof or the completion of such construction or
improvements thereon and (ii) such Lien attaches solely to the property so acquired,
constructed or improved in such transaction;

     (d) Liens for taxes, assessments, charges or other governmental levies not yet due or
as to which the period of grace, if any, related thereto has not expired or which are being
contested in good faith by appropriate proceedings; provided that adequate reserves
with respect thereto are maintained on the books of any Credit Party or its Subsidiaries, as
the case may be, in conformity with GAAP;

     (e) statutory Liens such as carriers’, warehousemen’s, mechanics’, materialmen’s,
landlords’, repairmen’s or other like Liens arising in the ordinary course

23

 

of business which are not overdue for a period of more than thirty (30) days or which are
being contested in good faith by appropriate proceedings; provided that adequate
reserves with respect thereto are maintained on the books of any Credit Party or its
Subsidiaries, as the case may be, in conformity with GAAP;

     (f) pledges or deposits in connection with workers’ compensation, unemployment
insurance and other social security legislation (other than any Lien imposed by ERISA) and
deposits securing liability to insurance carriers under insurance or self-insurance
arrangements;

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

     (h) easements, rights of way, restrictions, encroachments, declarations, covenants,
rights of tenants or parties in possession and other similar encumbrances affecting real
property which, in the aggregate, are not substantial in amount, and which do not in any
case materially detract from the value of the property subject thereto or materially
interfere with the ordinary conduct of the business of the applicable Person;

     (i) Liens existing on the Closing Date and set forth on Schedule 1.1(b);
provided that (i) no such Lien shall at any time be extended to cover property or
assets other than the property or assets subject thereto on the Closing Date and
improvements thereon and accessions thereto and proceeds of the property or assets to which
such Lien applies and (ii) such Lien shall secure only those obligations that it secures on
the Closing Date and extensions, renewals, refinancings and replacements of any such
Indebtedness that does not increase the outstanding principal amount thereof (plus unpaid
accrued interest, customary fees and premium thereon) or result in an earlier maturity;

     (j) any extension, renewal or replacement (or successive extensions, renewals or
replacements), in whole or in part, of any Lien referred to in this definition (other than
Liens set forth on Schedule 1.1(b)); provided that such extension, renewal
or replacement Lien shall be limited to all or a part of the property which secured the Lien
so extended, renewed or replaced (plus improvements on such property);

     (k) Liens arising in the ordinary course of business by virtue of any contractual,
statutory or common law provision relating to banker’s Liens, rights of set-off or similar
rights and remedies covering deposit or securities accounts (including funds or other assets
credited thereto) or other funds maintained with a depository institution or securities
intermediary;

     (l) any zoning, building or similar laws or rights reserved to or vested in any
Governmental Authority;

     (m) restrictions on transfers of securities imposed by applicable Securities Laws;

24

 

     (n) Liens arising out of judgments or awards not resulting in an Event of Default;
provided that the applicable Credit Party or Subsidiary shall in good faith be
prosecuting an appeal or proceedings for review;

     (o) Liens on the property of a Person existing at the time such Person becomes a
Subsidiary of a Credit Party in a transaction permitted hereunder securing Indebtedness;
provided, however, that any such Lien may not extend to any other property
(other than improvements and accessions thereto and proceeds of the assets to which such
Lien applies) of any Credit Party or any other Subsidiary that is not a Subsidiary of such
Person; provided, further, that any such Lien was not created in
anticipation of or in connection with the transaction or series of transactions pursuant to
which such Person became a Subsidiary of a Credit Party;

     (p) any interest or title of a lessor, licensor, sublicensor or sublessor under any
lease, license, sublicense or sublease (i) in existence as of the Closing Date, (ii) entered
into by any Credit Party or any Subsidiary thereof in the ordinary course of its business
and covering only the assets so leased, licensed, sublicensed or subleased and (iii) entered
into among one or more Credit Parties;

     (q) assignments of insurance or condemnation proceeds provided to landlords (or their
mortgagees) pursuant to the terms of any lease and Liens or rights reserved in any lease for
rent or for compliance with the terms of such lease;

     (r) Liens on accounts receivable of the Credit Parties and their Subsidiaries created
pursuant to factoring arrangements of such accounts receivable pursuant to which such Credit
Party or such Subsidiary receives gross proceeds not to exceed $15,000,000 in the aggregate
during the term of this Agreement; provided that such gross proceeds represent not
less than 80% of the aggregate face amount of the accounts receivable so factored pursuant
to any such arrangement;

     (s) Liens created pursuant to (i) leases and subleases of containers or other equipment
(other than Vessels) in the ordinary course of business or (ii) charters or subcharters or
leases or subleases of Vessels;

     (t) any interest or title of a lessor, charterer, sublessor or subcharterer in any
Chartered Vessel or container, or any encumbrances on any such title or interest of such
lessor, sublessor or similar Person;

     (u) in the case of Mortgaged Vessels, (i) Liens for crews’ wages remaining unpaid in
accordance with reasonable commercial practices; (ii) Liens for salvage (including contract
salvage and general average); (iii) Liens incident to current operations, including, without
limitation, Liens for repairs, refurbishments, improvements, replacements or additions
(except for crews’ wages, salvage and general average) not more than forty-five (45) days
past due; (iv) Liens for the wages of a stevedore when employed directly by the owner,
operator, master or any agent of such

25

 

Vessel; (v) Liens covered by insurance and any deductible applicable thereto; and (vi)
Liens for charters or subcharters or leases or subleases; provided that any such
Liens described in clause (iii) (other than Liens for necessaries existing on the date of
the recording of the applicable Vessel Fleet Mortgage, in an aggregate amount not to exceed
$2,000,000 at any time outstanding in connection with the Vessel Fleet Mortgage) and clause
(vi) of this paragraph (u) shall be permitted only to the extent they are subordinate to the
Lien of the applicable Vessel Fleet Mortgage;

     (v) other Liens filed in respect of any Vessel not otherwise constituting Permitted
Liens under clause (c) above; provided that the Credit Party or its Subsidiary shall
cause any such Lien to be removed within 30 days of obtaining knowledge thereof except where
(i) the validity or amount thereof is being contested in good faith by appropriate
proceedings, (ii) the Credit Party or the applicable Subsidiary has set aside on its books
adequate reserves with respect thereto to the extent required by GAAP, (iii) such contest
effectively suspends the enforcement of such Lien securing such obligation and (iv) neither
the Vessel nor any interest therein has been arrested by reason thereof or would be in any
danger of being sold, forfeited or lost during the pendency of such contest;

     (w) 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;

     (x) precautionary UCC financing statements relating solely to operating leases of
personal property or consignment of goods entered into in the ordinary course of business;

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

     (z) licenses of patents, trademarks and other intellectual property rights granted by
the Borrower or any of its Subsidiaries in the ordinary course of business and not
interfering in any material respect with the ordinary conduct of the business of the
Borrower or such Subsidiary;

     (aa) Liens in favor of the Maritime Administration in respect of guaranties provided
thereby of Indebtedness incurred by the Credit Parties and their Subsidiaries for the
purposes of acquiring or constructing new Vessels;

     (bb) Liens securing Indebtedness incurred pursuant to Section 7.1(s); provided
that (i) such Liens do not extend to, or encumber, property which constitutes Collateral and
(ii) such Liens extend only to property of Foreign Subsidiaries;

     (cc) Liens in favor of Bank of Hawaii and its Affiliates on assets of Hawaii
Stevedores, Inc. securing Indebtedness provided by Bank of Hawaii and its Affiliates to

26

 

Hawaii Stevedores, Inc.; provided that the aggregate principal amount of such
Indebtedness shall not exceed $2,500,000 at any time outstanding; and

     (dd) additional Liens so long as the principal amount of Indebtedness and other
obligations secured thereby does not exceed $10,000,000 in the aggregate.

     “Person” shall mean an individual, partnership, corporation, limited liability
company, business trust, joint stock company, trust, unincorporated association, joint venture,
Governmental Authority or other entity of whatever nature.

     “Plan” shall mean, as of any date of determination, any employee benefit plan which is
covered by Title IV of ERISA and in respect of which any Credit Party or a Commonly Controlled
Entity is (or, if such plan were terminated at such time, would under Section 4069 of ERISA be
deemed to be) an “employer” as defined in Section 3(5) of ERISA.

     “Pledge Agreement” shall mean the Pledge Agreement dated as of the Closing Date
executed by the Credit Parties and Horizon Lines Holding Corp. in favor of the Administrative
Agent, for the benefit of the Secured Parties, as the same may from time to time be amended,
modified, extended, restated, replaced, or supplemented from time to time in accordance with the
terms hereof and thereof. The Pledge Agreement shall be substantially in the form attached hereto
as Exhibit 1.1(i).

     “Prime Rate” shall have the meaning set forth in the definition of Alternate Base
Rate.

     “Pro Forma Basis” shall mean, with respect to any transaction, that such transaction
shall be deemed to have occurred as of the first day of the twelve-month period ending as of the
most recent quarter end preceding the date of such transaction.

     “Properties” shall have the meaning set forth in Section 3.10(a).

     “Purchasing Lenders” shall have the meaning set forth in Section 10.6(c).

     “Qualified Preferred Stock” shall mean any Capital Stock of the Borrower so long as
the terms of any such Capital Stock (a) (i) do not contain any mandatory put, redemption,
repayment, sinking fund or other similar provision and (ii) do not permit such Capital Stock to be
converted into Indebtedness, in each case prior to the date which is six (6) months after both the
Term Loan Maturity Date and the Revolver Maturity Date and (b) do not require the cash payment of
dividends, distributions or other Restricted Payments (i) prior to the date which is six (6) months
after both the Term Loan Maturity Date and the Revolver Maturity Date or (ii) that would otherwise
be prohibited by the terms of this Agreement.

     “Real Estate Mortgage Instrument” shall mean any mortgage, deed of trust or deed to
secure debt executed by a Credit Party in favor of the Administrative Agent, for the benefit of the
Secured Parties, as the same may be amended, modified, extended, restated, replaced, or
supplemented from time to time.

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     “Real Estate Mortgage Policy” shall mean, with respect to any Real Estate Mortgage
Instrument, an ALTA mortgagee title insurance policy issued by a title insurance company (the
“Title Insurance Company”) selected by the Administrative Agent in an amount satisfactory
to the Administrative Agent, in form and substance satisfactory to the Administrative Agent.

     “Real Estate Mortgaged Property” shall mean any owned real property of a Credit Party
that has fair market value is in excess of $1,000,000 and is listed on Schedule 3.17(d).

     “Recovery Event” shall mean the theft, loss, physical destruction or damage, taking or
similar event with respect to any of the property or assets of the Credit Parties or any of their
Subsidiaries (other than obsolete property or assets no longer used or useful in the business of
the Credit Parties or any of their Subsidiaries) for which such Credit Party or Subsidiaries has
received cash insurance proceeds or condemnation or expropriation award as a result of such theft,
loss, physical destruction or damage, taking or similar event; Recovery Event shall include an
“Event of Loss” as defined in the Vessel Fleet Mortgage.

     “Register” shall have the meaning set forth in Section 10.6(d).

     “Reimbursement Obligation” shall mean the obligation of the Borrower to reimburse the
Issuing Lender pursuant to Section 2.3(d) for amounts drawn under Letters of Credit.

     “Reorganization” shall mean, with respect to any Multiemployer Plan, the condition
that such Plan is in reorganization within the meaning of such term as used in Section 4241 of
ERISA.

     “Reportable Event” shall mean any of the events set forth in Section 4043(c) of ERISA,
other than those events as to which the thirty-day notice period is waived under PBGC Reg. §4043.

     “Required Lenders” shall mean, as of any date of determination, two or more Lenders
holding at least a majority of (a) the outstanding Revolving Commitments and Term Loan or (b) if
the Revolving Commitments have been terminated, the outstanding Loans and Participation Interests;
provided, however, that if any Lender shall be a Defaulting Lender at such time,
then there shall be excluded from the determination of Required Lenders, Credit Party Obligations
(including Participation Interests) owing to such Defaulting Lender and such Defaulting Lender’s
Commitments.

     “Requirement of Law” shall mean, as to any Person, the articles or certificate of
incorporation and by-laws or other organizational or governing documents of such Person, and each
law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case applicable to or binding upon such Person or any of its property or to
which such Person or any of its property is subject.

     “Responsible Officer” shall mean, for any Credit Party, any duly authorized officer
thereof and for which the Administrative Agent has an incumbency certificate indicating such
officer is a duly authorized officer thereof.

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     “Restricted Payment” shall mean (a) any dividend or other distribution, direct or
indirect, on account of any shares (or equivalent) of any class of Capital Stock of any Credit
Party or any of its Subsidiaries, now or hereafter outstanding, (b) any redemption, retirement,
sinking fund or similar payment, purchase or other acquisition for value, direct or indirect, of
any shares (or equivalent) of any class of Capital Stock of any Credit Party or any of its
Subsidiaries, now or hereafter outstanding, (c) 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
Capital Stock of any Credit Party or any of its Subsidiaries, now or hereafter outstanding, (d) any
payment with respect to any earn out obligation, (e) any payment or prepayment of principal of,
premium, if any, or interest on, redemption, purchase, retirement, defeasance, sinking fund or
similar payment with respect to, any Subordinated Debt of any Credit Party or any of its
Subsidiaries, (f) the payment by any Credit Party or any of its Subsidiaries of any management,
advisory or consulting fee to any Person or the payment of any extraordinary salary, bonus or other
form of compensation to any Person who is directly or indirectly a significant partner,
shareholder, owner or executive officer of any such Person, to the extent such extraordinary
salary, bonus or other form of compensation is not included in the corporate overhead of such
Credit Party or such Subsidiary and (g) any cash payment with respect to Indebtedness convertible
into Capital Stock due upon the conversion thereof.

     “Returned Investments” shall mean, with respect to any Investment, the aggregate
amount of all payments made in respect of such Investment that have been paid or returned, without
restriction, in cash or otherwise to the Person making such Investment.

     “Revolver Maturity Date” shall mean the earlier of (a) the date that is five (5) years
following the Closing Date or (b) the date that is six (6) months prior to the maturity date of the
2007 Senior Unsecured Convertible Notes, unless (in the case of this clause (b)) the 2007 Senior
Unsecured Convertible Notes are refinanced, or arrangements for the refinance of the 2007 Senior
Unsecured Convertible Notes have been made or are being made, in each case on terms and conditions
reasonably satisfactory to the Administrative Agent.

     “Revolving Commitment” shall mean, with respect to each Revolving Lender, the
commitment of such Revolving Lender to make Revolving Loans in an aggregate principal amount at any
time outstanding up to an amount equal to such Revolving Lender’s Revolving Commitment Percentage
of the Revolving Committed Amount.

     “Revolving Commitment Percentage” shall mean, for each Lender, the percentage
identified as its Revolving Commitment Percentage in its Lender Commitment Letter or in the
Assignment Agreement pursuant to which such Lender became a Lender hereunder, as such percentage
may be modified in connection with any assignment made in accordance with the provisions of Section
10.6(c).

     “Revolving Committed Amount” shall have the meaning set forth in Section 2.1(a).

     “Revolving Lender” shall mean, as of any date of determination, a Lender holding a
Revolving Commitment on such date.

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     “Revolving Loan” shall have the meaning set forth in Section 2.1.

     “Revolving Note” or “Revolving Notes” shall mean the promissory notes of the
Borrower provided pursuant to Section 2.1(e) in favor of any of the Revolving Lenders evidencing
the Revolving Loan provided by any such Revolving Lender pursuant to Section 2.1(a), individually
or collectively, as appropriate, as such promissory notes may be amended, modified, extended,
restated, replaced, or supplemented from time to time in accordance with the terms hereof.

     “S&P” shall mean Standard & Poor’s Ratings Services, a division of The McGraw Hill
Companies, Inc.

     “Sanctioned Country” shall mean a country subject to a sanctions program identified on
the list maintained by OFAC and made publicly available from time to time.

     “Sanctioned Person” shall mean (a) a Person named on the list of “Specially Designated
Nationals and Blocked Persons” maintained by OFAC and made publicly available from time to time, or
(b) (i) an agency of the government of a Sanctioned Country, (ii) an organization controlled by a
Sanctioned Country, or (iii) a person resident in a Sanctioned Country, to the extent subject to a
sanctions program administered by OFAC.

     “Sarbanes-Oxley” shall mean the Sarbanes-Oxley Act of 2002, as amended.

     “SEC” shall mean the Securities and Exchange Commission or any successor Governmental
Authority.

     “Secured Hedging Agreement” shall mean any Hedging Agreement between a Credit Party
and a Hedging Agreement Provider, as amended, modified, extended, restated, replaced, or
supplemented from time to time.

     “Secured Hedging Obligations” shall mean, without duplication, all of the obligations,
indebtedness and liabilities of the Credit Parties to the Hedging Agreement Providers, whenever
arising, under the Secured Hedging Agreements, including principal, interest, fees, premiums,
scheduled periodic payments, breakage, termination and other payments, reimbursements and
indemnification obligations and other amounts (including, but not limited to, any interest accruing
after the occurrence of a filing of a petition of bankruptcy under the Bankruptcy Code with respect
to any Credit Party, regardless of whether such interest is an allowed claim under the Bankruptcy
Code).

     “Secured Parties” shall mean the Administrative Agent (including in its capacity as
Mortgage Trustee), the Lenders, the Hedging Agreement Providers and the Bank Product Providers.

     “Securities Act” shall mean the Securities Act of 1933, together with any amendment
thereto or replacement thereof and any rules or regulations promulgated thereunder.

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     “Securities Laws” shall mean the Securities Act, the Exchange Act, Sarbanes-Oxley and
the applicable accounting and auditing principles, rules, standards and practices promulgated,
approved or incorporated by the SEC or the Public Company Accounting Oversight Board, as each of
the foregoing may be amended and in effect on any applicable date hereunder.

     “Security Agreement” shall mean the Security Agreement dated as of the Closing Date
executed by the Credit Parties in favor of the Administrative Agent, for the benefit of the Secured
Parties, as amended, modified, extended, restated, replaced, or supplemented from time to time in
accordance with the terms hereof and thereof. The Security Agreement shall be substantially in the
form attached hereto as Exhibit 1.1(j).

     “Security Documents” shall mean the Security Agreement, the Pledge Agreement, the Real
Estate Mortgage Instruments, the Vessel Fleet Mortgage and all other agreements, documents and
instruments relating to, arising out of, or in any way connected with any of the foregoing
documents or granting to the Administrative Agent (including in its capacity as Mortgage Trustee),
Liens or security interests to secure, inter alia, the Credit Party Obligations whether now or
hereafter executed and/or filed, each as may be amended from time to time in accordance with the
terms hereof, executed and delivered in connection with the granting, attachment and perfection of
the Administrative Agent’s or Mortgage Trustee’s security interests and liens arising thereunder,
including, without limitation, UCC financing statements.

     “Share Repurchase Program” shall mean the share repurchase program pursuant to which
the Borrower may purchase, redeem or otherwise acquire shares of its Capital Stock to the extent
permitted by Section 7.10.

     “Shipco” shall mean CSX Alaska Vessel Company, LLC, a Delaware limited liability
company and a subsidiary of CSX.

     “Single Employer Plan” shall mean any Plan that is not a Multiemployer Plan.

     “Spare Vessel” shall mean a Vessel which, at the time of determination, is then not
used in any of the Credit Parties’ or their Subsidiaries’ then current trade or operation.

     “SL Service” shall mean SL Service, Inc., a Delaware corporation and a subsidiary of
CSX.

     “Subcharter Agreement” shall mean the Sub-Bareboat Charter Party Respecting 3 Vessels,
dated as of July 7, 2004, between Shipco, as charterer, and Horizon Lines, LLC, as subcharterer, as
such agreement may from time to time be amended, restated, supplemented, modified or otherwise
changed to the extent permitted by the terms of this Agreement.

     “Subordinated Debt” shall mean any Indebtedness incurred by any Credit Party which by
its terms is specifically subordinated in right of payment to the prior payment of the Credit Party
Obligations and contains subordination and other terms reasonably acceptable to the Administrative
Agent.

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     “Subsidiary” shall mean, as to any Person, a corporation, partnership, limited
liability company or other entity of which shares of stock or other ownership interests having
ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other
managers of such corporation, limited liability company, partnership or other entity are at the
time owned, or the management of which is otherwise controlled, directly or indirectly through one
or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a
“Subsidiary” or to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries of
the Borrower.

     “Swingline Commitment” shall mean the commitment of the Swingline Lender to make
Swingline Loans in an aggregate principal amount at any time outstanding up to the Swingline
Committed Amount, and the commitment of the Revolving Lenders to purchase participation interests
in the Swingline Loans as provided in Section 2.4(b)(ii), as such amounts may be reduced from time
to time in accordance with the provisions hereof.

     “Swingline Committed Amount” shall mean the amount of the Swingline Lender’s Swingline
Commitment as specified in Section 2.4(a).

     “Swingline Lender” shall mean Wachovia and any successor in such capacity.

     “Swingline Loan” shall have the meaning set forth in Section 2.4(a).

     “Swingline Note” shall mean the promissory note of the Borrower in favor of the
Swingline Lender evidencing the Swingline Loans provided pursuant to Section 2.4(d), as such
promissory note may be amended, modified, extended, restated, replaced, or supplemented from time
to time.

     “Synthetic Lease” shall mean a lease of property or assets designed to permit the
lessee (a) to claim depreciation on such property or assets under United States tax law and (b) to
treat such lease as an operating lease or not to reflect the leased property or assets on the
lessee’s balance sheet under GAAP.

     “Target” shall have the meaning set forth in the definition of “Permitted
Acquisition”.

     “Taxes” shall have the meaning set forth in Section 2.18.

     “Term Loan” shall have the meaning set forth in Section 2.2(a).

     “Term Loan Commitment” shall mean, with respect to each Term Loan Lender, the
commitment of such Term Loan Lender to make its portion of the Term Loan in a principal amount
equal to such Term Loan Lender’s Term Loan Commitment Percentage of the Term Loan Committed Amount.

     “Term Loan Commitment Percentage” shall mean, for any Term Loan Lender, the percentage
identified as its Term Loan Commitment Percentage in its Lender Commitment

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Letter, or in the Assignment Agreement pursuant to which such Lender became a Lender
hereunder, as such percentage may be modified in connection with any assignment made in accordance
with the provisions of Section 10.6(c).

     “Term Loan Committed Amount” shall have the meaning set forth in Section 2.2(a).

     “Term Loan Lender” shall mean a Lender holding a Term Loan Commitment or a portion of
the outstanding Term Loan.

     “Term Loan Maturity Date” shall mean the earlier of (a) the date that is five (5)
years following the Closing Date or (b) the date that is six (6) months prior to the maturity date
of the 2007 Senior Unsecured Convertible Notes, unless (in the case of this clause (b)) the 2007
Senior Unsecured Convertible Notes are refinanced, or arrangements for the refinance of the 2007
Senior Unsecured Convertible Notes have been made or are being made, in each case on terms and
conditions reasonably satisfactory to the Administrative Agent.

     “Term Loan Note” or “Term Loan Notes” shall mean the promissory notes of the
Borrower (if any) in favor of any of the Term Loan Lenders evidencing the portion of the Term Loan
provided by any such Term Loan Lender pursuant to Section 2.2(a), individually or collectively, as
appropriate, as such promissory notes may be amended, modified, extended, restated, replaced, or
supplemented from time to time.

     “Title Insurance Company” shall have the meaning set forth in the definition of
“Real Estate Mortgage Policy”.

     “Total Leverage Ratio” shall mean, as of any date of determination, for the Credit
Parties and their Subsidiaries on a Consolidated basis, the ratio of (a) Consolidated Funded Debt
of the Credit Parties and their Subsidiaries on such date to (b) Consolidated EBITDA for the four
quarter period ending on or immediately prior to such date.

     “Trademark License” shall mean any agreement, whether written or oral, providing for
the grant by or to a Person of any right to use any Trademark, including, without limitation, any
thereof referred to in Schedule 3.15.

     “Trademarks” shall mean (a) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, service marks, elements of package or trade dress
of goods or services, logos and other source or business identifiers, together with the goodwill
associated therewith, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in the United States
Patent and Trademark Office or in any similar office or agency of the United States, any State
thereof or any other country or any political subdivision thereof, including, without limitation,
any thereof referred to in Schedule 3.15 and (b) all renewals thereof including, without
limitation, any thereof referred to in Schedule 3.15.

     “Tranche” shall mean the collective reference to LIBOR Rate Loans whose Interest
Periods begin and end on the same day.

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     “Transaction Costs” shall mean the fees and expenses incurred by the Borrower and its
Subsidiaries in connection with the Transactions.

     “Transactions” shall mean the closing of this Agreement and the other Credit
Documents, the purchase of the Existing Notes, the issuance of the 2007 Senior Unsecured
Convertible Notes and the other transactions contemplated hereby to occur in connection with such
closing and purchase (including, without limitation, the initial borrowings under the Credit
Documents and the payment of fees and expenses in connection with all of the foregoing).

     “Transfer Effective Date” shall have the meaning set forth in each Assignment
Agreement.

     “Transitional Subsidiary” shall mean any Subsidiary formed after the Closing Date
solely for the purpose of implementing an asset disposition or a structural transaction (including
an acquisition) permitted by this Agreement and which will cease to be a Subsidiary after the
consummation of such asset disposition or transaction (which will, in no event, be more than 90
days after the date of the formation of such Subsidiary).

     “Type” shall mean, as to any Loan, its nature as an Alternate Base Rate Loan or LIBOR
Rate Loan, as the case may be.

     “UCC” shall mean the Uniform Commercial Code from time to time in effect in any
applicable jurisdiction.

     “Vessel” shall mean any vessel owned, bareboat chartered or operated by the Credit
Parties and their Subsidiaries other than Vessels owned by an entity other than a Credit Party and
which are managed under Vessel management agreements.

     “Vessel Fleet Mortgage” shall mean the ship mortgage or other security document
granting a Lien on a Mortgaged Vessel to secure the Credit Party Obligations. The Vessel Fleet
Mortgage shall be substantially in the form attached hereto as Exhibit 1.1(h).

     “Voting Stock” shall mean, with respect to any Person, Capital Stock issued by such
Person the holders of which are ordinarily, in the absence of contingencies, entitled to vote for
the election of directors (or persons performing similar functions) of such Person, even though the
right so to vote may be or have been suspended by the happening of such a contingency.

     “Wachovia” shall mean Wachovia Bank, National Association, a national banking
association, together with its successors and/or assigns.

     “Works” shall mean all works which are subject to copyright protection pursuant to
Title 17 of the United States Code.

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     Section 1.2 Other Definitional Provisions.

     The definitions of terms herein shall apply equally to the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and “including” shall be
deemed to be followed by the phrase “without limitation.” The word “will” shall be construed to
have the same meaning and effect as the word “shall.” Unless the context requires otherwise (a)
any definition of or reference to any agreement, instrument or other document herein shall be
construed as referring to such agreement, instrument or other document as from time to time
amended, supplemented or otherwise modified (subject to any restrictions on such amendments,
supplements or modifications set forth herein), (b) any reference herein to any Person shall be
construed to include such Person’s successors and assigns, (c) the words “herein,” “hereof” and
“hereunder,” and words of similar import, shall be construed to refer to this Agreement in its
entirety and not to any particular provision hereof, (d) all references herein to Articles,
Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and
Exhibits and Schedules to, this Agreement, (e) any reference to any law or regulation herein shall,
unless otherwise specified, refer to such law or regulation as amended, modified or supplemented
from time to time and (f) the words “asset” and “property” shall be construed to have the same
meaning and effect and to refer to any and all tangible and intangible assets and properties,
including cash, securities, accounts and contract rights.

     Section 1.3 Accounting Terms.

     Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all
accounting determinations hereunder shall be made, and all financial statements required to be
delivered hereunder shall be prepared in accordance with GAAP applied on a basis consistent with
the most recent audited Consolidated financial statements of the Credit Parties and their
Subsidiaries delivered to the Lenders; provided that, if the Borrower shall notify the
Administrative Agent that it wishes to amend any definitions incorporated in Section 6.1 or Section
6.2 to eliminate the effect of any change in GAAP on the operation of any such definition or
provision (or if the Administrative Agent notifies the Borrower that the Required Lenders wish to
amend any such definition or provision for such purpose), then the Borrower’s compliance with such
provisions shall be determined on the basis of GAAP in effect immediately before the relevant
change in GAAP became effective, until either such notice is withdrawn or such definition or
provision is amended in a manner satisfactory to the Borrower and the Required Lenders.

     The Borrower shall deliver to the Administrative Agent and each Lender at the same time as the
delivery of any annual or quarterly financial statements given in accordance with the provisions of
Section 5.1, (a) a description in reasonable detail of any material change in the application of
accounting principles employed in the preparation of such financial statements from those applied
in the most recently preceding quarterly or annual financial statements as to which no objection
shall have been made in accordance with the provisions above and (b) a reasonable estimate of the
effect on the financial statements on account of such changes in application.

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     For purposes of computing the financial covenants set forth in Article VI for any applicable
test period, any Permitted Acquisition or sale of assets (including a stock sale), and in each case
any related incurrence of Indebtedness, shall be given pro forma effect as if such transaction had
taken place as of the first day of such applicable test period.

     Section 1.4 Time References.

     Unless otherwise specified, all references herein to times of day shall be references to
Eastern time (daylight or standard, as applicable).

     Section 1.5 Conflicts.

     In the event of any conflict between this Agreement and any other Credit Document, this
Agreement shall control.

ARTICLE II

THE LOANS; AMOUNT AND TERMS

     Section 2.1 Revolving Loans.

     (a) Revolving Commitment. During the Commitment Period, subject to the terms
and conditions hereof, each Revolving Lender severally, but not jointly, agrees to make
revolving credit loans in Dollars (“Revolving Loans”) to the Borrower from time to
time in an aggregate principal amount at any one time outstanding of up to TWO HUNDRED FIFTY
MILLION DOLLARS ($250,000,000) (as such aggregate maximum amount may be reduced from time to
time as provided in Section 2.7 or increased pursuant to Section 2.5, the “Revolving
Committed Amount”) for the purposes hereinafter set forth; provided,
however, that (i) with regard to each Revolving Lender individually, the sum of such
Revolving Lender’s Revolving Commitment Percentage of the aggregate principal amount of
outstanding Revolving Loans plus Swingline Loans plus LOC Obligations shall
not exceed such Revolving Lender’s Revolving Commitment and (ii) with regard to the
Revolving Lenders collectively, the sum of the aggregate principal amount of outstanding
Revolving Loans plus outstanding Swingline Loans plus outstanding LOC
Obligations shall not exceed the Revolving Committed Amount then in effect. Revolving Loans
may consist of Alternate Base Rate Loans or LIBOR Rate Loans, or a combination thereof, as
the Borrower may request, and may be repaid and reborrowed in accordance with the provisions
hereof; provided, however, the Revolving Loans made on the Closing Date or
any of the three (3) Business Days following the Closing Date, may only consist of Alternate
Base Rate Loans unless the Borrower delivers a funding indemnity letter, substantially in
the form of Exhibit 2.1(a), not less than three (3) Business Days prior to the
Closing Date. LIBOR Rate Loans shall be made by each Revolving Lender at its LIBOR Lending
Office and Alternate Base Rate Loans at its Domestic Lending Office.

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     (b) Revolving Loan Borrowings.

     (i) Notice of Borrowing. The Borrower shall request a Revolving Loan
borrowing by delivering a written Notice of Borrowing (or telephone notice promptly
confirmed in writing by delivery of a written Notice of Borrowing, which delivery
may be by fax) to the Administrative Agent not later than 1 P.M. on the date of the
requested borrowing in the case of Alternate Base Rate Loans, and on the third
Business Day (unless the applicable Lenders shall agree to a shorter period) prior
to the date of the requested borrowing in the case of LIBOR Rate Loans. Each such
Notice of Borrowing shall be irrevocable and shall specify (A) that a Revolving Loan
is requested, (B) the date of the requested borrowing (which shall be a Business
Day), (C) the aggregate principal amount to be borrowed and (D) whether the
borrowing shall be comprised of Alternate Base Rate Loans, LIBOR Rate Loans or a
combination thereof (in which case the portion of each shall be specified), and if
LIBOR Rate Loans are requested, the Interest Period(s) therefor. If the Borrower
shall fail to specify in any such Notice of Borrowing (1) an applicable Interest
Period in the case of a LIBOR Rate Loan, then such notice shall be deemed to be a
request for an Interest Period of one (1) month, or (2) the Type of Revolving Loan
requested, then such notice shall be deemed to be a request for an Alternate Base
Rate Loan hereunder. The Administrative Agent shall give notice to each Revolving
Lender promptly upon receipt of each Notice of Borrowing, the contents thereof and
each such Revolving Lender’s share thereof.

     (ii) Minimum Amounts. Each Revolving Loan that is made as an Alternate
Base Rate Loan shall be in a minimum aggregate amount of $500,000 and in integral
multiples of $100,000 in excess thereof (or the remaining amount of the Revolving
Committed Amount, if less). Each Revolving Loan that is made as a LIBOR Rate Loan
shall be in a minimum aggregate amount of $1,000,000 and in integral multiples of
$500,000 in excess thereof (or the remaining amount of the Revolving Committed
Amount, if less).

     (iii) Advances. Each Revolving Lender will make its Revolving
Commitment Percentage of each Revolving Loan borrowing available to the
Administrative Agent for the account of the Borrower at the office of the
Administrative Agent specified in Section 10.2, or at such other office as the
Administrative Agent may designate in writing, upon reasonable advance notice by
3:00 P.M. on the date specified in the applicable Notice of Borrowing, in Dollars
and in funds immediately available to the Administrative Agent. Such borrowing will
then be made available to the Borrower by the Administrative Agent by crediting the
account of the Borrower on the books of such office (or such other account that the
Borrower may designate in writing to the Administrative Agent) with the aggregate of
the amounts made available to the Administrative Agent by the Revolving Lenders and
in like funds as received by the Administrative Agent.

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     (c) Repayment. Subject to the terms of this Agreement, Revolving Loans may be
borrowed, repaid and reborrowed during the Commitment Period. The principal amount of all
Revolving Loans shall be due and payable in full on the Revolver Maturity Date, unless
accelerated sooner pursuant to Section 8.2. The Borrower shall have the right, upon notice,
to repay Revolving Loans in whole or in part from time to time; provided,
however; that each partial repayment of a Revolving Loan shall be in a minimum
principal amount of $500,000 and integral multiples of $500,000 in excess thereof (or the
remaining outstanding principal amount).

     (d) Interest. Subject to the provisions of Section 2.9, Revolving Loans shall
bear interest as follows:

     (i) Alternate Base Rate Loans. During such periods as any Revolving
Loans shall be comprised of Alternate Base Rate Loans, each such Alternate Base Rate
Loan shall bear interest at a per annum rate equal to the sum of the Alternate Base
Rate plus the Applicable Percentage; and

     (ii) LIBOR Rate Loans. During such periods as Revolving Loans shall be
comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear interest at a
per annum rate equal to the sum of the LIBOR Rate plus the Applicable
Percentage.

     Interest on Revolving Loans shall be payable in arrears on each Interest Payment Date.

     (e) Revolving Notes; Covenant to Pay. The Borrower’s obligation to pay each
Revolving Lender shall be evidenced by this Agreement and, upon such Revolving Lender’s
request, by a duly executed promissory note of the Borrower to such Revolving Lender in
substantially the form of Exhibit 2.1(e). The Borrower covenants and agrees to pay
the Revolving Loans in accordance with the terms of this Agreement and the Revolving Note or
Revolving Notes.

     Section 2.2 Term Loan.

     (a) Term Loan. Subject to the terms and conditions hereof and in reliance upon
the representations and warranties set forth herein, each Term Loan Lender severally, but
not jointly, agrees to make available to the Borrower (through the Administrative Agent) on
the Closing Date such Term Loan Lender’s Term Loan Commitment Percentage of a term loan in
Dollars (the “Term Loan”) in the aggregate principal amount of ONE HUNDRED
TWENTY-FIVE MILLION DOLLARS ($125,000,000) (the “Term Loan Committed Amount”) for
the purposes hereinafter set forth. Upon receipt by the Administrative Agent of the
proceeds of the Term Loan, such proceeds will then be made available to the Borrower by the
Administrative Agent by crediting the account of the Borrower on the books of the office of
the Administrative Agent specified in Section 10.2, or at such other office as the
Administrative Agent may designate in writing, with the aggregate of such proceeds made
available to the

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Administrative Agent by the Term Loan Lenders and in like funds as received by the
Administrative Agent (or by crediting such other account(s) as directed by the Borrower).
The Term Loan may consist of Alternate Base Rate Loans or LIBOR Rate Loans, or a combination
thereof, as the Borrower may request; provided, however, that the Term Loan
made on the Closing Date may only consist of Alternate Base Rate Loans unless the Borrower
delivers a funding indemnity letter, substantially in the form of Exhibit 2.1(a),
reasonably acceptable to the Administrative Agent not less than three (3) Business Days
prior to the Closing Date. LIBOR Rate Loans shall be made by each Term Loan Lender at its
LIBOR Lending Office and Alternate Base Rate Loans at its Domestic Lending Office. Amounts
repaid or prepaid on the Term Loan may not be reborrowed.

     (b) Repayment of Term Loan. The principal amount of the Term Loan shall be
repaid in twenty (20) consecutive quarterly installments as follows, with the balance due on
the Term Loan Maturity Date, unless accelerated sooner pursuant to Section 8.2:

	 	 	 
	Principal Amortization Payment	 	Term Loan Principal Amortization
	Dates	 	Payment
	December 31, 2007
	 	$1,562,500
	March 31, 2008
	 	$1,562,500
	June 30, 2008
	 	$1,562,500
	September 30, 2008
	 	$1,562,500
	December 31, 2008
	 	$1,562,500
	March 31, 2009
	 	$1,562,500
	June 30, 2009
	 	$1,562,500
	September 30, 2009
	 	$1,562,500
	December 31, 2009
	 	$4,687,500
	March 31, 2010
	 	$4,687,500
	June 30, 20010
	 	$4,687,500
	September 30, 2010
	 	$4,687,500
	December 31, 2010
	 	$4,687,500
	March 31, 2011
	 	$4,687,500
	June 30, 20011
	 	$4,687,500
	September 30, 2011
	 	$4,687,500
	December 31, 2011
	 	$18,750,000
	March 31, 2012
	 	$18,750,000
	June 30, 2012
	 	$18,750,000
	August 8, 2012
	 	$18,750,000 or the remaining principal amount of the Term Loan.

     (c) Interest on the Term Loan. Subject to the provisions of Section 2.9, the
Term Loan shall bear interest as follows:

     (i) Alternate Base Rate Loans. During such periods as the Term Loan
shall be comprised of Alternate Base Rate Loans, each such Alternate Base Rate

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Loan shall bear interest at a per annum rate equal to the sum of the Alternate Base
Rate plus the Applicable Percentage; and

     (ii) LIBOR Rate Loans. During such periods as the Term Loan shall be
comprised of LIBOR Rate Loans, each such LIBOR Rate Loan shall bear interest at a
per annum rate equal to the sum of the LIBOR Rate plus the Applicable
Percentage.

     Interest on the Term Loan shall be payable in arrears on each Interest Payment
Date.

     (d) Term Loan Notes; Covenant to Pay. The Borrower’s obligation to pay each
Term Loan Lender shall be evidenced by this Agreement and, upon such Term Loan Lender’s
request, by a duly executed promissory note of the Borrower to such Term Loan Lender in
substantially the form of Exhibit 2.2(d). The Borrower covenants and agrees to pay
the Term Loans in accordance with the terms of this Agreement and the Term Note or Term
Notes.

     Section 2.3 Letter of Credit Subfacility.

     (a) Issuance. Subject to the terms and conditions hereof and of the LOC
Documents, if any, and any other terms and conditions which the Issuing Lender may
reasonably require, during the Commitment Period the Issuing Lender shall issue, and the
Revolving Lenders shall participate in, standby Letters of Credit for the account of the
Borrower from time to time upon request in a form acceptable to the Issuing Lender;
provided, however, that (i) the aggregate amount of LOC Obligations shall
not at any time exceed FIFTY MILLION DOLLARS ($50,000,000) (the “LOC Committed
Amount”), (ii) the sum of the aggregate principal amount of outstanding Revolving Loans
plus outstanding Swingline Loans plus outstanding LOC Obligations shall not
at any time exceed the Revolving Committed Amount then in effect, (iii) all Letters of
Credit shall be denominated in Dollars and (iv) Letters of Credit shall be issued for any
lawful corporate purposes and shall be issued as standby letters of credit, including in
connection with workers’ compensation and other insurance programs. Except as otherwise
expressly agreed upon by all the Revolving Lenders, no Letter of Credit shall have an
original expiry date more than twelve (12) months from the date of issuance;
provided, however, so long as no Default or Event of Default has occurred
and is continuing and subject to the other terms and conditions to the issuance of Letters
of Credit hereunder, the expiry dates of Letters of Credit may be extended annually or
periodically from time to time on the request of the Borrower or by operation of the terms
of the applicable Letter of Credit to a date not more than twelve (12) months from the date
of extension; provided, further, that no Letter of Credit, as originally
issued or as extended, shall have an expiry date extending beyond the date that is thirty
(30) days prior to the Revolver Maturity Date. Each Letter of Credit shall comply with the
related LOC Documents. The issuance and expiry date of each Letter of Credit shall be a
Business Day. Each Letter of Credit issued hereunder shall be in a minimum original face
amount of $100,000 or such lesser amount as approved by the Issuing Lender.

40

 

     (b) Notice and Reports. The request for the issuance of a Letter of Credit
shall be submitted to the Issuing Lender at least three (3) Business Days prior to the
requested date of issuance. The Issuing Lender will promptly upon request provide to the
Administrative Agent for dissemination to the Revolving Lenders a detailed report specifying
the Letters of Credit which are then issued and outstanding and any activity with respect
thereto which may have occurred since the date of any prior report, and including therein,
among other things, the account party, the beneficiary, the face amount, expiry date as well
as any payments or expirations which may have occurred. The Issuing Lender will further
provide to the Administrative Agent promptly upon request copies of the Letters of Credit.
The Issuing Lender will provide to the Administrative Agent promptly upon request a summary
report of the nature and extent of LOC Obligations then outstanding.

     (c) Participations. Each Revolving Lender, upon issuance of any other Letter
of Credit, shall be deemed to have purchased without recourse a risk participation from the
Issuing Lender in such Letter of Credit and the obligations arising thereunder and any
collateral relating thereto, in each case in an amount equal to its Revolving Commitment
Percentage of the obligations under such Letter of Credit and shall absolutely,
unconditionally and irrevocably assume, as primary obligor and not as surety, and be
obligated to pay to the Issuing Lender therefor and discharge when due, its Revolving
Commitment Percentage of the obligations arising under such Letter of Credit in accordance
with subsection (e) below; provided that any Person that becomes a Lender after the
Closing Date shall be deemed to have purchased a Participation Interest in all outstanding
Letters of Credit on the date it becomes a Lender hereunder and any Letter of Credit issued
on or after such date, in each case in accordance with the foregoing terms. Without
limiting the scope and nature of each Revolving Lender’s participation in any Letter of
Credit, to the extent that the Issuing Lender has not been reimbursed as required hereunder
or under any LOC Document, each such Revolving Lender shall pay to the Issuing Lender its
Revolving Commitment Percentage of such unreimbursed drawing in same day funds pursuant to
and in accordance with the provisions of subsection (d) hereof. The obligation of each
Revolving Lender to so reimburse the Issuing Lender shall be absolute and unconditional and
shall not be affected by the occurrence of a Default, an Event of Default or any other
occurrence or event. Any such reimbursement shall not relieve or otherwise impair the
obligation of the Borrower to reimburse the Issuing Lender under any Letter of Credit,
together with interest as hereinafter provided.

     (d) Reimbursement. In the event of any drawing under any Letter of Credit, the
Issuing Lender will promptly notify the Borrower and the Administrative Agent. The Borrower
shall reimburse the Issuing Lender on the day of drawing under any Letter of Credit (either
with the proceeds of a Revolving Loan obtained hereunder or otherwise) in same day funds as
provided herein or in the LOC Documents. If the Borrower shall fail to reimburse the
Issuing Lender as provided herein, the unreimbursed amount of such drawing shall bear
interest at a per annum rate equal to the ABR Default Rate. Unless the Borrower shall
immediately notify the Issuing Lender and the Administrative Agent of its intent to
otherwise reimburse the Issuing Lender, the Borrower shall be deemed to have

41

 

requested a Mandatory LOC Borrowing in the amount of the drawing as provided in subsection
(e) hereof, the proceeds of which will be used to satisfy the Reimbursement Obligations.
The Borrower’s Reimbursement Obligations hereunder shall be absolute and unconditional under
all circumstances irrespective of any rights of set-off, counterclaim or defense to payment
the Borrower may claim or have against the Issuing Lender, the Administrative Agent, the
Lenders, the beneficiary of the Letter of Credit drawn upon or any other Person, including
without limitation any defense based on any failure of the Borrower to receive consideration
or the legality, validity, regularity or unenforceability of the Letter of Credit. The
Issuing Lender will promptly notify the other Revolving Lenders of the amount of any
unreimbursed drawing and each Revolving Lender shall promptly pay to the Administrative
Agent (in accordance with subsection (e) below) for the account of the Issuing Lender, in
Dollars and in immediately available funds, the amount of such Revolving Lender’s Revolving
Commitment Percentage of such unreimbursed drawing. Such payment shall be made on the day
such notice is received by such Revolving Lender from the Issuing Lender if such notice is
received at or before 2:00 P.M., otherwise such payment shall be made at or before 12:00
Noon on the Business Day next succeeding the day such notice is received. If such Revolving
Lender does not pay such amount to the Issuing Lender in full upon such request, such
Revolving Lender shall, on demand, pay to the Administrative Agent for the account of the
Issuing Lender interest on the unpaid amount during the period from the date of such drawing
until such Revolving Lender pays such amount to the Issuing Lender in full at a rate per
annum equal to, if paid within two (2) Business Days of the date such amount is due from the
Revolving Lender, the Federal Funds Effective Rate and thereafter at a rate equal to the
Alternate Base Rate. Each Revolving Lender’s obligation to make such payment to the Issuing
Lender, and the right of the Issuing Lender to receive the same, shall be absolute and
unconditional, shall not be affected by any circumstance whatsoever and without regard to
the termination of this Agreement or the Commitments hereunder, the existence of a Default
or Event of Default or the acceleration of the Credit Party Obligations hereunder and shall
be made without any offset, abatement, withholding or reduction whatsoever.

     (e) Repayment with Revolving Loans. On any day on which the Borrower shall
have requested, or been deemed to have requested, a Revolving Loan to reimburse a drawing
under a Letter of Credit, the Administrative Agent shall give notice to the Revolving
Lenders that a Revolving Loan has been requested or deemed requested in connection with a
drawing under a Letter of Credit, in which case a Revolving Loan borrowing comprised
entirely of Alternate Base Rate Loans (each such borrowing, a “Mandatory LOC
Borrowing”) shall be made (without giving effect to any termination of the Commitments
pursuant to Section 8.2) pro rata based on each Revolving Lender’s respective Revolving
Commitment Percentage (determined before giving effect to any termination of the Commitments
pursuant to Section 8.2) and the proceeds thereof shall be paid directly to the Issuing
Lender for application to the respective LOC Obligations. Each Revolving Lender hereby
irrevocably agrees to make such Revolving Loans on the day such notice is received by the
Revolving Lenders from the Administrative Agent if such notice is received at or before 2:00
P.M. on a Business Day, otherwise such payment shall be made at or before 12:00 Noon on the
Business Day next succeeding the day such

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notice is received, in each case notwithstanding (i) the amount of Mandatory LOC
Borrowing may not comply with the minimum amount for borrowings of Revolving Loans otherwise
required hereunder, (ii) whether any conditions specified in Section 4.2 are then satisfied,
(iii) whether a Default or an Event of Default then exists, (iv) failure for any such
request or deemed request for Revolving Loan to be made by the time otherwise required in
Section 2.1(b), (v) the date of such Mandatory LOC Borrowing, or (vi) any reduction in the
Revolving Committed Amount after any such Letter of Credit may have been drawn upon. In the
event that any Mandatory LOC Borrowing cannot for any reason be made on the date otherwise
required above (including, without limitation, as a result of the occurrence of a Bankruptcy
Event), then each such Revolving Lender hereby agrees that it shall forthwith fund (as of
the date the Mandatory LOC Borrowing would otherwise have occurred, but adjusted for any
payments received from the Borrower on or after such date and prior to such purchase) its
Participation Interests in the outstanding LOC Obligations; provided,
further, that in the event any Revolving Lender shall fail to fund its Participation
Interest on the day the Mandatory LOC Borrowing would otherwise have occurred, then the
amount of such Revolving Lender’s unfunded Participation Interest therein shall bear
interest payable by such Revolving Lender to the Issuing Lender upon demand, at the rate
equal to, if paid within two (2) Business Days of such date, the Federal Funds Effective
Rate, and thereafter at a rate equal to the Alternate Base Rate.

     (f) Modification, Extension. The issuance of any supplement, modification,
amendment, renewal, or extension to any Letter of Credit shall, for purposes hereof, be
treated in all respects the same as the issuance of a new Letter of Credit hereunder.

     (g) ISP98. Unless otherwise expressly agreed by the Issuing Lender and the
Borrower, when a Letter of Credit is issued, the rules of the “International Standby
Practices 1998,” published by the Institute of International Banking Law & Practice (or such
later version thereof as may be in effect at the time of issuance) shall apply to each
standby Letter of Credit.

     (h) Conflict with LOC Documents. In the event of any conflict between this
Agreement and any LOC Document (including any letter of credit application), this Agreement
shall control.

     (i) Designation of Subsidiaries as Account Parties. Notwithstanding anything
to the contrary set forth in this Agreement, including without limitation Section 2.3(a), a
Letter of Credit issued hereunder may contain a statement to the effect that such Letter of
Credit is issued for the account of a Subsidiary of the Borrower; provided that,
notwithstanding such statement, the Borrower shall be the actual account party for all
purposes of this Agreement for such Letter of Credit and such statement shall not affect the
Borrower’s Reimbursement Obligations hereunder with respect to such Letter of Credit.

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     Section 2.4 Swingline Loan Subfacility.

     (a) Swingline Commitment. During the Commitment Period, subject to the terms
and conditions hereof, the Swingline Lender, in its individual capacity, agrees to make
certain revolving credit loans in Dollars to the Borrower (each a “Swingline Loan”
and, collectively, the “Swingline Loans”) for the purposes hereinafter set forth;
provided, however, (i) the aggregate principal amount of Swingline Loans
outstanding at any time shall not exceed TWENTY MILLION DOLLARS ($20,000,000) (the
“Swingline Committed Amount”), and (ii) the sum of the aggregate principal amount of
outstanding Revolving Loans plus outstanding Swingline Loans plus
outstanding LOC Obligations shall not exceed the Revolving Committed Amount then in effect.
Swingline Loans hereunder may be repaid and reborrowed in accordance with the provisions
hereof.

     (b) Swingline Loan Borrowings.

     (i) Notice of Borrowing and Disbursement. Upon receiving a Notice of
Borrowing from the Borrower not later than 2:00 P.M. on any Business Day requesting
that a Swingline Loan be made, the Swingline Lender will make Swingline Loans
available to the Borrower on the same Business Day such request is received by the
Administrative Agent. Swingline Loan borrowings hereunder shall be made in minimum
amounts of $100,000 (or the remaining available amount of the Swingline Committed
Amount if less) and in integral amounts of $100,000 in excess thereof.

     (ii) Repayment of Swingline Loans. Each Swingline Loan borrowing shall
be due and payable on the Revolver Maturity Date. The Swingline Lender may, at any
time, in its sole discretion, by written notice to the Borrower and the
Administrative Agent, demand repayment of its Swingline Loans by way of a Revolving
Loan borrowing, in which case the Borrower shall be deemed to have requested a
Revolving Loan borrowing comprised entirely of Alternate Base Rate Loans in the
amount of such Swingline Loans; provided, however, that, in the
following circumstances, any such demand shall also be deemed to have been given one
(1) Business Day prior to each of (A) the Revolver Maturity Date, (B) the occurrence
of any Bankruptcy Event, (C) upon acceleration of the Credit Party Obligations
hereunder, whether on account of a Bankruptcy Event or any other Event of Default,
and (D) the exercise of remedies in accordance with the provisions of Section 8.2
hereof (each such Revolving Loan borrowing made on account of any such deemed
request therefor as provided herein being hereinafter referred to as “Mandatory
Swingline Borrowing”). Each Revolving Lender hereby irrevocably agrees to make
its Revolving Commitment Percentage of such Revolving Loans promptly upon any such
request or deemed request on account of each Mandatory Swingline Borrowing in the
amount specified in the preceding sentence on the date such notice is received by
the Revolving Lenders from the Administrative Agent if such notice is received at or
before 2:00 P.M. on a Business Day, otherwise such payment shall be made at or
before 12:00 Noon on the Business Day next succeeding the date such notice is
received

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notwithstanding (1) the amount of Mandatory Swingline Borrowing may not
comply with the minimum amount for borrowings of Revolving Loans otherwise required
hereunder, (2) whether any conditions specified in Section 4.2 are then satisfied,
(3) whether a Default or an Event of Default then exists, (4) failure of any such
request or deemed request for Revolving Loans to be made by the time otherwise
required in Section 2.1(b)(i), (5) the date of such Mandatory Swingline Borrowing,
or (6) any reduction in the Revolving Committed Amount or termination of the
Revolving Commitments immediately prior to such Mandatory Swingline Borrowing or
contemporaneously therewith. In the event that any Mandatory Swingline Borrowing
cannot for any reason be made on the date otherwise required above (including,
without limitation, as a result of the commencement of a proceeding under the
Bankruptcy Code), then each Revolving Lender hereby agrees that it shall forthwith
purchase (as of the date the Mandatory Swingline Borrowing would otherwise have
occurred, but adjusted for any payments received from the Borrower on or after such
date and prior to such purchase) from the Swingline Lender such Participation
Interest in the outstanding Swingline Loans as shall be necessary to cause each such
Revolving Lender to share in such Swingline Loans ratably based upon its respective
Revolving Commitment Percentage (determined before giving effect to any termination
of the Commitments pursuant to Section 8.2); provided that (x) all interest
payable on the Swingline Loans shall be for the account of the Swingline Lender
until the date as of which the respective Participation Interest is purchased, and
(y) at the time any purchase of a Participation Interest pursuant to this sentence
is actually made, the purchasing Revolving Lender shall be required to pay to the
Swingline Lender interest on the principal amount of such Participation Interest
purchased for each day from and including the day upon which the Mandatory Swingline
Borrowing would otherwise have occurred to but excluding the date of payment for
such Participation Interest, at the rate equal to, if paid within two (2) Business
Days of the date of the Mandatory Swingline Borrowing, the Federal Funds Effective
Rate, and thereafter at a rate equal to the Alternate Base Rate. The Borrower shall
have the right to repay the Swingline Loan in whole or in part from time to time;
provided, however; that each partial repayment of a Swingline Loan
shall be in a minimum principal amount of $100,000 and integral multiples of
$100,000 in excess thereof (or the remaining outstanding principal amount).

     (c) Interest on Swingline Loans. Subject to the provisions of Section 2.9,
Swingline Loans shall bear interest at a per annum rate equal to the Alternate Base Rate
plus the Applicable Percentage for Revolving Loans that are Alternate Base Rate
Loans. Interest on Swingline Loans shall be payable in arrears on each Interest Payment
Date.

     (d) Swingline Note; Covenant to Pay. The Swingline Loans shall be evidenced by
a duly executed promissory note of the Borrower to the Swingline Lender in the original
amount of the Swingline Committed Amount and substantially in the form of Exhibit
2.4(d). The Borrower covenants and agrees to pay the Swingline Loans in accordance with
the terms of this Agreement and the Swingline Note.

45

 

     Section 2.5 Incremental Facility.

     Subject to the terms and conditions set forth herein, the Borrower shall have the right, at
any time and from time to time (but not to exceed four (4) increases in the aggregate) during the
Commitment Period, to incur additional Indebtedness under this Credit Agreement in the form of term
loans (each an “Incremental Term Loan”) and/or increases to the Revolving Committed Amount
(each, an “Incremental Revolver”; each Incremental Term Loan and Incremental Revolver, an
“Incremental Facility”) by an aggregate amount of up to $150,000,000. The following terms
and conditions shall apply to each Incremental Facility: (i) the loans made under any such
Incremental Facility (each an “Additional Loan”) shall constitute Credit Party Obligations
and will be secured and guaranteed with the other Credit Party Obligations on a pari passu basis,
(ii) any such Additional Loans (1) made pursuant to an Incremental Revolver shall have the same
terms as the existing Revolving Loans and shall be considered Revolving Loans hereunder and (2)
made pursuant to an Incremental Term Loan shall have a maturity date no sooner than the Term Loan
Maturity Date, a weighted average life to maturity no shorter than the weighted average life to
maturity of the Term Loan and such other terms and documentation that, to the extent not consistent
with the Term Loan, will be reasonably satisfactory to the Administrative Agent at the time of such
Incremental Term Loan, (iii) any such Incremental Facility shall be in a minimum principal amount
of $25,000,000 and integral multiples of $5,000,000 in excess thereof, (iv) the proceeds of any
Additional Loan will be used for the purposes set forth in Section 3.11, (v) the Borrower shall
execute such promissory notes as are necessary to reflect the Additional Loans under any such
Incremental Facility, (vi) the conditions to Extensions of Credit in Section 4.2 shall have been
satisfied, (vii) the Administrative Agent shall have received an opinion or opinions (including,
if reasonably requested by the Administrative Agent, local counsel opinions) of counsel for the
Credit Parties, addressed to the Administrative Agent and the Lenders, in form and substance
acceptable to the Administrative Agent, (viii) the Credit Parties and the Mortgage Trustee shall
enter into contemporaneously with such Incremental Facility becoming effective an amendment to the
Vessel Fleet Mortgage to increase the amount of Credit Party Obligations secured thereby by the
amount of the Incremental Facility and (ix) the Administrative Agent shall have received from the
Borrower updated financial projections and an officer’s certificate, in each case in form and
substance reasonably satisfactory to the Administrative Agent, demonstrating that, after giving
effect to any such Incremental Facility and the borrowings thereunder on a Pro Forma Basis, the
Borrower will be in compliance with the financial covenants set forth in Article VI, and no Default
or Event of Default shall exist. Participation in the Incremental Facility shall be offered first
to each of the existing Lenders, but each such Lender shall have no obligation to provide all or
any portion of the Incremental Facility and the failure of a Lender to respond to such offer within
the specified period of time shall be deemed a rejection of such offer by such Lender. If the
amount of the Incremental Facility requested by the Borrower shall exceed the commitments which the
existing Lenders are willing to provide with respect to such Incremental Facility, then the
Borrower may invite other banks, financial institutions and investment funds reasonably acceptable
to the Administrative Agent to join this Credit Agreement as Lenders hereunder for the portion of
such Incremental Facility not taken by existing Lenders, provided that such other banks,
financial institutions and investment funds shall enter into such joinder agreements to give effect
thereto as the Administrative Agent may reasonably request. The Administrative Agent is

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authorized to enter into, on behalf of the Lenders, any amendment to this Credit Agreement or
any other Credit Document as may be necessary to incorporate the terms of any new Incremental
Facility therein.

     Section 2.6 Fees.

     (a) Commitment Fee. In consideration of the Revolving Commitments, the
Borrower agrees to pay to the Administrative Agent, for the ratable benefit of the Revolving
Lenders, a commitment fee (the “Commitment Fee”) in an amount equal to the
Applicable Percentage per annum on the average daily unused amount of the Revolving
Committed Amount. For purposes of computation of the Commitment Fee, LOC Obligations shall
be considered usage of the Revolving Committed Amount but Swingline Loans shall not be
considered usage of the Revolving Committed Amount. The Commitment Fee shall be payable
quarterly in arrears on the last Business Day of each calendar quarter.

     (b) Letter of Credit Fees. In consideration of the LOC Commitments, the
Borrower agrees to pay to the Administrative Agent, for the ratable benefit of the Revolving
Lenders (including Lenders holding a Participation Interest in LOC Obligations), a fee (the
“Letter of Credit Fee”) equal to the Applicable Percentage for Revolving Loans that
are LIBOR Rate Loans per annum on the average daily maximum amount available to be drawn
under each Letter of Credit from the date of issuance to the date of expiration. The Letter
of Credit Fee shall each be payable quarterly in arrears on the last Business Day of each
calendar quarter.

     (c) Issuing Lender Fees. In addition to the Letter of Credit Fees payable
pursuant to subsection (b) hereof, the Borrower shall pay to the Issuing Lender for its own
account without sharing by the other Lenders the reasonable and customary charges from time
to time of the Issuing Lender with respect to the amendment, transfer, administration,
cancellation and conversion of, and drawings under, such Letters of Credit (collectively,
the “Issuing Lender Fees”). The Issuing Lender may charge, and retain for its own
account without sharing by the other Lenders, an additional facing fee (the “Letter of
Credit Facing Fee”) of one-eighth of one percent (0.125%) per annum on the average daily
maximum amount available to be drawn under each such Letter of Credit issued by it. The
Issuing Lender Fees and the Letter of Credit Facing Fee shall be payable quarterly in
arrears on the last Business Day of each calendar quarter.

     (d) Administrative Fee. The Borrower agrees to pay to the Administrative Agent
the annual administrative fee as described in the Fee Letter.

     Section 2.7 Commitment Reductions.

     (a) Voluntary Reductions. The Borrower shall have the right to terminate or
permanently reduce the unused portion of the Revolving Committed Amount at any time or from
time to time upon not less than three (3) Business Days’ prior written notice to the
Administrative Agent (which shall notify the Lenders thereof as soon as practicable)

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of each such termination or reduction, which notice shall specify the effective date thereof
and the amount of any such reduction which shall be in a minimum amount of $500,000 or a whole
multiple of $500,000 in excess thereof and shall be irrevocable and effective upon receipt by
the Administrative Agent; provided that no such reduction shall be permitted if after
giving effect thereto, and to any prepayments of the Revolving Loans made on the effective
date thereof, the sum of the aggregate principal amount of outstanding Revolving Loans
plus outstanding Swingline Loans plus outstanding LOC Obligations would exceed
the Revolving Committed Amount then in effect.

     (b) Swingline and LOC Committed Amounts. If the Revolving Committed Amount is
reduced pursuant to Section 2.7(a) to an amount which is less than the then current
Swingline Committed Amount and/or LOC Committed Amount, the Swingline Committed Amount
and/or LOC Committed Amount, as applicable, shall automatically be reduced by an amount such
that the Swingline Committed Amount and/or LOC Committed Amount, as applicable, equals the
Revolving Committed Amount.

     (c) Maturity Date. The Revolving Commitments, the Swingline Commitment and the
LOC Commitment shall automatically terminate on the Revolver Maturity Date.

     Section 2.8 Prepayments.

     (a) Optional Prepayments. The Borrower shall have the right to prepay Loans in
whole or in part from time to time; provided, however, that each partial
prepayment of a Term Loan shall be in a minimum principal amount of $1,000,000 and integral
multiples of $1,000,000 in excess thereof (or the remaining outstanding principal amount).
The Borrower shall give three (3) Business Days’ irrevocable notice of prepayment in the
case of LIBOR Rate Loans and same-day irrevocable notice on any Business Day in the case of
Alternate Base Rate Loans, to the Administrative Agent (which shall notify the Lenders
thereof as soon as practicable). To the extent that the Borrower elects to prepay the Term
Loans, amounts prepaid under this Section shall be applied as directed by the Borrower.
Within the foregoing parameters, prepayments under this Section shall be applied first to
Alternate Base Rate Loans and then to LIBOR Rate Loans in direct order of Interest Period
maturities. All prepayments under this Section shall be subject to Section 2.17(a), but
otherwise without premium or penalty. Interest on the principal amount prepaid shall be
payable on the next occurring Interest Payment Date that would have occurred had such loan
not been prepaid or, at the request of the Administrative Agent, interest on the principal
amount prepaid shall be payable on any date that a prepayment is made hereunder through the
date of prepayment.

     (b) Mandatory Prepayments.

     (i) Revolving Committed Amount. If at any time after the Closing Date,
the sum of the aggregate principal amount of outstanding Revolving Loans
plus outstanding Swingline Loans plus outstanding LOC Obligations
shall exceed the Revolving Committed Amount, the Borrower shall immediately prepay
the Loans or, if necessary after repayment of the Loans, cash collateralize the LOC

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Obligations in an amount sufficient to eliminate such excess (such prepayment to be
applied as set forth in clause (v) below).

     (ii) Asset Dispositions. Promptly following any Asset Disposition (or
related series of Asset Dispositions) in excess of $5,000,000 in the aggregate
during any fiscal year, the Borrower shall prepay the Loans and/or cash
collateralize the LOC Obligations in an aggregate amount equal to one hundred
percent (100%) of the Net Cash Proceeds derived from such Asset Disposition (or
related series of Asset Dispositions) (such prepayment to be applied as set forth in
clause (v) below); provided, however, that, so long as no Default or
Event of Default has occurred and is continuing, such Net Cash Proceeds shall not be
required to be so applied to the extent the Borrower (A) deposits such Net Cash
Proceeds in the CCF Account; provided that, so long as the Consolidated
Senior Secured Leverage Ratio is equal to or greater than 2.5 to 1.0, the aggregate
amount of Net Cash Proceeds deposited in any fiscal year shall not exceed the sum of
$10,000,000 plus any amount of such limit from the immediately preceding fiscal year
which is unused or (B) delivers to the Administrative Agent a certificate stating
that the Credit Parties intend to use such Net Cash Proceeds to acquire assets
useful to the business of the Credit Parties (which assets do not need to be of the
same type as the assets sold or otherwise disposed of to generate such Net Cash
Proceeds to the extent the new assets constitute Collateral) within 365 days of the
receipt of such Net Cash Proceeds (or within 730 days for any portion of the
proceeds that are used to finance the construction of a Vessel, but only to the
extent that construction of such Vessel has begun or a contract therefor has been
entered into within 365 days of the receipt of such Net Cash Proceeds), it being
expressly agreed that Net Cash Proceeds not so reinvested shall be applied to prepay
the Loans and/or cash collateralize the LOC Obligations immediately thereafter (such
prepayment to be applied as set forth in clause (v) below).

     (iii) Debt Issuances. Immediately upon receipt by any Credit Party or
any of its Subsidiaries of proceeds from any Debt Issuance, the Borrower shall
prepay the Loans and/or cash collateralize the LOC Obligations in an aggregate
amount equal to fifty percent (50%) of the Net Cash Proceeds of such Debt Issuance
(such prepayment to be applied as set forth in clause (v) below); provided,
so long as no Default or Event of Default has occurred and is continuing, no such
prepayment shall be required if (i) after giving effect to the incurrence of such
Indebtedness, the Consolidated Senior Secured Leverage Ratio is less than or equal
to 2.25 to 1.0 on a Pro Forma Basis or (ii) the proceeds of the Debt Issuance are
used to consummate a Permitted Acquisition or for capital expenditures.

     (iv) Recovery Event. Immediately upon receipt by any Credit Party or
any of its Subsidiaries of proceeds from any Recovery Event in excess of $5,000,000,
the Borrower shall prepay the Loans and/or cash collateralize LOC Obligations in an
aggregate amount equal to one hundred percent (100%) of the Net Cash Proceeds of
such Recovery Event (such prepayment to be applied as set

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forth in clause (v) below); provided, however, that, so long as no
Default or Event of Default has occurred and is continuing, such Net Cash Proceeds
shall not be required to be so applied to the extent the Borrower delivers to the
Administrative Agent a certificate stating that the Credit Parties intend to use
such Net Cash Proceeds to acquire assets useful to the business of the Credit
Parties (which assets do not need to be of the same type as the assets subject to
such Recovery Event to the extent the new assets constitute Collateral) within 365
days of the receipt of such Net Cash Proceeds (or within 730 days for any portion of
the proceeds that are used to finance the construction of a Vessel, but only to the
extent that construction of such Vessel has begun or a contract therefor has been
entered into within 365 days of the receipt of such Net Cash Proceeds), it being
expressly agreed that Net Cash Proceeds not so reinvested shall be applied to prepay
the Loans and/or cash collateralize the LOC Obligations immediately thereafter (such
prepayment to be applied as set forth in clause (v) below).

     (v) Application of Mandatory Prepayments. All amounts required to be
paid pursuant to this Section shall be applied in the following order:

     (A) with respect to all amounts prepaid pursuant to Section 2.8(b)(i),
(1) first to the outstanding Swingline Loans, (2) second to
the outstanding Revolving Loans and (3) third to cash collateralize
LOC Obligations; and

     (B) with respect to all amounts prepaid pursuant to Sections 2.8(b)(ii)
through (iv), (1) first to the Term Loan ((i) first to the next four
scheduled principal payments and (ii) then ratably to the remaining
amortization payments thereof), (2) second to the Swingline Loans
(without a corresponding reduction of the Swingline Committed Amount), (3)
third to the Revolving Loans (without a corresponding reduction of
the Revolving Committed Amount) and (4) fourth to a cash collateral
account in respect of LOC Obligations (without a corresponding reduction of
the LOC Committed Amount). Within the parameters of the applications set
forth above, prepayments shall be applied first to Alternate Base Rate Loans
and then to LIBOR Rate Loans in direct order of Interest Period maturities.
All prepayments under this Section shall be subject to Section 2.17 and be
accompanied by interest on the principal amount prepaid through the date of
prepayment, but otherwise without premium or penalty.

     (c) Hedging Obligations Unaffected. Any repayment or prepayment made pursuant
to this Section shall not affect the Borrower’s obligation to continue to make payments
under any Secured Hedging Agreement, which shall remain in full force and effect
notwithstanding such repayment or prepayment, subject to the terms of such Secured Hedging
Agreement.

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     Section 2.9 Default Rate and Payment Dates.

     (a) If all or a portion of the principal amount of any Loan which is a LIBOR Rate Loan
shall not be paid when due or continued as a LIBOR Rate Loan in accordance with the
provisions of Section 2.10 (whether at the stated maturity, by acceleration or otherwise),
such overdue principal amount of such Loan shall be converted to an Alternate Base Rate Loan
at the end of the Interest Period applicable thereto.

     (b) (i) If all or a portion of the principal amount of any LIBOR Rate Loan shall not be
paid when due, such overdue amount shall bear interest at a rate per annum which is equal to
the rate that would otherwise be applicable thereto plus 2%, until the end of the
Interest Period applicable thereto, and thereafter at a rate per annum which is equal to the
Alternate Base Rate plus the sum of the Applicable Percentage then in effect for
Alternate Base Rate Loans and 2% (the “ABR Default Rate”) or (ii) if any interest
payable on the principal amount of any Loan or any fee or other amount, including the
principal amount of any Alternate Base Rate Loan, payable hereunder shall not be paid when
due (whether at the stated maturity, by acceleration or otherwise), such overdue amount
shall bear interest at a rate per annum which is equal to the ABR Default Rate, in each case
from the date of such non-payment until such amount is paid in full (after as well as before
judgment). (A) Upon the occurrence, and during the continuance of a Bankruptcy Event and
(B) upon the occurrence, and during the continuance, of any other Event of Default
hereunder, at the option of the Required Lenders, the principal of and, to the extent
permitted by law, interest on the Loans and any other amounts owing hereunder or under the
other Credit Documents shall bear interest, payable on demand, at a per annum rate which is
(A) in the case of principal, the rate that would otherwise be applicable thereto
plus 2% or (B) in the case of interest, fees or other amounts, the ABR Default Rate
(after as well as before judgment).

     (c) Interest on each Loan shall be payable in arrears on each Interest Payment Date;
provided that interest accruing pursuant to paragraph (b) of this Section shall be
payable from time to time on demand.

     Section 2.10 Conversion/Extension Options.

     (a) The Borrower may, in the case of Revolving Loans and the Term Loan, elect from time
to time to convert Alternate Base Rate Loans to LIBOR Rate Loans, by delivering a Notice of
Conversion/Extension to the Administrative Agent at least three (3) Business Days prior to
the proposed date of conversion. In addition, the Borrower may elect from time to time to
convert all or any portion of a LIBOR Rate Loan to an Alternate Base Rate Loan by giving the
Administrative Agent irrevocable written notice thereof by 1:00 P.M. one (1) Business Day
prior to the proposed date of conversion. If the date upon which an Alternate Base Rate
Loan is to be converted to a LIBOR Rate Loan is not a Business Day, then such conversion
shall be made on the next succeeding Business Day and during the period from such last day
of an Interest Period to such succeeding Business Day such Loan shall bear interest as if it
were an Alternate Base Rate Loan. LIBOR Rate Loans may only be converted to Alternate Base
Rate

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Loans on the last day of the applicable Interest Period and only if no prior notice of
continuation thereof as a LIBOR Rate Loan has been given within the required time period.
If the date upon which a LIBOR Rate Loan is to be converted to an Alternate Base Rate Loan
is not a Business Day, then such conversion shall be made on the next succeeding Business
Day and during the period from such last day of an Interest Period to such succeeding
Business Day such Loan shall bear interest as if it were an Alternate Base Rate Loan. All
or any part of outstanding Alternate Base Rate Loans may be converted as provided herein;
provided that (i) no Loan may be converted into a LIBOR Rate Loan when any Default
or Event of Default has occurred and is continuing and (ii) partial conversions shall be in
an aggregate principal amount of $500,000 or a whole multiple of $500,000 in excess thereof.
All or any part of outstanding LIBOR Rate Loans may be converted as provided herein;
provided that partial conversions shall be in an aggregate principal amount of
$500,000 or a whole multiple of $500,000 in excess thereof.

     (b) Any LIBOR Rate Loans may be continued as such upon the expiration of an Interest
Period with respect thereto by compliance by the Borrower with the notice provisions
contained in Section 2.10(a); provided, that no LIBOR Rate Loan may be continued as
such when any Default or Event of Default has occurred and is continuing, in which case such
Loan shall be automatically converted to an Alternate Base Rate Loan at the end of the
applicable Interest Period with respect thereto. If the Borrower shall fail to give timely
notice of an election to continue a LIBOR Rate Loan, or the continuation of LIBOR Rate Loans
is not permitted hereunder, such LIBOR Rate Loans shall be automatically converted to
Alternate Base Rate Loans at the end of the applicable Interest Period with respect thereto.

     Section 2.11 Computation of Interest and Fees; Usury.

     (a) Interest payable hereunder with respect to any Alternate Base Rate Loan based on
the Prime Rate shall be calculated on the basis of a year of 365 days (or 366 days, as
applicable) for the actual days elapsed. All other fees, interest and all other amounts
payable hereunder shall be calculated on the basis of a 360-day year for the actual days
elapsed. The Administrative Agent shall as soon as practicable notify the Borrower and the
Lenders of each determination of a LIBOR Rate on the Business Day of the determination
thereof. Any change in the interest rate on a Loan resulting from a change in the Alternate
Base Rate shall become effective as of the opening of business on the day on which such
change in the Alternate Base Rate shall become effective. The Administrative Agent shall as
soon as practicable notify the Borrower and the Lenders of the effective date and the amount
of each such change.

     (b) Each determination of an interest rate by the Administrative Agent pursuant to any
provision of this Agreement shall be conclusive and binding on the Borrower and the Lenders
in the absence of manifest error. The Administrative Agent shall, at the request of the
Borrower, deliver to the Borrower a statement showing the computations used by the
Administrative Agent in determining any interest rate.

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     (c) It is the intent of the Lenders and the Credit Parties to conform to and contract
in strict compliance with applicable usury law from time to time in effect. All agreements
between the Lenders and the Credit Parties are hereby limited by the provisions of this
subsection which shall override and control all such agreements, whether now existing or
hereafter arising and whether written or oral. In no way, nor in any event or contingency
(including but not limited to prepayment or acceleration of the maturity of any Credit Party
Obligation), shall the interest taken, reserved, contracted for, charged, or received under
this Agreement, under the Notes or otherwise, exceed the maximum nonusurious amount
permissible under applicable law. If, from any possible construction of any of the Credit
Documents or any other document, interest would otherwise be payable in excess of the
maximum nonusurious amount, any such construction shall be subject to the provisions of this
paragraph and such interest shall be automatically reduced to the maximum nonusurious amount
permitted under applicable law, without the necessity of execution of any amendment or new
document. If any Lender shall ever receive anything of value which is characterized as
interest on the Loans under applicable law and which would, apart from this provision, be in
excess of the maximum nonusurious amount, an amount equal to the amount which would have
been excessive interest shall, without penalty, be applied to the reduction of the principal
amount owing on the Loans and not to the payment of interest, or refunded to the Borrower or
the other payor thereof if and to the extent such amount which would have been excessive
exceeds such unpaid principal amount of the Loans. The right to demand payment of the Loans
or any other Indebtedness evidenced by any of the Credit Documents does not include the
right to receive any interest which has not otherwise accrued on the date of such demand,
and the Lenders do not intend to charge or receive any unearned interest in the event of
such demand. All interest paid or agreed to be paid to the Lenders with respect to the
Loans shall, to the extent permitted by applicable law, be amortized, prorated, allocated,
and spread throughout the full stated term (including any renewal or extension) of the Loans
so that the amount of interest on account of such Indebtedness does not exceed the maximum
nonusurious amount permitted by applicable law.

     Section 2.12 Pro Rata Treatment and Payments.

     (a) Allocation of Payments Prior to Exercise of Remedies. Each borrowing of
Revolving Loans and any reduction of the Revolving Commitments shall be made pro rata
according to the respective Revolving Commitment Percentages of the Revolving Lenders.
Unless otherwise required by the terms of this Agreement, each payment under this Agreement
or any Note shall be applied as directed by the Borrower, or if no such directions is given,
first, to any fees then due and owing by the Borrower pursuant to Section 2.6,
second, to interest then due and owing hereunder and under the Notes of the Borrower
and, third, to principal then due and owing hereunder and under the Notes of the
Borrower. Each payment on account of any fees pursuant to Section 2.6 shall be made pro
rata in accordance with the respective amounts due and owing (except as to the Letter of
Credit Facing Fees and the Issuing Lender Fees). Each payment (other than prepayments) by
the Borrower on account of principal of and interest on the Revolving Loans and on the Term
Loans, as applicable, shall be applied to such Loans, as

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applicable, on a pro rata basis. Each optional prepayment on account of principal of the
Loans shall be applied in accordance with Section 2.8(a) to such Loans on a pro rata basis
according to the respective principal amounts outstanding. Each mandatory prepayment on
account of principal of the Loans shall be applied in accordance with Section 2.8(b) to such
Loans on a pro rata basis according to the respective principal amounts outstanding. All
payments (including prepayments) to be made by the Borrower on account of principal,
interest and fees shall be made without defense, set-off or counterclaim (except as provided
in Section 2.18(b)) and shall be made to the Administrative Agent for the account of the
Lenders at the Administrative Agent’s office specified on Section 10.2 in Dollars and in
immediately available funds not later than 1:00 P.M. on the date when due. The
Administrative Agent shall distribute such payments to the Lenders entitled thereto promptly
upon receipt in like funds as received. If any payment hereunder (other than payments on
the LIBOR Rate Loans) becomes due and payable on a day other than a Business Day, such
payment shall be extended to the next succeeding Business Day, and, with respect to payments
of principal, interest thereon shall be payable at the then applicable rate during such
extension. If any payment on a LIBOR Rate Loan becomes due and payable on a day other than
a Business Day, such payment date shall be extended to the next succeeding Business Day
unless the result of such extension would be to extend such payment into another calendar
month, in which event such payment shall be made on the immediately preceding Business Day.

     (b) Allocation of Payments After Exercise of Remedies. Notwithstanding any
other provisions of this Agreement to the contrary, after the exercise of remedies (other
than the invocation of default interest pursuant to Section 2.9) by the Administrative Agent
or the Lenders pursuant to Section 8.2 (or after the Commitments shall automatically
terminate and the Loans (with accrued interest thereon) and all other amounts under the
Credit Documents (including without limitation the maximum amount of all contingent
liabilities under Letters of Credit) shall automatically become due and payable in
accordance with the terms of such Section), all amounts collected or received by the
Administrative Agent, any Lender, any Bank Product Provider or any Hedging Agreement
Provider on account of the Credit Party Obligations or any other amounts outstanding under
any of the Credit Documents or in respect of the Collateral shall be paid over or delivered
as follows (irrespective of whether the following costs, expenses, fees, interest, premiums,
scheduled periodic payments or Credit Party Obligations are allowed, permitted or recognized
as a claim in any proceeding resulting from the occurrence of a Bankruptcy Event):

     FIRST, to the payment of all reasonable out-of-pocket costs and expenses
(including without limitation reasonable attorneys’ fees) of the Administrative
Agent in connection with enforcing the rights of the Lenders under the Credit
Documents and any protective advances made by the Administrative Agent with respect
to the Collateral under or pursuant to the terms of the Security Documents;

     SECOND, to the payment of any fees owed to the Administrative Agent and the
Issuing Lender

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     THIRD, to the payment of all reasonable out-of-pocket costs and expenses
(including without limitation, reasonable attorneys’ fees) of each of the Lenders in
connection with enforcing its rights under the Credit Documents or otherwise with
respect to the Credit Party Obligations owing to such Lender;

     FOURTH, to the payment of all of the Credit Party Obligations consisting of
accrued fees and interest, and including, with respect to any Secured Hedging
Agreement, any fees, premiums and scheduled periodic payments due under such Secured
Hedging Agreement and any interest accrued thereon;

     FIFTH, to the payment of the outstanding principal amount of the Credit Party
Obligations and the payment or cash collateralization of the outstanding LOC
Obligations, and including with respect to any Secured Hedging Agreement, any
breakage, termination or other payments due under such Secured Hedging Agreement and
any interest accrued thereon;

     SIXTH, to all other Credit Party Obligations and other obligations which shall
have become due and payable under the Credit Documents or otherwise and not repaid
pursuant to clauses ”FIRST” through “FIFTH” above; and

     SEVENTH, to the payment of the surplus, if any, to the Borrower or whoever may
be lawfully entitled to receive such surplus.

     In carrying out the foregoing, (a) amounts received shall be applied in the numerical
order provided until exhausted prior to application to the next succeeding category; (b)
each of the Lenders and any Hedging Agreement Provider shall receive an amount equal to its
pro rata share (based on the proportion that the then outstanding Loans and LOC Obligations
held by such Lender (each Revolving Lender being deemed to “hold” its Participation
Interests in LOC Obligations and Swingline Loans) or the outstanding obligations payable to
such Hedging Agreement Provider bears to the aggregate then outstanding Loans and LOC
Obligations and obligations payable under all Secured Hedging Agreements) of amounts
available to be applied pursuant to clauses ”THIRD”, “FOURTH”, “FIFTH” and “SIXTH” above;
and (c) to the extent that any amounts available for distribution pursuant to clause “FIFTH”
above are attributable to the issued but undrawn amount of outstanding Letters of Credit,
such amounts shall be held by the Administrative Agent in a cash collateral account and
applied (i) first, to reimburse the Issuing Lender from time to time for any drawings under
such Letters of Credit and (ii) then, following the expiration of all Letters of Credit, to
all other obligations of the types described in clauses “FIFTH” and “SIXTH” above in the
manner provided in this Section. Notwithstanding the foregoing terms of this Section, only
Collateral proceeds and payments under the Guaranty (as opposed to ordinary course
principal, interest and fee payments hereunder) shall be applied to obligations under any
Secured Hedging Agreement.

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     Section 2.13 Non-Receipt of Funds by the Administrative Agent.

     (a) Funding by Lenders; Presumption by Administrative Agent. Unless the
Administrative Agent shall have received written notice from a Lender prior to the proposed
date of any Extension of Credit that such Lender will not make available to the
Administrative Agent such Lender’s share of such Extension of Credit, the Administrative
Agent may assume that such Lender has made such share available on such date in accordance
with this Agreement and may, in reliance upon such assumption, make available to the
Borrower a corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Extension of Credit available to the Administrative Agent, then the
applicable Lender and the Borrower severally agree to pay to the Administrative Agent
forthwith on demand such corresponding amount with interest thereon, for each day from and
including the date such amount is made available to the Borrower to but excluding the date
of payment to the Administrative Agent, at (i) in the case of a payment to be made by such
Lender, the greater of the Federal Funds Effective Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on interbank compensation and
(ii) in the case of a payment to be made by the Borrower, the interest rate applicable to
Alternate Base Rate Loans. If the Borrower and such Lender shall pay such interest to the
Administrative Agent for the same or an overlapping period, the Administrative Agent shall
promptly remit to the Borrower the amount of such interest paid by the Borrower for such
period. If such Lender pays its share of the applicable Extension of Credit to the
Administrative Agent, then the amount so paid shall constitute such Lender’s Loan included
in such Extension of Credit. Any payment by the Borrower shall be without prejudice to any
claim the Borrower may have against a Lender that shall have failed to make such payment to
the Administrative Agent.

     (b) Payments by Borrower; Presumptions by Administrative Agent. Unless the
Administrative Agent shall have received notice from the Borrower prior to the date on which
any payment is due to the Administrative Agent for the account of the Lenders or the Issuing
Lender hereunder that the Borrower will not make such payment, the Administrative Agent may
assume that the Borrower has made such payment on such date in accordance herewith and may,
in reliance upon such assumption, distribute to the Lenders or the Issuing Lender, as the
case may be, the amount due. In such event, if the Borrower has not in fact made such
payment, then each of the Lenders or the Issuing Lender, as the case may be, severally
agrees to repay to the Administrative Agent forthwith on demand the amount so distributed to
such Lender or the Issuing Lender, with interest thereon, for each day from and including
the date such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Effective Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation.

     A notice of the Administrative Agent to any Lender or the Borrower with respect to any
amount owing under subsections (a) and (b) of this Section shall be conclusive, absent
manifest error.

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     (c) Failure to Satisfy Conditions Precedent. If any Lender makes available to
the Administrative Agent funds for any Loan to be made by such Lender as provided in the
foregoing provisions of this Article II, and such funds are not made available to the
Borrower by the Administrative Agent because the conditions to the applicable Extension of
Credit set forth in Article IV are not satisfied or waived in accordance with the terms
thereof, the Administrative Agent shall return such funds (in like funds as received from
such Lender) to such Lender, without interest.

     (d) Obligations of Lenders Several. The obligations of the Lenders hereunder
to make Term Loans and Revolving Loans, to fund participations in Letters of Credit and
Swingline Loans and to make payments pursuant to Section 10.5(c) are several and not joint.
The failure of any Lender to make any Loan, to fund any such participation or to make any
such payment under Section 10.5(c) on any date required hereunder shall not relieve any
other Lender of its corresponding obligation to do so on such date, and no Lender shall be
responsible for the failure of any other Lender to so make its Loan, to purchase its
participation or to make its payment under Section 10.5(c).

     (e) Funding Source. Nothing herein shall be deemed to obligate any Lender to
obtain the funds for any Loan in any particular place or manner or to constitute a
representation by any Lender that it has obtained or will obtain the funds for any Loan in
any particular place or manner.

     Section 2.14 Inability to Determine Interest Rate.

     Notwithstanding any other provision of this Agreement, if (a) the Administrative Agent shall
reasonably determine (which determination shall be conclusive and binding absent manifest error)
that, by reason of circumstances affecting the relevant market, reasonable and adequate means do
not exist for ascertaining LIBOR for such Interest Period, or (b) the Required Lenders shall
reasonably determine (which determination shall be conclusive and binding absent manifest error)
that the LIBOR Rate does not adequately and fairly reflect the cost to such Lenders of funding
LIBOR Rate Loans that the Borrower has requested be outstanding as a LIBOR Tranche during such
Interest Period, the Administrative Agent shall forthwith give telephone notice of such
determination, confirmed in writing, to the Borrower, and the Lenders at least two (2) Business
Days prior to the first day of such Interest Period. Unless the Borrower shall have notified the
Administrative Agent upon receipt of such telephone notice that it wishes to rescind or modify its
request regarding such LIBOR Rate Loans, any Loans that were requested to be made as LIBOR Rate
Loans shall be made as Alternate Base Rate Loans and any Loans that were requested to be converted
into or continued as LIBOR Rate Loans shall remain as or be converted into Alternate Base Rate
Loans. Until any such notice has been withdrawn by the Administrative Agent, no further Loans
shall be made as, continued as, or converted into, LIBOR Rate Loans for the Interest Periods so
affected.

     Section 2.15 Illegality.

     Notwithstanding any other provision of this Agreement, if the adoption of or any change in any
Requirement of Law after the date of this Agreement or in the interpretation or application

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thereof by the relevant Governmental Authority to any Lender shall make it unlawful for such Lender
or its LIBOR Lending Office to make or maintain LIBOR Rate Loans as contemplated by this Agreement
or to obtain in the interbank eurodollar market through its LIBOR Lending Office the funds with
which to make such Loans, (a) such Lender shall promptly notify the Administrative Agent and the
Borrower thereof, (b) the commitment of such Lender hereunder to make LIBOR Rate Loans or continue
LIBOR Rate Loans as such shall forthwith be suspended until the Administrative Agent, on behalf of
such Lender, shall give notice that the condition or situation which gave rise to the suspension
shall no longer exist, and (c) such Lender’s Loans then outstanding as LIBOR Rate Loans, if any,
shall be converted on the last day of the Interest Period for such Loans or within such earlier
period as required by law as Alternate Base Rate Loans. The Borrower hereby agrees promptly to pay
any Lender, upon its demand, any additional amounts necessary to compensate such Lender for actual
and direct costs (but not including anticipated profits) reasonably incurred by such Lender in
making any repayment in accordance with this Section including, but not limited to, any interest or
fees payable by such Lender to lenders of funds obtained by it in order to make or maintain its
LIBOR Rate Loans hereunder. A certificate setting forth in reasonable detail additional amounts
payable pursuant to this Section submitted by such Lender, through the Administrative Agent, to the
Borrower shall be conclusive in the absence of manifest error. Each Lender agrees to use
reasonable efforts (including reasonable efforts to change its LIBOR Lending Office) to avoid or to
minimize any amounts which may otherwise be payable pursuant to this Section; provided,
however, that such efforts shall not cause the imposition on such Lender of any additional
costs or legal or regulatory burdens deemed by such Lender to be material. Failure or delay on the
part of any Lender to demand compensation pursuant to the foregoing provisions of this Section 2.15
shall not constitute a waiver of such Lender’s rights to demand such compensation; provided
that the Borrower shall not be required to compensate a Lender pursuant to this section 2.15 for
any claim for reimbursement made by such Lender more than 90 days after the officers of such Lender
charged with the administration hereof became aware of the incurrence of the costs for which it is
submitting a claim.

     Section 2.16 Requirements of Law; Yield Protection.

     (a) If the adoption of or any change in any Requirement of Law after the date of this
Agreement or in the interpretation or application thereof or compliance by any Lender with
any request or directive (whether or not having the force of law) from any central bank or
other Governmental Authority made subsequent to the date hereof:

     (i) shall subject such Lender to any tax of any kind whatsoever with respect to
any Letter of Credit, any Participation Interest therein, or any application
relating thereto, any LIBOR Rate Loan made by it, or change the basis of taxation of
payments to such Lender in respect thereof (except for changes in the rate of tax on
the overall net income of such Lender and Taxes subject to the provisions of Section
2.17);

     (ii) shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, deposits or other
liabilities in or for the account of, advances, loans or other extensions of

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credit by, or any other acquisition of funds by, any office of such Lender which is
not otherwise included in the determination of the LIBOR Rate hereunder; or

     (iii) shall impose on such Lender any other condition;

and the result of any of the foregoing is to increase the cost to such Lender of making or
maintaining LIBOR Rate Loans or the Letters of Credit or the Participation Interests therein
or to reduce any amount receivable hereunder or under any Note, then, in any such case, the
Credit Parties shall pay such Lender, within 30 days after receipt of written notice, any
additional amounts necessary to compensate such Lender for such additional cost or reduced
amount receivable which such Lender reasonably deems to be material as determined by such
Lender with respect to its LIBOR Rate Loans or Letters of Credit. A certificate as to any
additional amounts payable pursuant to this Section (setting forth in reasonable detail such
amounts and the basis for the determination of such amounts) submitted by such Lender,
through the Administrative Agent, to the Borrower shall be conclusive in the absence of
manifest error. Each Lender agrees to use reasonable efforts (including reasonable efforts
to change its Domestic Lending Office or LIBOR Lending Office, as the case may be) to avoid
or to minimize any amounts which might otherwise be payable pursuant to this paragraph of
this Section; provided, however, that such efforts shall not cause the
imposition on such Lender of any additional costs or legal or regulatory burdens deemed by
such Lender to be material.

     (b) If any Lender shall have reasonably determined that the adoption of or any change
in any Requirement of Law after the date of Agreement regarding capital adequacy or in the
interpretation or application thereof or compliance by such Lender or any corporation
controlling such Lender with any request or directive regarding capital adequacy (whether or
not having the force of law) from any central bank or Governmental Authority made subsequent
to the date hereof does or shall have the effect of reducing the rate of return on such
Lender’s or such corporation’s capital as a consequence of its obligations hereunder to a
level below that which such Lender or such corporation could have achieved but for such
adoption, change or compliance (taking into consideration such Lender’s or such
corporation’s policies with respect to capital adequacy) by an amount reasonably deemed by
such Lender to be material, then from time to time, within thirty (30) days after demand by
such Lender, the Credit Parties shall pay to such Lender such additional amount as shall be
certified by such Lender as being required to compensate it for such reduction suffered from
and after the date that is 90 days before the day such Lender first notifies the Borrower
thereof and requests compensation (or suffered since the effective date of such change in a
Requirement of Law to the extent such change is given retroactive effect). Such a
certificate as to any additional amounts payable under this Section submitted by a Lender
(which certificate shall include a description of the basis for the computation and the
resulting computation thereof, all in reasonable detail), through the Administrative Agent,
to the Borrower shall be conclusive absent manifest error.

     (c) The agreements in this Section shall survive the termination of this Agreement and
payment of the Credit Party Obligations.

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     (d) Failure of delay on the part of any Lender to demand compensation pursuant to the
foregoing provisions of this Section 2.16 shall not constitute a waiver of such Lender’s
rights to demand such compensation.

     Section 2.17 Indemnity; Eurocurrency Liabilities.

     (a) The Credit Parties hereby agree to indemnify each Lender and to hold such Lender
harmless from any funding loss or expense which such Lender may sustain or incur as a
consequence of (a) default by the Borrower in payment of the principal amount of or interest
on any Loan by such Lender in accordance with the terms hereof, (b) default by the Borrower
in accepting a borrowing after the Borrower has given a notice in accordance with the terms
hereof, (c) default by the Borrower in making any prepayment after the Borrower has given a
notice in accordance with the terms hereof, and/or (d) the making by the Borrower of a
prepayment of a Loan, or the conversion thereof, on a day which is not the last day of the
Interest Period with respect thereto, in each case including, but not limited to, any such
loss or expense arising from interest or fees payable by such Lender to lenders of funds
obtained by it in order to maintain its Loans hereunder. A certificate setting forth in
reasonable detail as to any additional amounts payable pursuant to this Section submitted by
any Lender, through the Administrative Agent, to the Borrower (which certificate must be
delivered to the Administrative Agent within thirty days following such default, prepayment
or conversion) shall be conclusive in the absence of manifest error. The agreements in this
Section shall survive termination of this Agreement and payment of the Credit Party
Obligations.

     (b) The Borrower shall pay to each Lender, as long as such Lender shall be required to
maintain reserves under Regulation D with respect to “Eurocurrency liabilities” within the
meaning of Regulation D, or under any similar or successor regulation with respect to
Eurocurrency liabilities or Eurocurrency funding, additional interest on the unpaid
principal amount of each LIBOR Loan equal to the actual costs of such reserves allocated to
such LIBOR Loan by such Lender (as determined by such Lender in good faith, which
determination shall be conclusive), which shall be due and payable on each date on which
interest is payable on such LIBOR Loan, provided the Borrower shall have received at least
thirty (30) days prior notice (with a copy to the Administrative Agent) of such additional
interest from such Lender showing in reasonable detail the basis therefor and the
computation thereof. If a Lender fails to give notice thirty (30) days prior to the
relevant interest payment date, such additional interest shall be due and payable thirty
(30) days from receipt of such notice.

     Section 2.18 Taxes.

     (a) All payments made by the Borrower hereunder or under any Note will be, except as
provided in Section 2.18(b), made free and clear of, and without deduction or withholding
for, any present or future taxes, levies, imposts, duties, fees, assessments or other
charges of whatever nature now or hereafter imposed by any Governmental

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Authority or by any political subdivision or taxing authority thereof or therein with
respect to such payments (but excluding (i) any tax imposed on or measured by the net income
or profits (however denominated and including franchise taxes related to income or profits)
of a Lender pursuant to the laws of the jurisdiction in which it is organized or the
jurisdiction in which the principal office or applicable lending office of such Lender is
located or any subdivision thereof or therein and (ii) any branch tax profits imposed by the
United States of America or any similar tax imposed by any other jurisdiction) and all
interest, penalties or additions to tax with respect thereto (all such non-excluded taxes,
levies, imposts, duties, fees, assessments or other charges being referred to collectively
as “Taxes” and all such excluded taxes referred to collectively as “Excluded
Taxes”). If any Taxes are so levied or imposed, the Borrower agrees to pay the full
amount of such Taxes, and such additional amounts as may be necessary so that every payment
of all amounts due under this Agreement or under any Note, after withholding or deduction
for or on account of any Taxes, will not be less than the amount provided for herein or in
such Note. The Borrower will furnish to the Administrative Agent as soon as practicable
after the date the payment of any Taxes is due pursuant to applicable law certified copies
(to the extent reasonably available and required by law) of tax receipts evidencing such
payment by the Borrower or such other evidence of payment reasonably satisfactory to the
Lenders. The Borrower agrees to indemnify and hold harmless each Lender, and reimburse such
Lender upon its written request (which shall specify in reasonable detail the nature and
amount of such Taxes), for the amount of any Taxes so levied or imposed and paid by such
Lender. Nothing contained in this Section shall require a Lender to make available its tax
returns or provide any information relating to its taxes which it reasonably deems
confidential. Upon becoming aware of any taxes, levies, imposts, duties, fees, assessments
or other charges for which the Borrower will be required to indemnify a Lender or the
Administrative Agent in accordance with the terms of Section 2.16 or this Section 2.18, the
Administrative Agent will use reasonable efforts to notify the Borrower thereof;
provided that failure of the Administrative Agent to so notify the Borrower shall
not result in any liability to the Administrative Agent.

     (b) Each Lender that is not a United States person (as such term is defined in Section
7701(a)(30) of the Code) agrees to deliver to the Borrower and the Administrative Agent on
or prior to the Closing Date (or, with respect to any Lender that is no longer considered a
United States person because it has booked its Loans in a foreign jurisdiction, on or prior
to the date such Lender is no longer considered a United States person), or in the case of a
Lender that is an assignee or transferee of an interest under this Agreement pursuant to
Section 9.6(c) (unless the respective Lender was already a Lender hereunder immediately
prior to such assignment or transfer), on the date of such assignment or transfer to such
Lender, (i) if the Lender is a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, two accurate and complete original signed copies of Internal Revenue Service Form
W-8BEN, W-8ECI or W-8IMY with appropriate attachments (or successor forms) certifying such
Lender’s entitlement to a complete exemption from United States withholding tax with respect
to payments to be made under this Agreement and under any Note, or (ii) if the Lender is not
a “bank” within the meaning of Section 881(c)(3)(A) of the Code, Internal Revenue Service
Form W-8BEN, W-8ECI or W-8IMY with appropriate attachments as set forth in clause (i)

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above, or (x) a certificate in substantially the form of Exhibit 2.17 (any such
certificate, a “Tax Exempt Certificate”) and (y) two accurate and complete original
signed copies of Internal Revenue Service Form W-8BEN (or successor form) certifying such
Lender’s entitlement to a complete exemption from United States withholding tax with respect
to payments of interest to be made under this Agreement and under any Note. Each Lender
that is a United States person as that term is defined in Section 7701(a)(30) of the Code ,
other than a Lender that may be treated as an exempt recipient based on the indicators
described in Treasury Regulation Section 1.6049-4(c)(1)(ii), hereby agrees that it shall, no
later than the Closing Date or, in the case of a Lender that is an assignee or transferee of
an interest under this Agreement pursuant Section 10.6(c), on the date of such assignment or
transfer to such Lender, deliver to the Borrower and the Administrative Agent two accurate,
complete and signed copies of Internal Revenue service Form W-9 or successor form,
certifying that such Lender is not subject to United States backup withholding tax. In
addition, each Lender agrees that, to the extent that it may lawfully do so, it will deliver
updated versions of the foregoing, as applicable, (i) whenever the previous certification
has become inaccurate in any material respect or (ii) at any time reasonably requested by
the Borrower or the Administrative Agent, together with such other forms as may be required
in order to confirm or establish the entitlement of such Lender to a continued complete
exemption from United States withholding tax with respect to payments under this Agreement
and any Note. Notwithstanding anything to the contrary contained in Section 2.18(a), but
subject to the immediately succeeding sentence, (x) the Borrower shall be entitled, to the
extent it is required to do so by law, to deduct or withhold Taxes imposed by the United
States (or any political subdivision or taxing authority thereof or therein) from interest,
fees or other amounts payable hereunder for the account of any Lender to the extent that
such Lender has not provided to the Borrower U.S. Internal Revenue Service Forms that
establish a complete exemption from such deduction or withholding and (y) the Borrower shall
not be obligated pursuant to Section 2.18(a) hereof to gross-up payments to be made to a
Lender in respect of Taxes imposed by the United States or to indemnify such Lender for any
withholding Taxes imposed by the United States if (I) such Lender has not provided to the
Borrower the Internal Revenue Service Forms required to be provided to the Borrower pursuant
to this Section or (II) in the case of a payment, other than interest, to a Lender described
in clause (ii) above, to the extent that such Forms do not establish a complete exemption
from withholding of such Taxes. Notwithstanding anything to the contrary contained in the
preceding sentence or elsewhere in this Section, the Borrower agrees to pay additional
amounts and to indemnify each Lender in the manner set forth in Section 2.18(a) (without
regard to the identity of the jurisdiction requiring the deduction or withholding) in
respect of any amounts deducted or withheld by it as described in the immediately preceding
sentence as a result of any changes after the date the Lender becomes a party to this
Agreement (or becomes a Participant pursuant to Section 10.6(b)) in any applicable law,
treaty, governmental rule, regulation, guideline or order, or in the interpretation thereof,
relating to the deducting or withholding of Taxes.

     (c) Each Lender agrees to use reasonable efforts (including reasonable efforts to
change its Domestic Lending Office or LIBOR Lending Office, as the case may be) to avoid or
to minimize any amounts which might otherwise be payable pursuant to this

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Section; provided, however, that such efforts shall not cause the imposition
on such Lender of any additional costs or legal or regulatory burdens deemed by such Lender
in its reasonable discretion to be material.

     (d) If the Borrower pays any additional amount pursuant to this Section with respect to
a Lender, such Lender shall use reasonable efforts to obtain a refund of tax or credit
against its tax liabilities on account of such payment; provided that such Lender
shall have no obligation to use such reasonable efforts if either (i) it is in an excess
foreign tax credit position or (ii) it believes in good faith, in its sole discretion, that
claiming a refund or credit would cause material adverse tax consequences to it. In the
event that such Lender receives such a refund or credit, such Lender shall pay to the
Borrower an amount that is equal to the net tax benefit obtained by such Lender as a result
of such payment by the Borrower. In the event that no refund or credit is obtained with
respect to the Borrower’s payments to such Lender pursuant to this, then such Lender shall
upon request provide a certification that such Lender has not received a refund or credit
for such payments. Nothing contained in this Section shall require a Lender to disclose or
detail the basis of its calculation of the amount of any tax benefit or any other amount or
the basis of its determination referred to in the proviso to the first sentence of this
Section to the Borrower or any other party.

     (e) The agreements in this Section shall survive the termination of this Agreement and
the payment of the Notes and all other amounts payable hereunder.

     Section 2.19 Indemnification; Nature of Issuing Lender’s Duties.

     (a) In addition to its other obligations under Section 2.3, the Credit Parties hereby
agree to protect, indemnify, pay and save the Issuing Lender and each Lender harmless from
and against any and all claims, demands, liabilities, damages, losses, costs, charges and
expenses (including reasonable attorneys’ fees) that the Issuing Lender or such Lender may
incur or be subject to as a consequence, direct or indirect, of (i) the issuance of any
Letter of Credit (including, without limitation, any claims by any beneficiary of a Letter
of Credit) or (ii) the failure of the Issuing Lender to honor a drawing under a Letter of
Credit as a result of any act or omission, whether rightful or wrongful, of any present or
future de jure or de facto government or Governmental Authority (all such acts or omissions,
herein called “Government Acts”).

     (b) As between the Credit Parties, the Issuing Lender and each Lender, the Credit
Parties shall assume all risks of the acts, omissions or misuse of any Letter of Credit by
the beneficiary thereof. Neither the Issuing Lender nor any Lender shall be responsible:
(i) for 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
Letter of Credit or any drawing thereunder, even if it should in fact prove to be in any or
all respects invalid, insufficient, inaccurate, fraudulent or forged; (ii) for the validity
or sufficiency of any instrument transferring or assigning or purporting to transfer or
assign any Letter of Credit or the rights or benefits thereunder or proceeds thereof, in
whole or in part, that may prove to be invalid or ineffective for any reason;

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(iii) for failure of the beneficiary of a Letter of Credit to comply fully with
conditions required in order to draw upon a Letter of Credit; (iv) for 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) for errors in
interpretation of technical terms; (vi) for any loss or delay in the transmission or
otherwise of any document required in order to make a drawing under a Letter of Credit or of
the proceeds thereof; and (vii) for any consequences arising from causes beyond the control
of the Issuing Lender or any Lender, including, without limitation, any Government Acts.
None of the above shall affect, impair, or prevent the vesting of the Issuing Lender’s
rights or powers hereunder.

     (c) In furtherance and extension and not in limitation of the specific provisions
hereinabove set forth, any action taken or omitted by the Issuing Lender or any Lender,
under or in connection with any Letter of Credit or the related certificates, if taken or
omitted in the absence of gross negligence or willful misconduct, shall not put such Issuing
Lender or such Lender under any resulting liability to the Credit Parties. It is the
intention of the parties that this Agreement shall be construed and applied to protect and
indemnify the Issuing Lender and each Lender against any and all risks involved in the
issuance of the Letters of Credit, all of which risks are hereby assumed by the Credit
Parties, including, without limitation, any and all risks of the acts or omissions, whether
rightful or wrongful, of any Government Authority. The Issuing Lender and the Lenders
shall not, in any way, be liable for any failure by the Issuing Lender or anyone else to pay
any drawing under any Letter of Credit as a result of any Government Acts or any other cause
beyond the control of the Issuing Lender and the Lenders.

     (d) Nothing in this Section is intended to limit the Reimbursement Obligation of the
Borrower contained in Section 2.3(d) hereof. The obligations of the Credit Parties under
this Section shall survive the termination of this Agreement. No act or omissions of any
current or prior beneficiary of a Letter of Credit shall in any way affect or impair the
rights of the Issuing Lender and the Lenders to enforce any right, power or benefit under
this Agreement.

     (e) Notwithstanding anything to the contrary contained in this Section, the Credit
Parties shall have no obligation to indemnify the Issuing Lender or any Lender in respect of
any liability incurred by the Issuing Lender or such Lender arising out of the gross
negligence or willful misconduct of the Issuing Lender (including action not taken by the
Issuing Lender or such Lender), as determined by a court of competent jurisdiction or
pursuant to arbitration.

     Section 2.20 Replacement of Lenders.

     If (a) a Lender requests compensation under Section 2.16, (b) the Borrower is required to pay
any additional amount to a Lender or a Governmental Authority for the account of a Lender pursuant
to Section 2.18, (c) a Lender defaults in its obligation to fund Loans hereunder or (d) a Lender
does not consent to a proposed amendment, waiver, consent or release with respect to any Credit
Document that requires the consent of each Lender and that has been approved by the

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Required Lenders, then the Borrower may, at its sole expense and effort, upon notice to such
Lender and the Administrative Agent, require such Lender to assign and delegate, without recourse
(in accordance with and subject to the restrictions contained in, and consents required by, Section
10.6), all of its interests, rights and obligations under this Agreement and the related Credit
Documents to an assignee that shall assume such obligations (which assignee may be another Lender,
if a Lender accepts such assignment), provided that:

     (i) the Borrower shall have paid to the Administrative Agent the assignment fee
specified in Section 10.6(e);

     (ii) such Lender shall have received payment of an amount equal to the outstanding
principal of its Loans and funded participations in any Swingline Loan and in unreimbursed
drawings under any Letters of Credit, accrued interest thereon, accrued fees and all other
amounts payable to it hereunder and under the other Credit Documents (including any amounts
under Section 2.17) from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Borrower (in the case of all other amounts);

     (iii) in the case of any such assignment resulting from a claim for compensation under
Section 2.16 or payments required to be made pursuant to Section 2.18, such assignment will
result in a reduction in such compensation or payments thereafter;

     (iv) such assignment does not conflict with applicable Requirements of Laws; and

     (v) in the case of any such assignment resulting from a Lender’s failure to consent to
a proposed amendment, waiver, consent or release with respect to any Credit Document, such
proposed amendment, waiver, modification and/or waiver shall become effective upon giving
effect to such assignment (and any related assignments required to be effected in connection
therewith in accordance with Section).

A Lender shall not be required to make any such assignment or delegation if, prior thereto,
as a result of a waiver by such Lender or otherwise, the circumstances entitling the
Borrower to require such assignment and delegation cease to apply.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     To induce the Lenders to enter into this Agreement and to make the Extensions of Credit herein
provided for, the Credit Parties hereby represent and warrant to the Administrative Agent and to
each Lender that:

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     Section 3.1 Financial Condition.

     (a) (i) The audited Consolidated financial statements of the Credit Parties and their
Consolidated Subsidiaries for the fiscal years ended December 26, 2004, December 25, 2005
and December 24, 2006, together with the related Consolidated statements of income or
operations, equity and cash flows for the fiscal years ended on such dates, (ii) the
unaudited Consolidated financial statements of the Credit Parties and their Consolidated
Subsidiaries for each quarterly period ended since the last audited financial statements for
which financial statements are available, together with the related Consolidated statements
of income or operations and equity for such quarterly periods and (iii) the Consolidated
financial statements for the Credit Parties and their Subsidiaries for the four fiscal
quarter period most recently ended prior to the Closing Date for which financial statements
are available giving pro forma effect to the Transactions and the Consolidated balance sheet
of the Credit Parties and their Subsidiaries as of the Closing Date giving pro forma effect
to the Transactions:

     (A) were prepared in accordance with GAAP consistently applied
throughout the period covered thereby, except as otherwise expressly noted
therein (subject, in the case of unaudited financial statements, to normal
year-end adjustments and the absence of footnotes);

     (B) fairly present in all material respects the financial condition of
the Credit Parties and their Subsidiaries, as applicable, as of the date
thereof (subject, in the case of the unaudited financial statements, to
normal year-end adjustments) and results of operations for the period
covered thereby; and

     (C) show or disclose all material Indebtedness and other liabilities,
direct or contingent, of the Credit Parties and their Subsidiaries as of the
date thereof, including liabilities for taxes, material commitments and
contingent obligations.

     (b) The five-year projections of the Credit Parties and their Subsidiaries delivered to
the Lenders on or prior to the Closing Date have been prepared in good faith based upon
reasonable assumptions (it being understood that forecasts and projections are subject to
many contingencies and risk factors and actual results may vary materially from the
forecasts and the projections).

     Section 3.2 No Material Adverse Effect.

     Since December 24, 2006 (and in addition, after delivery of annual audited financial
statements in accordance with Section 5.1(a), from the date of the most recently delivered annual
audited financial statements) there has been no development or event which has had or could
reasonably be expected to have a Material Adverse Effect.

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     Section 3.3 Corporate Existence; Compliance with Law.

     Each of the Credit Parties (a) is duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation, organization or formation, (b) has the requisite
power and authority and the legal right to own and operate all its property, to lease the property
it operates as lessee and to conduct the business in which it is currently engaged and has taken
all actions necessary to maintain all rights, privileges, licenses and franchises necessary or
required in the normal conduct of its business except to the extent where failure to comply with
this subsection (b) could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect, (c) is duly qualified to conduct business and in good standing under the
laws of each jurisdiction where its ownership, lease or operation of property or the conduct of its
business requires such qualification except to the extent that the failure to so qualify or be in
good standing in any such jurisdiction could not, individually or in the aggregate, reasonably be
expected to have a material adverse effect on the business or operations of the Credit Parties and
their Subsidiaries in such jurisdiction and (d) is in compliance with all Requirements of Law,
organizational documents, government permits and government licenses except to the extent such
non-compliance could not, individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect. The jurisdictions in which the Credit Parties are organized and qualified
to do business as of the Closing Date are described on Schedule 3.3.

     Section 3.4 Corporate Power; Authorization; Enforceable Obligations.

     Each of the Credit Parties has full power and authority and the legal right to make, deliver
and perform the Credit Documents to which it is party and has taken all necessary limited liability
company, partnership or corporate action to authorize the execution, delivery and performance by it
of the Credit Documents to which it is party. Each Credit Document to which it is a party has been
duly executed and delivered on behalf of each Credit Party. Each Credit Document to which it is a
party constitutes a legal, valid and binding obligation of each Credit Party, enforceable against
such Credit Party in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally and by general equitable principles (whether enforcement
is sought by proceedings in equity or at law).

     Section 3.5 No Legal Bar; No Default.

     The execution, delivery and performance of the Credit Documents, the borrowings thereunder and
the use of proceeds of the Loans (a) will not violate any Requirement of Law or any material
approval or material consent from any Governmental Authority relating to any Credit Party or
Subsidiary except to the extent such violation of any Requirement of Law could not, individually or
in the aggregate, reasonably be expected to have a Material Adverse Effect, (b) will not conflict
with, result in a breach of or constitute a default under the articles of incorporation, bylaws,
articles of organization, operating agreement or other organization documents of the Credit Parties
or any Contractual Obligation of any Credit Party (except those as to which waivers of consent have
been obtained) except to the extent such conflict, breach or default of any Contractual Obligation
could not, individually or in the aggregate, reasonably be expected to have a Material Adverse
Effect and (c) will not result in, or require, the creation or

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imposition of any Lien on any Credit Party’s properties or revenues pursuant to any
Requirement of Law or material Contractual Obligation other than the Liens arising under or
contemplated in connection with the Credit Documents or Permitted Liens.

     Section 3.6 No Material Litigation.

     No litigation, investigation, criminal prosecution, imposition of criminal or civil fines and
penalties, or proceeding of or before any arbitrator or Governmental Authority is pending or, to
the knowledge of the Credit Parties, threatened in writing by or against any Credit Party or any of
its Subsidiaries or against any of its or their respective properties or revenues (a) with respect
to the Credit Documents or any Extension of Credit or any of the transactions contemplated hereby,
or (b) which could reasonably be expected to have a Material Adverse Effect. No permanent
injunction, temporary restraining order or similar decree has been issued against a Credit Party or
any Subsidiary which could reasonably be expected to have a Material Adverse Effect.

     Section 3.7 Investment Company Act.

     No Credit Party is an “investment company”, or a company “controlled” by an “investment
company”, within the meaning of the Investment Company Act of 1940, as amended.

     Section 3.8 Margin Regulations.

     No part of the proceeds of any Extension of Credit hereunder will be used directly or
indirectly for any purpose that violates, or that would require any Lender to make any filings in
accordance with, the provisions of Regulation T, U or X of the Board of Governors of the Federal
Reserve System as now and from time to time hereafter in effect. The Credit Parties and their
Subsidiaries (a) are not engaged, principally or as one of their important activities, in the
business of extending credit for the purpose of “purchasing” or “carrying” “margin stock” within
the respective meanings of each of such terms under Regulation U and (b) taken as a group do not
own “margin stock” except as identified in the financial statements referred to in Section 3.1 or
delivered pursuant to Section 5.1 and the aggregate value of all “margin stock” owned by the Credit
Parties and their Subsidiaries taken as a group does not exceed 25% of the value of their assets.

     Section 3.9 ERISA.

Except as could not reasonably be expected to have a Material Adverse Effect:

     (a) Neither a Reportable Event nor an “accumulated funding deficiency” (within the
meaning of Section 412 of the Code or Section 302 of ERISA) has occurred during the
five-year period prior to the date on which this representation is made or deemed made with
respect to any Single Employer Plan or, to the Credit Parties’ knowledge, any Multiemployer
Plan and each Single Employer Plan and, to the Credit

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Parties’ knowledge, each Multiemployer Plan, has complied in all material respects with the
applicable provisions of ERISA and the Code;

     (b) no termination of a Single Employer Plan has occurred resulting in any liability
that has remained underfunded, and no Lien in favor of the PBGC or a Plan (other than a
Permitted Lien) has arisen on the assets of the Credit Parties or any Commonly Controlled
Entity, during the five-year period prior to the Closing Date;

     (c) the present value of all accrued benefits under each Single Employer Plan (based on
those assumptions used to fund such Plans) did not, as of the last annual valuation date
prior to the date on which this representation is made or deemed made, exceed the value of
the assets of such Plan allocable to such accrued benefits; and

     (d) neither any Credit Party nor any Commonly Controlled Entity is currently liable for
a complete or partial withdrawal from a Multiemployer Plan.

     Section 3.10 Environmental Matters.

Except as could not be reasonably expected to have a Material Adverse Effect:

     (a) The facilities and properties owned, leased or operated by the Credit Parties or
any of their Subsidiaries (the “Properties”) do not contain any Materials of
Environmental Concern in amounts or concentrations which (i) constitute a violation of, or
(ii) could reasonably be expected to give rise to liability on behalf of any Credit Party
under, any Environmental Law;

     (b) The Properties, including the Vessels, and all operations of the Credit Parties
and/or their Subsidiaries at the Properties or respecting the Vessels are in compliance, and
have in the last five years been in compliance, with all applicable Environmental Laws, and
there is no contamination at, under or about the Properties or violation of any
Environmental Law with respect to the Properties, including the Vessels, or the business
operated by the Credit Parties or any of their Subsidiaries (the “Business”);

     (c) Neither the Credit Parties nor their Subsidiaries have received any written or
actual notice of violation, alleged violation, non-compliance, liability or potential
liability on behalf of any Credit Party with respect to environmental matters or
Environmental Laws regarding any of the Properties or the Business, nor do the Credit
Parties or their Subsidiaries have knowledge or reason to believe that any such notice will
be received or is being threatened;

     (d) Materials of Environmental Concern have not been transported or disposed of from
the Properties, including the Vessels, in violation of, or in a manner or to a location that
could reasonably be expected to give rise to liability on behalf of any Credit Party under
any Environmental Law, and no Materials of Environmental Concern have been generated,
treated, stored or disposed of at, on or under any of the Properties or

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from the Vessels in violation of, or in a manner that could reasonably be expected to
give rise to liability on behalf of any Credit Party under, any applicable Environmental
Law;

     (e) No judicial proceeding or governmental or administrative action is pending or, to
the knowledge of the Credit Parties and their Subsidiaries, threatened, under any
Environmental Law to which any Credit Party or any Subsidiary is or will be named as a party
with respect to the Properties, including the Vessels, or the Business or otherwise, nor are
there any consent decrees or other decrees, consent orders, administrative orders or other
orders, or other administrative or judicial requirements outstanding under any Environmental
Law with respect to the Properties, including the Vessels, or the Business or otherwise; and

     (f) there has been no release or threat of release of Materials of Environmental
Concern at or from the Properties, including the Vessels, or arising from or related to the
operations of any Credit Party or any Subsidiary in connection with the Properties,
including the Vessels, or otherwise in connection with the Business, in violation of or in
amounts or in a manner that could reasonably be expected to give rise to liability on behalf
of any Credit Party under Environmental Laws.

     Section 3.11 Use of Proceeds.

     The proceeds of the Extensions of Credit shall be used by the Borrower solely (a) to refinance
certain existing Indebtedness of the Credit Parties and their Subsidiaries, (b) to pay any costs,
fees and expenses associated with this Agreement and the Transactions on the Closing Date, and (c)
for working capital and other general corporate purposes of the Credit Parties and their
Subsidiaries, including Permitted Acquisitions.

     Section 3.12 Subsidiaries; Joint Ventures; Partnerships.

     Set forth on Schedule 3.12 is a complete and accurate list of all Subsidiaries, joint
ventures and partnerships of the Credit Parties as of the Closing Date. Information on the
attached Schedule includes the following: (a) the number of shares of each class of Capital Stock
or other equity interests outstanding; (b) the number and percentage of outstanding shares of each
class of Capital Stock owned by the Borrower or any of its Subsidiaries; and (c) the number and
effect, if exercised, of all outstanding options, warrants, rights of conversion or purchase and
similar rights. The outstanding Capital Stock and other equity interests of all such Subsidiaries
is validly issued, fully paid and non-assessable and is owned free and clear of all Liens (other
than those arising under or contemplated in connection with the Credit Documents). There are no
outstanding subscriptions, options, warrants, calls, rights or other agreements or commitments
(other than stock options granted to employees or directors and directors’ qualifying shares) of
any nature relating to any Capital Stock of the Borrower or any Subsidiary, except as contemplated
in connection with the Credit Documents, the 2007 Senior Unsecured Convertible Notes and options
and warrants related thereto issued from time to time.

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     Section 3.13 Ownership.

     Each of the Credit Parties and its Subsidiaries is the owner of all of its respective personal
and real property and has good and marketable title to or a valid leasehold interest in, all of its
respective personal and real property (except for minor defects in title in property that do not
materially interfere with its ability to conduct its business as currently conducted or to use such
properties for their intended purposes), which, together with assets leased or licensed by the
Credit Parties and their Subsidiaries, represents all assets in the aggregate material to the
conduct of the business of the Credit Parties and their Subsidiaries, and (after giving effect to
the Transactions) none of such assets is subject to any Lien other than Permitted Liens. Each
Credit Party and its Subsidiaries enjoys peaceful and undisturbed possession under all of its
leases and all such leases are valid and subsisting and in full force and effect.

     Section 3.14 Taxes.

     Each of the Credit Parties and its Subsidiaries has filed, or caused to be filed, all material
income tax returns and all other material tax returns (federal, state, local and foreign) required
to be filed and paid (a) all amounts of taxes shown thereon to be due (including interest and
penalties) and (b) all other taxes, fees, assessments and other governmental charges (including
mortgage recording taxes, documentary stamp taxes and intangibles taxes) owing by it, except for
such taxes (i) that are not yet delinquent, (ii) that are being contested in good faith and by
proper proceedings, and against which adequate reserves are being maintained in accordance with
GAAP or (iii) which the failure to pay could not reasonably be expected to have a Material Adverse
Effect. None of the Credit Parties or their Subsidiaries is aware as of the Closing Date of any
material proposed tax assessments against it or any of its Subsidiaries.

     Section 3.15 Intellectual Property Rights.

     Each of the Credit Parties and its Subsidiaries owns, or has the legal right to use, all
Intellectual Property, tradenames, technology, know-how and processes necessary for each of them to
conduct its business as currently conducted. Set forth on Schedule 3.15 is a list of all
registered or issued Intellectual Property (including all applications for registration and
issuance) owned by each of the Credit Parties and its Subsidiaries or that each of the Credit
Parties or any of its Subsidiaries has the right to use as of the Closing Date (including
name/title, current owner, registration or application number, and registration or application
date). Except as disclosed in Schedule 3.15 hereto, (a) each Credit Party has the right to
use its Intellectual Property in perpetuity and without payment of royalties, (b) all registrations
with Governmental Authorities in respect of such Intellectual Property are valid and in full force
(c) there are no restrictions on the direct or indirect transfer of any Contractual Obligation, or
any interest therein, held by any of the Credit Parties in respect of such Intellectual Property
which has not been obtained. None of the Credit Parties is in default (or with the giving of
notice or lapse of time or both, would be in default) under any license to use its Intellectual
Property; no claim has been asserted and is pending by any Person challenging or questioning the
use of any such Intellectual Property or the validity or effectiveness of any such Intellectual
Property, nor do the Credit Parties or any of their Subsidiaries know of any such claim; and, to
the knowledge of the Credit Parties or any of their Subsidiaries, the use of such Intellectual
Property by any of the

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Credit Parties or any of its Subsidiaries does not infringe on the rights of any Person. The
Credit Parties have recorded or deposited with and paid to the United States Copyright Office, the
Register of Copyrights, the Copyrights Royalty Tribunal or other Governmental Authority, all
notices, statements of account, royalty fees and other documents and instruments required under the
terms and conditions of any Contractual Obligation of the Credit Parties and/or under Title 17 of
the United States Code and the rules and regulations issued thereunder (collectively, the
“Copyright Act”), and are not liable to any Person for copyright infringement under the
Copyright Act or any other law, rule, regulation, contract or license as a result of their business
operations.

     Section 3.16 Solvency.

     After giving effect to the Transactions, (a) the Credit Parties, on a consolidated basis, are
solvent and are able to pay their debts and other liabilities, contingent obligations and other
commitments as they mature in the normal course of business, and (b) the fair saleable value of the
Credit Parties’ assets taken as a whole, measured on a going concern basis, exceeds all probable
liabilities of the Credit Parties, including those to be incurred pursuant to this Agreement.
After giving effect to the Transactions, none of the Credit Parties (i) has unreasonably small
capital in relation to the business in which it is or proposes to be engaged or (ii) has incurred,
or believes that it will incur debts beyond its ability to pay such debts as they become due. In
executing the Credit Documents and consummating the Transactions, none of the Credit Parties
intends to hinder, delay or defraud either present or future creditors or other Persons to which
one or more of the Credit Parties is or will become indebted.

     Section 3.17 Location of Collateral.

     Set forth on Schedule 3.17(a) is a list of all Properties that are real properties of
the Credit Parties and their Subsidiaries as of the Closing Date with a fair market value in excess
of $1,000,000, with street address, county and state where located. Set forth on Schedule
3.17(b) is a list of all locations where any tangible personal property in excess of $1,000,000
(other than Vessels and containers) of the Credit Parties and their Subsidiaries is located as of
the Closing Date, including county and state where located. Set forth on Schedule 3.17(c)
is the state of incorporation or organization, the chief executive office, the principal place of
business, the tax identification number and organization identification number of each of the
Credit Parties and their Subsidiaries as of the Closing Date.

     Section 3.18 No Burdensome Restrictions.

     None of the Credit Parties or their Subsidiaries is a party to any agreement or instrument or
subject to any other obligation or any charter or corporate restriction or any provision of any
applicable law, rule or regulation which, individually or in the aggregate, could reasonably be
expected to have a Material Adverse Effect.

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     Section 3.19 Brokers’ Fees.

     None of the Credit Parties or their Subsidiaries has any obligation to any Person in respect
of any finder’s, broker’s, investment banking or other similar fee in connection with any of the
transactions contemplated under the Credit Documents other than (a) the closing and other fees
payable pursuant to this Agreement and as set forth in the Fee Letter and (b) fees and expenses
associated with the issuance of the 2007 Senior Unsecured Convertible Notes.

     Section 3.20 Labor Matters.

     There are no collective bargaining agreements or Multiemployer Plans covering the employees of
the Credit Parties or any of their Subsidiaries as of the Closing Date, other than as set forth in
Schedule 3.20 hereto, and as of the Closing Date none of the Credit Parties or their
Subsidiaries (a) has suffered any strikes, walkouts, work stoppages or other material labor
difficulty within the last five years, or (b) has knowledge of any potential or pending strike,
walkout or work stoppage, which, in the case of clauses (a) and (b) above, could not reasonably be
expected, individually, or in the aggregate, to have a Material Adverse Effect. As of the Closing
Date, no unfair labor practice complaint is pending against any Credit Party or any of its
Subsidiaries that if adversely decided could reasonably be expected to have a Material Adverse
Effect.

     Section 3.21 Accuracy and Completeness of Information.

     All factual information heretofore, contemporaneously or hereafter furnished by or on behalf
of any Credit Party or any of its Subsidiaries to the Administrative Agent, the Bookrunners or any
Lender for purposes of or in connection with this Agreement or any other Credit Document, or any
transaction contemplated hereby or thereby, when delivered was, is or will be (as applicable) true
and accurate in all material respects and not incomplete by omitting to state any material fact
necessary to make such information not misleading. There is no fact now known to any Credit Party
or any of its Subsidiaries which, individually or in the aggregate, has, or could reasonably be
expected to have, a Material Adverse Effect, which fact has not been set forth herein, in the
financial statements of the Credit Parties and their Subsidiaries furnished to the Administrative
Agent and the Lenders, or in any certificate, opinion or other written statement made or furnished
by any Credit Party to the Administrative Agent and the Lenders.

     Section 3.22 Insurance.

     The insurance coverage of the Credit Parties and their Subsidiaries as of the Closing Date is
outlined as to carrier, policy number, expiration date, type and amount on Schedule 3.22
and such insurance coverage complies with the requirements set forth in Section 5.5(b).

     Section 3.23 Security Documents.

     (a) The Security Documents create valid security interests in, and Liens on, the
Collateral purported to be covered thereby. Except as set forth in the Security Documents,
such security interests and Liens are currently (or will be, upon (a) the filing

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of appropriate financing statements with the Secretary of State of the state of
incorporation or organization for each Credit Party, the filing of appropriate assignments
or notices with the United States Patent and Trademark Office and the United States
Copyright Office, and the recordation of the Real Estate Mortgage Instruments, in each case
in favor of the Administrative Agent, on behalf of the Secured Parties, or (b) the
Administrative Agent obtaining Control (as defined in the Security Agreement) or possession
over those items of Collateral in which a security interest is perfected through Control or
possession) perfected security interests and Liens, prior to all other Liens other than
Permitted Liens.

     (b) Each Vessel Fleet Mortgage in favor of the Mortgage Trustee, for the benefit of the
Secured Parties, is effective to create a legal, valid and enforceable Lien on all the
applicable mortgagor’s right, title and interest in and to the whole of the Mortgaged
Vessels covered thereby and the proceeds thereof, and when the Vessel Fleet Mortgage is
filed for recording, and recorded, with the National Vessel Documentation Center of the
United States Coast Guard, each Vessel Fleet Mortgage shall constitute, as of the date and
time of filing, a first “preferred mortgage” on the Mortgaged Vessels covered thereby in
favor of the Mortgage Trustee for the ratable benefit of the Secured Parties under Chapter
313 of Title 46 of the United States Code, as amended, having the effect and with the
priority provided in such Act, in each case prior and superior in right to any other Person,
other than with respect to the rights of Persons pursuant to Permitted Liens.

     Section 3.24 Classification of Senior Indebtedness.

     The Credit Party Obligations constitute “Senior Indebtedness”, “Designated Senior
Indebtedness” or any similar designation under and as defined in any agreement governing any
Subordinated Debt and the subordination provisions set forth in each such agreement are legally
valid and enforceable against the parties thereto.

     Section 3.25 Anti-Terrorism Laws.

     Neither any Credit Party nor any of its Subsidiaries is an “enemy” or an “ally of the enemy”
within the meaning of Section 2 of the Trading with the Enemy Act of the United States of America
(50 U.S.C. App. §§ 1 et seq.), as amended. Neither any Credit Party nor any or its Subsidiaries is
in violation of (a) the Trading with the Enemy Act, as amended, (b) any of the foreign assets
control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as
amended) or any enabling legislation or executive order relating thereto or (c) the Patriot Act.
None of the Credit Parties (i) is a blocked person described in Section 1 of the Anti-Terrorism
Order or (ii) to the best of its knowledge, engages in any dealings or transactions, or is
otherwise associated, with any such blocked person.

     Section 3.26 Compliance with OFAC Rules and Regulations.

     None of the Credit Parties or their Subsidiaries or their respective Affiliates (a) is a
Sanctioned Person, (b) has more than 15% of its assets in Sanctioned Countries, or (c) derives

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more than 15% of its operating income from investments in, or transactions with Sanctioned Persons
or Sanctioned Countries. No part of the proceeds of any Extension of Credit hereunder will be
knowingly used directly or indirectly to fund any operations in, finance any investments or
activities in or make any payments to, a Sanctioned Person or a Sanctioned Country.

     Section 3.27 Compliance with FCPA.

     Each of the Credit Parties and their Subsidiaries is in compliance with the Foreign Corrupt
Practices Act, 15 U.S.C. §§ 78dd-1, et seq., and any foreign counterpart thereto.

     Section 3.28 Consent; Governmental Authorizations.

     No approval, consent or authorization of, filing with, notice to or other act by or in respect
of, any Governmental Authority or any other Person is required in connection with acceptance of
Extensions of Credit by the Borrower or the making of the Guaranty hereunder or with the execution,
delivery or performance of any Credit Document by the Credit Parties (other than those which have
been obtained) or with the validity or enforceability of any Credit Document against the Credit
Parties (except such filings as are necessary in connection with the perfection of the Liens
created by such Credit Documents).

     Section 3.29 Vessels.

     Schedule 3.29 sets forth, as of the Closing Date, for each Vessel, (a) its name, (b)
its owner, (c) the arrangements (including intercompany arrangements) pursuant to which the Vessel
is chartered or operated by any Credit Party or Subsidiary as of the Closing Date, (d) its class
description, (e) the name of its classification society, (f) its shipyard and year in which the
Vessel was constructed and (g) any and all applicable Chartered Vessel Documents. Except as could
not reasonably be expected to result, individually or in the aggregate, in a Material Adverse
Effect, the Credit Parties and their Subsidiaries own or are licensed or otherwise have the right
to use all Vessels. Except as could not reasonably be expected to result, individually or in the
aggregate, in a Material Adverse Effect, each Vessel (i) is adequate and suitable for use by such
Credit Party or Subsidiary in its business as presently conducted by it, ordinary wear and tear and
depreciation excepted; (ii) is seaworthy for hull and machinery insurance warranty purposes; (iii)
is insured in accordance with the Vessel Fleet Mortgage and each of the arrangements pursuant to
which the Vessel is chartered or operated by the Borrower as set forth in Schedule 3.29;
(iv) is in compliance with any applicable Chartered Vessel Documents covering such Vessel; (v) is
in compliance with all Federal, state, local or foreign statutes, laws, regulations, ordinances,
rules, judgments, orders, code and decrees, or rule of common law (including Environmental Laws) as
are applicable to Vessels documented under U.S. flag and operated in the manner operated by a
Credit Party or any Subsidiary in accordance with past practice; and (vi) is, assuming in the case
of Chartered Vessels only that the relevant owner participant, the relevant owner trustee and
Shipco under the applicable Chartered Vessel Documents are “citizens of the United States” within
the meaning of Section 2 of the Shipping Act, 1916, as amended (46 U.S.C. § 50501 (a) and (d)),
qualified to operate in the coastwise trade of the United States, properly documented and is in
compliance with the requirements of its

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present class and classification society. Except as set forth in Schedule 3.29, as of the
Closing Date, all of the Vessels are in class.

     Section 3.30 Qualification.

     Each of the Credit Parties and their Subsidiaries is (a) a “citizen of the United States”
within the meaning of Section 2 of the Shipping Act, 1916, as amended (46 U.S.C. § 50501(a) and
(d)). Each of the Mortgaged Vessels is duly documented in the name of the respective Credit Party
or Subsidiary and duly qualified for the coastwise trade of the United States. Each of the Vessels
covered by a Chartered Vessel Document is duly documented (or upon delivery by the shipyard
building the same will be duly documented) in the name of the owner thereof and the relevant
Chartered Vessel Documents are or shall be in full force and effect.

ARTICLE IV

CONDITIONS PRECEDENT

     Section 4.1 Conditions to Closing Date.

     This Agreement shall become effective upon, and the obligation of each Lender to make the Term
Loan and the initial Revolving Loans on the Closing Date is subject to, the satisfaction or waiver
of the following conditions precedent:

     (a) Execution of Credit Agreement; Credit Documents and Lender Consents. The
Administrative Agent shall have received (i) counterparts of this Agreement, executed by a
duly authorized officer of each party hereto, (ii) for the account of each Revolving Lender
requesting a promissory note, a Revolving Note, (iii) for the account of each Term Loan
Lender requesting a promissory note, a Term Loan Note, (iv) for the account of the Swingline
Lender, the Swingline Note, (v) counterparts of the Security Agreement, the Pledge Agreement
and each Real Estate Mortgage Instrument, if any, and Vessel Fleet Mortgage, in each case
conforming to the requirements of this Agreement and executed by duly authorized officers of
the Credit Parties or other Person, as applicable and (vi) counterparts of any other Credit
Document, executed by the duly authorized officers of the parties thereto.

     (b) Authority Documents. The Administrative Agent shall have received the
following:

     (i) Articles of Incorporation/Charter Documents. Copies of the
articles of incorporation or other charter documents, as applicable, of each Credit
Party certified (A) by an officer of such Credit Party (pursuant to an officer’s
certificate in substantially the form of Exhibit 4.1(b) attached hereto) as
of the Closing Date to be true and correct and in force and effect as of such date,
and

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(B) to be true and complete as of a recent date by the appropriate Governmental
Authority of the state of its incorporation or organization, as applicable.

     (ii) Resolutions. Copies of resolutions of the board of directors or
comparable managing body of each Credit Party approving and adopting the Credit
Documents in form and substance reasonably satisfactory to the Administrative Agent,
the transactions contemplated therein and authorizing execution and delivery
thereof, certified by an officer of such Credit Party (pursuant to an officer’s
certificate in substantially the form of Exhibit 4.1(b) attached hereto) as
of the Closing Date to be true and correct and in force and effect as of such date.

     (iii) Bylaws/Operating Agreement. A copy of the bylaws or comparable
operating agreement of each Credit Party certified by an officer of such Credit
Party (pursuant to an officer’s certificate in substantially the form of Exhibit
4.1(b) attached hereto) as of the Closing Date to be true and correct and in
force and effect as of such date.

     (iv) Good Standing. Copies of certificates of good standing, existence
or its equivalent with respect to each Credit Party certified as of a recent date by
the appropriate Governmental Authorities of the state of incorporation or
organization and each other state in which the failure to so qualify and be in good
standing could reasonably be expected to have a Material Adverse Effect.

     (v) Incumbency. An incumbency certificate of each Credit Party
certified by an officer (pursuant to an officer’s certificate in substantially the
form of Exhibit 4.1(b) attached hereto) to be true and correct as of the
Closing Date.

     (c) Legal Opinion of Counsel. The Administrative Agent shall have received an
opinion or opinions (including, if requested by the Administrative Agent, local counsel
opinions and maritime counsel opinions) of counsel for the Credit Parties, dated the Closing
Date and addressed to the Administrative Agent and the Lenders, in form and substance
reasonably acceptable to the Administrative Agent (which shall include, without limitation,
opinions with respect to the due organization and valid existence of each Credit Party,
opinions as to perfection of the Liens granted to the Administrative Agent pursuant to the
Security Documents and opinions as to the non-contravention of the Credit Parties’
organizational documents). The Administrative Agent shall have received evidence that the
Administrative Agent and the Lenders have been permitted to rely on each opinion delivered
by the Borrower, in a form and substance acceptable to the Administrative Agent.

     (d) Personal Property Collateral. The Administrative Agent shall have
received, in form and substance reasonably satisfactory to the Administrative Agent:

     (i) searches of Uniform Commercial Code filings in the jurisdiction of the
chief executive office, the state of organization, and the state of incorporation,

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of each Credit Party and each jurisdiction where any Collateral is located or where
a filing would need to be made in order to perfect the Lenders’ security interest in
the Collateral, copies of the financing statements on file in such jurisdictions and
evidence that no Liens exist other than Permitted Liens and (B) tax lien, judgment
and pending litigation searches;

     (ii) searches of ownership of Intellectual Property in the appropriate
governmental offices and such patent/trademark/copyright filings as reasonably
requested by the Administrative Agent in order to perfect the Administrative Agent’s
security interest in the Intellectual Property;

     (iii) completed UCC financing statements for each appropriate jurisdiction as
is necessary, in the Administrative Agent’s reasonable discretion, to perfect the
Lenders’ security interest in the Collateral;

     (iv) subject to the terms of Section 5.14, with respect to the stock or
membership certificates, if any, evidencing the Capital Stock pledged to the
Administrative Agent pursuant to the Pledge Agreement, duly executed in blank
undated stock or transfer powers;

     (v) duly executed consents as are necessary, in the Administrative Agent’s
reasonable discretion, to perfect the Lenders’ security interest in the Collateral;

     (vi) all instruments and chattel paper with a value in excess of $1,000,000 in
the possession of any of the Credit Parties, together with allonges or assignments
as may be necessary or appropriate to perfect the Administrative Agent’s and the
Lenders’ security interest in the Collateral; and

     (vii) To the extent reasonably required by the Administrative Agent, collateral
assignments of material agreements reasonably satisfactory to the Administrative
Agent.

     (e) Vessel Collateral. The Administrative Agent shall have received, in form
and substance reasonably satisfactory to the Administrative Agent and the Lenders:

     (i) fully executed and notarized Vessel Fleet Mortgage encumbering each owned
Vessel listed in Schedule 3.29 duly filed with the National Vessel
Documentation Center (“NVDC”);

     (ii) abstracts of title issued by the NVDC for each Vessel owned by any Credit
Parties or Subsidiary together with copies of each such Vessel’s current certificate
of documentation and copies of the documents disclosed by such search and evidence
reasonably satisfactory to the Administrative Agent that the Vessels are duly
documented in the name of the respective Credit Party and qualified for the
coastwise trade. The Liens indicated by such abstracts shall have

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been released or appropriate arrangements reasonably acceptable to the
Administrative Agent have been made for such release;

     (iii) counterparts of a Vessel Fleet Mortgage with respect to each Mortgaged
Vessel duly executed and delivered by the record owner of such Mortgaged Vessel,
which Vessel Fleet Mortgage shall, when filed for recording with the NVDC,
constitute a first “preferred mortgage” on the Mortgaged Vessel in favor of the
Mortgage Trustee under Chapter 313 of Title 46 of the United States Code, as
amended, having the effect and with the priority provided in such law, and
arrangements satisfactory to the Administrative Agent shall have been made to have
the notice referred to in Section 3.5 of such Vessel Fleet Mortgage placed on such
Mortgaged Vessel;

     (iv) copies of insurance cover notes and evidence of entry of each Vessel in a
protection and indemnity club, together with a broker’s letter, describing all
Vessel insurances in detail, in form and substance reasonably satisfactory to the
Administrative Agent;

     (v) counterpart of an Assignment of Insurances (together with notices of
assignment and loss payable clauses) with respect to each Mortgaged Vessel, in each
case duly executed and delivered by the record owner of such Mortgaged Vessel and
the applicable Mortgage Trustee; and

     (vi) the material Chartered Vessel Documents shall have been delivered to the
Administrative Agent or its counsel.

     (f) Real Property Collateral. The Administrative Agent shall have received, in
form and substance reasonably satisfactory to the Administrative Agent and the Lenders:

     (i) fully executed and notarized Real Estate Mortgage Instruments encumbering
the Real Estate Mortgaged Properties listed in Schedule 3.17(d);

     (ii) a title report in respect of each of the Real Estate Mortgaged Properties;

     (iii) with respect to each Real Estate Mortgaged Property listed in
Schedule 3.17(d), a Real Estate Mortgage Policy assuring the Administrative
Agent that the Real Estate Mortgage Instrument with respect to such Real Estate
Mortgaged Property creates a valid and enforceable first priority mortgage lien on
such Real Estate Mortgaged Property, free and clear of all defects and encumbrances
except Permitted Liens, which Real Estate Mortgage Policy shall be in form and
substance reasonably satisfactory to the Administrative Agent and shall provide for
affirmative insurance and such reinsurance as the Administrative Agent may
reasonably request, all of the foregoing in form and substance reasonably
satisfactory to the Administrative Agent;

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     (iv) evidence as to (A) whether any Real Estate Mortgaged Property listed in
Schedule 3.17(d) is a Flood Hazard Property and (B) if any Real Estate
Mortgaged Property is a Flood Hazard Property, (x) whether the community in which
such Real Estate Mortgaged Property is located is participating in the National
Flood Insurance Program, (y) the applicable Credit Party’s written acknowledgment of
receipt of written notification from the Administrative Agent (I) as to the fact
that such Real Estate Mortgaged Property is a Flood Hazard Property and (II) as to
whether the community in which each such Flood Hazard Property is located is
participating in the National Flood Insurance Program and (z) copies of insurance
policies or certificates of insurance of the Credit Parties and their Subsidiaries
evidencing flood insurance reasonably satisfactory to the Administrative Agent and
naming the Administrative Agent as loss payee on behalf of the Lenders;

     (v) maps or plats of an as-built survey of the sites of the Real Estate
Mortgaged Properties listed in Schedule 3.17(d) certified to the
Administrative Agent and the Title Insurance Company in a manner reasonably
satisfactory to them, dated a date satisfactory to each of the Administrative Agent
and the Title Insurance Company by an independent professional licensed land
surveyor reasonably satisfactory to each of the Administrative Agent and the Title
Insurance Company, which maps or plats and the surveys on which they are based shall
be sufficient to delete any standard printed survey exception contained in the
applicable title policy and be made in accordance with the Minimum Standard Detail
Requirements for Land Title Surveys jointly established and adopted by the American
Land Title Association and the American Congress on Surveying and Mapping in 2005,
and, without limiting the generality of the foregoing, there shall be surveyed and
shown on such maps, plats or surveys the following: (A) the locations on such sites
of all the buildings, structures and other improvements and the established building
setback lines; (B) the lines of streets abutting the sites and width thereof; (C)
all access and other easements appurtenant to the sites necessary to use the sites;
(D) all roadways, paths, driveways, easements, encroachments and overhanging
projections and similar encumbrances affecting the site, whether recorded, apparent
from a physical inspection of the sites or otherwise known to the surveyor; (E) any
encroachments on any adjoining property by the building structures and improvements
on the sites; and (F) if the site is described as being on a filed map, a legend
relating the survey to said map;

     (vi) satisfactory third-party environmental reviews of all owned Real Estate
Mortgaged Properties listed in Schedule 3.17(d), including but not limited
to Phase I environmental assessments, together with reliance letters in favor of the
Lenders;

     (vii) to the extent requested by the Administrative Agent, opinions of counsel
to the Credit Parties for each jurisdiction in which the Real Estate Mortgaged
Properties are located;

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     (viii) to the extent available, zoning letters from each municipality or other
Governmental Authority for each jurisdiction in which the Real Estate Mortgaged
Properties listed in Schedule 3.17(d) are located; and

     (ix) an appraisal of each owned Real Estate Mortgaged Property, in form and
substance reasonably satisfactory to the Administrative Agent.

     (g) Liability, Casualty and Property. The Administrative Agent shall have
received copies of insurance policies or certificates and endorsements of insurance
evidencing liability, casualty and property meeting the requirements set forth herein or in
the Security Documents. The Administrative Agent (or Mortgage Trustee) shall be named as
lender loss payee, mortgagee, as its interest may appear and/or additional insured with
respect to any such insurance providing liability coverage or coverage in respect of any
Collateral, and the Borrower will use its commercially reasonable efforts to have each
provider of any such insurance agree, by endorsement upon the policy or policies issued by
it or by independent instruments furnished to the Administrative Agent (or Mortgage
Trustee), that it will give the Administrative Agent thirty (30) days prior written notice
before any such policy or policies shall be altered or cancelled.

     (h) Solvency Certificate. The Administrative Agent shall have received an
officer’s certificate prepared by the chief financial officer of the Borrower as to the
financial condition, solvency and related matters of the Credit Parties and their
Subsidiaries, after giving effect to the initial borrowings under the Credit Documents, in
substantially the form of Exhibit 4.1(h) hereto.

     (i) Account Designation Letter. The Administrative Agent shall have received
the executed Account Designation Letter in the form of Exhibit 1.1(a) hereto.

     (j) Notice of Borrowing. The Administrative Agent shall have received a Notice
of Borrowing with respect to the Revolving Loans to be made on the Closing Date.

     (k) Consents. The Administrative Agent shall have received evidence that all
boards of directors, governmental, shareholder and material third party consents and
approvals (if any) necessary in connection with the Transactions have been obtained and all
applicable waiting periods have expired without any action being taken by any authority that
could restrain, prevent or impose any material adverse conditions on such transactions or
that could seek or threaten any of the foregoing.

     (l) Compliance with Laws. The financings and other Transactions contemplated
hereby shall be in compliance in all material respects with all applicable laws and
regulations (including all applicable securities and banking laws, rules and regulations).

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     (m) Bankruptcy. There shall be no bankruptcy or insolvency proceedings pending
with respect to any Credit Party or any Subsidiary thereof.

     (n) Existing Indebtedness of the Credit Parties. All of the existing
Indebtedness for borrowed money of the Credit Parties and their Subsidiaries (other than
Indebtedness permitted to exist pursuant to Section 7.1) shall be repaid in full and all
security interests related thereto shall be terminated on or prior to the Closing Date.

     (o) Financial Statements. The Administrative Agent and the Lenders shall have
received copies of the financial statements referred to in Section 3.1, each in form and
substance reasonably satisfactory to it.

     (p) No Material Adverse Change. No material adverse change shall have occurred
in the business, properties, operations or financial condition of the Credit Parties or any
of their Subsidiaries.

     (q) Corporate Structure. The number of shares of each class of Capital Stock
issued and outstanding and the ownership thereof of the Credit Parties and their
Subsidiaries as of the Closing Date shall be as described in Schedule 3.12.

     (r) Financial Condition Certificate. The Administrative Agent shall have
received a certificate or certificates executed by a Responsible Officer of the Borrower as
of the Closing Date, substantially in the form of Exhibit 4.1(r) stating that (i)
there does not exist any pending or ongoing, action, suit, investigation, litigation or
proceeding in any court or before any other Governmental Authority (A) affecting this
Agreement or the other Credit Documents, that has not been settled, dismissed, vacated,
discharged or terminated prior to the Closing Date or (B) that purports to affect any Credit
Party or any of its Subsidiaries, or any transaction contemplated by the Credit Documents,
which action, suit, investigation, litigation or proceeding could reasonably be expected to
have a Material Adverse Effect, that has not been settled, dismissed, vacated, discharged or
terminated prior to the Closing Date, (ii) immediately after giving effect to this
Agreement, the other Credit Documents, and all the Transactions contemplated to occur on
such date, (A) no Default or Event of Default exists, (B) all representations and warranties
contained herein and in the other Credit Documents are true and correct in all material
respects (except that any representation or warranty that is qualified as to “materiality”
or “Material Adverse Effect” shall be true and correct in all respects), and (C) the Credit
Parties are in pro forma compliance with each of the initial financial covenants set forth
in Article VI (as evidenced through detailed calculations of such financial covenants on a
schedule to such certificate) as of the last day of the four quarter period most recently
ended prior to the Closing Date for which such financial statements are available and (iii)
each of the other conditions precedent in Section 4.1 have been satisfied, except to the
extent the satisfaction of any such condition is subject to the judgment or discretion of
the Administrative Agent.

     (s) Patriot Act Certificate. At least five (5) Business Days prior to the
Closing Date, the Administrative Agent shall have received a certificate satisfactory

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thereto, substantially in the form of Exhibit 4.1(s), for benefit of itself and the
Lenders, provided by the Borrower that sets forth information required by the Patriot Act
including, without limitation, the identity of the Credit Parties, the name and address of
the Credit Parties and other information that will allow the Administrative Agent or any
Lender, as applicable, to identify the Credit Parties in accordance with the Patriot Act.

     (t) “Know Your Customer” Information. The Administrative Agent shall have
received documentation and other information required by bank regulatory authorities under
applicable “Know Your Customer” and Anti-Money Laundering rules and regulations, including,
without limitation, the Patriot Act. Such documentation shall include, without limitation,
evidence reasonably satisfactory to the Administrative Agent of the listing of the Borrower
on the New York Stock Exchange.

     (u) Fees and Expenses. The Administrative Agent and the Lenders shall have
received all fees and expenses, if any, owing pursuant to the Fee Letter and Section 2.6.

     (v) Convertible Notes. Prior to or concurrently with the Closing Date, the
Credit Parties (i) shall have received gross proceeds of at least $300,000,00 from the sale
of the 2007 Senior Unsecured Convertible Notes and (ii) purchased not less than eighty
percent (80%) of the outstanding principal amount of each of the 9.00% Senior Notes due 2012
and 11.00% Senior Discount Notes due 2013, with each of the foregoing on terms and
conditions reasonably satisfactory to the Administrative Agent and the Lenders.

     (w) Litigation. Except as disclosed in the Borrower’s Form 10-K, there shall
be no material pending litigation, bankruptcy or insolvency, injunction, order or claim with
respect to the Credit Parties or any Subsidiary.

     (x) Additional Matters. All other documents and legal matters in connection
with the transactions contemplated by this Agreement shall be reasonably satisfactory in
form and substance to the Administrative Agent and its counsel.

     (y) Qualification. The Credit Parties and their Subsidiaries shall each be
qualified as “a citizen of the United States” within the meaning of Section 2 of the
Shipping Act, 1916, as amended, 46 U.S.C. § 50501(a) and (d), qualified to own and operate
vessels in the coastwise trade of the United States to the extent required by such Act in
connection with the Credit Parties and their Subsidiaries’ business.

     Section 4.2 Conditions to All Extensions of Credit.

     The obligation of each Lender to make any Extension of Credit hereunder is subject to the
satisfaction of the following conditions precedent on the date of making such Extension of Credit:

     (a) Representations and Warranties. The representations and warranties made by
the Credit Parties herein, in the Security Documents or which are contained in any
certificate furnished at any time under or in connection herewith shall (i) with respect to

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representations and warranties that contain a materiality qualification, be true and correct
and (ii) with respect to representations and warranties that do not contain a materiality
qualification, be true and correct in all material respects, in each case on and as of the
date of such Extension of Credit as if made on and as of such date (except for those which
expressly relate to an earlier date).

     (b) No Default or Event of Default. No Default or Event of Default shall have
occurred and be continuing on such date or after giving effect to the Extension of Credit to
be made on such date unless such Default or Event of Default shall have been waived in
accordance with this Agreement.

     (c) Compliance with Commitments. Immediately after giving effect to the making
of any such Extension of Credit (and the application of the proceeds thereof), (i) the sum
of the aggregate principal amount of outstanding Revolving Loans plus outstanding
Swingline Loans plus outstanding LOC Obligations shall not exceed the Revolving
Committed Amount then in effect, (ii) the outstanding LOC Obligations shall not exceed the
LOC Committed Amount, and (iii) the outstanding Swingline Loans shall not exceed the
Swingline Committed Amount.

     (d) Additional Conditions to Revolving Loans. If a Revolving Loan is
requested, all conditions set forth in Section 2.1 shall have been satisfied.

     (e) Additional Conditions to Letters of Credit. If the issuance of a Letter of
Credit is requested, all conditions set fort in Section 2.3 shall have been satisfied.

     (f) Additional Conditions to Swingline Loans. If a Swingline Loan is
requested, all conditions set forth in Section 2.4 shall have been satisfied.

     (g) Additional Conditions to Incremental Facility. If an Incremental Facility
is requested, all conditions set forth in Section 2.5 shall have been satisfied.

     Each request for an Extension of Credit and each acceptance by the Borrower of any such
Extension of Credit shall be deemed to constitute representations and warranties by the Credit
Parties as of the date of such Extension of Credit that the conditions set forth above in
paragraphs (a) through (g), as applicable, have been satisfied.

ARTICLE V

AFFIRMATIVE COVENANTS

     Each of the Credit Parties hereby covenants and agrees that on the Closing Date, and
thereafter for so long as this Agreement is in effect and until the Commitments have terminated, no
Note remains outstanding and unpaid and the Credit Party Obligations (other than indemnification
obligations and other contingent obligations for which no claim has been

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asserted) and all other amounts owing to the Administrative Agent or any Lender hereunder are paid
in full, such Credit Party shall, and shall cause each of their Subsidiaries, to:

     Section 5.1 Financial Statements.

     Furnish to the Administrative Agent for distribution to each of the Lenders:

     (a) Annual Financial Statements. No later than the earlier of (i) the date the
Borrower is required by the SEC to deliver its Form 10-K for each fiscal year of the
Borrower and (ii) ninety (90) days after the end of each fiscal year of the Borrower, a copy
of the Consolidated balance sheet of the Credit Parties and their Subsidiaries as at the end
of such fiscal year and the related Consolidated statements of income and retained earnings
and of cash flows of the Credit Parties and their Subsidiaries for such year, which shall be
audited by a registered public accounting firm of nationally recognized standing, setting
forth in each case in comparative form the figures for the previous year, reported on
without a “going concern” or like qualification or exception, or qualification indicating
that the scope of the audit was inadequate to permit such independent certified public
accountants to certify such financial statements without such qualification;

     (b) Quarterly Financial Statements. No later than the earlier of (i) the date
the Borrower is required by the SEC to deliver its Form 10-Q for any fiscal quarter of the
Borrower and (ii) forty-five (45) days after the end of each fiscal quarter of the Borrower,
a copy of the Consolidated balance sheet of the Credit Parties and their Subsidiaries as at
the end of such period and related Consolidated statements of income and retained earnings
and of cash flows for the Credit Parties and their Subsidiaries for such quarterly period
and for the portion of the fiscal year ending with such period, in each case setting forth
in comparative form Consolidated figures for the corresponding period or periods of the
preceding fiscal year (subject to normal recurring year-end audit adjustments and the
absence of footnotes);

     (c) Annual Operating Budget and Cash Flow. Within ninety (90) days after the
end of each fiscal year, a copy of the detailed annual operating budget or plan including
cash flow projections of the Credit Parties and their Subsidiaries for the next four fiscal
quarter period prepared on a quarterly basis, in form and detail reasonably acceptable to
the Administrative Agent and the Lenders, together with a summary of the material
assumptions made in the preparation of such annual budget or plan;

all such financial statements to be complete and correct in all material respects (subject, in the
case of interim statements, to normal recurring year-end audit adjustments and the absence of
footnotes) and to be prepared in reasonable detail and, in the case of annual and quarterly
financial statements provided in accordance with subsections (a) and (b) above, in accordance with
GAAP applied consistently throughout the periods reflected therein and further accompanied by a
description of, and an estimation of the effect on the financial statements on account of, a
change, if any, in the application of accounting principles as provided in Section 1.3.

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     Notwithstanding the foregoing, financial statements and reports required to be delivered
pursuant to the foregoing provisions of this Section may be delivered electronically and if so,
shall be deemed to have been delivered on the date on which the Administrative Agent receives such
reports from the Borrower through electronic mail; provided that, upon the Administrative
Agent’s request, the Borrower shall provide paper copies of any documents required hereby to the
Administrative Agent.

     Section 5.2 Certificates; Other Information.

     Furnish to the Administrative Agent for distribution to each of the Lenders:

     (a) concurrently with the delivery of the financial statements referred to in Section
5.1(a) above, a certificate of the independent certified public accountants reporting on
such financial statements stating that in making the examination necessary therefor no
knowledge was obtained of any Event of Default under Sections 6.1 or 6.2 (which certificate
may be limited to the extent required by accounting rules, guidelines or practice);
provided that such accountants shall not be liable to the Lenders for failure to
obtain knowledge of any such Event of Default, except as specified in such certificate;

     (b) concurrently with the delivery of the financial statements referred to in Sections
5.1(a) and 5.1(b) above, a certificate of a Responsible Officer substantially in the form of
Exhibit 5.2(b) stating that (i) (A) such financial statements present fairly in all
material respects the financial position of the Credit Parties and their Subsidiaries for
the periods indicated in conformity with GAAP applied on a consistent basis (subject, in the
case of interim statements, to normal recurring year-end audit adjustments and the absence
of footnotes), (B) each of the Credit Parties during such period observed or performed in
all material respects all of its covenants and other agreements, and satisfied in all
material respects every condition, contained in this Agreement to be observed, performed or
satisfied by it, and (C) such Responsible Officer has obtained no knowledge of any Default
or Event of Default except as specified in such certificate and such certificate shall
include the calculations in reasonable detail required to indicate compliance with Sections
6.1 and 6.2 as of the last day of such period;

     (c) promptly upon receipt thereof, a copy or summary of any other report, or
“management letter” or similar report submitted by independent accountants to the Borrower
or any of its Subsidiaries in connection with any annual, interim or special audit of the
books of such Person; and

     (d) promptly, such additional financial and other information as the Administrative
Agent, on behalf of any Lender, may from time to time reasonably request.

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     Section 5.3 Payment of Taxes and Other Obligations.

     Pay, discharge or otherwise satisfy at or before maturity or before they become delinquent, as
the case may be, subject, where applicable, to specified grace periods, (a) its material taxes
(Federal, state, local and any other taxes) and (b) its other material obligations and liabilities
of whatever nature in accordance with industry practice and (c) any material additional costs that
are imposed as a result of any failure to so pay, discharge or otherwise satisfy such taxes,
obligations and liabilities, except when the amount or validity of any such taxes, obligations and
liabilities is currently being contested in good faith by appropriate proceedings and reserves, if
applicable, in conformity with GAAP with respect thereto have been provided on the books of the
Credit Parties.

     Section 5.4 Conduct of Business and Maintenance of Existence.

     (a) Continue to engage in business of the same general type as now conducted by it on
the Closing Date and similar or related businesses and preserve, renew and keep in full
force and effect its corporate or other formative existence and good standing, take all
reasonable action to maintain all rights, privileges and franchises necessary in the normal
conduct of its business and to maintain its goodwill and comply with all contractual
obligations and Requirements of Law.

     (b) The Credit Parties and each of their Subsidiaries shall at all times remain (i) a
“citizen of the United States” within the meaning of Section 2 of the Shipping Act, 1916, as
amended (46 U.S.C. § 50501(a) and (d), qualified to own and operate vessels in the coastwise
trade of the United States to the extent required by such Act in connection with its
business and (ii) if it is the owner of a Vessel, eligible to act as an owner in respect of
United States-flag Vessels pursuant to 46 U.S.C. § 12102, as amended, and any regulations
thereunder.

     Section 5.5 Maintenance of Property; Insurance.

     (a) Keep all material property useful and necessary in its business in good working
order and condition (ordinary wear and tear and obsolescence excepted).

     (b) Maintain with financially sound and reputable insurance companies liability,
casualty, property and business interruption insurance (including, without limitation,
insurance with respect to its tangible Collateral) in at least such amounts and against at
least such risks as are usually insured against in the same general area by companies
engaged in the same or a similar business; and furnish to the Administrative Agent, upon the
reasonable request of the Administrative Agent, full information as to the insurance
carried. The Administrative Agent shall be named as loss payee or mortgagee, as its interest
may appear, and/or additional insured with respect to any such casualty, property and
liability insurance, as applicable, and each provider of any such insurance shall agree, by
endorsement upon the policy or policies issued by it or by independent instruments furnished
to the Administrative Agent, that it will give the Administrative Agent thirty (30) days
prior written notice before any such policy or

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policies shall be altered or canceled, and such policies shall provide that no act or
default of the Credit Parties or any of their Subsidiaries or any other Person shall affect
the rights of the Administrative Agent or the Lenders under such policy or policies.

     (c) In case of any material loss, damage to or destruction of the Collateral of any
Credit Party or any part thereof, such Credit Party shall promptly give written notice
thereof to the Administrative Agent generally describing the nature and extent of such
damage or destruction. In case of any such material loss, damage to or destruction of the
Collateral of any Credit Party or any part thereof, if required by the Administrative Agent
or the Required Lenders, such Credit Party (whether or not the insurance proceeds, if any,
received on account of such damage or destruction shall be sufficient for that purpose), at
such Credit Party’s cost and expense, will promptly repair or replace the Collateral of such
Credit Party so lost, damaged or destroyed, unless such Credit Party shall have reasonably
determined that such repair or replacement of the affected Collateral is not economically
feasible or is not deemed to be in the best interest of such Credit Party and such Credit
Party uses any insurance proceeds received from such loss, damage or destruction of
Collateral to acquire fixed assets.

     Section 5.6 Inspection of Property; Books and Records; Discussions.

     Keep proper books of records and account in which full, true and correct entries in conformity
with GAAP and all Requirements of Law shall be made of all dealings and transactions in relation to
its businesses and activities; and permit no more than once every twelve (12) months (and at any
time an Event of Default has occurred and is continuing), during regular business hours and upon
reasonable notice by the Administrative Agent or any Lender, the Administrative Agent or any Lender
to visit and inspect any of its properties and examine and make abstracts from any of its books and
records (other than documents covered by the attorney client privilege) at any reasonable and
mutually convenient time and as often as may be reasonably required, and to discuss the business,
operations, properties and financial and other condition of the Credit Parties and their
Subsidiaries with officers and employees of the Credit Parties and their Subsidiaries and with its
independent certified public accountants, in each case, at the reasonable expense of the Borrower.

     Section 5.7 Notices.

     Give notice in writing to the Administrative Agent (which shall promptly transmit such notice
to each Lender):

     (a) promptly, but in any event within two (2) Business Days after any Credit Party
knows thereof, of the occurrence of any Default or Event of Default;

     (b) promptly, of any default or event of default under any Contractual Obligation of
any Credit Party or any of its Subsidiaries which, individually or in the aggregate, could
reasonably be expected to have a Material Adverse Effect

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     (c) promptly, of any litigation, or any investigation or proceeding known to any Credit
Party (i) affecting any Credit Party or any of its Subsidiaries which, individually or in
the aggregate, could reasonably be expected to have a Material Adverse Effect, (ii)
affecting or with respect to this Agreement, any other Credit Document or any security
interest or Lien created thereunder, (iii) involving an environmental claim or potential
liability under Environmental Laws which could reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect or (iv) by any Governmental Authority
relating to the Credit Parties and any Subsidiary thereof and alleging fraud, deception or
willful violation of law by such Person which could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect;

     (d) of any labor controversy that has resulted in, or threatens to result in, a strike
or other work action against any Credit Party which could reasonably be expected to have a
Material Adverse Effect;

     (e) of any attachment, judgment, lien, levy or order exceeding $5,000,000 that may be
assessed against or threatened against any Credit Party other than Permitted Liens or any
attachment, levy upon or taking into custody by virtue of any legal proceeding in any court
or tribunal or by any Governmental Authority of any Mortgaged Vessel;

     (f) as soon as possible and in any event within thirty (30) days after any Credit Party
knows: (i) of the occurrence of any Reportable Event with respect to any Plan, a failure to
make any required contribution to a Plan, the creation of any Lien in favor of the PBGC
(other than a Permitted Lien) or a Plan or any withdrawal from, or the termination,
Reorganization or Insolvency of, any Multiemployer Plan or (ii) of the institution of
proceedings or the taking of any other action by the PBGC or any Credit Party, any Commonly
Controlled Entity or any Multiemployer Plan, with respect to the withdrawal from, or the
terminating, Reorganization or Insolvency of, any Plan;

     (g) promptly, of any notice of any material violation received by any Credit Party from
any Governmental Authority including, without limitation, any notice of violation of
Environmental Laws;

     (h) promptly, of the attachment, levy upon or taking into custody by virtue of any
legal proceeding in any court or tribunal by any Governmental Authority of any Mortgaged
Vessel; and

     (i) promptly, of any other development or event which could reasonably be expected to
have a Material Adverse Effect.

Each notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer
setting forth details of the occurrence referred to therein and stating what action the Credit
Parties propose to take with respect thereto. In the case of any notice of a Default or Event of
Default, the Borrower shall specify that such notice is a Default or Event of Default notice on the
face thereof.

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     Section 5.8 Environmental Laws.

     Except as could not reasonably be expected to have a Material Adverse Effect:

     (a) Comply with all applicable Environmental Laws and obtain and comply with and
maintain any and all licenses, approvals, notifications, registrations or permits required
by applicable Environmental Laws;

     (b) Conduct and complete all investigations, studies, sampling and testing, and all
remedial, removal and other actions required of the Credit Parties or any Subsidiary under
Environmental Laws and promptly comply with all lawful orders and directives of all
Governmental Authorities regarding Environmental Laws except to the extent that the same are
being contested in good faith by appropriate proceedings; and

     (c) Defend, indemnify and hold harmless the Administrative Agent, the Mortgage Trustee
and the Lenders, and their respective employees, agents, officers and directors and
affiliates, from and against any and all claims, demands, penalties, fines, liabilities,
settlements, damages, costs and expenses of whatever kind or nature known or unknown,
contingent or otherwise, arising out of, or in any way relating to the violation of,
noncompliance with or liability under, any Environmental Law applicable to the operations of
the Credit Parties or any of their Subsidiaries or the Properties, or any orders,
requirements or demands of Governmental Authorities related thereto, including, without
limitation, reasonable attorney’s and consultant’s fees, investigation and laboratory fees,
response costs, court costs and litigation expenses, except to the extent that any of the
foregoing arise out of the gross negligence or willful misconduct of the party seeking
indemnification therefor. The agreements in this paragraph shall survive repayment of the
Credit Party Obligations and all other amounts payable hereunder and termination of the
Commitments and the Credit Documents.

     Section 5.9 Additional Guarantors.

     The Credit Parties will cause each of their Domestic Subsidiaries (other than an Immaterial
Subsidiary or a Transitional Subsidiary), whether newly formed, after acquired or otherwise
existing to promptly (and in any event within thirty (30) days after such Domestic Subsidiary is
formed or acquired (or such longer period of time as agreed to by the Administrative Agent in its
reasonable discretion)) become a Guarantor hereunder by way of execution of a Joinder Agreement.
In connection therewith, the Credit Parties shall give notice to the Administrative Agent not less
than ten (10) days after creating a Subsidiary or acquiring the Capital Stock of any other Person.
The Credit Party Obligations shall be secured by, among other things, a first priority perfected
security interest in the Collateral (other than Permitted Liens) of such new Guarantor and a pledge
of 100% of the Capital Stock of such new Guarantor and its Subsidiaries and 66% (or such higher
percentage that would not result in adverse tax consequences for such new Guarantor) of the voting
Capital Stock and 100% of the non-voting Capital Stock of its first-tier Foreign Subsidiaries. In
connection with the foregoing, the Credit Parties shall deliver to the Administrative Agent, with
respect to each new Guarantor to the

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extent applicable, substantially the same documentation required pursuant to Sections 4.1(b) – (g),
5.11 and 5.14 and such other documents or agreements as the Administrative Agent may reasonably
request.

     Section 5.10 Compliance with Law.

     (a) Comply with all Requirements of Law and orders (including Environmental Laws), and
all applicable restrictions imposed by all Governmental Authorities, applicable to it and
its Property if noncompliance with any such Requirements of Law, order or restriction could
reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect;
and

     (b) Comply with all Contractual Obligations, except to the extent the applicable Credit
Party or Subsidiary is contesting its obligations thereunder in good faith or the failure to
comply therewith could not reasonably be expected to have a Material Adverse Effect.

     Section 5.11 Pledged Assets.

     (a) Each Credit Party will cause 100% of the Capital Stock in each of its direct or
indirect Domestic Subsidiaries (other than an Immaterial Subsidiary or a Transitional
Subsidiary) (unless such Domestic Subsidiary is owned by a Foreign Subsidiary) and 66% (to
the extent the pledge of a greater percentage would be unlawful or would cause any adverse
tax consequences to the Borrower or any Guarantor) of the Voting Stock and 100% of the
non-voting Capital Stock of its first-tier Foreign Subsidiaries, in each case to the extent
owned by such Credit Party, to be subject at all times to a first priority, perfected Lien
in favor of the Administrative Agent pursuant to the terms and conditions of the Security
Documents or such other security documents as the Administrative Agent shall reasonably
request.

     (b) Each Credit Party will cause its owned (but not leased) real property acquired
after the Closing Date with a fair market value in excess of $1,000,000 and all tangible and
intangible personal property now owned or hereafter acquired (including all owned Vessels
and, to the extent possible using commercially reasonable efforts, all chartered,
subchartered and leased Vessels with a fair market value in excess of $10,000,000) to be
subject at all times to a first priority, perfected Lien (subject in each case to Permitted
Liens) in favor of the Administrative Agent pursuant to the terms and conditions of the
Security Documents or such other security documents as the Administrative Agent shall
reasonably request. Each Credit Party shall, and shall cause each of its Subsidiaries to,
adhere to the covenants set forth in the Security Documents.

     (c) Except to the extent the applicable Credit Party or Subsidiary is contesting its
obligations in good faith or to the extent that failure to perform such obligation could not
reasonably be expected to have a Material Adverse Effect, each Credit Party shall timely and
fully pay and perform its obligations under all leases and other agreements with respect to
each leased location or public warehouse where any Collateral is or may
be located.

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     Section 5.12 Covenants Regarding Patents, Trademarks and Copyrights.

     (a) Notify the Administrative Agent promptly if it knows that any material Patent,
Patent License, Trademark or Trademark License of the Credit Parties or any of their
Subsidiaries may become abandoned, or of any material adverse determination or development
(including, without limitation, the institution of, or any such determination or development
in, any proceeding in the United States Patent and Trademark Office or any court) regarding
any Credit Party’s or any of its Subsidiary’s ownership of any Patent or Trademark, its
right to patent or register the same, or to enforce, keep and maintain the same, or its
rights under any Patent License or Trademark License.

     (b) Notify the Administrative Agent promptly after it knows of any material adverse
determination regarding any material Copyright or Copyright License of the Credit Parties or
any of their Subsidiaries, whether (i) such Copyright or Copyright License may become
invalid or unenforceable prior to its expiration or termination, or (ii) any Credit Party’s
or any of its Subsidiary’s ownership of such Copyright, its right to register the same or to
enforce, keep and maintain the same, or its rights under such Copyright License, may become
affected.

     (c) (i) Promptly notify the Administrative Agent of any registration by any Credit
Party or any of its Subsidiaries, either by itself or through any agent, employee, licensee
or designee (but in no event later than the fifteenth day following the granting of a
registration), or of any application for registration by any Credit Party of any
Intellectual Property with the United States Copyright Office or United States Patent and
Trademark Office or any similar office or agency in any other country or any political
subdivision thereof; and (ii) upon request of the Administrative Agent, execute and deliver
any and all agreements, instruments, documents, and papers as the Administrative Agent may
reasonably request to evidence the Administrative Agent’s security interest in the
Intellectual Property and the general intangibles referred to in clauses (i), including,
without limitation, the goodwill of the Credit Parties and their Subsidiaries relating
thereto or represented thereby (or such other Intellectual Property or the general
intangibles relating thereto or represented thereby as the Administrative Agent may
reasonably request).

     (d) Take all reasonably necessary actions, including, without limitation, in any
proceeding before the United States Patent and Trademark Office or the United States
Copyright Office, to maintain each item of Intellectual Property of the Credit Parties and
their

Subsidiaries which are reasonably necessary to the business of the Credit Parties,
including, without limitation, payment of maintenance fees, filing of applications for
renewal, affidavits of use, affidavits of incontestability and opposition, interference and
cancellation proceedings.

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     (e) In the event that any Credit Party becomes aware that any material Intellectual
Property owned by any Credit Party is infringed, misappropriated or diluted by a third party
in any material respect, notify the Administrative Agent promptly after it learns thereof
and, unless the Credit Parties shall reasonably determine that such Intellectual Property is
not material to the business of the Credit Parties and their Subsidiaries taken as a whole,
promptly sue for infringement, misappropriation or dilution and to attempt to recover any
and all damages for such infringement, misappropriation or dilution, and take such other
actions as the Credit Parties shall reasonably deem appropriate under the circumstances to
protect such Intellectual Property.

     Section 5.13 Landlord Waivers.

     (a) In the case of any personal property Collateral that has a fair market value in
excess of $1,000,000 located at premises leased by a Credit Party (other than premises
leased from any governmental or port authority), the Credit Parties will use reasonable
efforts to provide the Administrative Agent with such estoppel letters, consents and waivers
from the landlords on such real property to the extent (a) requested by the Administrative
Agent and (b) the Borrower is able to secure such letters, consents and waivers after using
commercially reasonable efforts (such letters, consents and waivers shall be in form and
substance reasonably satisfactory to the Administrative Agent, it being acknowledged and
agreed that any landlord waiver in the form of Exhibit 4.1(d) is satisfactory to the
Administrative Agent).

     (b) In the case of any personal property Collateral located at other third party
locations with a value in excess of $1,000,000, the Credit Parties will use reasonable
efforts to provide the Administrative Agent with such warehousemen’s or bailee letters,
consents and waivers from the owners/operators of such locations to the extent (i) requested
by the Administrative Agent and (ii) the Borrower is able to secure such letters, consents
and waivers after using commercially reasonable efforts (such letters, consents and waivers
shall be in form and substance reasonably satisfactory to the Administrative Agent).

     Section 5.14 Further Assurances; Post-Closing Covenant.

     (a) Further Assurances. Upon the reasonable request of the Administrative
Agent, promptly perform or cause to be performed any and all acts and execute or cause to be
executed any and all documents for filing under the provisions of the Uniform Commercial
Code or any other Requirement of Law which are necessary or advisable to maintain in favor
of the Administrative Agent (including the filing and recording of financing statements,
fixture filings and Real Estate Mortgage Instruments (but not leasehold mortgages)) or the
Mortgage Trustee, for the benefit of the Secured Parties, Liens on the Collateral that are
duly perfected in accordance with the requirements of, or the obligations of the Credit
Parties under, the Credit Documents and all applicable Requirements of Law. Without
limiting the foregoing, the Credit Parties hereby agree that upon entering any Bank Product
after the Closing Date or exercising any right to incur any Incremental Facility, they will
execute, deliver and cause to be recorded an

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amendment to the Vessel Fleet Mortgage required by Section 2.5 or as otherwise reasonably
requested by the Administrative Agent.

     (b) Landlord Waivers. In the case of any personal property Collateral with a
fair market value in excess of $1,000,000 located at premises leased by a Credit Party
(other than premises leased from any governmental or port authority) and set forth on
Schedule 3.17(b), within one hundred twenty (120) days after the Closing Date (or
such extended period of time as agreed to by the Administrative Agent), the Credit Parties
shall use commercially reasonable efforts to deliver to the Administrative Agent such
estoppel letters, consents, waivers and warehousemen’s or bailee letters from the landlords
or owners at such locations (such letters, consents, waivers and warehousemen’s or bailee
letters shall be in form and substance reasonably satisfactory to the Administrative Agent,
it being acknowledged and agreed that any landlord waiver in the form of Exhibit
5.14(b) is satisfactory to the Administrative Agent).

     (c) Stock Certificates. Within thirty (30) days after the Closing Date (or
such extended period of time as agreed to by the Administrative Agent), the Credit Parties
shall deliver to the Administrative Agent any stock certificates evidencing the Capital
Stock pledged to the Administrative Agent pursuant to the Pledge Agreement, together with
duly executed in blank undated stock powers, to the extent such stock certificates and stock
or transfer powers have not been delivered to the Administrative Agent on or prior to the
Closing Date.

ARTICLE VI

FINANCIAL COVENANTS

     Section 6.1 Consolidated Senior Secured Leverage Ratio.

     The Consolidated Senior Secured Leverage Ratio, for the twelve (12) month period ending as of
each fiscal quarter end shall be less than or equal to 3.00 to 1.00 at all times.

     Section 6.2 Minimum Interest Coverage Ratio.

     The Interest Coverage Ratio, for the twelve (12) month period ending as of each fiscal quarter
end shall be greater than or equal to 3.50 to 1.00 at all times.

     Notwithstanding the above, the parties hereto acknowledge and agree that, for purposes of all
calculations made in determining compliance for any applicable period with the financial covenants
set forth in this Article, (i) after consummation of any Permitted Acquisition or any purchase or
acquisition of any Vessel (A) income statement items and other balance sheet items (whether
positive or negative) attributable to the Target acquired in such transaction shall be included in
such calculations to the extent relating to such applicable period, subject to adjustments mutually
acceptable to the Borrower and the Administrative Agent, and (B) Indebtedness of a Target that is
retired in connection with a Permitted Acquisition shall be

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excluded from such calculations and deemed to have been retired as of the first day of such
applicable period and (ii) after any Asset Disposition permitted by Section 7.4(a)(vi) or Section
7.4(a)(xv) which is the disposition of a business unit or any sale, transaction, issuance or other
disposition of any asset not in the ordinary course of business including any Vessel, (A) income
statement items, cash flow statement items and other balance sheet items (whether positive or
negative) attributable to the property or assets disposed of shall be excluded in such calculations
to the extent relating to such applicable period, subject to adjustments mutually acceptable to the
Borrower and the Administrative Agent and (B) Indebtedness that is repaid with the proceeds of such
Asset Disposition shall be excluded from such calculations and deemed to have been repaid as of the
first day of such applicable period.

ARTICLE VII

NEGATIVE COVENANTS

     The Credit Parties hereby covenant and agree that on the Closing Date, and thereafter for so
long as this Agreement is in effect and until the Commitments have terminated, no Note or Letter of
Credit remains outstanding and unpaid and the Credit Party Obligations (other than indemnification
obligations and other contingent obligations for which no claim has been asserted) and all other
amounts owing to the Administrative Agent or any Lender hereunder are paid in full, that:

     Section 7.1 Indebtedness.

     The Credit Parties will not, nor will they permit any Subsidiary to, contract, create, incur,
assume or permit to exist any Indebtedness, except:

     (a) Indebtedness arising or existing under this Agreement and the other Credit
Documents;

     (b) Indebtedness of the Credit Parties and their Subsidiaries existing as of the
Closing Date (to the extent set out in Schedule 7.1(b)) hereto and renewals,
refinancings or extensions thereof in a principal amount not in excess of that outstanding
as of the date of such renewal, refinancing or extension (plus accrued interest, fees and
premiums thereon);

     (c) Indebtedness of the Credit Parties and their Subsidiaries incurred after the
Closing Date consisting of Capital Leases or Indebtedness incurred to provide all or a
portion of the purchase price or cost of construction of an asset; provided that
such Indebtedness when incurred shall not exceed the purchase price, maintenance, addition,
replacement, refurbishment, improvements or cost of construction (plus unpaid accrued
interest, customary fees and premiums thereon) of such asset;

     (d) Unsecured (i) loans or advances among the Credit Parties, (ii) loans or advances
made by a Subsidiary of the Borrower (or a Person that would become a

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subsidiary of the Borrower after giving effect to such loan or advance) to a Credit Party,
(iii) loans or advances made by any Credit Party in a Subsidiary of the Borrower that is not
a Credit Party so long as such loan or advance is permitted by Section 7.5;

     (e) Indebtedness and obligations owing under Secured Hedging Agreements and other
Hedging Agreements entered into not for speculative purposes;

     (f) Indebtedness of a Person existing at the time such Person becomes a Subsidiary of a
Credit Party in a transaction permitted hereunder (excluding Capital Leases and purchase
money Indebtedness permitted under Section 7.1(c)) in an aggregate principal amount not to
exceed $20,000,000 for all such Persons at any time outstanding; provided that any
such Indebtedness was not created in anticipation of or in connection with the transaction
or series of transactions pursuant to which such Person became a Subsidiary of a Credit
Party;

     (g) Indebtedness of the Borrower under the 2007 Senior Unsecured Convertible Notes in
an aggregate principal amount not to exceed $330,000,000 at any time outstanding and any
refinancing, exchange, renewal or extension thereof on market terms at such time and with a
maturity date that is at least six (6) months beyond the Revolving Maturity Date and the
Term Loan Maturity Date;

     (h) Indebtedness arising pursuant to the terms of the Guarantee and Indemnity
Agreement;

     (i) Guaranty Obligations (A) in respect of Indebtedness of a Credit Party to the extent
such Indebtedness is permitted to exist or be incurred pursuant to this Section and (B)
among Subsidiaries that are not Credit Parties;

     (j) So long as no Event of Default shall have occurred and be continuing or would
result therefrom, additional issuances of high yield Indebtedness or convertible securities
on terms (including, without limitation, tenor) reasonably satisfactory to the
Administrative Agent (or any extension, renewal, refinancing or replacement thereof);
provided that the Total Leverage Ratio immediately prior to and after giving effect
to such issuance is less than 4.75 to 1.00 on a Pro Forma Basis;

     (k) Indebtedness incurred to repurchase Capital Stock of the Borrower from retired,
deceased or terminated employees or directors (including their heirs) of any Credit Party or
Subsidiary to the extent such Indebtedness is not secured and is subordinated to the Credit
Party Obligations on terms reasonably acceptable to the Administrative Agent;
provided that no more than $5,000,000 in aggregate principal amount of such
Indebtedness may be outstanding at any time;

     (l) Earnouts, indemnities and purchase price adjustments pursuant to Permitted
Acquisitions;

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     (m) Indebtedness which may be deemed to exist pursuant to any guaranties, performance,
bid, tender, appeal surety, statutory or similar obligations incurred in the ordinary course
of business;

     (n) Indebtedness in respect of netting services, overdraft protections and otherwise in
connection with deposit accounts, in each case in the ordinary course of business;

     (o) guaranties in the ordinary course of business of the obligations of suppliers,
landlords, customers and licensees of the Borrower and its Subsidiaries;

     (p) endorsements for collection, deposit or negotiation and warranties of products or
services, in each case incurred in the ordinary course of business;

     (q) Indebtedness in respect of employee benefit plans and programs, whether to current
or retired employees, including, without limitation, accrued expenses, pension liabilities,
deferred compensation, bonus plans, option plans, medical, dental and other health plans and
other similar plans providing benefits to employees entered into in the ordinary course of
business (but not including Indebtedness under employment agreements);

     (r) Indebtedness arising from judgments, orders or other awards to the extent not
constituting an Event of Default;

     (s) Indebtedness of Foreign Subsidiaries which does not exceed $20,000,000 in the
aggregate at any time outstanding; and

     (t) other unsecured Indebtedness of Credit Parties and their Subsidiaries which does
not exceed $50,000,000 in the aggregate at any time outstanding.

     Section 7.2 Liens.

     The Credit Parties will not, nor will they permit any Subsidiary to, contract, create, incur,
assume or permit to exist any Lien with respect to any of their respective property or assets of
any kind (whether real or personal, tangible or intangible), whether now owned or hereafter
acquired, except for Permitted Liens. Without limiting the foregoing, if a Credit Party shall
grant a Lien on any of its assets in violation of this Section, then it shall be deemed to have
simultaneously granted an equal and ratable Lien on any such assets in favor of the Administrative
Agent for the ratable benefit of the Lenders and the Hedging Agreement Providers, to the extent
such Lien has not already been granted to the Administrative Agent.

     Section 7.3 Nature of Business.

     The Credit Parties will not, nor will they permit any Subsidiary to, alter the character of
their business in any material respect from that conducted as of the Closing Date, except for

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reasonable extensions thereof and businesses reasonably related, ancillary or complementary
thereto.

     Section 7.4 Consolidation, Merger, Sale or Purchase of Assets, etc.

     The Credit Parties will not, nor will they permit any Subsidiary (other than an Immaterial
Subsidiary or a Transitional Subsidiary) to,

     (a) dissolve, liquidate or wind up its affairs, or sell, transfer, lease or otherwise
dispose of its property or assets or agree to do so at a future time, except the following,
without duplication, shall be expressly permitted:

     (i) (A) the sale, transfer, lease or other disposition of inventory and
materials in the ordinary course of business, (B) the conversion of cash into Cash
Equivalents and Short-Term Investments and Cash Equivalents and Short-Term
Investments into cash and (C) the dissolution, liquidation or winding up of any
Immaterial Subsidiary or Transitional Subsidiary; provided that any assets
of such Immaterial Subsidiary or Transitional Subsidiary shall be transferred to a
Credit Party or Subsidiary thereof in connection therewith;

     (ii) Recovery Events for which the Credit Parties or such Subsidiary has
received any cash insurance proceeds or condemnation or expropriation award with
respect to such property or assets to the extent Net Cash Proceeds from such
Recovery Event are used to make mandatory prepayments or are reinvested pursuant to
Section 2.8(b)(iv);

     (iii) the sale, lease, transfer or other disposition of machinery, parts,
equipment and other obsolete, damaged, surplus or worn out assets or other assets no
longer used or useful in the conduct of the business of the Credit Parties or any of
their Subsidiaries;

     (iv) the sale, lease or transfer of property or assets from one Credit Party to
another Credit Party;

     (v) the termination of any Hedging Agreement;

     (vi) the sale of (A) obsolete Vessels, (B) any Spare Vessel and (C) not more
than two other Vessels during the term of this Agreement that are not of the type
contemplated by clause (A) or (B);

     (vii) (A) leases, subleases, licenses and sublicenses of assets and
Intellectual Property in the ordinary course of business, (B) sales, transfers and
other dispositions not otherwise included in clause (A) of containers in the
ordinary course of business and (C) charters, subcharters, leases and subleases of
Vessels in the ordinary course of business;

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     (viii) sale and leaseback transactions permitted under Section 7.12;

     (ix) subject to compliance with the terms of Section 5.11(b), exchanges of
Vessels for Vessels (with comparable fair market value) that will provide comparable
levels of service in the same trade lanes and exchanges, trade-ins, swaps or other
contemporaneous transfers of containers, chassis, tractors, cranes and container
handling equipment;

     (x) the sale, transfer or disposition of accounts in connection with the
collection or compromise thereof in the ordinary course of business;

     (xi) Investments made in accordance with Section 7.5;

     (xii) Capital Stock issued in connection with Permitted Acquisitions;

     (xiii) Capital Stock issued in connection with transactions permitted under
Section 7.10;

     (xiv) sales or assignments pursuant to factoring agreements of accounts
receivable of any Credit Party or any Subsidiary thereof pursuant to which such
Credit Party or such Subsidiary receives gross proceeds not to exceed $15,000,000 in
the aggregate during the term of this Agreement; provided that such gross
proceeds represent not less than 80% of the aggregate face amount of the accounts
receivable so factored pursuant to any such arrangement; and

     (xv) other than the items set forth in clauses (i)-(xiv), the sale, lease or
transfer of property or assets not to exceed $25,000,000 in the aggregate in any
fiscal year.

provided that (A) with respect to clauses (i)(A), (vi), (vii)(B), (xiv) and (xv)
above, at least 75% of the consideration received therefor by the Credit Parties or any such
Subsidiary shall be in the form of cash or Cash Equivalents and Short-Term Investments, (B)
after giving effect to any Asset Disposition pursuant to clauses (vi), (viii) or (ix) above,
the Credit Parties shall be in compliance on a Pro Forma Basis with the financial covenants
set forth in Article VI hereof, recalculated for the most recently ended quarter for which
information is available, and (C) with respect to clauses (iii), (vi), (vii), (viii) and
(ix) above, no Default or Event of Default shall exist or shall result therefrom;
provided, further, that with respect to sales of assets permitted hereunder
only, the Administrative Agent shall be entitled, without the consent of any of the Lenders,
to release its Liens relating to the particular assets sold; or

     (b) (i) purchase, lease or otherwise acquire (in a single transaction or a series of
related transactions) the property or assets of any Person, other than (A) Permitted
Acquisitions and Permitted Investments and (B) except as otherwise limited or prohibited
herein, purchases or other acquisitions of inventory, materials, property and equipment in
the ordinary course of business, or (ii) enter into any transaction of merger or

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consolidation, except for (A) Investments or acquisitions permitted pursuant to Section 7.5
so long as the Credit Party subject to such merger or consolidation is the surviving entity,
(B) (y) the merger or consolidation of a Subsidiary that is not a Credit Party with and into
a Credit Party; provided that such Credit Party will be the surviving entity and (z)
the merger or consolidation of a Credit Party with and into another Credit Party;
provided that if the Borrower is a party thereto, the Borrower will be the surviving
corporation, and (C) the merger or consolidation of a Subsidiary that is not a Credit Party
with and into another Subsidiary that is not a Credit Party.

     Section 7.5 Advances, Investments and Loans.

     The Credit Parties will not, nor will they permit any Subsidiary to, make any Investment
except for Permitted Investments.

     Section 7.6 Transactions with Affiliates.

     The Credit Parties will not, nor will they permit any Subsidiary to, enter into any
transaction or series of transactions, whether or not in the ordinary course of business, with any
officer, director, shareholder or Affiliate other than on terms and conditions substantially as
favorable as would be obtainable in a comparable arm’s-length transaction with a Person other than
an officer, director, shareholder or Affiliate, except for (i) transactions among Credit Parties;
(ii) reasonable and customary fees paid to members of the board of directors (or similar governing
body) of the Borrower or any of its Subsidiaries; (iii) compensation, benefits or indemnification
arrangements for officers and other employees of the Borrower or any of its Subsidiaries entered
into in the ordinary course of business; (iv) the existence of, and the performance by any Credit
Party of its obligations under the terms of, any organizational documents or shareholders agreement
to which it is a party on the Closing Date and which has been disclosed to the Lenders; (v)
Restricted Payments permitted hereunder; (vi) transactions described in Schedule 7.6; (vii)
transactions among Subsidiaries of the Borrower that are not Credit Parties and (viii) the
Transactions.

     Section 7.7 Ownership of Subsidiaries; Restrictions.

     The Credit Parties will not, nor will they permit any Subsidiary to, create, form or acquire
any Subsidiaries, except for Domestic Subsidiaries (other than Transitional Subsidiaries) that are
joined as Additional Credit Parties as required by the terms hereof. The Credit Parties will not
sell, transfer, pledge or otherwise dispose of any Capital Stock or other equity interests in any
of their Subsidiaries, nor will they permit any of their Subsidiaries to issue, sell, transfer,
pledge or otherwise dispose of any of their Capital Stock or other equity interests, except in a
transaction permitted by Section 7.4.

     Section 7.8 Corporate Changes.

     No Credit Party will, nor will it permit any of its Subsidiaries to, (a) change its fiscal
year, (b) amend, modify or change its articles of incorporation, certificate of designation (or
corporate charter or other similar organizational document) operating agreement or bylaws (or

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other similar document) in any respect materially adverse to the interests of the Lenders without
the prior written consent of the Required Lenders, it being understood and agreed that the issuance
of Qualified Preferred Stock is not materially adverse to the Lenders, (c) amend, modify or waiver
any of its rights under any Organizational Document or the Subcharter Agreement or the Guarantee
and Indemnity Agreement in any manner that would be materially adverse to the interests of the
Lenders without the prior written consent of the Required Lenders, (d) (i) change its state of
incorporation, organization or formation without the consent of the Administrative Agent or have
more than one state of incorporation, organization or formation or (ii) change its registered legal
name, without providing thirty (30) days prior written notice to the Administrative Agent (or such
shorter notice period as approved by the Administrative Agent) or (e) change its accounting method
(except in accordance with GAAP) in any manner materially adverse to the interests of the Lenders
without the prior written consent of the Required Lenders.

     Section 7.9 Limitation on Restricted Actions.

     The Credit Parties will not, nor will they permit any Subsidiary to, directly or indirectly,
create or otherwise cause or suffer to exist or become effective any encumbrance or restriction on
the ability of any such Person to (a) pay dividends or make any other distributions to any Credit
Party on its Capital Stock or with respect to any other interest or participation in, or measured
by, its profits, (b) pay any Indebtedness or other obligation owed to any Credit Party, (c) make
loans or advances to any Credit Party, (d) sell, lease or transfer any of its properties or assets
to any Credit Party, or (e) act as a Guarantor and pledge its assets pursuant to the Credit
Documents or any renewals, refinancings, exchanges, refundings or extension thereof, except (in
respect of any of the matters referred to in clauses (a)-(d) above) for such encumbrances or
restrictions existing under, or by reason of, (i) this Agreement and the other Credit Documents,
(ii) applicable law, (iii) any document or instrument governing Indebtedness incurred pursuant to
Section 7.1(c) or 7.1(h); provided that any such restriction contained therein relates only
to the asset or assets constructed or acquired in connection therewith, (iv) any Permitted Lien or
any document or instrument governing any Permitted Lien; provided that any such restriction
contained therein relates only to the asset or assets subject to such Permitted Lien, (v) any
Chartered Vessel Document, (vi) customary provisions restricting assignments, subletting or other
transfers contained in leases, licenses, joint venture agreements and similar agreements entered
into in the ordinary course of business, (vii) 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, (viii) any agreement for the sale or other disposition of a Subsidiary that restricts
distributions by that Subsidiary pending the sale or other disposition, (ix) provisions in
agreements or instruments which prohibit the payment of dividends or the making of other
distributions with respect to any class of Capital Stock of a Person other than on a pro
rata basis and (x) any instrument governing Indebtedness or Capital Stock of a Person
acquired by the Borrower or any of its Subsidiaries as in effect at the time of such acquisition
(except to the extent such Indebtedness or Capital Stock was incurred in connection with or in
contemplation of such acquisition), which encumbrance or restriction is not applicable to any
Person, or the properties or assets of any Person, other than the Person or the property or assets
of the Person, so acquired, provided that, in the case of Indebtedness, such Indebtedness
was permitted by Section 7.1.

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     Section 7.10 Restricted Payments.

     The Credit Parties will not, nor will they permit any Subsidiary to, directly or indirectly,
declare, order, make or set apart any sum for or pay any Restricted Payment, except (a) to make
dividends payable solely in the same class of Capital Stock of such Person; (b) to make dividends
or other distributions payable to the Credit Parties (directly or indirectly through its
Subsidiaries); (c) so long as no Default or Event of Default shall exist or would result therefrom,
to pay any cash amounts due upon conversion of the 2007 Senior Unsecured Convertible Notes to the
extent required by the indenture therefor as in effect on the Closing Date; (d) to make regularly
scheduled payments of principal and interest on Subordinated Debt in accordance with the
subordination terms thereof; (e) to pay the premium under the convertible bond hedging transactions
evidenced by confirmation agreements dated as of August 1, 2007 between the Borrower and each of
Goldman, Sachs & Co., Bank of America, N.A. and Wachovia, in each case pursuant to the terms
thereof; and (f) to make any other Restricted Payments; provided that, (A) on a Pro Forma
Basis after giving effect to such Restricted Payments, (i) the Consolidated Senior Secured Leverage
Ratio shall be less than 2.50 to 1.00 and (ii) there is at least $20,000,000 of Accessible
Borrowing Availability and (B) after giving effect to any such payments no Default or Event of
Default shall exist or would result therefrom.

     Section 7.11 Amendment of Subordinated Debt.

     The Credit Parties will not, nor will they permit any Subsidiary to, without the prior written
consent of the Required Lenders, amend, modify, waive or extend or permit the amendment,
modification, waiver or extension of any term of any document governing or relating to any
Subordinated Debt, to the extent outstanding, in a manner that is materially adverse to the
interests of the Lenders.

     Section 7.12 Sale Leasebacks.

     The Credit Parties will not, nor will they permit any Subsidiary to, directly or indirectly,
become or remain liable as lessee or as guarantor or other surety with respect to any lease,
whether an Operating Lease or a Capital Lease, of any property (whether real, personal or mixed),
whether now owned or hereafter acquired in excess of $20,000,000 in the aggregate during the term
of this Agreement, (a) which any Credit Party or any Subsidiary has sold or transferred or is to
sell or transfer to a Person which is not a Credit Party or a Subsidiary within 180 days of
entering into such lease or (b) which any Credit Party or any Subsidiary intends to use for
substantially the same purpose as any other property which has been sold or is to be sold or
transferred within 180 days of entering into such lease by a Credit Party or a Subsidiary to
another Person which is not a Credit Party or a Subsidiary in connection with such lease.

     Section 7.13 No Further Negative Pledges.

     The Credit Parties will not, nor will they permit any Subsidiary to, enter into, assume or
become subject to any agreement prohibiting or otherwise restricting the creation or assumption of
any Lien upon any of their properties or assets, whether now owned or hereafter acquired, or
requiring the grant of any security for such obligation if security is given for some other

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obligation, except pursuant to agreements, documents and instruments referenced in clauses (i)
through (x) of Section 7.9 and to any document or instrument governing Indebtedness incurred
pursuant to Section 7.1(c) and Section 7.1(h); provided that any such restriction contained
therein relates only to the asset or assets constructed or acquired in connection therewith, and
(c) in connection with any Permitted Lien or any document or instrument governing any Permitted
Lien; provided that any such restriction contained therein relates only to the asset or
assets subject to such Permitted Lien (the foregoing shall not apply to any restrictions and
conditions set forth in the Chartered Vessel Documents).

ARTICLE VIII

EVENTS OF DEFAULT

     Section 8.1 Events of Default.

     An Event of Default shall exist upon the occurrence of any of the following specified events
(each an “Event of Default”):

     (a) Payment. (i) The Borrower shall fail to pay any principal on any Loan or
Note when due (whether at maturity, by reason of acceleration or otherwise) in accordance
with the terms hereof or thereof; or (ii) the Borrower shall fail to reimburse the Issuing
Lender for any LOC Obligations when due (whether at maturity, by reason of acceleration or
otherwise) in accordance with the terms hereof; or (iii) the Borrower shall fail to pay any
interest on any Loan or any fee or other amount payable hereunder when due (whether at
maturity, by reason of acceleration or otherwise) in accordance with the terms hereof and
such failure shall continue unremedied for three (3) days; or (iv) or any Guarantor shall
fail to pay on the Guaranty in respect of any of the foregoing or in respect of any other
Guaranty Obligations hereunder (after giving effect to any applicable grace period in clause
(iii)); or

     (b) Misrepresentation. Any representation or warranty made or deemed made
herein, in the Security Documents or in any of the other Credit Documents by a Credit Party
or which is contained in any certificate, document or financial or other statement when
furnished by a Credit Party at any time under or in connection with this Credit Agreement
shall (i) with respect to representations and warranties that contain a materiality
qualification, prove to have been incorrect, false or misleading on or as of the date made
or deemed made and (ii) with respect to representations and warranties that do not contain a
materiality qualification, prove to have been incorrect, false or misleading in any
material respect on or as of the date made or deemed made; or

     (c) Covenant Default. (i) Any Credit Party shall fail to perform, comply with
or observe any term, covenant or agreement applicable to it contained in Sections 5.1, 5.2,
5.4(b) or 5.7, Article VI or Article VII hereof; or (ii) any Credit Party shall fail to
comply with any other covenant contained in this Agreement or the other Credit Documents or
any other agreement, document or instrument among any Credit Party, the

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Administrative Agent and the Lenders or executed by any Credit Party in favor of the
Administrative Agent or the Lenders (other than as described in Sections 8.1(a) or 8.1(c)(i)
above), and such breach or failure to comply is not cured within thirty (30) days of its
occurrence; or

     (d) Indebtedness Cross-Default. (i) Any Credit Party shall default in any
payment of principal of or interest on any Indebtedness (other than the Loans, Reimbursement
Obligations and the Guaranty) in a principal amount outstanding of at least $15,000,000 for
the Borrower and any of its Subsidiaries in the aggregate beyond any applicable grace period
(not to exceed thirty (30) days), if any, provided in the instrument or agreement under
which such Indebtedness was created; or (ii) any Credit Party shall default in the
observance or performance of any other agreement or condition relating to any Indebtedness
(other than the Loans, Reimbursement Obligations and the Guaranty) in a principal amount
outstanding of at least $15,000,000 in the aggregate for the Credit Parties and their
Subsidiaries or contained in any instrument or agreement evidencing, securing or relating
thereto, or any other event shall occur or condition exist, the effect of which default or
other event or condition is to cause, or to permit the holder or holders of such
Indebtedness or beneficiary or beneficiaries of such Indebtedness (or a trustee or agent on
behalf of such holder or holders or beneficiary or beneficiaries) to cause, with the giving
of notice if required, such Indebtedness to become due or otherwise required to be
repurchased, prepaid or redeemed prior to its stated maturity; or (iii) any Credit Party
shall breach or default any payment obligation under any Secured Hedging Agreement; or

     (e) Bankruptcy Default. (i) A Credit Party or any of its Subsidiaries shall
commence any case, proceeding or other action (A) under any existing or future law of any
jurisdiction, domestic or foreign, relating to bankruptcy, insolvency, reorganization or
relief of debtors, seeking to have an order for relief entered with respect to it, or
seeking to adjudicate it a bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding-up, liquidation, dissolution, composition or other relief with respect
to it or its debts, or (B) seeking appointment of a receiver, trustee, custodian,
conservator or other similar official for it or for all or any substantial part of its
assets, or a Credit Party or any of its Subsidiaries shall make a general assignment for the
benefit of its creditors; or (ii) there shall be commenced against a Credit Party or any of
its Subsidiaries any case, proceeding or other action of a nature referred to in clause (i)
above which (A) results in the entry of an order for relief or any such adjudication or
appointment or (B) remains undismissed, undischarged or unbonded for a period of sixty (60)
days; or (iii) there shall be commenced against a Credit Party or any of its Subsidiaries
any case, proceeding or other action seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of their assets which
results in the entry of an order for any such relief which shall not have been vacated,
discharged, or stayed or bonded pending appeal within sixty (60) days from the entry
thereof; or (iv) a Credit Party or any of its Subsidiaries shall take any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the
acts set forth in clause (i), (ii), or (iii) above; or (v) a Credit Party or any of its

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Subsidiaries shall generally not, or shall be unable to, or shall admit in writing their
inability to, pay its debts as they become due; or

     (f) Judgment Default. One or more judgments or decrees shall be entered
against a Credit Party or any of its Subsidiaries involving in the aggregate a liability (to
the extent not covered by insurance) of $15,000,000 or more and all such judgments or
decrees shall not have been paid and satisfied, vacated, discharged, stayed or bonded
pending appeal within 45 days from the entry thereof or any injunction, temporary
restraining order or similar decree shall be issued against a Credit Party or any of its
Subsidiaries that, individually or in the aggregate, could reasonably be expected to have a
Material Adverse Effect; or

     (g) ERISA Default. (i) Any Person shall engage in any “prohibited transaction”
(as defined in Section 406 of ERISA or Section 4975 of the Code) involving any Single
Employer Plan or, to the Credit Parties’ knowledge, any Multiemployer Plan, (ii) any
“accumulated funding deficiency” (as defined in Section 302 of ERISA with respect to Plan
years beginning before 2008 and as defined in Section 304 of ERISA with respect to
Multiemployer Plan years beginning after 2007), whether or not waived, shall exist with
respect to any Single Employer Plan or, to the Credit Parties’ knowledge, any Multiemployer
Plan or any Lien in favor of the PBGC or a Plan (other than a Permitted Lien) shall arise on
the assets of the Credit Parties or any Commonly Controlled Entity, (iii) a Reportable Event
shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a
trustee shall be appointed, to administer or to terminate, any Single Employer Plan, which
Reportable Event or commencement of proceedings or appointment of a trustee is likely to
result in the termination of such Plan for purposes of Title IV of ERISA, (iv) any Single
Employer Plan shall terminate for purposes of Title IV of ERISA or (v) a Credit Party, any
of its Subsidiaries or any Commonly Controlled Entity shall incur any liability in
connection with a withdrawal from, or the Insolvency or Reorganization of, any Multiemployer
Plan and in each case in clause (i) – (v) above, such event or condition, together with all
other such events or conditions, could reasonably be expected to have a Material Adverse
Effect; or

     (h) Change of Control. There shall occur a Change of Control; or

     (i) Invalidity of Guaranty. At any time after the execution and delivery
thereof, the Guaranty, for any reason other than the satisfaction in full of all Credit
Party 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 Credit Party shall contest the
validity, enforceability, perfection or priority of the Guaranty, any Credit Document or any
Lien granted by it in writing or deny in writing that it has any further liability,
including with respect to future advances by the Lenders, under any Credit Document to which
it is a party; or

     (j) Invalidity of Credit Documents. Any Credit Document (other than the
Guaranty) shall fail to be in full force and effect or to give the Administrative Agent
and/or the Lenders the security interests, liens, rights, powers, priority and privileges

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purported to be created thereby (except as such documents may be terminated or no longer in
force and effect in accordance with the terms thereof, other than those indemnities and
provisions which by their terms shall survive) or any Lien shall fail to be a first
priority, perfected Lien on a material portion of the Collateral; or

     (k) Subordinated Debt. Any default (which is not waived or cured within the
applicable period of grace) or event of default shall occur under any Subordinated Debt or
the subordination provisions contained therein shall cease to be in full force and effect or
shall cease to give the Lenders the rights, powers and privileges purported to be created
thereby; or

     (l) Uninsured Loss. Any uninsured damage to or loss, theft or destruction of
any assets of the Credit Parties or any of their Subsidiaries shall occur that is in excess
of $50,000,000; or

     (m) Other Cross-Defaults. The Credit Parties or any of their Subsidiaries
shall default in (i) the payment when due under any material Contractual Obligation which
would become an event of default under such agreement or (ii) the performance or observance,
of any obligation or condition of any material Contractual Obligation which would become an
event of default under such agreement and such failure to perform or observe such other
obligation or condition continues unremedied for a period of thirty (30) days after notice
of the occurrence of such default unless, but only as long as, the existence of any such
default is being contested by the Credit Parties in good faith by appropriate proceedings
and adequate reserves in respect thereof have been established on books of the Credit
Parties to the extent required by GAAP; or

     (n) Chartered Vessel Document Default. Except to the extent a result of a
buy-out, acquisition or other purchase of a Chartered Vessel subject to a Chartered Vessel
Document, any event or condition occurs that (i) results in any amount (that is not covered
by insurance to the extent such insurance is provided by insurers that are solvent and have
not denied payment with respect to any such event or condition) in excess of $15,000,000
that any Credit Party or Subsidiary is obligated to pay under any Chartered Vessel Document
becoming due prior to its scheduled payment date or (ii) enables or permits (with or without
the giving of notice) any Person (A) to cause any amount (that is not covered by insurance
to the extent such insurance is provided by insurers that are solvent and have not denied
payment with respect to any such event or condition) in excess of $15,000,000 that any
Credit Party or Subsidiary is obligated to pay under any Chartered Vessel Document to become
due, or (B) to require the prepayment, repurchase, redemption or defeasance of any amount
(that is not covered by insurance to the extent such insurance is provided by insurers that
are solvent and have not denied payment with respect to any such event or condition) in
excess of $15,000,000, in each case prior to its scheduled payment date and, in the case of
each of clauses (i) and (ii), such event or condition shall continue unremedied past any
applicable cure or grace period for a period of thirty (30) days; or

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     (o) Attachment/Levy Default. Any material Mortgaged Vessel shall have been (i)
attached, levied upon or taken into custody by virtue of any legal proceeding in any court
or tribunal or by any Governmental Authority in the United States and such Mortgaged Vessel
shall not have been released within thirty (30) days after such attachment, levy or taking
into custody or (ii) attached, levied upon or taken into custody by virtue of any legal
proceeding in any court or tribunal or by any Governmental Authority outside the United
States and such Mortgaged Vessel shall not have been released within the earlier of (x)
seventy–five (75) days after such attachment, levy or taking into custody or (y) the date on
which the Mortgage Trustee must make a filing in such attachment, levy or taking to preserve
its rights.

     Section 8.2 Acceleration; Remedies.

     Upon the occurrence and during the continuance of an Event of Default, then, and in any such
event, (a) if such event is a Bankruptcy Event, automatically the Commitments shall immediately
terminate and the Loans (with accrued interest thereon), and all other amounts under the Credit
Documents (including without limitation the maximum amount of all contingent liabilities under
Letters of Credit) shall immediately become due and payable, and (b) if such event is any other
Event of Default, any or all of the following actions may be taken: (i) with the written consent
of the Required Lenders, the Administrative Agent may, or upon the written request of the Required
Lenders, the Administrative Agent shall, declare the Commitments to be terminated forthwith,
whereupon the Commitments shall immediately terminate; (ii) the Administrative Agent may, or upon
the written request of the Required Lenders, the Administrative Agent shall, declare the Loans
(with accrued interest thereon) and all other amounts owing under this Agreement and the Notes to
be due and payable forthwith and direct the Borrower to pay to the Administrative Agent cash
collateral as security for the LOC Obligations for subsequent drawings under then outstanding
Letters of Credit an amount equal to the maximum amount of which may be drawn under Letters of
Credit then outstanding, whereupon the same shall immediately become due and payable; and/or (iii)
with the written consent of the Required Lenders, the Administrative Agent may, or upon the written
request of the Required Lenders, the Administrative Agent shall, exercise such other rights and
remedies as provided under the Credit Documents and under applicable law.

ARTICLE IX

THE ADMINISTRATIVE AGENT

     Section 9.1 Appointment.

     (a) Each Lender hereby irrevocably designates and appoints Wachovia as the
Administrative Agent of such Lender under this Agreement, and each such Lender irrevocably
authorizes Wachovia, as the Administrative Agent for such Lender, to take such action on its
behalf under the provisions of this Agreement and to exercise such powers and perform such
duties as are expressly delegated to the Administrative Agent by the terms of this
Agreement, together with such other powers as are reasonably

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incidental thereto. Each Lender acknowledges that the Credit Parties may rely on each
action taken by the Administrative Agent on behalf of the Lenders hereunder.
Notwithstanding any provision to the contrary elsewhere in this Agreement, the
Administrative Agent shall not have any duties or responsibilities, except those expressly
set forth herein, or any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read into this
Agreement or otherwise exist against the Administrative Agent.

     (b) Each of the Lenders hereby appoints Wachovia as Mortgage Trustee on its behalf for
the purpose of holding the Vessel Fleet Mortgage and Vessel insurances. Wachovia hereby
accepts such appointment. In so acting as Mortgage Trustee, Wachovia’s rights and
responsibilities shall be the same as those set forth respecting the Administrative Agent
hereunder.

     (c) Wachovia and any successor Mortgage Trustee agree to remain qualified as a
mortgagee for a Vessel with a coastwise endorsement under the provisions of 46 U.S.C. §
31322(f)(1), as amended. In the event that Wachovia or any successor Mortgage Trustee shall
become unqualified to serve as a mortgagee for a Vessel with a coastwise endorsement under
such Section, then it shall promptly resign and designate a successor Mortgage Trustee that
is qualified to serve as a mortgagee for a Vessel with a coastwise endorsement under the
provisions of 46 U.S.C. § 31322(f)(1), as amended.

     Section 9.2 Delegation of Duties.

     The Administrative Agent may execute any of its duties under this Agreement by or through
agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters
pertaining to such duties (including, without limitation, a third party servicer for purposes of
maintaining and perfecting Liens on vehicle titles). The Administrative Agent shall not be
responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care. Without limiting the foregoing, the Administrative Agent may appoint one of its
affiliates as its agent to perform the functions of the Administrative Agent hereunder relating to
the advancing of funds to the Borrower and distribution of funds to the Lenders and to perform such
other related functions of the Administrative Agent hereunder as are reasonably incidental to such
functions.

     Section 9.3 Exculpatory Provisions.

     Neither the Administrative Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact, Subsidiaries or affiliates shall be (a) liable for any action lawfully taken or
omitted to be taken by it or such Person under or in connection with this Agreement (except for its
or such Person’s own gross negligence or willful misconduct) or (b) responsible in any manner to
any of the Lenders for any recitals, statements, representations or warranties made by any Credit
Party or any officer thereof contained in this Agreement or in any certificate, report, statement
or other document referred to or provided for in, or received by the Administrative Agent under or
in connection with, this Agreement or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of any of the Credit Documents or for any failure of

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any Credit Party to perform its obligations hereunder or thereunder. The Administrative Agent
shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or
performance by any Credit Party of any of the agreements contained in, or conditions of, this
Agreement, or to inspect the properties, books or records of any Credit Party.

     Section 9.4 Reliance by Administrative Agent.

     (a) The Administrative Agent shall be entitled to rely, and shall be fully protected in
relying, upon any note, writing, resolution, notice, consent, certificate, affidavit,
letter, cablegram, telegram, telecopy, telex or teletype message, statement, order or other
document or conversation believed by it in good faith to be genuine and correct and to have
been signed, sent or made by the proper Person or Persons and upon advice and statements of
legal counsel (including, without limitation, counsel to the Credit Parties), independent
accountants and other experts selected by the Administrative Agent. The Administrative
Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless
an executed Assignment Agreement has been filed with the Administrative Agent pursuant to
Section 10.6(c) with respect to the Loans evidenced by such Note. The Administrative Agent
shall be fully justified in failing or refusing to take any action under this Agreement
unless it shall first receive such advice or concurrence of the Required Lenders as it deems
appropriate or it shall first be indemnified to its satisfaction by the Lenders against any
and all liability and expense which may be incurred by it by reason of taking or continuing
to take any such action. The Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under any of the Credit Documents in accordance with a
request of the Required Lenders or all of the Lenders, as may be required under this
Agreement, and such request and any action taken or failure to act pursuant thereto shall be
binding upon all the Lenders and all future holders of the Notes.

     (b) For purposes of determining compliance with the conditions specified in Section
4.1, each Lender that has signed this Agreement shall be deemed to have consented to,
approved or accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a Lender.

     Section 9.5 Notice of Default.

     The Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of
any Default or Event of Default hereunder unless the Administrative Agent has received written
notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event
of Default and stating that such notice is a “notice of default”. In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give prompt notice
thereof to the Lenders. The Administrative Agent shall take such action with respect to such
Default or Event of Default as shall be reasonably directed by the Required Lenders;
provided, however, that unless and until the Administrative Agent shall have
received such directions, the Administrative Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it
shall deem

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advisable in the best interests of the Lenders except to the extent that this Agreement expressly
requires that such action be taken, or not taken, only with the consent or upon the authorization
of the Required Lenders, or all of the Lenders, as the case may be.

     Section 9.6 Non-Reliance on Administrative Agent and Other Lenders.

     Each Lender expressly acknowledges that neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or affiliates has made any representation
or warranty to it and that no act by the Administrative Agent hereinafter taken, including any
review of the affairs of any Credit Party, shall be deemed to constitute any representation or
warranty by the Administrative Agent to any Lender. Each Lender represents to the Administrative
Agent that it has, independently and without reliance upon the Administrative Agent or any other
Lender, and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property, financial and other
condition and creditworthiness of the Borrower or any other Credit Party and made its own decision
to make its Loans hereunder and enter into this Agreement. Each Lender also represents that it
will, independently and without reliance upon the Administrative Agent or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this
Agreement, and to make such investigation as it deems necessary to inform itself as to the
business, operations, property, financial and other condition and creditworthiness of the Borrower
and the other Credit Parties. Except for notices, reports and other documents expressly required
to be furnished to the Lenders by the Administrative Agent hereunder, the Administrative Agent
shall not have any duty or responsibility to provide any Lender with any credit or other
information concerning the business, operations, property, condition (financial or otherwise),
prospects or creditworthiness of the Borrower or any other Credit Party which may come into the
possession of the Administrative Agent or any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates.

     Section 9.7 Indemnification.

     The Lenders agree to indemnify the Administrative Agent (including in its capacity as Mortgage
Trustee), the Issuing Lender, and the Swingline Lender and their Affiliates and their respective
officers, directors, agents and employees, in each case, to the extent such Person is acting in the
capacity of the Administrative Agent (including in its capacity as Mortgage Trustee), the Issuing
Lender or the Swingline Lender, (to the extent not reimbursed by the Borrower and without limiting
the obligation of the Borrower to do so), ratably according to their respective Commitment
Percentages in effect on the date on which indemnification is sought under this Section, from and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind whatsoever which may at any time (including,
without limitation, at any time following the payment of the Credit Party Obligations) be imposed
on, incurred by or asserted against any such indemnitee in any way relating to or arising out of
any Credit Document or any documents contemplated by or referred to herein or therein or the
transactions contemplated hereby or thereby or any action taken or omitted by any such indemnitee
under or in connection with any of the foregoing; provided, however, that no Lender
shall be liable for the payment of any portion of such

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liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements to the extent resulting from such indemnitee’s gross negligence or willful
misconduct, as determined by a court of competent jurisdiction. The agreements in this Section
shall survive the termination of this Agreement and payment of the Notes and all other amounts
payable hereunder.

     Section 9.8 Administrative Agent in Its Individual Capacity.

     The Administrative Agent and its affiliates may make loans to, accept deposits from and
generally engage in any kind of business with the Borrower and the other Credit Parties as though
the Administrative Agent were not the Administrative Agent hereunder. With respect to its Loans
made or renewed by it and any Note issued to it, the Administrative Agent shall have the same
rights and powers under this Agreement as any Lender and may exercise the same as though it were
not the Administrative Agent, and the terms “Lender” and “Lenders” shall include the Administrative
Agent in its individual capacity.

     Section 9.9 Successor Administrative Agent.

     The Administrative Agent may resign as Administrative Agent upon thirty days’ prior written
notice to the Borrower and the Lenders. If the Administrative Agent shall resign as Administrative
Agent under this Agreement and the other Credit Documents, then the Required Lenders shall appoint
from among the Lenders a successor administrative agent for the Lenders, which successor agent
shall be approved by the Borrower (such approval not to be unreasonably withheld or delayed) so
long as no Default or Event of Default has occurred and is continuing, whereupon such successor
administrative agent shall succeed to the rights, powers and duties of the Administrative Agent,
and the term “Administrative Agent” shall mean such successor administrative agent effective upon
such appointment and approval, and the former Administrative Agent’s rights, powers and duties as
Administrative Agent shall be terminated, without any other or further act or deed on the part of
such former Administrative Agent or any of the parties to this Agreement or any holders of the
Notes. If no successor Administrative Agent has accepted appointment as Administrative Agent
within thirty days after the retiring Administrative Agent’s giving notice of resignation, the
retiring Administrative Agent shall have the right, on behalf of the Lenders, to appoint a
successor administrative agent, which successor shall be approved by the Borrower (such approval
not to be unreasonably withheld or delayed) so long as no Default or Event of Default has occurred
and is continuing. If no successor administrative agent has accepted appointment as Administrative
Agent within sixty days after the retiring Administrative Agent’s giving notice of resignation, the
retiring Administrative Agent’s resignation shall nevertheless become effective and the Lenders
shall perform all duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor administrative agent as provided for above. After any
retiring Administrative Agent’s resignation as Administrative Agent, the indemnification provisions
of this Agreement and the other Credit Documents and the provisions of this Article IX shall inure
to its benefit as to any actions taken or omitted to be taken by it while it was Administrative
Agent under this Agreement.

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     Section 9.10 Other Agents.

     None of the Lenders or other Persons identified on the facing page or signature pages of this
Agreement as a “syndication agent,” “documentation agent,” “co–agent,” “joint book runner” or
“joint lead arranger” shall have any right, power, obligation, liability, responsibility or duty
under this Agreement other than, in the case of such Lenders, those applicable to all Lenders as
such. Without limiting the foregoing, none of the Lenders or other Persons so identified shall
have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges
that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in
deciding to enter into this Agreement or in taking or not taking action hereunder.

     Section 9.11 Nature of Duties.

     Except as otherwise expressly stated herein, any agent (other than the Administrative Agent)
or co-lead arranger listed from time to time on the cover page of this Agreement shall have no
obligations, responsibilities or duties under this Agreement or under any other Credit Document
other than obligations, responsibilities and duties applicable to all Lenders in their capacity as
Lenders; provided, however, that such agents and co-lead bookrunners shall be
entitled to the same rights, protections, exculpations and indemnifications granted to the
Administrative Agent under this Article IX in their capacity as an agent or co-lead arranger.

     Section 9.12 Releases; Amendments to Vessel Fleet Mortgage.

     The Administrative Agent will release any Guarantor and any Lien on any Collateral, which is
sold, transferred or otherwise disposed of as permitted by the Credit Agreement or as otherwise
permitted by the Lenders or Required Lenders in accordance with Section 10.1, as applicable. The
Lenders hereby authorize the Administrative Agent, at the sole cost and expenses of the Borrower,
(a) to release any such Guarantor or Lien and to enter into any documentation (including, without
limitation, any amendment to the Vessel Fleet Mortgage) as may be necessary or desirable to
effectuate such release and (b) to enter into any amendment to the Vessel Fleet Mortgage and
related documentation as may be necessary or desirable to secure any Bank Product or Incremental
Facility.

ARTICLE X

MISCELLANEOUS

     Section 10.1 Amendments, Waivers and Release of Collateral.

     Subject to the terms of Section 9.12, neither this Agreement nor any of the other Credit
Documents, nor any terms hereof or thereof may be amended, modified, extended, restated, replaced,
or supplemented (by amendment, waiver, consent or otherwise) except in accordance with the
provisions of this Section nor may Collateral be released except as specifically provided

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herein or in the Security Documents or in accordance with the provisions of this Section. Subject
to the terms of Section 9.12, the Required Lenders may or, with the written consent of the Required
Lenders, the Administrative Agent may, from time to time, (a) enter into with the Borrower written
amendments, supplements or modifications hereto and to the other Credit Documents (including any
release of Collateral not already permitted by the terms of the Credit Documents) for the purpose
of adding any provisions to this Agreement or the other Credit Documents or changing in any manner
the rights of the Lenders or of the Borrower hereunder or thereunder or (b) waive or consent to the
departure from, on such terms and conditions as the Required Lenders may specify in such
instrument, any of the requirements of this Agreement or the other Credit Documents or any Default
or Event of Default and its consequences; provided, however, that no such
amendment, supplement, modification, release, waiver or consent shall:

     (i) reduce or forgive the amount or extend the scheduled date of maturity of
any Loan or Note or any installment thereon or any Reimbursement Obligation, or
reduce the stated rate of any interest or fee payable hereunder (except in
connection with a waiver of interest at the increased post-default rate set forth in
Section 2.9 which shall be determined by a vote of the Required Lenders) or extend
the scheduled date of any payment thereof or increase the amount or extend the
expiration date of any Lender’s Commitment, in each case without the written consent
of each Lender directly affected thereby; provided that, it is understood
and agreed that (A) no waiver, reduction or deferral of a mandatory prepayment
required pursuant to Section 2.8(b), nor any amendment of Section 2.8(b) or the
definitions of Asset Disposition, Debt Issuance, or Recovery Event, shall constitute
a reduction of the amount of, or an extension of the scheduled date of, the
scheduled date of maturity of, or any installment of, any Loan or Note, (B) any
reduction in the stated rate of interest on Revolving Loans shall only require the
written consent of each Lender holding a Revolving Commitment and (C) any reduction
in the stated rate of interest on the Term Loan shall only require the written
consent of each Lender holding a portion of the outstanding Term Loan; or

     (ii) amend, modify or waive any provision of this Section or reduce the
percentage specified in the definition of Required Lenders, without the written
consent of all the Lenders; or

     (iii) release the Borrower or all or substantially all of the Guarantors from
obligations under the Guaranty, without the written consent of all of the Lenders
and Hedging Agreement Providers or Bank Product Providers; or

     (iv) release all or substantially all of the Collateral without the written
consent of all of the Lenders and Hedging Agreement Providers or Bank Product
Providers; or

     (v) subordinate the Loans to any other Indebtedness without the written consent
of all of the Lenders; or

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     (vi) permit a Letter of Credit to have an original expiry date more than twelve
(12) months from the date of issuance or after the Revolver Maturity Date without
the consent of each of the Revolving Lenders; provided, that the expiry date
of any Letter of Credit may be extended in accordance with the terms of Section
2.3(a) to a date on or prior to the Revolver Maturity Date; or

     (vii) permit the Borrower to assign or transfer any of its rights or
obligations under this Agreement or other Credit Documents without the written
consent of all of the Lenders; or

     (viii) amend, modify or waive any provision of the Credit Documents requiring
consent, approval or request of the Required Lenders or all Lenders without the
written consent of the Required Lenders or all the Lenders as appropriate; or

     (ix) amend or modify the definition of Credit Party Obligations to delete or
exclude an obligation or liability described therein without the written consent of
each Lender, Hedging Agreement Provider and Bank Product Provider directly affected
thereby; or

     (x) without the consent of Revolving Lenders holding in the aggregate more than
50% of the outstanding Revolving Commitments (or if the Revolving Commitments have
been terminated, the aggregate principal amount of outstanding Revolving Loans),
amend, modify or waive any provision in Section 4.2 or waive any Default or Event of
Default (or amend any Credit Document to effectively waive any Default or Event of
Default) if the effect of such amendment, modification or waiver is that the
Revolving Lenders shall be required to fund Revolving Loans, or the Swingline Lender
shall be required to fund Swingline Loans, when such Lenders would otherwise not be
required to do so; or

     (xi) amend, modify or waive the order in which Credit Party Obligations are
paid in Section 2.8(b)(v) or Section 2.12(b), the pro rata sharing of payments by
and among the Lenders in Section 2.12(a) or Section 10.7(a) or any provision
requiring ratable funding by Lenders, in each case without the written consent of
each Lender, Hedging Agreement Provider and Bank Product Provider directly affected
thereby; or

     (xii) amend the definitions of “Hedging Agreement,” “Secured Hedging
Agreement,” or “Hedging Agreement Provider” without the consent of any Hedging
Agreement Provider that would be adversely affected thereby; or

     (xiii) amend the definitions of “Bank Product,” “Bank Product Obligations,” or
“Bank Product Provider” without the consent of any Bank Product Provider that would
be adversely affected thereby; or

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     (xiv) permit an Interest Period of greater than six months if not available to
all applicable Lenders; or

     (xv) amend, modify or waive any provision of Article VIII without the written
consent of the Administrative Agent;

provided, further, that no amendment, waiver or consent affecting the rights or
duties of the Administrative Agent, the Issuing Lender or the Swingline Lender under any Credit
Document shall in any event be effective, unless in writing and signed by the Administrative Agent,
the Issuing Lender and/or the Swingline Lender, as applicable, in addition to the Lenders required
hereinabove to take such action.

     Any such waiver, any such amendment, supplement or modification and any such release shall
apply equally to each of the Lenders and shall be binding upon the Borrower, the other Credit
Parties, the Lenders, the Administrative Agent and all future holders of the Notes. In the case of
any waiver, the Borrower, the other Credit Parties, the Lenders and the Administrative Agent shall
be restored to their former position and rights hereunder and under the outstanding Loans and Notes
and other Credit Documents, and any Default or Event of Default waived shall be deemed to be cured
and not continuing; but no such waiver shall extend to any subsequent or other Default or Event of
Default, or impair any right consequent thereon.

     Notwithstanding any of the foregoing to the contrary, the consent of the Borrower and the
other Credit Parties shall not be required for any amendment, modification or waiver of the
provisions of Article IX (other than the provisions of Section 9.9).

     Notwithstanding the fact that the consent of all the Lenders is required in certain
circumstances as set forth above, (a) each Lender is entitled to vote as such Lender sees fit on
any bankruptcy reorganization plan that affects the Loans, and each Lender acknowledges that the
provisions of Section 1126(c) of the Bankruptcy Code supersedes the unanimous consent provisions
set forth herein and (b) the Required Lenders may consent to allow a Credit Party to use cash
collateral in the context of a bankruptcy or insolvency proceeding.

     For the avoidance of doubt and notwithstanding any provision to the contrary in this Section
10.1, this Agreement may be amended and/or restated with the written consent of the Credit Parties
and the Required Lenders (i) to increase the aggregate commitments of the Lenders (with the consent
of each Lender whose commitment is increased), (ii) to add one or more additional borrowing
tranches to this Agreement and to provide for the ratable sharing of the benefits of this Agreement
and the other Credit Documents with the other outstanding Credit Party Obligations in respect of
the Extensions of Credit from time to time outstanding under such additional borrowing tranche(s)
and the accrued interest and fees in respect thereof and (iii) to include appropriately the Lenders
under such additional borrowing tranches in any determination of the Required Lenders and/or to
provide consent rights to such Lenders under subsections (ix) and (x) of Section 10.1 corresponding
to the consent rights of the other Lenders thereunder.

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     Section 10.2 Notices.

     (a) Except as otherwise provided in Article II, all notices, requests and
demands to or upon the respective parties hereto to be effective shall be in writing
(including by telecopy or other electronic communications as provided below), and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or made (i)
when delivered by hand, (ii) when transmitted via telecopy (or other facsimile device) to
the number set out herein, (iii) the Business Day following the day on which the same has
been delivered prepaid (or pursuant to an invoice arrangement) to a reputable national
overnight air courier service, or (iv) the third Business Day following the day on which the
same is sent by certified or registered mail, postage prepaid, in each case, addressed as
follows in the case of the Borrower, the other Credit Parties and the Administrative Agent,
and, in the case of each of the Lenders, as set forth in such Lender’s Administrative
Details Form, or to such other address as may be hereafter notified by the respective
parties hereto and any future holders of the Notes:

	 	 	 	 	 	 	 
	 

	 	The Borrower

and the other Credit Parties:	 	 	 	 
	 	 	 	 	Horizon Lines, Inc.

4064 Colony Road

Charlotte, North Carolina 28211
	 

	 	 	 	Attention:
	 	CFO and General Counsel
	 

	 	 	 	Telecopier:
	 	(704) 973-7010
	 

	 	 	 	Telephone:
	 	(704) 973-2000
	 
	 	 	 	 	 	 
	 	 	With a copy to:	 	McGuire Woods LLP

1345 Avenue of the Americas

7th Floor

New York, New York 10105
	 

	 	 	 	Attention:
	 	James Gelman
	 

	 	 	 	Telecopier:
	 	(212) 548-7023
	 

	 	 	 	Telephone:
	 	(212) 548-2174
	 
	 	 	 	 	 	 
	 	 	The Administrative

Agent:	 	Wachovia Bank, National Association, as Administrative Agent

Charlotte Plaza

201 South College Street, CP8

Charlotte, North Carolina 28288-0680
	 

	 	 	 	Attention:
	 	Syndication Agency Services
	 

	 	 	 	Telecopier:
	 	(704) 383-0288
	 

	 	 	 	Telephone:
	 	(704) 374-2698

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	 	 	with a copy to:	 	Wachovia Bank, National Association

301 South College Street

Charlotte, North Carolina 28288-5562
	 

	 	 	 	Attention:
	 	Andrew Payne
	 

	 	 	 	Telecopier:
	 	(704) 383-7611
	 

	 	 	 	Telephone:
	 	(704) 383-1106

provided, that notices given by the Borrower pursuant to Section 2.1 or Section 2.10
hereof shall be effective only upon receipt thereof by the Administrative Agent.

     (b) Notices and other communications to the Lenders or the Administrative Agent
hereunder may be delivered or furnished by electronic communication (including e-mail and
Internet or intranet websites) pursuant to procedures approved by the Administrative Agent;
provided that the foregoing shall not apply to notices to any Lender pursuant to
Article II if such Lender, as applicable, has notified the
Administrative Agent that it is incapable of receiving notices under such Section by
electronic communication. The Administrative Agent or the Borrower 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 the 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 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.

     Section 10.3 No Waiver; Cumulative Remedies.

     No failure to exercise and no delay in exercising, on the part of the Administrative Agent or
any Lender, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor
shall any single or partial exercise of any right, remedy, power or privilege hereunder preclude
any other or further exercise thereof or the exercise of any other right, remedy, power or
privilege. The rights, remedies, powers and privileges herein provided are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.

     Section 10.4 Survival of Representations and Warranties.

     All representations and warranties made hereunder and in any document, certificate or
statement delivered pursuant hereto or in connection herewith shall survive the execution and

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delivery of this Agreement and the Notes and the making of the Loans; provided that all
such representations and warranties shall terminate on the date upon which the Commitments have
been terminated and all amounts owing hereunder and under any Notes have been paid in full.

     Section 10.5 Payment of Expenses and Taxes.

     The Credit Parties agree (a) to pay or reimburse the Administrative Agent and the Bookrunners
for all their reasonable out-of-pocket costs and expenses incurred in connection with the
development, preparation, negotiation, printing and execution of, and any amendment, supplement or
modification to, this Agreement and the other Credit Documents and any other documents prepared in
connection herewith or therewith (including, without limitation, all CUSIP fees for registration
with S&P’s CUSIP Service Bureau, and the consummation and administration of the transactions
contemplated hereby and thereby, together with the reasonable fees and disbursements of one counsel
for the Transactions and other special counsel to the Administrative Agent and the Bookrunners),
(b) to pay or reimburse each Lender and the Administrative Agent for all its costs and expenses
incurred in connection with the enforcement or preservation of any rights under this Agreement and
the other Credit Documents, including, without limitation, the reasonable fees and disbursements of
any counsel to the Administrative Agent and any counsel to any Lender (including reasonable
allocated costs of in-house legal counsel), and all such costs, expenses, fees and disbursements
incurred during any workout, restructuring or negotiations in respect of the Credit Documents, (c)
on demand, to pay, indemnify, and hold each Lender, the Administrative Agent and the Bookrunners
harmless from, any and all recording and filing fees and any and all liabilities with respect to,
or resulting from any delay in paying, stamp, excise and other similar taxes, if any, which may be
payable or determined to be payable in connection with the execution and delivery of, or
consummation or administration of any of the transactions contemplated by, or any amendment,
supplement or modification of, or any waiver or consent under or in respect of, the Credit
Documents and any such other documents, (d) to pay, indemnify, and hold each Lender, the
Administrative Agent, the Bookrunners and their Affiliates and their respective officers,
directors, employees, partners, members, counsel, agents, representatives, advisors and affiliates
(collectively called the “Indemnitees”) harmless from and against, any and all other
liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever with respect to the execution, delivery,
enforcement, performance and administration of the Credit Documents and any such other documents
and the use, or proposed use, of proceeds
of the Loans and (e) to pay any civil penalty or fine assessed by the U.S. Department of the
Treasury’s Office of Foreign Assets Control against, and all reasonable costs and expenses
(including counsel fees and disbursements) incurred in connection with defense thereof by the
Administrative Agent or any Lender as a result of the funding of Loans, the issuance of Letters of
Credit, the acceptance of payments or of Collateral due under the Credit Documents (all of the
foregoing, collectively, the “Indemnified Liabilities”); provided, however,
that the Borrower shall not have any obligation hereunder to an Indemnitee with respect to
Indemnified Liabilities arising from the gross negligence or willful misconduct of such Indemnitee,
as determined by a court of competent jurisdiction pursuant to a final non-appealable judgment.
The agreements in this Section shall survive repayment of the Loans, Notes and all other amounts
hereunder.

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     Section 10.6 Successors and Assigns; Participations; Purchasing Lenders.

     (a) This Agreement shall be binding upon and inure to the benefit of the Credit
Parties, the Lenders, the Administrative Agent, all future holders of the Notes and their
respective successors and assigns, except that the Credit Parties may not assign or transfer
any of their respective rights or obligations under this Agreement or the other Credit
Documents without the prior written consent of each Lender.

     (b) Any Lender may, in the ordinary course of its business and in accordance with
applicable law, at any time sell to one or more banks or other entities
(“Participants”) participating interests in any Loan owing to such Lender, any Note
held by such Lender, any Commitment of such Lender, or any other interest of such Lender
hereunder. In the event of any such sale by a Lender of participating interests to a
Participant, such Lender’s obligations under this Agreement to the other parties to this
Agreement shall remain unchanged, such Lender shall remain solely responsible for the
performance thereof, such Lender shall remain the holder of any such Note for all purposes
under this Agreement, and the Borrower and the Administrative Agent shall continue to deal
solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement. No Lender shall transfer or grant any participation under which the
Participant shall have rights to approve any amendment to or waiver of this Agreement or any
other Credit Document except to the extent such amendment or waiver would (i) extend the
scheduled maturity of any Loan or Note or any installment thereon in which such Participant
is participating, or reduce the stated rate or extend the time of payment of interest or
fees thereon (except in connection with a waiver of interest at the increased post-default
rate set forth in Section 2.9 which shall be determined by a vote of the Required Lenders)
or reduce the principal amount thereof, or increase the amount of the Participant’s
participation over the amount thereof then in effect; provided that, it is
understood and agreed that (A) no waiver, reduction or deferral of a mandatory prepayment
required pursuant to Section 2.8(b), nor any amendment of Section 2.8(b) or the definitions
of Asset Disposition, Debt Issuance, Equity Issuance, or Recovery Event, shall constitute a
reduction of the amount of, or an extension of the scheduled date of, the scheduled date of
maturity of, or any installment of, any Loan or Note, (B) a waiver of any Default or Event
of Default shall not constitute a change in the terms of such participation, and (C) an
increase in any Commitment or Loan shall be permitted without consent of any participant if
the Participant’s participation is not increased as a result thereof, (ii) release all or
substantially all of the Guarantors from their obligations under the Guaranty, (iii) release
all or substantially all of the Collateral, or (iv) consent to the assignment or transfer by
the Borrower of any of its rights and obligations under this Agreement. In the case of any
such participation, the Participant shall not have any rights under this Agreement or any of
the other Credit Documents (the Participant’s rights against such Lender in respect of such
participation to be those set forth in the agreement executed by such Lender in favor of the
Participant relating thereto) and all amounts payable by the Borrower hereunder shall be
determined as if such Lender had not sold such participation; provided that each
Participant shall be entitled to the benefits of Sections 2.16, 2.17, 2.18 and 10.5 with
respect to its participation in the Commitments and the Loans outstanding from time to time;
provided

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further, that no Participant shall be entitled to receive any
greater amount pursuant to such Sections than the transferor Lender would have been entitled
to receive in respect of the amount of the participation transferred by such transferor
Lender to such Participant had no such transfer occurred.

     (c) Any Lender may, in accordance with applicable law, at any time, sell or assign to
(each of the following a “Purchasing Lender”): (i) any Lender, (ii) any Affiliate
or Approved Fund of a Lender and (iii) with the consent of the Administrative Agent and,
beginning with the date that is ninety (90) days
after the Closing Date, so long as no Default or Event of Default exists, the Borrower (each
such consent not to be unreasonably withheld or delayed), to one or more additional banks,
insurance companies, financial institutions, investment funds or other entities, all or any
part of its rights and obligations under this Agreement and the Notes in minimum amounts of
$1,000,000 (or such lesser amount approved by the Administrative Agent and the Borrower)
with respect to its Commitment and its Loans (or, if less, the entire amount of such
Lender’s Commitment and Loans), pursuant to an Assignment Agreement, executed by such
Purchasing Lender, such transferor Lender, the Administrative Agent and, with respect to any
assignment of a Revolving Commitment, the Issuing Lender, and delivered to the
Administrative Agent for its acceptance and recording in the Register. Upon such execution,
delivery, acceptance and recording, from and after the Transfer Effective Date specified in
such Assignment Agreement, (1) the Purchasing Lender thereunder shall be a party hereto and,
to the extent provided in such Assignment Agreement, have the rights and obligations of a
Lender hereunder with a Commitment as set forth therein, and (2) the transferor Lender
thereunder shall, to the extent provided in such Assignment Agreement, be released from its
obligations under this Agreement (and, in the case of an Assignment Agreement covering all
or the remaining portion of a transferor Lender’s rights and obligations under this
Agreement, such transferor Lender shall cease to be a party hereto; provided,
however, that such Lender shall continue to be entitled to any indemnification
rights that expressly survive hereunder). Such Assignment Agreement shall be deemed to
amend this Agreement to the extent, and only to the extent, necessary to reflect the
addition of such Purchasing Lender and the resulting adjustment of Commitment Percentages
arising from the purchase by such Purchasing Lender of all or a portion of the rights and
obligations of such transferor Lender under this Agreement and the Notes. On or prior to
the Transfer Effective Date specified in such Assignment Agreement, the Borrower, at its own
expense, shall execute and deliver to the Administrative Agent in exchange for the Notes
delivered to the Administrative Agent pursuant to such Assignment Agreement new Notes to the
order of such Purchasing Lender in an amount equal to the Commitment assumed by it pursuant
to such Assignment Agreement and, unless the transferor Lender has not retained a Commitment
hereunder, new Notes to the order of the transferor Lender in an amount equal to the
Commitment retained by it hereunder. Such new Notes shall be dated the Closing Date and
shall otherwise be in the form of the Notes replaced thereby. Notwithstanding anything to
the contrary contained in this Section, a Lender may assign any or all of its rights under
this Agreement to an Affiliate or a Approved Fund of such Lender without delivering an
Assignment Agreement to the Administrative Agent; provided, however, that
(x) the Credit Parties and the Administrative Agent may continue to deal solely and directly
with such

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assigning Lender until an Assignment Agreement has been delivered to the
Administrative Agent for recordation on the Register, (y) the failure of such assigning
lender to deliver a Assignment Agreement to the Administrative Agent shall not affect the
legality, validity or binding effect of such assignment and (z) an Assignment Agreement
between the assigning Lender an Affiliate or Approved Fund of such Lender shall be effective
as of the date specified in such Assignment Agreement.

     (d) The Administrative Agent shall maintain at its address referred to in Section 10.2
a copy of each Assignment Agreement delivered to it and a register (the “Register”)
for the recordation of the names and addresses of the Lenders and the Commitment of, and
principal amount of the Loans owing to, each Lender from time to time. A Loan (and the
related Note) recorded on the Register may be assigned or sold in whole or in part upon
registration of such assignment or sale on the Register. The entries in the Register shall
be conclusive, in the absence of manifest error, and the Borrower, the Administrative Agent
and the Lenders may treat each Person whose name is recorded in the Register as the owner of
the Loan recorded therein for all purposes of this Agreement. The Register shall be
available for inspection by the Borrower or any Lender at any reasonable time and from time
to time upon reasonable prior notice. In the case of an assignment pursuant to the last
sentence of Section 10.6(c) as to which an Assignment Agreement is not delivered to the
Administrative Agent, the assigning Lender shall, acting solely for this purpose as a
non-fiduciary agent of the Credit Parties, maintain a comparable register on behalf of the
Credit Parties. In the event that any Lender sells participations in a Loan recorded on the
Register, such Lender shall maintain a register on which it enters the name of all
participants in such Loans held by it (the “Participant Register”). A Loan recorded
on the Register (and the registered Note, if any, evidencing the same) may be participated
in whole or in part only by registration of such participation on the Participant Register
(and each registered Note shall expressly so provide). Any participation of such Loan
recorded on the Register (and the registered Note, if any, evidencing the same) may be
effected only by the registration of such participation on the Participant Register.

     (e) The parties to each assignment shall execute and deliver to the Administrative
Agent as Assignment and Assumption, together with a processing and recordation fee of
$3,500, and the assignee, if it is not a Lender, shall deliver to the Administrative Agent
an Administrative Questionnaire; provided, that the processing and recordation fee
set forth above shall not be required for assignments from a Lender to its Affiliates or its
Approved Funds.

     (f) The Borrower authorizes each Lender to disclose to any Participant or Purchasing
Lender (each, a “Transferee”) and any prospective Transferee any and all financial
information in such Lender’s possession concerning the Credit Parties and their Subsidiaries
which has been delivered to such Lender by or on behalf of the Borrower pursuant to this
Agreement or which has been delivered to such Lender by or on behalf of the Borrower in
connection with such Lender’s credit evaluation of the Credit Parties and their Affiliates
prior to becoming a party to this Agreement, in each case subject to Section 10.15.

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     (g) At the time of each assignment pursuant to this Section to a Person which is not
already a Lender hereunder and which is not a United States person (as such term is defined
in Section 7701(a)(30) of the Code) for Federal income tax purposes, the respective assignee
Lender shall provide to the Borrower and the Administrative Agent the appropriate Internal
Revenue Service Forms described in Section 2.18.

     (h) Nothing herein shall prohibit any Lender from pledging or assigning any of its
rights under this Agreement (including, without limitation, any right to payment of
principal and interest under any Note) to secure obligations of such Lender, including
without limitation, (i) any pledge or assignment to secure obligations to a Federal Reserve
Bank and (ii) in the case of any Lender that is a fund or trust or entity that invests in
commercial bank loans in the ordinary course, any pledge or assignment to any holders of
obligations owed, or securities issued, by such Lender including to any trustee for, or any
other representative of, such holders; it being understood that the requirements for
assignments set forth in this Section shall not apply to any such pledge or assignment of a
security interest, except with respect to any foreclosure or similar action taken by such
pledgee or assignee with respect to such pledge or assignment; provided that no such
pledge or assignment of a security interest shall release a Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto and no such pledgee or assignee shall have any voting rights under this Agreement
unless and until the requirements for assignments set forth in this Section are complied
with in connection with any foreclosure or similar action taken by such pledgee or assignee.

     Section 10.7 Adjustments; Set-off.

     (a) Each Lender agrees that if any Lender (a “Benefited Lender”) shall at any
time receive any payment of all or part of its Loans, or interest thereon, or Participation
Interests or receive any collateral in respect thereof (whether voluntarily or
involuntarily, by set-off, pursuant to a Bankruptcy Event or otherwise) in a greater
proportion than any such payment to or collateral received by any other Lender, if any, in
respect of such other Lender’s Loans, Participation Interests or interest thereon, such
Benefited Lender shall purchase for cash from the other Lenders a participating interest in
such portion of each such other Lender’s Loan, or shall provide such other Lenders with the
benefits of any such collateral, or the proceeds thereof, as shall be necessary to cause
such Benefited Lender to share the excess payment or benefits of such collateral or proceeds
ratably with each of the Lenders; provided, however, that if all or any
portion of such excess payment or benefits is thereafter recovered from such Benefited
Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to
the extent of such recovery, but without interest. The Borrower agrees that each Lender so
purchasing a portion of another Lender’s Loans may exercise all rights of payment
(including, without limitation, rights of set-off) with respect to such portion as fully as
if such Lender were the direct holder of such portion.

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     (b) In addition to any rights and remedies of the Lenders provided by law (including,
without limitation, other rights of set-off), each Lender shall have the right, without
prior notice to the Borrower or the applicable Credit Party, any such notice being expressly
waived by the Credit Parties to the extent permitted by applicable law, upon the occurrence
and continuation of any Event of Default, to setoff and appropriate and apply any and all
deposits (general or special, time or demand, provisional or final), in any
currency, and any other credits, indebtedness or claims, in any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, at any time held
by or owing to such Lender or any branch or agency thereof to or for the credit or the
account of the Borrower or any other Credit Party, or any part thereof in such amounts as
such Lender may elect, against and on account of the Loans and other Credit Party
Obligations of the Borrower and the other Credit Parties to the Administrative Agent, the
Lenders, the Bank Product Providers and the Hedging Agreement Providers and claims of every
nature and description of the Administrative Agent, the Lenders, the Bank Product Providers
and the Hedging Agreement Providers against the Borrower and the other Credit Parties, in
any currency, whether arising hereunder, under any other Credit Document or any Bank
Product, as such Lender may elect, whether or not the Administrative Agent, the Lenders, the
Bank Product Providers or the Hedging Agreement Providers have made any demand for payment
and although such obligations, liabilities and claims may be contingent or unmatured. The
aforesaid right of set-off may be exercised by such Lender against the Borrower, any other
Credit Party or against any trustee in bankruptcy, debtor in possession, assignee for the
benefit of creditors, receiver or execution, judgment or attachment creditor of the Borrower
or any other Credit Party, or against anyone else claiming through or against the Borrower,
any other Credit Party or any such trustee in bankruptcy, debtor in possession, assignee for
the benefit of creditors, receiver, or execution, judgment or attachment creditor,
notwithstanding the fact that such right of set-off shall not have been exercised by such
Lender prior to the occurrence and continuation of any Event of Default. Each Lender agrees
promptly to notify the Borrower and the Administrative Agent after any such set-off and
application made by such Lender; provided, however, that the failure to give
such notice shall not affect the validity of such set-off and application.

     Section 10.8 Table of Contents and Section Headings.

     The table of contents and the Section and subsection headings herein are intended for
convenience only and shall be ignored in construing this Agreement.

     Section 10.9 Counterparts.

     This Agreement may be executed by one or more of the parties to this Agreement on any number
of separate counterparts, and all of said counterparts taken together shall be deemed to constitute
one and the same instrument. A set of the copies of this Agreement signed by all the parties shall
be lodged with the Borrower and the Administrative Agent.

123

 

     Section 10.10 Effectiveness.

     This Agreement shall become effective on the date on which all of the parties have signed a
copy hereof (whether the same or different copies) and shall have delivered the same to the
Administrative Agent pursuant to Section 10.2 or, in the case of the Lenders, shall have given to
the Administrative Agent written, telecopied, email or telex notice (actually received) at such
office that the same has been signed and mailed to it.

     Section 10.11 Severability.

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

     Section 10.12 Integration.

     This Agreement and the other Credit Documents represent the agreement of the Borrower, the
other Credit Parties, the Administrative Agent and the Lenders with respect to the subject matter
hereof, and there are no promises, undertakings, representations or warranties by the
Administrative Agent, the Borrower, the other Credit Parties, or any Lender relative to the subject
matter hereof not expressly set forth or referred to herein or therein.

     Section 10.13 Governing Law.

     This Agreement and, unless otherwise specified therein, each other Credit Document and the
rights and obligations of the parties under this Agreement and such other Credit Document shall be
governed by, and construed and interpreted in accordance with, the law of the State of New York
(including Sections 5-1401 and 5-1402 of The New York General Obligations Law).

     Section 10.14 Consent to Jurisdiction and Service of Process.

     All judicial proceedings brought against the Borrower and/or any other Credit Party with
respect to this Agreement, any Note or any of the other Credit Documents may be brought in any
state or federal court of competent jurisdiction in the State of New York, and, by execution and
delivery of this Agreement, the Borrower and each of the other Credit Parties accepts, for itself
and in connection with its properties, generally and unconditionally, the exclusive jurisdiction of
the aforesaid courts and irrevocably agrees to be bound by any final judgment rendered thereby in
connection with this Agreement from which no appeal has been taken or is available. The Borrower
and each of the other Credit Parties irrevocably agree that all service of process in any such
proceedings in any such court may be effected by mailing a copy thereof by registered or certified
mail (or any substantially similar form of mail), postage prepaid, to it at its address set forth
in Section 10.2 or at such other address of which the Administrative Agent shall have been notified
pursuant thereto, such service being hereby acknowledged by the Borrower and the other Credit
Parties to be effective and binding service in every respect. The Borrower, the other

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Credit Parties, the Administrative Agent and the Lenders irrevocably waive any objection, including,
without limitation, any objection to the laying of venue or based on the grounds of forum
non-conveniens which it may now or hereafter have to the bringing of any such action or proceeding
in any such jurisdiction. Nothing herein shall affect the right to serve process in any other
manner permitted by law or shall limit the right of any Lender to bring proceedings against the
Borrower or the other Credit Parties in the court of any other jurisdiction.

     Section 10.15 Confidentiality.

     Each of the Administrative Agent, the Lenders and the Issuing Lender agrees to maintain the
confidentiality of the Information (as defined below), except that Information may be disclosed (a)
to its Affiliates and to its and its Affiliates’ respective partners, directors, officers,
employees, agents, advisors and other representatives (it being understood that the Persons to whom
such disclosure is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any self-regulatory authority, such as
the National Association of Insurance Commissioners), (c) to the extent required by applicable laws
or regulations or by any subpoena or similar legal process, (d) to any other party hereto, (e) in
connection with the exercise of any remedies hereunder, under any other Credit Document or Secured
Hedging Agreement or any action or proceeding relating to this Agreement, any other Credit Document
or Secured Hedging Agreement or the enforcement of rights hereunder or thereunder, (f) subject to
an agreement containing provisions substantially the same as those of this Section, to any assignee
of or Participant in, or any prospective assignee of or Participant in, any of its rights or
obligations under this Agreement, (g) (i) any actual or prospective counterparty (or its advisors)
to any swap or derivative transaction relating to the Borrower and its obligations, (ii) an
investor or prospective investor in securities issued by an Approved Fund that also agrees that
Information shall be used solely for the purpose of evaluating an investment in such securities
issued by the Approved Fund, (iii) a trustee, collateral manager, servicer, backup servicer,
noteholder or secured party in connection with the administration, servicing and reporting on the
assets serving as collateral for securities issued by an Approved Fund, or (iv) a nationally
recognized rating agency that requires access to information regarding the Credit Parties, the
Loans and Credit Documents in connection with ratings issued in respect of securities issued by an
Approved Fund (in each case, it being understood that the Persons to whom such disclosure is made
will be informed of the confidential nature of such information and instructed to keep such
information confidential), (h) with the consent of the Borrower or (i) to the extent such
Information (x) becomes publicly available other than as a result of a breach of this Section or
(y) becomes available to the Administrative Agent, any Lender, the Issuing Lender or any of their
respective Affiliates on a nonconfidential basis from a source other than the Borrower. Further,
the foregoing notwithstanding, the Credit Parties agree that the Administrative Agent, any Lender
or any Affiliate of the Administrative Agent or such Lender
may use any Credit Party’s name, logo or other indicia germane to such party in connection
with advertising, marketing or other similar purposes.

     For purposes of this Section, “Information” means all information received from the
Borrower or any of its Subsidiaries relating to the Borrower or any of its Subsidiaries or any of

125

 

their respective businesses, other than any such information that is available to the
Administrative Agent, any Lender or the Issuing Lender on a nonconfidential basis prior to
disclosure by the Borrower or any of its Subsidiaries. Any Person required to maintain the
confidentiality of Information as provided in this Section shall be considered to have complied
with its obligation to do so if such Person has exercised the same degree of care to maintain the
confidentiality of such Information as such Person would accord to its own confidential
information.

     Section 10.16 Acknowledgments.

     The Borrower and the other Credit Parties each hereby acknowledges that:

     (a) it has been advised by counsel in the negotiation, execution and delivery of each
Credit Document;

     (b) neither the Administrative Agent nor any Lender has any fiduciary relationship with
or duty to the Borrower or any other Credit Party arising out of or in connection with this
Agreement and the relationship between the Administrative Agent and the Lenders, on one
hand, and the Borrower and the other Credit Parties, on the other hand, in connection
herewith is solely that of debtor and creditor; and

     (c) no joint venture exists among the Lenders or among the Borrower or the other Credit
Parties and the Lenders.

     Section 10.17 Waivers of Jury Trial; Waiver of Consequential Damages.

     THE BORROWER, THE OTHER CREDIT PARTIES, THE ADMINISTRATIVE AGENT AND THE LENDERS HEREBY
IRREVOCABLY AND UNCONDITIONALLY WAIVE, TO THE EXTENT PERMITTED BY APPLICABLE LAW, TRIAL BY JURY IN
ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT AND FOR ANY
COUNTERCLAIM THEREIN. Each of the Borrower, the other Credit Parties, the Administrative Agent and
the Lenders agree not to assert any claim against any other party to this Agreement or any their
respective directors, officers, employees, attorneys, Affiliates or agents, on any theory of
liability, for special, indirect, consequential or punitive damages arising out of or otherwise
relating to any of the transactions contemplated herein.

     Section 10.18 Patriot Act Notice. 

     Each Lender and the Administrative Agent (for itself and not on behalf of any other party)
hereby notifies the Borrower that, pursuant to the requirements of the Patriot Act, it is required
to obtain, verify and record information that identifies the Borrower and the other Credit Parties,
which information includes the name and address of the Borrower and the other Credit Parties and
other information that will allow such Lender or the Administrative Agent, as applicable, to
identify the Borrower and the other Credit parties in accordance with the Patriot Act.

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     Section 10.19 Resolution of Drafting Ambiguities.

     Each Credit Party acknowledges and agrees that it was represented by counsel in connection
with the execution and delivery of this Agreement and the other Credit Documents to which it is a
party, that it and its counsel reviewed and participated in the preparation and negotiation hereof
and thereof and that any rule of construction to the effect that ambiguities are to be resolved
against the drafting party shall not be employed in the interpretation hereof or thereof.

ARTICLE XI

GUARANTY

     Section 11.1 The Guaranty.

     In order to induce the Lenders to enter into this Agreement and any Hedging Agreement Provider
to enter into any Secured Hedging Agreement and to extend credit hereunder and thereunder and in
recognition of the direct benefits to be received by the Guarantors from the Extensions of Credit
hereunder and any Secured Hedging Agreement, each of the Guarantors hereby agrees with the
Administrative Agent, the Lenders and the Hedging Agreement Providers as follows: the Guarantor
hereby unconditionally and irrevocably jointly and severally guarantees as primary obligor and not
merely as surety the full and prompt payment when due, whether upon maturity, by acceleration or
otherwise, of any and all Credit Party Obligations. If any or all of the indebtedness becomes due
and payable hereunder or under any Secured Hedging Agreement, each Guarantor unconditionally
promises to pay such indebtedness to the Administrative Agent, the Lenders, the Hedging Agreement
Providers, or their respective order, or demand, together with any and all reasonable expenses
which may be incurred by the Administrative Agent or the Lenders in collecting any of the Credit
Party Obligations. The Guaranty set forth in this Article XI is a guaranty of timely
payment and not of collection. The word “indebtedness” is used in this Article XI in its
most comprehensive sense and includes any and all advances, debts, obligations and liabilities of
the Borrower, including specifically all Credit Party Obligations, arising in connection with this
Agreement, the other Credit Documents or any Secured Hedging Agreement, in each case, heretofore,
now, or hereafter made, incurred or created, whether voluntarily or involuntarily, absolute or
contingent, liquidated or unliquidated, determined or undetermined, whether or not such
indebtedness is from time to time reduced, or extinguished and thereafter increased or incurred,
whether the Borrower may be liable individually or jointly with others, whether or not recovery
upon such indebtedness may be or hereafter become barred by any statute of limitations, and whether
or not such indebtedness may be or hereafter become otherwise unenforceable.

     Notwithstanding any provision to the contrary contained herein or in any other of the Credit
Documents, to the extent the obligations of a Guarantor shall be adjudicated to be invalid or
unenforceable for any reason (including, without limitation, because of any applicable state or
federal law relating to fraudulent conveyances or transfers) then the obligations of each such

127

 

Guarantor hereunder shall be limited to the maximum amount that is permissible under applicable law
(whether federal or state and including, without limitation, the Bankruptcy Code).

     Section 11.2 Bankruptcy.

     Additionally, each of the Guarantors unconditionally and irrevocably guarantees jointly and
severally the payment of any and all Credit Party Obligations of the Borrower to the Lenders and
any Hedging Agreement Provider whether or not due or payable by the Borrower upon the occurrence of
a Bankruptcy Event, and unconditionally promises to pay such Credit Party Obligations to the
Administrative Agent for the account of the Lenders and to any such Hedging Agreement Provider, or
order, on demand, in lawful money of the United States. Each of the Guarantors further agrees that
to the extent that the Borrower or a Guarantor shall make a payment or a transfer of an interest in
any property to the Administrative Agent, any Lender or any Hedging Agreement Provider, which
payment or transfer or any part thereof is subsequently invalidated, declared to be fraudulent or
preferential, or otherwise is avoided, and/or required to be repaid to the Borrower or a Guarantor,
the estate of the Borrower or a Guarantor, a trustee, receiver or any other party under any
bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such
avoidance or repayment, the obligation or part thereof intended to be satisfied shall be revived
and continued in full force and effect as if said payment had not been made.

     Section 11.3 Nature of Liability.

     The liability of each Guarantor hereunder is exclusive and independent of any security for or
other guaranty of the Credit Party Obligations of the Borrower whether executed by any such
Guarantor, any other guarantor or by any other party, and no Guarantor’s liability hereunder shall
be affected or impaired by (a) any direction as to application of payment by the Borrower or by any
other party, or (b) any other continuing or other guaranty, undertaking or maximum liability of a
guarantor or of any other party as to the Credit Party Obligations of the Borrower, or (c) any
payment on or in reduction of any such other guaranty or undertaking, or (d) any dissolution,
termination or increase, decrease or change in personnel by the Borrower, or (e) any payment made
to the Administrative Agent, the Lenders or any Hedging Agreement Provider on the Credit Party
Obligations which the Administrative Agent, such Lenders or such Hedging Agreement Provider repay
the Borrower pursuant to court order in any bankruptcy, reorganization, arrangement, moratorium or
other debtor relief proceeding, and each of the Guarantors waives any right to the deferral or
modification of its obligations hereunder by reason of any such proceeding.

     Section 11.4 Independent Obligation.

     The obligations of each Guarantor hereunder are independent of the obligations of any other
Guarantor or the Borrower, and a separate action or actions may be brought and prosecuted against
each Guarantor whether or not action is brought against any other Guarantor or the Borrower and
whether or not any other Guarantor or the Borrower is joined in any such action or actions.

128

 

     Section 11.5 Authorization.

     Each of the Guarantors authorizes the Administrative Agent, each Lender and each Hedging
Agreement Provider without notice or demand (except as shall be required by applicable statute and
cannot be waived), and without affecting or impairing its liability hereunder, from time to time to
(a) renew, compromise, extend, increase, accelerate or otherwise change the time for payment of, or
otherwise change the terms of the Credit Party Obligations or any part thereof in accordance with
this Agreement and any Secured Hedging Agreement, as applicable, including any increase or decrease
of the rate of interest thereon, (b) take and hold security from any Guarantor or any other party
for the payment of this Guaranty or the Credit Party Obligations and exchange, enforce waive and
release any such security, (c) apply such security and direct the order or manner of sale thereof
as the Administrative Agent and the Lenders in their discretion may determine, (d) release or
substitute any one or more endorsers, Guarantors, the Borrower or other obligors and (e) to the
extent otherwise permitted herein, release any Collateral.

     Section 11.6 Reliance.

     It is not necessary for the Administrative Agent, the Lenders or any Hedging Agreement
Provider to inquire into the capacity or powers of the Borrower or the officers, directors,
members, partners or agents acting or purporting to act on its behalf, and any Credit Party
Obligations made or created in reliance upon the professed exercise of such powers shall be
guaranteed hereunder.

     Section 11.7 Waiver.

     (a) Each of the Guarantors waives any right (except as shall be required by applicable
statute and cannot be waived) to require the Administrative Agent, any Lender or any Hedging
Agreement Provider to (i) proceed against the Borrower, any other guarantor or any other
party, (ii) proceed against or exhaust any security held from the Borrower, any other
guarantor or any other party, or (iii) pursue any other remedy in the Administrative
Agent’s, any Lender’s or any Hedging Agreement Provider’s power whatsoever. Each of the
Guarantors waives any defense available to such Guarantor with respect to its obligations
under this Guaranty and any defense based on or arising out of any defense of the Borrower,
any other guarantor or any other party, in each case other than payment in full of the
Credit Party Obligations (other than contingent indemnity obligations), including without
limitation any defense based on or arising out of the disability of the Borrower, any other
guarantor or any other party, or the unenforceability of the Credit Party Obligations or any
part thereof from any cause, or the cessation from any cause of the liability of the
Borrower other than payment in full of the Credit Party Obligations. The Administrative
Agent may, at its election, foreclose on any security held by the Administrative Agent by
one or more judicial or nonjudicial sales (to the extent such sale is permitted by
applicable law), or exercise any other right or remedy the Administrative Agent or any
Lender may have against the Borrower or any other party, or any security, without affecting
or impairing in any way the liability of any Guarantor hereunder except to the extent the
Credit Party Obligations have been paid in full and the

129

 

Commitments have been terminated. Each of the Guarantors waives any defense arising out of any such election by the
Administrative Agent or any of the Lenders, even though such election operates to impair or
extinguish any right of reimbursement or subrogation or other right or remedy of the Guarantors against the
Borrower or any other party or any security.

     (b) Each of the Guarantors waives all presentments, demands for performance, protests
and notices, including without limitation notices of nonperformance, notice of protest,
notices of dishonor, notices of acceptance of this Guaranty, and notices of the existence,
creation or incurring of new or additional Credit Party Obligations. Each Guarantor assumes
all responsibility for being and keeping itself informed of the Borrower’s financial
condition and assets, and of all other circumstances bearing upon the risk of nonpayment of
the Credit Party Obligations and the nature, scope and extent of the risks which such
Guarantor assumes and incurs hereunder, and agrees that neither the Administrative Agent nor
any Lender shall have any duty to advise such Guarantor of information known to it regarding
such circumstances or risks.

     (c) Each of the Guarantors hereby agrees it will not exercise any rights of subrogation
which it may at any time otherwise have as a result of this Guaranty (whether contractual,
under Section 509 of the U.S. Bankruptcy Code, or otherwise) to the claims of the Lenders or
any Hedging Agreement Provider against the Borrower or any other guarantor of the Credit
Party Obligations of the Borrower owing to the Lenders or such Hedging Agreement Provider
(collectively, the “Other Parties”) and all contractual, statutory or common law
rights of reimbursement, contribution or indemnity from any Other Party which it may at any
time otherwise have as a result of this Guaranty until such time as the Credit Party
Obligations shall have been paid in full and the Commitments have been terminated. Each of
the Guarantors hereby further agrees not to exercise any right to enforce any other remedy
which the Administrative Agent, the Lenders or any Hedging Agreement Provider now have or
may hereafter have against any Other Party, any endorser or any other guarantor of all or
any part of the Credit Party Obligations of the Borrower and any benefit of, and any right
to participate in, any security or collateral given to or for the benefit of the Lenders
and/or the Hedging Agreement Providers to secure payment of the Credit Party Obligations of
the Borrower until such time as the Credit Party Obligations (other than contingent
indemnity obligations) shall have been paid in full and the Commitments have been
terminated.

     Section 11.8 Limitation on Enforcement.

     The Lenders and the Hedging Agreement Providers agree that this Guaranty may be enforced only
by the action of the Administrative Agent acting upon the instructions of the Required Lenders or
such Hedging Agreement Provider (only with respect to obligations under the applicable Secured
Hedging Agreement) and that no Lender or Hedging Agreement Provider shall have any right
individually to seek to enforce or to enforce this Guaranty, it being understood and agreed that
such rights and remedies may be exercised by the Administrative Agent for the benefit of the
Lenders under the terms of this Agreement and for the benefit of any Hedging Agreement Provider
under any Secured Hedging Agreement. The Lenders and the

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Hedging Agreement Providers further agree that this Guaranty may not be enforced against any director, officer, employee or stockholder of
the Guarantors.

     Section 11.9 Confirmation of Payment.

     The Administrative Agent and the Lenders will, upon request after payment of the Credit Party
Obligations which are the subject of this Guaranty and termination of the Commitments relating
thereto, confirm to the Borrower, the Guarantors or any other Person that such indebtedness and
obligations have been paid and the Commitments relating thereto terminated, subject to the
provisions of Section 11.2.

[Signature Pages Follow]

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horizon lines, inc.

credit agreement

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

	 	 	 	 	 	 	 
	BORROWER:	 	HORIZON LINES, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	GUARANTORS:	 	HLH, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON LINES OF PUERTO RICO, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON LINES OF ALASKA, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	SEA-LOGIX, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

horizon lines, inc.

credit agreement

	 	 	 	 	 	 	 
	 	 	HORIZON LINES, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	HORIZON SERVICES GROUP, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	HAWAII STEVEDORES, INC.,

a Hawaiian corporation	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

horizon lines, inc.

credit agreement

	 	 	 	 	 	 	 
	ADMINISTRATIVE AGENT:	 	WACHOVIA BANK, NATIONAL

ASSOCIATION, as Administrative Agent on behalf
of the Lenders	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:	 	 

 

 

horizon lines, inc.

credit agreement

	 	 	 	 	 	 	 
	 	 	 	 	 
	LENDERS:	 	as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Name:	 	 
	 	 	Title:

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